1 00:00:02,400 --> 00:00:05,560 Speaker 1: Hello, I'm Michael Barnes and I'm Scott Sasnik. On the podcast, 2 00:00:05,600 --> 00:00:07,600 Speaker 1: we'll explore the big money issues in the world of 3 00:00:07,640 --> 00:00:09,560 Speaker 1: sports and talk to some of the biggest players in 4 00:00:09,560 --> 00:00:12,120 Speaker 1: the industry. Today, we talked with the president and chief 5 00:00:12,119 --> 00:00:14,600 Speaker 1: operating office here of what many are calling the next 6 00:00:14,680 --> 00:00:18,400 Speaker 1: dynasty in sports, the Golden State Warriors, Rick Welts. We 7 00:00:18,440 --> 00:00:20,959 Speaker 1: all come to work in the same place. We have 8 00:00:20,960 --> 00:00:23,560 Speaker 1: our practice facility, Our players come to work here every day. 9 00:00:23,760 --> 00:00:26,880 Speaker 1: My office is fifty feet away from our general manager 10 00:00:26,880 --> 00:00:29,760 Speaker 1: and our coach. We're interacting with each other all the 11 00:00:29,800 --> 00:00:33,479 Speaker 1: time and include each other in the in things that 12 00:00:33,520 --> 00:00:36,879 Speaker 1: are not purely basketball. We'll have more of our interview 13 00:00:36,880 --> 00:00:39,920 Speaker 1: with Golden State Warriors president Rick Welts in a few minutes, 14 00:00:39,960 --> 00:00:42,239 Speaker 1: but first let's look at the top stories of the week. 15 00:00:42,320 --> 00:00:46,919 Speaker 1: Joining us is Bloomberg Business of Sports reporter Evan Novie Williams. 16 00:00:46,960 --> 00:00:51,680 Speaker 1: Let's start with a family feud in the NFL. Apparently 17 00:00:52,040 --> 00:00:55,200 Speaker 1: some people are not happy with Jerry Jones, owner of 18 00:00:55,240 --> 00:00:59,840 Speaker 1: the Dallas Cowboys, and I guess they're what answer is 19 00:01:00,120 --> 00:01:03,200 Speaker 1: mack it off? Jerry family, few top five answers on 20 00:01:03,240 --> 00:01:05,320 Speaker 1: the board and they're all Jerry Jones right now, Jerry 21 00:01:05,400 --> 00:01:08,880 Speaker 1: Jerry and Jerry Evan. It's not going away like you thought. 22 00:01:09,000 --> 00:01:12,640 Speaker 1: Perhaps they could fix this behind the scenes. Now you've 23 00:01:12,640 --> 00:01:16,320 Speaker 1: got letters going to Jerry with the the wording that 24 00:01:16,560 --> 00:01:20,160 Speaker 1: could lead to punishment for Jerry Jones. But you do 25 00:01:20,240 --> 00:01:23,720 Speaker 1: wonder why are they pushing this so quickly. There's no 26 00:01:23,920 --> 00:01:26,640 Speaker 1: rush to get an extension done for Roger Goodelly has 27 00:01:26,680 --> 00:01:29,240 Speaker 1: got a year and a half left on his contract. 28 00:01:29,560 --> 00:01:32,000 Speaker 1: Are they doing this just to spite Jerry? Yeah? I 29 00:01:32,000 --> 00:01:34,480 Speaker 1: mean I think this is a situation where they just 30 00:01:34,480 --> 00:01:37,399 Speaker 1: don't want Jerry exerting this power. You know, it's they 31 00:01:37,440 --> 00:01:40,880 Speaker 1: made an agreement made earlier this year. Every owner, including 32 00:01:40,959 --> 00:01:45,360 Speaker 1: Jerry Jones, approved it. And now probably because his star 33 00:01:45,520 --> 00:01:47,680 Speaker 1: running back was was treated by the league in a 34 00:01:47,720 --> 00:01:50,040 Speaker 1: way that he finds unfair. Now he wants to go 35 00:01:50,080 --> 00:01:52,600 Speaker 1: back and revisit that. It's a procedural thing. And I 36 00:01:52,600 --> 00:01:54,440 Speaker 1: think the NFL and a lot of their owners, many 37 00:01:54,440 --> 00:01:56,440 Speaker 1: of whom have sided with Jerry Jones in the past, 38 00:01:56,760 --> 00:01:58,760 Speaker 1: are now saying, you know what, this has to stop now. 39 00:01:59,080 --> 00:02:00,920 Speaker 1: You can't continue to hold the league hostage X and 40 00:02:01,040 --> 00:02:03,560 Speaker 1: Y on your whims um and it's Yeah, you're right, 41 00:02:03,560 --> 00:02:05,960 Speaker 1: it's getting ugly. But the question will be we saw 42 00:02:06,000 --> 00:02:08,919 Speaker 1: the NBA step in on Donald Sterling and take his franchise. Now, 43 00:02:09,320 --> 00:02:14,560 Speaker 1: of course racial epithets publicly, that's that's one thing to do. 44 00:02:14,639 --> 00:02:18,200 Speaker 1: You see this rising to the level of Jerry, this 45 00:02:18,360 --> 00:02:23,720 Speaker 1: better stop or we will invoke procedure to perhaps strip 46 00:02:23,800 --> 00:02:26,000 Speaker 1: you with a franchise. I mean theoretically could right, if 47 00:02:26,000 --> 00:02:28,600 Speaker 1: Ferry Jones wants to die on this field, he he can. 48 00:02:28,720 --> 00:02:31,160 Speaker 1: I mean, it seems more likely to me that Roger 49 00:02:31,200 --> 00:02:34,079 Speaker 1: gets his extension. There's some kind of concession in there 50 00:02:34,120 --> 00:02:37,079 Speaker 1: that makes it look like Jerry didn't outright lose, even 51 00:02:37,120 --> 00:02:41,240 Speaker 1: though he kind of did exactly. And then and then 52 00:02:41,280 --> 00:02:43,600 Speaker 1: we go back to the way things were right. I mean, 53 00:02:43,760 --> 00:02:45,720 Speaker 1: there's no question that the NFL is struggling right now. 54 00:02:45,760 --> 00:02:48,520 Speaker 1: For a business standpoint, Jerry Jones blames it on people 55 00:02:48,600 --> 00:02:51,280 Speaker 1: kneeling and Roger Goodell. Roger Goodell in this letter on 56 00:02:51,320 --> 00:02:55,359 Speaker 1: Wednesday night to Jerry's council blames it on Jerry. Um, 57 00:02:55,480 --> 00:02:57,320 Speaker 1: they need to get back to fixing that as opposed 58 00:02:57,360 --> 00:02:59,680 Speaker 1: to going after each other. Yeah, they need to work together. 59 00:02:59,720 --> 00:03:01,639 Speaker 1: And for what are we gonna do to get younger 60 00:03:01,680 --> 00:03:03,760 Speaker 1: people to watch. And I mean these are the real 61 00:03:03,800 --> 00:03:06,440 Speaker 1: issues of the NFL. When the ratings, whether or not 62 00:03:06,639 --> 00:03:09,360 Speaker 1: it's down across prime time like everything else, the fact 63 00:03:09,360 --> 00:03:12,600 Speaker 1: remains the NFL used to be impervious and it's not anymore. 64 00:03:12,720 --> 00:03:15,640 Speaker 1: Like something is happening where people are not watching as 65 00:03:15,720 --> 00:03:18,400 Speaker 1: much football. And if media is going to be the 66 00:03:18,480 --> 00:03:20,520 Speaker 1: number one source of revenue in team sports, which it 67 00:03:20,680 --> 00:03:24,079 Speaker 1: usually is and moving forward it will be, this is 68 00:03:24,080 --> 00:03:28,519 Speaker 1: an issue. Another major topic we're talking about. ESPN has 69 00:03:29,040 --> 00:03:33,200 Speaker 1: launched Snapchat. Now, as old man bar wants to know, 70 00:03:33,360 --> 00:03:36,000 Speaker 1: what's the big deal about this? I'm a snap as 71 00:03:36,000 --> 00:03:39,640 Speaker 1: you would call you. Are you on the m a snap? 72 00:03:41,040 --> 00:03:44,640 Speaker 1: I'm on the face? Yeah. Well, the big deal is, 73 00:03:44,680 --> 00:03:47,320 Speaker 1: like we just talked about, the NFL is struggling to 74 00:03:47,960 --> 00:03:52,720 Speaker 1: keep or get younger viewers. ESPN is facing the same 75 00:03:53,120 --> 00:03:57,320 Speaker 1: issue people are going elsewhere. Big New York Times magazine 76 00:03:57,360 --> 00:04:00,800 Speaker 1: story on Barstool Sports and how it is a viable 77 00:04:00,840 --> 00:04:05,920 Speaker 1: alternative for younger sports fans who just don't feel any short, 78 00:04:06,000 --> 00:04:10,880 Speaker 1: any sort of kinship with ESPN outside of the live games, 79 00:04:10,880 --> 00:04:13,520 Speaker 1: outside of real life programming. Of course, you want to 80 00:04:13,520 --> 00:04:15,560 Speaker 1: watch the game, you go there, but for everything else, 81 00:04:15,640 --> 00:04:19,520 Speaker 1: the shoulder programming that supports so many hours the kids 82 00:04:19,600 --> 00:04:22,159 Speaker 1: are going elsewhere. ESPN still has its brand. It is 83 00:04:22,200 --> 00:04:24,520 Speaker 1: the biggest brand in sports media, and they know that. 84 00:04:24,880 --> 00:04:28,080 Speaker 1: The thing is, as Scott said, kids are watching elsewhere. 85 00:04:28,400 --> 00:04:31,600 Speaker 1: So ESPNS plan, as we saw with the failed Barstool 86 00:04:31,640 --> 00:04:34,520 Speaker 1: partnership and now the Snapchat partnership, is to use its 87 00:04:34,560 --> 00:04:37,600 Speaker 1: brand and put that on the platforms or work with 88 00:04:37,640 --> 00:04:40,200 Speaker 1: the platforms that kids know. We're gonna see a lot 89 00:04:40,240 --> 00:04:42,520 Speaker 1: more of this. At Disney reported its earnings last week, 90 00:04:42,680 --> 00:04:45,640 Speaker 1: they were down a bit, largely because struggles in its 91 00:04:45,680 --> 00:04:48,520 Speaker 1: media department. You can read that as ESPN They're gonna 92 00:04:48,600 --> 00:04:51,280 Speaker 1: keep trying different things to try and reach this younger 93 00:04:51,320 --> 00:04:54,520 Speaker 1: demographic because as solid as they are with the older folks, 94 00:04:54,600 --> 00:04:57,400 Speaker 1: they're not they're with the kids. Next topic, what was 95 00:04:57,440 --> 00:05:02,240 Speaker 1: the number one song in nineteen fifty eight? Well, why 96 00:05:02,160 --> 00:05:04,800 Speaker 1: I Have Been You were born? And what a lot 97 00:05:04,839 --> 00:05:08,560 Speaker 1: after that? Yeah, the only one born in the five 98 00:05:08,600 --> 00:05:10,800 Speaker 1: in front of his number their bar Why don't you 99 00:05:10,880 --> 00:05:26,280 Speaker 1: Weary Old Man? No? Number one? And later on they 100 00:05:26,279 --> 00:05:29,960 Speaker 1: made a soap number. But that's not then this another story. 101 00:05:29,839 --> 00:05:32,720 Speaker 1: The reason why we're bringing this up, this is the 102 00:05:32,800 --> 00:05:37,320 Speaker 1: same time that Italy failed to make the World Cup 103 00:05:37,360 --> 00:05:41,040 Speaker 1: back in nineteen time. Reference, that's where we're going, got it? 104 00:05:41,279 --> 00:05:44,520 Speaker 1: So now Italy has failed to qualify for the Soccer 105 00:05:44,560 --> 00:05:48,880 Speaker 1: World Cup finals for the first time since nineteen and 106 00:05:48,920 --> 00:05:53,080 Speaker 1: it may cost the country about a billion euros. Well 107 00:05:53,120 --> 00:05:57,440 Speaker 1: not only let's go wide spread though, no US, no Ireland. 108 00:05:57,600 --> 00:06:00,280 Speaker 1: This might be a problem for Fox, no nethereless. These 109 00:06:00,279 --> 00:06:03,360 Speaker 1: are some These are some pretty important soccer clubs. I'm 110 00:06:03,360 --> 00:06:07,160 Speaker 1: always dubious though on sort of these economic impact that 111 00:06:07,960 --> 00:06:11,000 Speaker 1: will fans know the sports bars won't be filled? But 112 00:06:11,200 --> 00:06:14,400 Speaker 1: will they spend the money somewhere else? Might they go 113 00:06:14,480 --> 00:06:18,640 Speaker 1: to a movie? Might they go to an arcade? Will 114 00:06:18,720 --> 00:06:21,159 Speaker 1: they spend the money elsewhere? That's the question a little little. 115 00:06:21,200 --> 00:06:25,960 Speaker 1: I'm always skeptical on these things. However, it is hard 116 00:06:26,520 --> 00:06:29,960 Speaker 1: to overstate the importance of Ready, I'm gonna get a 117 00:06:30,000 --> 00:06:33,320 Speaker 1: little soccer on you here bar the azure to the 118 00:06:33,360 --> 00:06:37,680 Speaker 1: Italian soccer fan Evan and talking about law of unintended consequences. 119 00:06:37,680 --> 00:06:40,280 Speaker 1: As soon as they failed to qualify, shares of Puma 120 00:06:40,360 --> 00:06:46,159 Speaker 1: fell slightly. Uh, that's the Jersey spots. Exactly eight years ago, 121 00:06:46,200 --> 00:06:49,000 Speaker 1: Puma had had fourteen teams I think in the World Cup, 122 00:06:49,040 --> 00:06:51,280 Speaker 1: and now they're gonna have to you know when when 123 00:06:51,320 --> 00:06:54,159 Speaker 1: when when big teams failed to qualify. There are a 124 00:06:54,200 --> 00:06:56,680 Speaker 1: lot more than just the bar owners and the and 125 00:06:56,720 --> 00:06:58,720 Speaker 1: the local shop owners in their country. There's there's a 126 00:06:58,760 --> 00:07:00,680 Speaker 1: lot of companies out there that have invested a lot 127 00:07:00,760 --> 00:07:03,400 Speaker 1: in these companies. O. Well, thanks to Bloomberg Business of 128 00:07:03,440 --> 00:07:06,760 Speaker 1: Sports reporter Evan Novi Williams. And now you've heard of 129 00:07:06,800 --> 00:07:11,240 Speaker 1: Steph Curry, Kevin Durant and even Draymond Green. But Rick 130 00:07:11,320 --> 00:07:14,560 Speaker 1: Welts he's the president and chief operating officer of the 131 00:07:14,560 --> 00:07:17,120 Speaker 1: world champion Golden State Warriors. And Rick, thank you very 132 00:07:17,200 --> 00:07:19,440 Speaker 1: much for taking some time and joining us. Pleasure to 133 00:07:19,480 --> 00:07:23,000 Speaker 1: be with you. Guys. You have been in basketball an 134 00:07:23,040 --> 00:07:26,600 Speaker 1: awfully long time. And I love chatting with Commissioner Stern 135 00:07:26,680 --> 00:07:30,240 Speaker 1: because he goes back to when I started. But what 136 00:07:30,400 --> 00:07:34,119 Speaker 1: was basketball from a business perspective when well, you started 137 00:07:34,120 --> 00:07:36,400 Speaker 1: as a ball boy, but like your professional life, what 138 00:07:36,480 --> 00:07:40,920 Speaker 1: was basketball back then? Well, I think my organization was 139 00:07:40,960 --> 00:07:44,440 Speaker 1: the Seattle SuperSonics when I had my first job that 140 00:07:44,560 --> 00:07:46,840 Speaker 1: wasn't a ball boy, and I was in the media 141 00:07:46,880 --> 00:07:50,600 Speaker 1: relations department there. We had fifteen people in our front 142 00:07:50,640 --> 00:07:54,760 Speaker 1: office that did everything that the two people here that 143 00:07:54,840 --> 00:07:57,920 Speaker 1: Warrior's headquarters are doing every day. So it was it 144 00:07:58,000 --> 00:08:00,840 Speaker 1: was a bit of a simpler business. And uh, you know, 145 00:08:00,920 --> 00:08:03,280 Speaker 1: I think looking back at that the seeds were being 146 00:08:03,280 --> 00:08:07,040 Speaker 1: planned even then, but uh, it doesn't bear much resemblance 147 00:08:07,080 --> 00:08:09,960 Speaker 1: to the organizations we have in place today. When did 148 00:08:10,040 --> 00:08:13,240 Speaker 1: you know there was an inflection point that this sort 149 00:08:13,280 --> 00:08:17,200 Speaker 1: of mom and pop thing or tape delay. When did 150 00:08:17,240 --> 00:08:21,080 Speaker 1: you know that this thing the NBA was getting ready 151 00:08:21,120 --> 00:08:24,239 Speaker 1: to take off? I think it coincided with the time 152 00:08:24,240 --> 00:08:28,800 Speaker 1: that Stern became commissioner in a lot of heavy lifting 153 00:08:29,040 --> 00:08:31,920 Speaker 1: had been done, some of it by him up to 154 00:08:32,040 --> 00:08:34,440 Speaker 1: that point. You know. That's that's the point in time 155 00:08:34,520 --> 00:08:37,480 Speaker 1: when the league was able to reach an agreement with 156 00:08:37,520 --> 00:08:43,240 Speaker 1: their players that any player found using uh forbidden drug 157 00:08:43,360 --> 00:08:45,680 Speaker 1: would be potentially banned from the league. And that was 158 00:08:45,760 --> 00:08:48,360 Speaker 1: a huge statement for a league that had been viewed 159 00:08:48,400 --> 00:08:52,000 Speaker 1: as uh, you know, drug infested, too black to ever 160 00:08:52,080 --> 00:08:55,920 Speaker 1: be accepted on a wide scale basis by the American public. 161 00:08:56,120 --> 00:08:59,320 Speaker 1: And you know, franchises were more likely to go out 162 00:08:59,320 --> 00:09:01,720 Speaker 1: of business, and the league was to expand, and you 163 00:09:01,760 --> 00:09:05,880 Speaker 1: could feel the maybe you could feel the social atmosphere 164 00:09:05,960 --> 00:09:09,480 Speaker 1: changing around the sport, and I think Stern's injection of 165 00:09:09,600 --> 00:09:13,120 Speaker 1: energy and just the way he approached his job in 166 00:09:13,120 --> 00:09:15,880 Speaker 1: the early years. And then there were a couple of guys, 167 00:09:16,320 --> 00:09:18,760 Speaker 1: Magic Johnson, Larry Bird that might have had a little something. 168 00:09:18,960 --> 00:09:21,400 Speaker 1: I've heard of them. I've heard of those as well. Yeah, 169 00:09:21,480 --> 00:09:23,439 Speaker 1: but it was it was a pretty good combination of 170 00:09:23,440 --> 00:09:25,760 Speaker 1: events that started pointing us in the right way. I 171 00:09:25,800 --> 00:09:28,200 Speaker 1: remember when the Golden State Warriors had a total of 172 00:09:28,240 --> 00:09:32,040 Speaker 1: about four fans and the team wasn't very good when 173 00:09:32,040 --> 00:09:35,679 Speaker 1: they first started out. And now obviously the team is gangbusters, 174 00:09:35,760 --> 00:09:41,560 Speaker 1: just winning championships left and right. What change for the team? Well, uh, 175 00:09:41,679 --> 00:09:44,640 Speaker 1: you know, Joe Lacob and Peter Goober bought the team, 176 00:09:44,840 --> 00:09:48,599 Speaker 1: uh almost eight years ago now for the unheard of 177 00:09:48,720 --> 00:09:51,680 Speaker 1: price of four and fifty million dollars, by far, the 178 00:09:51,679 --> 00:09:55,480 Speaker 1: the highest price ever paid for an NBA franchise. And 179 00:09:55,640 --> 00:09:58,360 Speaker 1: my one of the things I always recommend to people 180 00:09:59,200 --> 00:10:02,400 Speaker 1: looking to perk potentially an NBA team is always by 181 00:10:02,480 --> 00:10:06,840 Speaker 1: one that already has Steph Curry on the roster. Good advice. 182 00:10:06,880 --> 00:10:11,040 Speaker 1: I see why you've gone so far, Rick, Yeah, that uh, 183 00:10:11,200 --> 00:10:13,959 Speaker 1: you know, he wasn't the Steph Curry we know today 184 00:10:14,240 --> 00:10:19,079 Speaker 1: at that point in time. But clearly to have future 185 00:10:19,120 --> 00:10:22,400 Speaker 1: superstar you know, on your roster already was a great advantage. 186 00:10:22,440 --> 00:10:25,320 Speaker 1: But I have to tell you, like everyone in our 187 00:10:25,360 --> 00:10:28,480 Speaker 1: industry had looked at the Warriors franchise for years and said, 188 00:10:28,480 --> 00:10:30,840 Speaker 1: if you could ever get it in the right ownership 189 00:10:30,840 --> 00:10:34,400 Speaker 1: and management hands, the market has everything that you would 190 00:10:34,400 --> 00:10:37,880 Speaker 1: hope for to have a successful sports franchise, certainly an 191 00:10:37,960 --> 00:10:42,240 Speaker 1: NBA franchise. The you know, the world's future is being 192 00:10:42,280 --> 00:10:45,960 Speaker 1: determined in this area. The economy is booming. Uh Uh, 193 00:10:46,080 --> 00:10:48,360 Speaker 1: there is a I would I would disagree with you 194 00:10:48,400 --> 00:10:51,600 Speaker 1: a little bit, Michael. We actually had amazing fans support 195 00:10:51,800 --> 00:10:56,319 Speaker 1: while missing the NBA playoffs sixteen seventeen years. Uh. We actually, 196 00:10:56,559 --> 00:10:58,320 Speaker 1: we actually had a lot of people who kept coming 197 00:10:58,320 --> 00:11:00,000 Speaker 1: to the game. So if we were able to provide 198 00:11:00,000 --> 00:11:03,320 Speaker 1: it a better product, uh and managed the business in 199 00:11:03,320 --> 00:11:06,160 Speaker 1: a different way, we had high level of confidence this 200 00:11:06,240 --> 00:11:09,080 Speaker 1: could be something pretty special. So tell me about that, Rick, 201 00:11:09,120 --> 00:11:11,040 Speaker 1: and we're chatting with Rick Weltch, the president of the 202 00:11:11,040 --> 00:11:13,760 Speaker 1: Golden State Warriors. The one thing you cannot guarantee to 203 00:11:13,800 --> 00:11:16,280 Speaker 1: your fan base, your customers is winning games. You just 204 00:11:16,320 --> 00:11:20,000 Speaker 1: can't guarantee it, but you can guarantee experience. Is that 205 00:11:20,360 --> 00:11:24,360 Speaker 1: what you focused on? Well, I think what fans really 206 00:11:24,360 --> 00:11:26,559 Speaker 1: care about is the direction of the team. And I 207 00:11:26,600 --> 00:11:30,120 Speaker 1: think when again, when Joe and Peter took the floor 208 00:11:30,280 --> 00:11:32,760 Speaker 1: first time as owners, and Joe pointed to the ceiling 209 00:11:32,840 --> 00:11:36,120 Speaker 1: and said, that looks like one really lonely championship banner 210 00:11:36,200 --> 00:11:38,880 Speaker 1: up there, and we want another one at least, was 211 00:11:39,600 --> 00:11:43,679 Speaker 1: put a challenge to the organization. And we, uh, you know, 212 00:11:44,120 --> 00:11:48,319 Speaker 1: we we made incremental progress. It wasn't every every step 213 00:11:48,400 --> 00:11:50,600 Speaker 1: wasn't forward. There were a couple of steps back. But 214 00:11:50,679 --> 00:11:54,200 Speaker 1: I think fans gave the new ownership group and the 215 00:11:54,200 --> 00:11:56,320 Speaker 1: new management group the benefit of the doubt as long 216 00:11:56,360 --> 00:11:58,920 Speaker 1: as they could see incremental success. And you know, it 217 00:11:59,280 --> 00:12:02,480 Speaker 1: started to come faster and faster. Probably the success happened 218 00:12:02,520 --> 00:12:06,440 Speaker 1: faster than we anticipated. But but as I said, uh, 219 00:12:06,600 --> 00:12:08,360 Speaker 1: it was it was here for the taking if we 220 00:12:08,400 --> 00:12:10,880 Speaker 1: could just organize the business and the basketball team in 221 00:12:10,880 --> 00:12:13,280 Speaker 1: the right way. But those fans did not give Joe 222 00:12:13,320 --> 00:12:15,240 Speaker 1: any benefit of the doubt that time he stood at 223 00:12:15,280 --> 00:12:19,559 Speaker 1: center court and they were booing him mercilessly. And Rick 224 00:12:19,559 --> 00:12:21,400 Speaker 1: Barry tried to go out and calm them down. Chris 225 00:12:21,520 --> 00:12:23,679 Speaker 1: Mullen tried to go out and calm them down. They 226 00:12:23,679 --> 00:12:25,320 Speaker 1: were just angry at some of the moves that he 227 00:12:25,320 --> 00:12:26,920 Speaker 1: had made. I mean, in the end, he was right, 228 00:12:27,320 --> 00:12:29,720 Speaker 1: but fans can certainly be fickle. They were wrong. They 229 00:12:29,720 --> 00:12:32,760 Speaker 1: were they were wrong in the long run. Well, uh, 230 00:12:32,800 --> 00:12:34,960 Speaker 1: it takes a lot of courage to trade your best player, 231 00:12:35,280 --> 00:12:37,480 Speaker 1: uh for a player who was not going to play 232 00:12:37,520 --> 00:12:41,079 Speaker 1: for the balance of the season. So trading Montellist to 233 00:12:41,200 --> 00:12:45,880 Speaker 1: Milwaukee for an injured Andrew Bogut h accomplished a couple 234 00:12:45,920 --> 00:12:48,800 Speaker 1: of things, but the most important was putting the ball 235 00:12:48,800 --> 00:12:51,120 Speaker 1: and Steph Curry's hand and making him the point guard 236 00:12:51,240 --> 00:12:53,559 Speaker 1: of the Warriors. So yeah, I don't think a lot 237 00:12:53,600 --> 00:12:56,560 Speaker 1: of those fans in the in the arena that night 238 00:12:56,600 --> 00:12:59,400 Speaker 1: would would still be booing if that trade, you know, 239 00:12:59,400 --> 00:13:01,080 Speaker 1: if they could have seen the future and seeing what 240 00:13:01,160 --> 00:13:04,680 Speaker 1: that trade would bring. Today's game is an experience for 241 00:13:04,720 --> 00:13:07,600 Speaker 1: the fans. They come and they see the Warriors and 242 00:13:08,040 --> 00:13:12,960 Speaker 1: they enjoy the team and all that the arena has 243 00:13:13,000 --> 00:13:15,600 Speaker 1: to offer. Can you talk more about that, about what 244 00:13:15,640 --> 00:13:19,560 Speaker 1: it means for the NBA to offer a fan experience now? 245 00:13:19,920 --> 00:13:23,720 Speaker 1: For a sporting team. Yeah, I think that's central to 246 00:13:24,240 --> 00:13:27,400 Speaker 1: how the league is viewed and why the sport has 247 00:13:27,440 --> 00:13:30,719 Speaker 1: been successful. I think early on, uh, certainly ahead of 248 00:13:30,760 --> 00:13:33,720 Speaker 1: the other major sports leagues, we took that philosophy that 249 00:13:33,800 --> 00:13:36,480 Speaker 1: we had to entertain people from the time they walked 250 00:13:36,480 --> 00:13:39,400 Speaker 1: intil the time that they left. And Scott, as you 251 00:13:39,440 --> 00:13:42,400 Speaker 1: said before, I think that we couldn't guarantee wins, so 252 00:13:42,480 --> 00:13:47,360 Speaker 1: we could guarantee great atmosphere and enjoyable experience, and that, 253 00:13:48,040 --> 00:13:50,800 Speaker 1: you know, that's why I think the league. I think 254 00:13:50,800 --> 00:13:53,120 Speaker 1: the league's secret weapon is what we call our team 255 00:13:53,120 --> 00:13:55,920 Speaker 1: Marketing and Business Operations Group. It's not a it's not 256 00:13:55,960 --> 00:14:00,000 Speaker 1: a sexy thing, but they're forty wicked smart. Mostly. I've 257 00:14:00,120 --> 00:14:03,360 Speaker 1: league nbas at the NBA who do nothing but study 258 00:14:03,400 --> 00:14:06,720 Speaker 1: our team business and share best practices. And I think 259 00:14:06,840 --> 00:14:09,880 Speaker 1: central to our success is this philosophy that our teams, 260 00:14:09,960 --> 00:14:12,679 Speaker 1: in a different way, are in it together. We share 261 00:14:12,960 --> 00:14:15,720 Speaker 1: every bit of business data. I have complete access to 262 00:14:15,800 --> 00:14:18,880 Speaker 1: all the financial information for every team. We rank every 263 00:14:18,920 --> 00:14:22,040 Speaker 1: team one to thirty in every possible category, including how 264 00:14:22,080 --> 00:14:25,520 Speaker 1: we present the game in arena, and we motivate each 265 00:14:25,560 --> 00:14:29,000 Speaker 1: other to get better. And we're not afraid to share 266 00:14:29,080 --> 00:14:32,120 Speaker 1: ideas with what you would think would be your competitors. 267 00:14:32,160 --> 00:14:36,280 Speaker 1: That that's a culture that I don't believe exists at 268 00:14:36,280 --> 00:14:38,200 Speaker 1: the same level in the other sports leagues, and I 269 00:14:38,200 --> 00:14:41,520 Speaker 1: think that's a big reason for the NBA success. You 270 00:14:41,640 --> 00:14:44,440 Speaker 1: are looking at moving into a new home in a 271 00:14:44,480 --> 00:14:50,440 Speaker 1: couple of years. What does the prospect of not only 272 00:14:50,480 --> 00:14:55,239 Speaker 1: a new building, state of the art technology downtown San Francisco, 273 00:14:55,880 --> 00:15:01,000 Speaker 1: what does the promise of all that mean for France, Well, 274 00:15:01,040 --> 00:15:04,520 Speaker 1: it means everything. Uh. It sets the Warriors up for 275 00:15:04,640 --> 00:15:07,880 Speaker 1: success for decades to come. Uh. You know, we have 276 00:15:07,960 --> 00:15:12,200 Speaker 1: a we have a wonderful atmosphere in our Oracle Arena today. 277 00:15:13,120 --> 00:15:15,200 Speaker 1: A lot of people don't know though, that Oracle is 278 00:15:15,240 --> 00:15:18,200 Speaker 1: actually the oldest building in the NBA, was built before 279 00:15:18,240 --> 00:15:20,840 Speaker 1: Madison Score Garden was built, and as great as is 280 00:15:21,080 --> 00:15:24,680 Speaker 1: once you're in your seats. Going back to talking about 281 00:15:24,720 --> 00:15:28,360 Speaker 1: what fans expect today in terms of entertainment experience, Uh, 282 00:15:29,320 --> 00:15:31,320 Speaker 1: it falls way short. And we knew that we were 283 00:15:31,320 --> 00:15:34,240 Speaker 1: going to have to build a new arena. The audacious 284 00:15:34,280 --> 00:15:37,000 Speaker 1: move was really to believe we could get it done 285 00:15:37,000 --> 00:15:41,040 Speaker 1: in San Francisco, which had never in its history had 286 00:15:41,080 --> 00:15:44,040 Speaker 1: a world class sports and entertainment arena. I can promise 287 00:15:44,080 --> 00:15:46,520 Speaker 1: you that I understand why it's never had that, having 288 00:15:46,520 --> 00:15:48,840 Speaker 1: been through the process for the last six years. But 289 00:15:48,880 --> 00:15:52,800 Speaker 1: we will be opening the new Chase Center UH in 290 00:15:52,840 --> 00:15:55,800 Speaker 1: the summer of two thousand nineteen in time for the 291 00:15:54,840 --> 00:15:59,960 Speaker 1: NBA season. Now, I'm guessing that process would have been 292 00:16:00,160 --> 00:16:04,440 Speaker 1: even more difficult had you been asking for public money. 293 00:16:04,480 --> 00:16:06,760 Speaker 1: What have you seen, I'd say, I mean over your 294 00:16:06,880 --> 00:16:10,920 Speaker 1: entire tenure, but in the last five years, let's say, 295 00:16:10,960 --> 00:16:17,600 Speaker 1: of the appetite for public money for sports and entertainment facilities, well, UH, 296 00:16:17,720 --> 00:16:21,360 Speaker 1: San Francisco is at least consistent because San Francisco's appetite 297 00:16:21,400 --> 00:16:25,480 Speaker 1: for spending public money on on sporting facilities is zero 298 00:16:25,680 --> 00:16:28,160 Speaker 1: and has been zero for a long time. The San 299 00:16:28,200 --> 00:16:33,680 Speaker 1: Francisco Giants, UH, we're able to construct their amazing A 300 00:16:33,760 --> 00:16:37,120 Speaker 1: T and T Park UH using private funds. They did 301 00:16:37,120 --> 00:16:40,080 Speaker 1: get public land in that case, it was Portland. In 302 00:16:40,120 --> 00:16:44,680 Speaker 1: our case, we bought the property, UH, and of the 303 00:16:44,720 --> 00:16:49,320 Speaker 1: financing is private. Now, you know, I don't suggest this 304 00:16:49,520 --> 00:16:52,480 Speaker 1: as a success formula for other markets. This is a 305 00:16:52,600 --> 00:16:56,320 Speaker 1: very unique moment in time, and it's San Francisco and 306 00:16:56,440 --> 00:16:59,640 Speaker 1: I don't think the formula works. Frankly, in a Milwaukee 307 00:16:59,800 --> 00:17:02,800 Speaker 1: or a Detroit where we're building, we've just opened, or 308 00:17:02,800 --> 00:17:05,040 Speaker 1: in the process of opening a new building, it doesn't work. 309 00:17:05,040 --> 00:17:08,960 Speaker 1: The economics don't justify the investment. So I still think 310 00:17:09,680 --> 00:17:13,600 Speaker 1: that while it gets more scrutiny now, public funding is 311 00:17:13,760 --> 00:17:18,240 Speaker 1: an absolutely essential part of actually creating a new stadium 312 00:17:18,359 --> 00:17:21,040 Speaker 1: or arena, and and local governments have to make the 313 00:17:21,080 --> 00:17:24,640 Speaker 1: decision on whether that's something that that their their constituents 314 00:17:24,720 --> 00:17:26,919 Speaker 1: want to see have happened in their cities. But I 315 00:17:26,960 --> 00:17:30,359 Speaker 1: don't think this is a model for others because I 316 00:17:30,400 --> 00:17:33,960 Speaker 1: think it would be virtually impossible to replicate maybe anywhere 317 00:17:34,000 --> 00:17:36,840 Speaker 1: else in the United States. We're talking to Rick Welts. 318 00:17:36,920 --> 00:17:40,640 Speaker 1: He's the chief operating officer of the defending NBA champion 319 00:17:40,720 --> 00:17:44,520 Speaker 1: Golden State Warriors. What do you think about fantasy sports 320 00:17:44,680 --> 00:17:47,719 Speaker 1: and the impact not only on your team but the 321 00:17:47,840 --> 00:17:51,960 Speaker 1: NBA in general. We love it. We think that it 322 00:17:52,040 --> 00:17:57,159 Speaker 1: does nothing but drive more interest in the game. Obviously, 323 00:17:57,520 --> 00:17:58,840 Speaker 1: you have to be if you want to be good 324 00:17:58,840 --> 00:18:00,760 Speaker 1: at it and you really want to undertake it, you 325 00:18:00,760 --> 00:18:03,440 Speaker 1: have to to study the game and study box scores 326 00:18:03,480 --> 00:18:06,720 Speaker 1: and and understand players in the league, and that we 327 00:18:06,800 --> 00:18:09,760 Speaker 1: think is nothing but additive to how people feel about 328 00:18:09,760 --> 00:18:12,359 Speaker 1: the NBA. So we we we really embrace it and 329 00:18:12,800 --> 00:18:15,520 Speaker 1: I think it's a it's a terrific element of our sport. 330 00:18:16,440 --> 00:18:20,000 Speaker 1: How do you go about your business at the executive level? Rick, 331 00:18:20,680 --> 00:18:24,960 Speaker 1: I'm told that your general manager Bob Myers takes part 332 00:18:25,040 --> 00:18:29,520 Speaker 1: when he can in the weekly business meetings. How important 333 00:18:29,560 --> 00:18:31,959 Speaker 1: is it? And this isn't just sports and entertainment. This 334 00:18:32,000 --> 00:18:34,919 Speaker 1: could be across all spectrums of business that the different 335 00:18:35,000 --> 00:18:38,920 Speaker 1: departments understand what's going on when the right hand and 336 00:18:38,960 --> 00:18:41,399 Speaker 1: the left hand. I mean, you've got your basketball side 337 00:18:41,400 --> 00:18:45,680 Speaker 1: partaking in the business side. How does that help? Well, 338 00:18:45,840 --> 00:18:47,679 Speaker 1: it was. It's one of the reasons I'm here. We 339 00:18:47,920 --> 00:18:50,880 Speaker 1: share the same philosophy as our ownership group does that 340 00:18:50,880 --> 00:18:54,080 Speaker 1: that that is the way to maximize your opportunity as 341 00:18:54,080 --> 00:18:56,920 Speaker 1: a franchise, both on the court and off And we're 342 00:18:56,920 --> 00:18:59,280 Speaker 1: all we all come to work in the same place. 343 00:19:00,200 --> 00:19:02,400 Speaker 1: We have our practice facility. Our players come to work 344 00:19:02,400 --> 00:19:05,360 Speaker 1: here every day. My office is fifty feet away from 345 00:19:05,440 --> 00:19:08,760 Speaker 1: our general manager and our coach. We're interacting with each 346 00:19:08,760 --> 00:19:10,959 Speaker 1: other all the time, and we include each other in 347 00:19:11,000 --> 00:19:14,760 Speaker 1: the in things that are not purely basketball. As he said, 348 00:19:14,800 --> 00:19:17,119 Speaker 1: Bob sits in my weekly staff meetings, and he's not 349 00:19:17,200 --> 00:19:22,000 Speaker 1: there too to tell us how Draymond Greene's ankle is feeling. 350 00:19:22,119 --> 00:19:24,840 Speaker 1: He's there to talk about ticket pricing, or he's there 351 00:19:24,880 --> 00:19:27,960 Speaker 1: to talk about marketing campaigns, or he's there to have 352 00:19:28,119 --> 00:19:31,000 Speaker 1: input on whatever the business issue of the day is. 353 00:19:31,080 --> 00:19:33,359 Speaker 1: He's a smart guy. He's been around the league. He 354 00:19:33,400 --> 00:19:36,560 Speaker 1: interacts so intimately with the players and coaching staff that 355 00:19:37,680 --> 00:19:41,200 Speaker 1: those voices cause you to make better decisions as an organization, 356 00:19:41,280 --> 00:19:45,720 Speaker 1: and in an organization sports organization, it is critical that 357 00:19:45,760 --> 00:19:48,359 Speaker 1: we have that kind of communication. And it's not the 358 00:19:48,400 --> 00:19:51,360 Speaker 1: only way to do it. Really successful franchises who completely 359 00:19:51,400 --> 00:19:55,920 Speaker 1: separate their basketball and business operations, we just don't think 360 00:19:55,960 --> 00:19:58,320 Speaker 1: that's the right way to go about doing it. Steve 361 00:19:58,359 --> 00:20:01,560 Speaker 1: has been outspoken on a number of issues, but sports 362 00:20:01,600 --> 00:20:05,320 Speaker 1: is political these days. Does anybody WinCE when Steve offers 363 00:20:05,560 --> 00:20:08,399 Speaker 1: his opinions? We see the trouble of the NFL is 364 00:20:08,480 --> 00:20:12,960 Speaker 1: in right now. Perhaps statements of a political nature are 365 00:20:13,000 --> 00:20:15,720 Speaker 1: not welcome in some franchises. It seems as if Joe 366 00:20:15,800 --> 00:20:19,760 Speaker 1: Lacob doesn't mind. I think what's great here is everyone 367 00:20:19,800 --> 00:20:22,440 Speaker 1: has a voice. That's part of our operating philosophy too, 368 00:20:22,520 --> 00:20:24,480 Speaker 1: is that if you're if you're in a room or 369 00:20:24,520 --> 00:20:27,119 Speaker 1: you're in a meeting, you're there because you should have 370 00:20:27,119 --> 00:20:29,920 Speaker 1: an opinion on whatever the subject is, and and and 371 00:20:29,960 --> 00:20:33,159 Speaker 1: hopefully not everybody agrees or we're not dealing with very 372 00:20:33,160 --> 00:20:38,280 Speaker 1: difficult subjects. The ability to articulately express an opinion is 373 00:20:39,040 --> 00:20:42,959 Speaker 1: embraced on our basketball team, It's embraced in our in 374 00:20:42,720 --> 00:20:45,840 Speaker 1: our in every aspect of our operation. I didn't realize 375 00:20:45,880 --> 00:20:49,960 Speaker 1: you could actually see my Steve Kerr for President bumper 376 00:20:50,000 --> 00:20:52,920 Speaker 1: sticker on my door. I have seen the Popovich Kurch 377 00:20:53,280 --> 00:20:57,760 Speaker 1: twenty T shirts though I bought one of those as well. So, uh, 378 00:20:57,960 --> 00:21:00,520 Speaker 1: you know, I will say this. You know, in we're 379 00:21:00,600 --> 00:21:06,119 Speaker 1: operating in a extremely liberal political market, right so the 380 00:21:06,160 --> 00:21:11,080 Speaker 1: Bay Area, you know, and down the the the thoughts 381 00:21:11,080 --> 00:21:13,639 Speaker 1: that are expressed by members of our organization may be 382 00:21:13,800 --> 00:21:16,879 Speaker 1: greeted differently than if I was in you know, another 383 00:21:16,920 --> 00:21:20,320 Speaker 1: market that was had a much more conservative political bent. Uh. 384 00:21:20,640 --> 00:21:23,560 Speaker 1: So you know, I will say that that there has 385 00:21:23,600 --> 00:21:27,919 Speaker 1: been zero business blowback for any of the things that 386 00:21:27,960 --> 00:21:30,879 Speaker 1: our players or coaches have said. But I think we 387 00:21:30,960 --> 00:21:34,159 Speaker 1: are in a bit of a unique political environment here 388 00:21:34,160 --> 00:21:36,720 Speaker 1: in the Bay Area. One question that pops in my 389 00:21:36,760 --> 00:21:41,720 Speaker 1: mind as I think about the politics that seep in 390 00:21:41,880 --> 00:21:47,119 Speaker 1: sometimes too sports. Should that be a marriage in sports 391 00:21:47,480 --> 00:21:52,760 Speaker 1: and politics? Should the two be separated? Uh? It never 392 00:21:52,840 --> 00:21:55,359 Speaker 1: has been and it never will be. Uh. Sports is 393 00:21:55,400 --> 00:21:58,560 Speaker 1: always a place where people who have nothing else in 394 00:21:58,600 --> 00:22:00,760 Speaker 1: common but are rooting interest for the sports team can 395 00:22:00,760 --> 00:22:03,760 Speaker 1: talk about social issues of the day. And really, if 396 00:22:03,800 --> 00:22:06,440 Speaker 1: you look back at the history of sports in this country, 397 00:22:06,840 --> 00:22:11,199 Speaker 1: sports always intersects politics. Um, and and you know, go 398 00:22:11,240 --> 00:22:15,000 Speaker 1: back to Jesse Owens and the Berlin Olympics and just 399 00:22:15,640 --> 00:22:19,359 Speaker 1: you can pick moments in time that that that really 400 00:22:19,400 --> 00:22:22,080 Speaker 1: big statements have been made. But it's reflects sports as 401 00:22:22,240 --> 00:22:26,080 Speaker 1: reflective of our communities, and our communities wrestle with difficult 402 00:22:26,080 --> 00:22:30,159 Speaker 1: issues they they oftentimes get discussed in the context of 403 00:22:30,280 --> 00:22:33,840 Speaker 1: sports and their sports teams. So it's nothing new. Uh, 404 00:22:34,040 --> 00:22:36,280 Speaker 1: It's always happened, and I think it will always continue 405 00:22:36,320 --> 00:22:38,840 Speaker 1: to happen. Rick, are you surprised that Joe was able 406 00:22:38,880 --> 00:22:42,040 Speaker 1: to buy the team and it wasn't Larry Ellison? I 407 00:22:42,080 --> 00:22:45,520 Speaker 1: think Joe is the most Yeah, I mean everybody knew 408 00:22:45,640 --> 00:22:48,119 Speaker 1: Larry was there. His team. His company's name was on 409 00:22:48,160 --> 00:22:50,360 Speaker 1: the building. I mean, if he really wants something with 410 00:22:50,840 --> 00:22:52,960 Speaker 1: the pockets he's got, you think he can he can 411 00:22:52,960 --> 00:22:56,639 Speaker 1: get it. He must be kicking himself now, No, I 412 00:22:56,680 --> 00:22:59,920 Speaker 1: don't know. But but Joe, uh, you know, they truly 413 00:23:00,040 --> 00:23:02,800 Speaker 1: he had an opportunity to out maneuver. It was not 414 00:23:02,880 --> 00:23:05,440 Speaker 1: about money, because Larry Ellison could have always paid more. 415 00:23:05,560 --> 00:23:08,680 Speaker 1: But I think is how the negotiation unfolded and strategically 416 00:23:08,680 --> 00:23:11,840 Speaker 1: how Joe managed it, uh, in a way that he 417 00:23:11,920 --> 00:23:15,560 Speaker 1: got to a point where the seller committed to sell 418 00:23:15,600 --> 00:23:18,880 Speaker 1: to him before before the opportunity for Larry to top 419 00:23:18,920 --> 00:23:21,800 Speaker 1: that bid came in. So it's talked about here a 420 00:23:21,800 --> 00:23:24,879 Speaker 1: lot because uh, you know, Larry Elson continues to be 421 00:23:25,040 --> 00:23:27,320 Speaker 1: just such a big figure in the Bay Area. And 422 00:23:28,440 --> 00:23:31,800 Speaker 1: but but you know, that's what smart operators do. And 423 00:23:31,840 --> 00:23:34,080 Speaker 1: I think Joe is in the right place at the 424 00:23:34,160 --> 00:23:38,040 Speaker 1: right time and played it perfectly. Okay, No owners typically 425 00:23:38,080 --> 00:23:39,920 Speaker 1: dodged the next question I'm gonna give to you. I'm 426 00:23:39,960 --> 00:23:43,960 Speaker 1: hoping CEOs and presidents do not. But like you mentioned earlier, 427 00:23:44,000 --> 00:23:46,359 Speaker 1: it's almost comical to say four plus million. I mean, 428 00:23:46,440 --> 00:23:50,880 Speaker 1: what a bargain, right, But the Brooklyn Nets recently traded 429 00:23:50,960 --> 00:23:53,600 Speaker 1: at a valuation of two point three billion, and that 430 00:23:53,720 --> 00:23:56,359 Speaker 1: is without Barkley Center, That is just the team, the 431 00:23:56,440 --> 00:24:00,159 Speaker 1: Rockets at two point two to Tilman for Tita. You 432 00:24:00,240 --> 00:24:02,840 Speaker 1: have a new building that I'm sure and I want 433 00:24:02,880 --> 00:24:03,960 Speaker 1: to ask you a little bit more about this in 434 00:24:03,960 --> 00:24:08,240 Speaker 1: a minute. Spit off great cash flow? What in God's 435 00:24:08,359 --> 00:24:11,800 Speaker 1: name are the Warriors worth? Now? And please don't say 436 00:24:11,800 --> 00:24:14,400 Speaker 1: what somebody is willing to pay, right it becomes what 437 00:24:14,440 --> 00:24:16,960 Speaker 1: the buyer is willing to pay. I'm sorry, but but 438 00:24:17,000 --> 00:24:19,000 Speaker 1: are we over three? Are we over three billion dollars? 439 00:24:19,040 --> 00:24:21,159 Speaker 1: I mean, it's a trophy asset. It's a great market. 440 00:24:21,240 --> 00:24:23,000 Speaker 1: You have a new building, you have a winning team. 441 00:24:23,240 --> 00:24:27,800 Speaker 1: I can't think of anything else that you would need. Yeah, 442 00:24:27,840 --> 00:24:30,840 Speaker 1: I haven't heard anybody who would. Uh uh, you know, 443 00:24:31,080 --> 00:24:35,119 Speaker 1: guess a lower number than than three. But but is 444 00:24:35,160 --> 00:24:37,840 Speaker 1: that the number? I don't. I don't have any idea. 445 00:24:38,040 --> 00:24:40,080 Speaker 1: And it's such a fun game around such a parlor 446 00:24:40,119 --> 00:24:45,200 Speaker 1: game around here, because unless I'm really off base, uh, 447 00:24:45,320 --> 00:24:48,679 Speaker 1: you know, Joe lacobs grandkids will be uh involved in 448 00:24:48,760 --> 00:24:51,440 Speaker 1: running this franchise at some point in time, because this 449 00:24:51,520 --> 00:24:54,520 Speaker 1: is this is the lifelong dream of somebody who's had 450 00:24:54,560 --> 00:24:58,360 Speaker 1: every success in the world financially, but had one thing 451 00:24:58,760 --> 00:25:00,960 Speaker 1: that he always wanted and now was an NBA franchise. 452 00:25:01,000 --> 00:25:02,600 Speaker 1: And he has that now and a pretty good one. 453 00:25:02,720 --> 00:25:04,639 Speaker 1: So I think it's gound be a long time before 454 00:25:05,040 --> 00:25:07,200 Speaker 1: before anybody has an opportunity to figure out the answer 455 00:25:07,240 --> 00:25:09,680 Speaker 1: to that question. And could you give me some specifics 456 00:25:09,720 --> 00:25:12,840 Speaker 1: on Chase Center. What from a dollars and cent standpoint, 457 00:25:13,240 --> 00:25:15,399 Speaker 1: what is the difference? What are the projections tell you 458 00:25:15,720 --> 00:25:19,320 Speaker 1: moving from Oracle into that building, whether it's suites, whether 459 00:25:19,520 --> 00:25:23,080 Speaker 1: it's the sponsorship and naming rights, what's going to be 460 00:25:23,119 --> 00:25:27,920 Speaker 1: the two three four x difference moving into that facility. Well, 461 00:25:27,920 --> 00:25:31,359 Speaker 1: it's a complete transformation of our organization, going from a 462 00:25:31,359 --> 00:25:34,440 Speaker 1: team that rents a building from a public entity UH 463 00:25:34,800 --> 00:25:39,960 Speaker 1: fifty times a year, two having UH ownership and management 464 00:25:40,280 --> 00:25:43,440 Speaker 1: of a building that's gonna compete toe to toe with 465 00:25:44,000 --> 00:25:46,639 Speaker 1: the O two in London and Madison Square Garden in 466 00:25:46,680 --> 00:25:49,760 Speaker 1: New York and Staples Center and in Los Angeles. So 467 00:25:49,880 --> 00:25:52,560 Speaker 1: we we are going to play at that level. That's 468 00:25:52,560 --> 00:25:55,800 Speaker 1: been the goal from day one. It's the reason you know, 469 00:25:56,240 --> 00:25:58,639 Speaker 1: all in with land and everything else. This will be 470 00:25:58,680 --> 00:26:02,200 Speaker 1: the NBA's first billion all our arena, but we also 471 00:26:02,600 --> 00:26:05,960 Speaker 1: have to pay off that investment, so it's not you know, 472 00:26:06,080 --> 00:26:08,520 Speaker 1: while it will be a great business model we think 473 00:26:08,520 --> 00:26:12,239 Speaker 1: going forward, Um, you know it comes with with a 474 00:26:12,240 --> 00:26:14,440 Speaker 1: lot of debt just because you know, we didn't have 475 00:26:15,280 --> 00:26:19,200 Speaker 1: million dollars of public financing to make it work. But ultimately, 476 00:26:19,240 --> 00:26:23,399 Speaker 1: the reason you do it is to create the foundation 477 00:26:23,720 --> 00:26:27,200 Speaker 1: for what will always be the centerpiece for our basketball team. 478 00:26:27,240 --> 00:26:30,440 Speaker 1: And you know this guarantees that the Warriors financially will 479 00:26:30,480 --> 00:26:33,840 Speaker 1: be competitive to to be able to do anything we 480 00:26:33,880 --> 00:26:36,919 Speaker 1: need to do financially to remain you know, one of 481 00:26:36,960 --> 00:26:40,119 Speaker 1: the elite NBA teams, not every year in the future, 482 00:26:40,240 --> 00:26:43,280 Speaker 1: but but much more often than most. See Scott asked 483 00:26:43,280 --> 00:26:45,680 Speaker 1: that question about the team Valley because we're both trying 484 00:26:45,680 --> 00:26:47,919 Speaker 1: to put our s and h Green stamps together to 485 00:26:48,040 --> 00:26:50,200 Speaker 1: make an offer to Mr Lacolf. We've got this man, 486 00:26:51,040 --> 00:26:53,440 Speaker 1: we can do it sooner. Do it sooner rather than later, 487 00:26:53,840 --> 00:26:58,399 Speaker 1: not going down do the ultimate LPs. Right here we're 488 00:26:58,440 --> 00:27:01,800 Speaker 1: talking with the chief operating a zero defending NBA champion 489 00:27:01,920 --> 00:27:04,679 Speaker 1: Golden State Warriors. I guess it brings us to the 490 00:27:04,720 --> 00:27:09,720 Speaker 1: next point about people coming into the arena and people 491 00:27:10,160 --> 00:27:13,160 Speaker 1: enjoying the game live, but of course they can see 492 00:27:13,200 --> 00:27:17,600 Speaker 1: it on television TV rights. That is a big part 493 00:27:17,720 --> 00:27:22,280 Speaker 1: of the value of any team. Can you expand on that, well, 494 00:27:22,320 --> 00:27:25,639 Speaker 1: I think Michael, you've really touched on the central issue 495 00:27:25,800 --> 00:27:29,640 Speaker 1: for sports going into the next going through the next decade. 496 00:27:30,040 --> 00:27:32,480 Speaker 1: That was New York yesterday. We have a team advisory 497 00:27:32,520 --> 00:27:35,800 Speaker 1: committee and we're with the commissioner all day yesterday and 498 00:27:36,240 --> 00:27:38,639 Speaker 1: his staff, and this is this is the central issue. 499 00:27:39,640 --> 00:27:42,120 Speaker 1: We are lucky in the NBA, that's the league at 500 00:27:42,240 --> 00:27:47,160 Speaker 1: point in time. They did sign long term agreements with Disney, 501 00:27:47,400 --> 00:27:51,440 Speaker 1: ESPN and with Turner Broadcasting that give us seven years 502 00:27:51,480 --> 00:27:54,359 Speaker 1: to figure this out. But clearly, when those rights expire, 503 00:27:55,200 --> 00:27:58,000 Speaker 1: I think everyone would say, it's highly unlikely that it 504 00:27:58,040 --> 00:28:01,880 Speaker 1: will only be the same cast of companies who will 505 00:28:01,960 --> 00:28:07,119 Speaker 1: be competing for the most valuable programming UH in the world, 506 00:28:07,160 --> 00:28:10,320 Speaker 1: which is live sports programming. When the NBA's rights come up. 507 00:28:11,280 --> 00:28:13,680 Speaker 1: Who those companies will be, who are going to be 508 00:28:13,720 --> 00:28:16,600 Speaker 1: added to the equation We're going to figure out over 509 00:28:16,880 --> 00:28:19,399 Speaker 1: a matter of time, and we all you know, it 510 00:28:19,480 --> 00:28:22,399 Speaker 1: could be an Apple, it could be a Facebook, it 511 00:28:22,440 --> 00:28:25,919 Speaker 1: could be a company like that that today has not 512 00:28:26,080 --> 00:28:30,119 Speaker 1: yet taken the leap into buying major sports rights, or 513 00:28:30,119 --> 00:28:32,600 Speaker 1: it could be a combination of partners we have now 514 00:28:32,640 --> 00:28:36,200 Speaker 1: and partners that will be within the future, some combination 515 00:28:36,280 --> 00:28:38,280 Speaker 1: we can't foresee right now. But you're on it. You're 516 00:28:38,360 --> 00:28:41,480 Speaker 1: on your on the most important issue I think going forward, 517 00:28:42,280 --> 00:28:46,560 Speaker 1: where we have such a ridiculous, unfair advantage is we're 518 00:28:46,600 --> 00:28:50,920 Speaker 1: the content creators, and we have, along with other live sports, 519 00:28:50,920 --> 00:28:56,520 Speaker 1: the most valuable programming to drive adoption by any system 520 00:28:56,680 --> 00:29:01,240 Speaker 1: known today or going forward. So we will, I believe, 521 00:29:01,280 --> 00:29:03,240 Speaker 1: be able to maintain and grow the value of those 522 00:29:03,280 --> 00:29:06,760 Speaker 1: media rights. But to say today what that's going to 523 00:29:06,800 --> 00:29:09,360 Speaker 1: look like seven years from now, when when the NBA's 524 00:29:09,480 --> 00:29:13,840 Speaker 1: rights are up, I think is pure speculation at this point. 525 00:29:13,880 --> 00:29:16,320 Speaker 1: But it's going to be a fascinating journey. And you 526 00:29:16,400 --> 00:29:18,520 Speaker 1: also have, in a scalable media world, Rieck, you have 527 00:29:18,520 --> 00:29:21,200 Speaker 1: a global audience which not everybody else has. How many 528 00:29:21,280 --> 00:29:23,400 Speaker 1: years has it been since that front page New York 529 00:29:23,400 --> 00:29:27,840 Speaker 1: Times article where you came out as the first openly 530 00:29:27,960 --> 00:29:31,760 Speaker 1: gay team sport executive and what what what change have 531 00:29:31,840 --> 00:29:36,720 Speaker 1: you seen? Uh? It was May of two thousand and eleven. Okay, 532 00:29:36,760 --> 00:29:39,440 Speaker 1: so we're about six six years removed. What have you seen? Yeah, 533 00:29:40,120 --> 00:29:44,400 Speaker 1: I think the biggest change would be, uh the fact 534 00:29:44,440 --> 00:29:47,840 Speaker 1: that that story may not make the New York Times today, 535 00:29:47,920 --> 00:29:52,280 Speaker 1: because I do think, uh, well, we're in an interesting 536 00:29:52,320 --> 00:29:57,000 Speaker 1: time at this moment. The pace of change and societal 537 00:29:57,040 --> 00:30:01,480 Speaker 1: attitudes has been remarkable and and unpredictable at the time 538 00:30:02,280 --> 00:30:04,200 Speaker 1: I had that story and came out in the New 539 00:30:04,240 --> 00:30:06,960 Speaker 1: York Times. Uh So I think it's the fact is 540 00:30:07,000 --> 00:30:10,080 Speaker 1: it just wouldn't be a big story today. Unfortunately. I 541 00:30:10,120 --> 00:30:12,480 Speaker 1: think we still have a long way to go. I'm 542 00:30:12,520 --> 00:30:15,880 Speaker 1: still the only I still have the title I had then, 543 00:30:15,960 --> 00:30:18,600 Speaker 1: which is the highest ranking sports executive to come out. 544 00:30:19,200 --> 00:30:21,800 Speaker 1: But I think there has been a lot of progress 545 00:30:21,800 --> 00:30:25,800 Speaker 1: made in our society, some progress made in professional sports, 546 00:30:25,840 --> 00:30:28,640 Speaker 1: and I think it's no turn back. I don't I 547 00:30:28,640 --> 00:30:31,880 Speaker 1: don't think we'll we'll ever see that progress reverse. Rick. 548 00:30:32,360 --> 00:30:35,960 Speaker 1: Thank you so much, Golden State Warriors President in Chief 549 00:30:36,040 --> 00:30:39,680 Speaker 1: Operating Officer, Rick Welts. We appreciate you taking the time 550 00:30:39,680 --> 00:30:42,160 Speaker 1: out and talking with us. Thank you, sir, my pleasure. 551 00:30:42,240 --> 00:30:47,200 Speaker 1: Thanks guys. Takeaways from Rick Welts. I like the part 552 00:30:47,320 --> 00:30:52,480 Speaker 1: where he said when he came out and he said 553 00:30:52,520 --> 00:30:54,560 Speaker 1: he was gay, and then the story came out about 554 00:30:54,600 --> 00:30:59,600 Speaker 1: six years ago. Today, that story would not even make 555 00:30:59,680 --> 00:31:02,880 Speaker 1: the new use. It's now a big whoop. Yeah. Yes, 556 00:31:03,040 --> 00:31:06,760 Speaker 1: important from a societal standpoint, but from a sports business perspective. 557 00:31:07,280 --> 00:31:10,360 Speaker 1: I look at the media again and we'd love to 558 00:31:10,400 --> 00:31:13,240 Speaker 1: talk to executives. Almost every show we touch on media 559 00:31:13,280 --> 00:31:17,520 Speaker 1: and what it means. And he mentions Apple, he mentions Facebook, 560 00:31:18,040 --> 00:31:21,200 Speaker 1: what that media landscape and what the world is going 561 00:31:21,240 --> 00:31:23,520 Speaker 1: to look like. As he said, now his words, and 562 00:31:23,560 --> 00:31:28,040 Speaker 1: he's been around a long time. The most important story 563 00:31:28,240 --> 00:31:33,360 Speaker 1: in sports. Feels better to be a number one than 564 00:31:33,440 --> 00:31:35,320 Speaker 1: number five. I'll wear a number because of Mike. We 565 00:31:35,360 --> 00:31:36,760 Speaker 1: have a chance to go for three in a row, 566 00:31:36,840 --> 00:31:38,760 Speaker 1: kid numbers in a good town. When I first started 567 00:31:38,760 --> 00:31:42,160 Speaker 1: wearing the number, I would just have the floomberg business 568 00:31:42,200 --> 00:31:47,000 Speaker 1: of sports. The number of the week, Number of the 569 00:31:47,080 --> 00:31:51,560 Speaker 1: week is eight eight. I love it to surprise I 570 00:31:51,680 --> 00:31:54,480 Speaker 1: you came up with eight eight Like for me, as 571 00:31:54,520 --> 00:31:57,200 Speaker 1: you know, the hockey fan, the only thing that pops 572 00:31:57,200 --> 00:31:59,400 Speaker 1: into my head is Eric Lindross. And I know it's 573 00:31:59,400 --> 00:32:01,960 Speaker 1: not Eric lyn Dress. You're right that it's a number 574 00:32:02,480 --> 00:32:06,880 Speaker 1: of of a sporting figure. But I, as you know, 575 00:32:06,960 --> 00:32:11,800 Speaker 1: I'm a huge NASCAR fan, Dale Earnhardt Jr. Is retiring. 576 00:32:12,520 --> 00:32:16,920 Speaker 1: It's coming to an end. It's going to be strange 577 00:32:16,960 --> 00:32:21,120 Speaker 1: to see someone not driving the idiot outside use my 578 00:32:21,160 --> 00:32:25,400 Speaker 1: ignorance on things of left turn nature. But when was 579 00:32:25,440 --> 00:32:27,960 Speaker 1: the last time Delard Hard Jr. Actually drove a car? 580 00:32:29,200 --> 00:32:31,440 Speaker 1: I thought he was retired. No, no, this is it. 581 00:32:31,680 --> 00:32:33,520 Speaker 1: This is the last part of it. This is that 582 00:32:33,560 --> 00:32:36,400 Speaker 1: we're coming to an official announcement. He's done. This was 583 00:32:36,480 --> 00:32:39,680 Speaker 1: well the previous season he wasn't in the car because 584 00:32:39,720 --> 00:32:42,880 Speaker 1: he had the concussion issues. And now he got behind 585 00:32:42,920 --> 00:32:44,800 Speaker 1: the wheel. He had the last day tone of five, 586 00:32:45,240 --> 00:32:47,720 Speaker 1: the last races were coming up. This is it. Now 587 00:32:47,760 --> 00:32:50,600 Speaker 1: this we're winding down. This is the end from a 588 00:32:50,640 --> 00:32:54,640 Speaker 1: casual sports fan perspective, and like NASCAR will miss him, 589 00:32:54,680 --> 00:32:57,800 Speaker 1: like they ought to find a way to keep him 590 00:32:57,840 --> 00:33:00,520 Speaker 1: active and visible in the sport of possile. Could he 591 00:33:00,560 --> 00:33:03,480 Speaker 1: be sort of like a Tony Romo esque figure. He 592 00:33:03,600 --> 00:33:06,840 Speaker 1: could be. I think about it. Dale earn Hurt Jr. 593 00:33:07,120 --> 00:33:12,080 Speaker 1: He's known across the land as from a casual NASCAR fan, 594 00:33:12,720 --> 00:33:15,720 Speaker 1: But now beyond that, give me a name in NASCAR 595 00:33:15,880 --> 00:33:18,840 Speaker 1: because Nannick and Patrick is not going to be there either, 596 00:33:19,120 --> 00:33:22,320 Speaker 1: So this is gonna be an issue. I'm gonna impress you. Mackenzief. 597 00:33:22,360 --> 00:33:23,880 Speaker 1: I don't know what that means, but I came up 598 00:33:23,880 --> 00:33:27,480 Speaker 1: with the name that I amn't. That was good. You've 599 00:33:27,480 --> 00:33:29,840 Speaker 1: been listening to Bloomberg Business of Sports. We are here 600 00:33:29,880 --> 00:33:32,280 Speaker 1: each and every week at the same time, exploring the 601 00:33:32,280 --> 00:33:35,640 Speaker 1: world of money and sports. Michael Barr and I'm Scott Sashnik. 602 00:33:35,680 --> 00:33:37,880 Speaker 1: Thanks for joining us. Please tune in next week when 603 00:33:37,880 --> 00:33:40,880 Speaker 1: we speak with Jeff Freeman of the American Gaming Association 604 00:33:40,920 --> 00:33:43,920 Speaker 1: of a full show on sports gambling. Michael Barr, you 605 00:33:43,960 --> 00:33:46,160 Speaker 1: know I'm going to be there for You're listening to 606 00:33:46,200 --> 00:33:49,760 Speaker 1: Bloomberg Business of Sports on Bloomberg Radio around the world 607 00:33:49,800 --> 00:33:52,120 Speaker 1: and online as an Apple podcast on iTunes.