1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:07,800 --> 00:00:10,319 Speaker 2: Carol Masser, Tim Stedevick. Life here at Bloomberg invest in 3 00:00:10,360 --> 00:00:12,480 Speaker 2: downtown New York City. So happening just a while ago 4 00:00:12,600 --> 00:00:15,239 Speaker 2: right here at Bloomberg invest a live taping of the 5 00:00:15,280 --> 00:00:19,000 Speaker 2: hit podcast The Deal with Alex Rodriguez and BLOOMBERGS Jason Kelly. 6 00:00:19,040 --> 00:00:21,279 Speaker 2: They were sitting down with Alex Waxman, the CEO of 7 00:00:21,320 --> 00:00:24,200 Speaker 2: Sixth Street. Alex Rodriguez, as you know, of course, chairman 8 00:00:24,280 --> 00:00:26,960 Speaker 2: and CEO of A Rod Corp. He's also co owner 9 00:00:27,040 --> 00:00:31,600 Speaker 2: of the NBA's Minnesota Timberwolves and the WNBA's Minnesota Links, 10 00:00:31,960 --> 00:00:34,440 Speaker 2: and he's a former three time American League MVP. But 11 00:00:34,560 --> 00:00:35,879 Speaker 2: we all know that. How are you. 12 00:00:36,040 --> 00:00:37,639 Speaker 3: I'm doing great, good to be here. Good to see 13 00:00:37,640 --> 00:00:38,640 Speaker 3: you guys, Well, good to see you. 14 00:00:38,640 --> 00:00:40,559 Speaker 2: Tell us a little bit about Alex Saxman and the 15 00:00:40,600 --> 00:00:41,480 Speaker 2: taping for The Deal. 16 00:00:42,240 --> 00:00:43,160 Speaker 3: Incredible story. 17 00:00:43,200 --> 00:00:45,479 Speaker 4: I mean, his background, and he spent ten years at 18 00:00:45,560 --> 00:00:48,160 Speaker 4: gold Masax and he basically ran a thirty billion dollar 19 00:00:48,200 --> 00:00:51,120 Speaker 4: fund in which they can invest in any asset class, 20 00:00:51,120 --> 00:00:54,640 Speaker 4: which really gave him a competitive advantage. He's now brought 21 00:00:54,680 --> 00:00:56,960 Speaker 4: that over when he co founded sixth Street two thousand 22 00:00:56,960 --> 00:00:59,840 Speaker 4: and nine. They have over one hundred million dollars in 23 00:01:00,080 --> 00:01:04,400 Speaker 4: AUM and he's really deep in sports. He's done investments 24 00:01:04,440 --> 00:01:08,200 Speaker 4: with all major leagues. He's done the San Francisco Giants baseball, 25 00:01:08,640 --> 00:01:11,800 Speaker 4: He's done the Celtics and San Antonio Spurs in basketball. 26 00:01:12,200 --> 00:01:14,840 Speaker 4: And he just bought a minority steak with Jonathan and 27 00:01:14,959 --> 00:01:18,280 Speaker 4: Robert Kraft with the New England Patriots. Fascinating and great, 28 00:01:18,319 --> 00:01:19,080 Speaker 4: great conversation. 29 00:01:21,720 --> 00:01:25,520 Speaker 1: So I'm curious about the opportunities that he sees right now. 30 00:01:25,760 --> 00:01:29,000 Speaker 1: And you know, obviously he's taking advantage of the new 31 00:01:29,040 --> 00:01:31,640 Speaker 1: rules about being able to buy into different leagues, which 32 00:01:31,680 --> 00:01:34,280 Speaker 1: is a whole conversation that we could have. But what 33 00:01:34,600 --> 00:01:37,200 Speaker 1: really excites him when he looks forward, I. 34 00:01:37,160 --> 00:01:40,280 Speaker 4: Think a few things. I think markets, depending on what team, 35 00:01:40,360 --> 00:01:44,039 Speaker 4: what leagues, what league, the leadership of the three leagues. 36 00:01:44,400 --> 00:01:47,560 Speaker 4: Fortunately for us we have you know, Adam Silver, Roger 37 00:01:47,600 --> 00:01:51,080 Speaker 4: goodowin football, and Rob Manford all very established, very top 38 00:01:51,160 --> 00:01:52,360 Speaker 4: tier commissioners. 39 00:01:52,400 --> 00:01:53,520 Speaker 3: So all that's good for him. 40 00:01:54,160 --> 00:01:56,240 Speaker 4: And I think when you look at the NFL, the 41 00:01:56,280 --> 00:01:59,000 Speaker 4: combination of appreciation in cash flow is something that's very 42 00:01:59,080 --> 00:02:00,000 Speaker 4: very unique in sports. 43 00:02:00,400 --> 00:02:01,880 Speaker 3: You don't have usually both of those. 44 00:02:02,040 --> 00:02:06,600 Speaker 4: So aggressively, so I think he's really concerned and not concerned. 45 00:02:06,600 --> 00:02:09,480 Speaker 3: I would say this baseball is an interesting situation. 46 00:02:09,600 --> 00:02:13,520 Speaker 4: I think baseball is the best opportunity to invest today. 47 00:02:13,560 --> 00:02:16,919 Speaker 4: I'm a concern by nature, So I would invest right 48 00:02:16,919 --> 00:02:20,440 Speaker 4: into the teeth of this collective bargain agreement. Why Because 49 00:02:20,480 --> 00:02:23,040 Speaker 4: I think you can buy at very, very attractive multiples 50 00:02:23,480 --> 00:02:26,320 Speaker 4: and you're making I think two very safe bets. One 51 00:02:26,639 --> 00:02:29,800 Speaker 4: that the CBA will get better, not worse right, And 52 00:02:29,840 --> 00:02:32,480 Speaker 4: the second one is that Rob Manford would take a 53 00:02:32,520 --> 00:02:36,680 Speaker 4: page from Roger Goodell and consolidate all the regional sports 54 00:02:36,720 --> 00:02:40,760 Speaker 4: rights and make it more into national rights, and you 55 00:02:40,880 --> 00:02:42,400 Speaker 4: get an expansion of multiples. 56 00:02:42,560 --> 00:02:44,600 Speaker 1: So will there be a labor stoppage after this season? 57 00:02:44,760 --> 00:02:45,280 Speaker 3: I hope not. 58 00:02:46,560 --> 00:02:49,600 Speaker 4: I don't know, but I've talked to members of both 59 00:02:49,639 --> 00:02:52,680 Speaker 4: sides of the aisle and they have said meaning owners 60 00:02:52,680 --> 00:02:56,120 Speaker 4: and players, and they're both dug in pretty pretty strong, 61 00:02:56,760 --> 00:02:58,440 Speaker 4: so is what you're saying. 62 00:02:58,480 --> 00:02:59,240 Speaker 3: So I don't know. 63 00:03:00,200 --> 00:03:03,120 Speaker 1: Would that change your view on investing in baseball. 64 00:03:03,320 --> 00:03:05,920 Speaker 4: No, I would invest in even heavilier into it because 65 00:03:05,960 --> 00:03:08,560 Speaker 4: as you have more noise, as we've seen in the 66 00:03:08,600 --> 00:03:10,960 Speaker 4: public markets in the last couple of days. You have 67 00:03:11,040 --> 00:03:15,919 Speaker 4: volatility where you have apprehension, I think you have opportunity. 68 00:03:15,760 --> 00:03:16,720 Speaker 3: And the multiples. 69 00:03:17,880 --> 00:03:19,840 Speaker 4: If you could buy a baseball team in four or 70 00:03:19,880 --> 00:03:23,200 Speaker 4: five multiple versus other sports that are trading in mid teens, 71 00:03:23,639 --> 00:03:24,839 Speaker 4: I think that's an opportunity. 72 00:03:25,000 --> 00:03:27,200 Speaker 2: Would the players ever agree to a salary cap? You think? 73 00:03:27,520 --> 00:03:29,080 Speaker 3: I don't think so. I don't think so. 74 00:03:29,200 --> 00:03:33,359 Speaker 4: But I think I don't want to comment into that 75 00:03:33,400 --> 00:03:36,200 Speaker 4: because I have friends on both sides. But here's what 76 00:03:36,200 --> 00:03:38,320 Speaker 4: I would say. It should be a mentality about grow 77 00:03:38,360 --> 00:03:41,440 Speaker 4: the pie as big as possible. How you guys divide it. 78 00:03:41,440 --> 00:03:44,240 Speaker 4: That's a separate conversation. Yeah, but you know, going back 79 00:03:44,240 --> 00:03:46,160 Speaker 4: to Marvin Miller when he started the union for Major 80 00:03:46,200 --> 00:03:48,080 Speaker 4: League Baseball, which has always been very, very strong and 81 00:03:48,160 --> 00:03:50,960 Speaker 4: highly regarded and the owners, there's been a lot of 82 00:03:50,960 --> 00:03:53,680 Speaker 4: conflict over the last five decades. So how do you 83 00:03:53,760 --> 00:03:56,440 Speaker 4: bring it together to say, let's work together to grow 84 00:03:56,440 --> 00:03:57,680 Speaker 4: the pie as big as possible. 85 00:03:57,920 --> 00:03:59,840 Speaker 1: Why does it seem like baseball has the most issues 86 00:03:59,840 --> 00:04:00,360 Speaker 1: with labor. 87 00:04:01,280 --> 00:04:03,440 Speaker 4: I think it has a lot of Oh yeah, yeah, 88 00:04:03,560 --> 00:04:06,960 Speaker 4: I mean the history is very strong. Marvin Miller was 89 00:04:07,000 --> 00:04:09,200 Speaker 4: the head of the union, he started it. Then that 90 00:04:09,360 --> 00:04:11,520 Speaker 4: went to Don Fear for many years is a great, 91 00:04:11,560 --> 00:04:15,000 Speaker 4: great leader, and then Michael Wiener Tony Clark and now 92 00:04:15,280 --> 00:04:20,839 Speaker 4: they have a different situation right now. But it's been 93 00:04:20,960 --> 00:04:23,680 Speaker 4: that way tim since I was involved. I remember every 94 00:04:23,680 --> 00:04:26,320 Speaker 4: time CBA came it was it was a battle and 95 00:04:26,560 --> 00:04:29,800 Speaker 4: somehow or know you figured it out. But I will 96 00:04:29,800 --> 00:04:32,360 Speaker 4: say that this is the most important year for baseball 97 00:04:32,360 --> 00:04:35,680 Speaker 4: and labor talks in the history of the sport because 98 00:04:35,720 --> 00:04:40,400 Speaker 4: of how many attractions we have out there between Netflix, YouTube, Bloomberg, 99 00:04:40,480 --> 00:04:44,599 Speaker 4: you name it. There's just more assets that everyone's fighting 100 00:04:44,600 --> 00:04:45,240 Speaker 4: for the consumer. 101 00:04:46,360 --> 00:04:48,760 Speaker 1: So do you think about do you think about the 102 00:04:48,760 --> 00:04:52,480 Speaker 1: collective bargaining differently now that you're an owner of a 103 00:04:52,680 --> 00:04:55,480 Speaker 1: of a sports team. 104 00:04:55,839 --> 00:04:56,839 Speaker 3: That's a great question. 105 00:04:59,480 --> 00:05:02,480 Speaker 4: I think think overall, like ninety percent of my thoughts 106 00:05:02,520 --> 00:05:04,159 Speaker 4: is still the same as you want the sport to 107 00:05:04,160 --> 00:05:07,040 Speaker 4: be healthy, you wanted to grow, you wanted to collect 108 00:05:07,040 --> 00:05:10,159 Speaker 4: more fan base, and you want millions of people watching 109 00:05:10,160 --> 00:05:11,479 Speaker 4: every day because it is a great sport. 110 00:05:11,600 --> 00:05:15,359 Speaker 3: And the World Series this year showed us that when. 111 00:05:15,160 --> 00:05:17,279 Speaker 4: You have the right product, you have the right market, 112 00:05:17,400 --> 00:05:20,840 Speaker 4: you have the right superstars in Vladimir Garrero Junior and 113 00:05:20,920 --> 00:05:23,920 Speaker 4: Shohei o Tani, that you had fifty three million people 114 00:05:23,960 --> 00:05:26,400 Speaker 4: watching when you include the US, Canada, and Japan, which 115 00:05:26,480 --> 00:05:27,760 Speaker 4: to baseball still works. 116 00:05:27,880 --> 00:05:29,320 Speaker 3: Yeah. And when there's a lot of noise, there's a 117 00:05:29,360 --> 00:05:30,160 Speaker 3: lot of opportunity. 118 00:05:31,480 --> 00:05:34,680 Speaker 2: So when you know you talked about, you're right, sports 119 00:05:34,720 --> 00:05:37,440 Speaker 2: is vying for all of our attention with so many 120 00:05:37,480 --> 00:05:39,760 Speaker 2: other things. So when you think about investing, how do 121 00:05:39,800 --> 00:05:41,839 Speaker 2: you think about like, how does that play into where 122 00:05:41,839 --> 00:05:43,719 Speaker 2: you want to commit some money? 123 00:05:44,440 --> 00:05:48,039 Speaker 4: Well, you want to mote right, think about this. Take 124 00:05:48,080 --> 00:05:54,480 Speaker 4: the NBA. If you're a real estate investor and there's 125 00:05:54,520 --> 00:05:59,120 Speaker 4: only thirty beach front properties in the entire world, yeah, boy, 126 00:05:59,200 --> 00:06:01,039 Speaker 4: you would look do anything to own one of those. 127 00:06:01,240 --> 00:06:02,479 Speaker 3: So scarcity is a big deal. 128 00:06:03,880 --> 00:06:05,719 Speaker 4: When you look at the TV deal that just was 129 00:06:05,760 --> 00:06:07,960 Speaker 4: signed eleven years, when the first year of eleven years 130 00:06:07,960 --> 00:06:11,200 Speaker 4: for seventy seven billion, that's something that is easy to underwrite, 131 00:06:11,240 --> 00:06:13,960 Speaker 4: easy to understand. So you like to invest into that, 132 00:06:14,320 --> 00:06:16,839 Speaker 4: you know. And then when you think about the global 133 00:06:16,960 --> 00:06:19,880 Speaker 4: growth in the NBA, you know, twenty years ago there's 134 00:06:19,880 --> 00:06:23,080 Speaker 4: probably less than three percent of the league was global athletes, 135 00:06:23,600 --> 00:06:25,240 Speaker 4: meaning born outside of the US. 136 00:06:25,400 --> 00:06:29,200 Speaker 3: Today that numbers ballooned to thirty five percent. Right when 137 00:06:29,240 --> 00:06:30,160 Speaker 3: you look at Europe. 138 00:06:30,480 --> 00:06:34,360 Speaker 4: Second most popular sport in Europe the NBA basketball and 139 00:06:34,960 --> 00:06:38,360 Speaker 4: is a forty five billion annual business and we only 140 00:06:38,360 --> 00:06:40,800 Speaker 4: own one percent of that. At the same time, you 141 00:06:40,839 --> 00:06:43,000 Speaker 4: have four hundred million people playing basketball in China. 142 00:06:43,120 --> 00:06:45,039 Speaker 3: Yeah, three hundred million playing in India. 143 00:06:45,120 --> 00:06:47,800 Speaker 4: So the global scope, you can say from the American 144 00:06:47,839 --> 00:06:49,599 Speaker 4: sports NBA could be number one. 145 00:06:49,880 --> 00:06:50,880 Speaker 2: That's pretty impressive. 146 00:06:52,240 --> 00:06:53,960 Speaker 1: We always love it. When we get to uh, let's 147 00:06:54,120 --> 00:06:55,599 Speaker 1: talk to you a little bit, they're. 148 00:06:55,480 --> 00:06:56,000 Speaker 2: Gonna yell up. 149 00:06:56,040 --> 00:06:56,640 Speaker 1: Yeah, we've got to go. 150 00:06:57,080 --> 00:06:59,320 Speaker 2: I'm gonna go thirty seconds. What's on your night table? 151 00:06:59,360 --> 00:07:00,400 Speaker 2: What are you reading? Oh? 152 00:07:00,560 --> 00:07:03,680 Speaker 3: You know what I do is I love podcasts, So 153 00:07:03,920 --> 00:07:04,159 Speaker 3: you do? 154 00:07:04,360 --> 00:07:04,960 Speaker 2: What do you listening? 155 00:07:05,040 --> 00:07:07,000 Speaker 3: I love The Founders is one of my favorite. 156 00:07:07,120 --> 00:07:10,120 Speaker 4: And uh, what's the one that I'm the one that's 157 00:07:10,120 --> 00:07:13,600 Speaker 4: like three and a half hours I'm acquired. Acquired is fantastic. 158 00:07:14,480 --> 00:07:16,800 Speaker 4: I love those guys. Three four hours, I love it. 159 00:07:16,840 --> 00:07:18,320 Speaker 2: And how many hours are you watching Bloomberg? 160 00:07:18,840 --> 00:07:21,240 Speaker 4: I watched it a lot, Okay, and you guys do 161 00:07:21,280 --> 00:07:21,800 Speaker 4: a great work. 162 00:07:22,080 --> 00:07:25,880 Speaker 2: But thank you you as well. Alex Rodriguez, chairman and 163 00:07:25,960 --> 00:07:27,800 Speaker 2: CEO of A Rod Corp. And so much more, And 164 00:07:27,840 --> 00:07:31,840 Speaker 2: of course check out the deal with Alex and of 165 00:07:31,840 --> 00:07:34,160 Speaker 2: course Jason Kelly can find it on Bloomberg Originals