1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:08,560 --> 00:00:10,640 Speaker 2: This is the Business of Sports. 3 00:00:10,680 --> 00:00:14,120 Speaker 3: Sports are the greatest unscripted show owner. 4 00:00:14,000 --> 00:00:16,159 Speaker 4: The next generation of players who really grew up with 5 00:00:16,239 --> 00:00:16,720 Speaker 4: tech and. 6 00:00:16,840 --> 00:00:17,560 Speaker 3: Believe in tech. 7 00:00:17,640 --> 00:00:19,959 Speaker 5: Your face is your ticket, your face is your wallet, 8 00:00:20,040 --> 00:00:21,800 Speaker 5: your face is your access to a club. 9 00:00:21,920 --> 00:00:25,600 Speaker 3: These are such iconic and important buildings for businesses. 10 00:00:25,760 --> 00:00:28,320 Speaker 4: For fans, COVID was one of the best things that 11 00:00:28,320 --> 00:00:29,159 Speaker 4: ever happened to go. 12 00:00:29,440 --> 00:00:31,520 Speaker 2: The NFL is a bulletproof business. 13 00:00:31,640 --> 00:00:34,280 Speaker 6: Racing is unique because there is absolutely no reason why 14 00:00:34,320 --> 00:00:35,360 Speaker 6: we can't compete with the guys. 15 00:00:35,320 --> 00:00:36,400 Speaker 7: I'm on, it's pro pickleball? 16 00:00:36,440 --> 00:00:39,120 Speaker 2: Real, Are people really going to tune into this if you're. 17 00:00:38,960 --> 00:00:41,560 Speaker 3: Playing moneyball with a huge bag of money and you're 18 00:00:41,600 --> 00:00:42,760 Speaker 3: going to be really, really good. 19 00:00:42,840 --> 00:00:46,280 Speaker 6: Bloomberg Business of Sports from Bloomberg Radio. 20 00:00:47,520 --> 00:00:50,560 Speaker 7: This is the Bloomberg Business of Sports. We explore the 21 00:00:50,560 --> 00:00:52,559 Speaker 7: big money issues in the world of sports. 22 00:00:52,640 --> 00:00:54,800 Speaker 2: I'm Michael Barr and I'm Benesa Prodemo. 23 00:00:54,600 --> 00:00:57,720 Speaker 7: Amian sas hours out. This week. Coming up on the show, 24 00:00:57,760 --> 00:01:01,240 Speaker 7: we speak with the president of business Operations for Charlotte Hornets, 25 00:01:01,240 --> 00:01:02,640 Speaker 7: Shelley Kayette Weston. 26 00:01:03,360 --> 00:01:05,920 Speaker 2: Plus we'll talk about the business of Minor league Baseball. 27 00:01:06,520 --> 00:01:09,240 Speaker 7: That is straight ahead on the Bloomberg Business of Sports. 28 00:01:09,319 --> 00:01:12,560 Speaker 7: But first let's look at some of the top stories 29 00:01:12,600 --> 00:01:16,080 Speaker 7: of the week, beginning of course with the Super Bowl, 30 00:01:16,760 --> 00:01:19,040 Speaker 7: and that will do it. 31 00:01:19,240 --> 00:01:25,360 Speaker 3: Seattle rains above the Bowl in the NFL huss Seahawks 32 00:01:25,800 --> 00:01:28,440 Speaker 3: Super Bowl chickins for the second time. 33 00:01:29,640 --> 00:01:32,760 Speaker 7: Super Bowl Sunday is one of the busiest days of 34 00:01:32,800 --> 00:01:35,960 Speaker 7: the year. I'm excited about talking about the Super Bowl 35 00:01:36,240 --> 00:01:40,479 Speaker 7: for sports betting, but this year prediction markets stole the. 36 00:01:40,440 --> 00:01:42,640 Speaker 8: Show to talk more about prediction market and trading on 37 00:01:42,680 --> 00:01:45,440 Speaker 8: the big Game. We welcome Bloomberg News Cross Asset reporter 38 00:01:45,640 --> 00:01:46,560 Speaker 8: Daniza Sakova. 39 00:01:46,800 --> 00:01:49,840 Speaker 7: Dinizza, Welcome to the Bloomberg Business of Sports. 40 00:01:50,040 --> 00:01:51,320 Speaker 3: Hi there, thanks for having me. 41 00:01:51,600 --> 00:01:57,120 Speaker 7: In the immortal words of Vince Lombardi, everybody, just bet, bet, bet, 42 00:01:57,480 --> 00:02:04,040 Speaker 7: just bet. The gambling stocks Super Bowl prediction bets record 43 00:02:04,120 --> 00:02:07,480 Speaker 7: one point two billion dollars on trading day. Tell us 44 00:02:07,480 --> 00:02:08,160 Speaker 7: more about that. 45 00:02:08,720 --> 00:02:13,360 Speaker 3: Yeah, the numbers are staggering. Kushi itself said that they 46 00:02:13,480 --> 00:02:16,720 Speaker 3: registered over one billion in trades related to the Super Bowl. 47 00:02:16,840 --> 00:02:19,160 Speaker 3: This is of course over the season, but when it 48 00:02:19,160 --> 00:02:22,200 Speaker 3: comes to the Big Game and the day. We got 49 00:02:22,240 --> 00:02:25,720 Speaker 3: some interesting number from Bank of America. They look at 50 00:02:25,760 --> 00:02:29,959 Speaker 3: the volume for both Bolly Market and Caushi and they 51 00:02:30,080 --> 00:02:34,280 Speaker 3: say for Sunday got one point two billion, really really 52 00:02:34,360 --> 00:02:38,640 Speaker 3: high number. Another number from Piper Sandler that we got 53 00:02:38,840 --> 00:02:42,440 Speaker 3: is for the week, we got about five billion of 54 00:02:42,960 --> 00:02:47,280 Speaker 3: wagers for both Bolly Market and Caushi to get Kushi together. 55 00:02:47,360 --> 00:02:47,799 Speaker 5: This is a. 56 00:02:47,800 --> 00:02:53,200 Speaker 3: Twelve percent increase from the previous week. Pretty pretty strong estimates. 57 00:02:53,240 --> 00:02:55,880 Speaker 3: Of course, we saw a lot of hype about prediction 58 00:02:56,040 --> 00:02:59,720 Speaker 3: markets going into this. I think some of the projections 59 00:02:59,760 --> 00:03:02,639 Speaker 3: were quite bullish. A lot of people were saying, oh, 60 00:03:02,760 --> 00:03:05,960 Speaker 3: this will be like ten times our busiest day, which 61 00:03:06,000 --> 00:03:09,400 Speaker 3: is not the case. He was a very strong day. Obviously, 62 00:03:09,440 --> 00:03:12,400 Speaker 3: a record for Koshi was around eight hundred and seventy million, 63 00:03:13,120 --> 00:03:16,120 Speaker 3: and this is sixty percent higher than them busiest day, 64 00:03:16,160 --> 00:03:20,200 Speaker 3: which obviously there is there no one can argue this 65 00:03:20,360 --> 00:03:25,760 Speaker 3: was a great day for them, but perhaps, you know, 66 00:03:26,040 --> 00:03:30,120 Speaker 3: maybe some of them had even more bullish targets for that, 67 00:03:30,880 --> 00:03:33,000 Speaker 3: but neverthalized. There were many different markets. It wasn't about 68 00:03:33,000 --> 00:03:34,960 Speaker 3: the game, it was about the performance. It was about 69 00:03:34,960 --> 00:03:38,360 Speaker 3: cardib it was about Bad Bunny Lady Gaga. So there 70 00:03:38,400 --> 00:03:41,760 Speaker 3: was a lot of buzz that was beyond the traditional 71 00:03:41,800 --> 00:03:42,800 Speaker 3: bets we were expecting. 72 00:03:43,240 --> 00:03:46,520 Speaker 2: The interesting thing about this and these numbers are. 73 00:03:46,680 --> 00:03:50,320 Speaker 8: How they have They've skyrocketed, right, So last year was 74 00:03:50,320 --> 00:03:54,280 Speaker 8: the first time that Calshi was even allowed to or 75 00:03:54,360 --> 00:03:57,200 Speaker 8: they operated on this world, right, Yeah, for sure. 76 00:03:57,040 --> 00:03:59,960 Speaker 3: And the last year's numbers pretty much looked like peanuts. 77 00:04:00,120 --> 00:04:02,360 Speaker 3: Now it was just like less than two hundred million. 78 00:04:02,640 --> 00:04:05,240 Speaker 3: Now obviously numbers, I mean, there were some comparisons and 79 00:04:05,280 --> 00:04:07,960 Speaker 3: people are like, oh, it's up to three thousand percent, 80 00:04:08,000 --> 00:04:09,720 Speaker 3: But I think it's really hard to compare because last 81 00:04:09,760 --> 00:04:12,520 Speaker 3: series it was a small thing. It was at the beginning, 82 00:04:12,520 --> 00:04:16,360 Speaker 3: people weren't really using their apps. A few interesting transfer 83 00:04:16,360 --> 00:04:21,720 Speaker 3: thing for example, combos parlays, those beds were really high 84 00:04:21,720 --> 00:04:24,200 Speaker 3: on Super Bowl Day. I was looking at the Caushi number. 85 00:04:24,560 --> 00:04:28,760 Speaker 3: About once one hundred and sixty million were in Combo's volume, 86 00:04:28,880 --> 00:04:32,359 Speaker 3: about eighteen percent of the Sunday volume. So that's a 87 00:04:32,400 --> 00:04:37,240 Speaker 3: pretty interesting trend to watch. Obviously, when it comes to 88 00:04:37,360 --> 00:04:40,039 Speaker 3: up downloads, this is something we've been talking about. We 89 00:04:40,120 --> 00:04:42,960 Speaker 3: know all the sports books. Obviously they have been around 90 00:04:42,960 --> 00:04:44,960 Speaker 3: for quite some times. They have millions and millions of 91 00:04:44,960 --> 00:04:48,200 Speaker 3: active users. But when it comes to acquiring new users, 92 00:04:48,279 --> 00:04:51,560 Speaker 3: the competition has been heating up and Kaushi has been 93 00:04:51,560 --> 00:04:54,680 Speaker 3: doing very well in terms of app downloads. On the day, 94 00:04:54,720 --> 00:04:57,400 Speaker 3: Bank of America is saying that Kaushi was number two 95 00:04:57,640 --> 00:05:00,960 Speaker 3: in overall the app store. We're also giving a shout 96 00:05:00,960 --> 00:05:04,719 Speaker 3: out to DraftKings, which was actually number five. But even 97 00:05:04,760 --> 00:05:08,760 Speaker 3: going into the Super Bowl, the Jenuine downwards number for 98 00:05:08,880 --> 00:05:12,400 Speaker 3: Kowshi were pretty strong. We saw around three million, which 99 00:05:12,480 --> 00:05:16,000 Speaker 3: is much much higher than what we saw for Draft 100 00:05:16,080 --> 00:05:19,960 Speaker 3: Kings and Funduo it was about six hundred thousand, So 101 00:05:20,160 --> 00:05:24,120 Speaker 3: definitely a lot of new users were going to those apps. 102 00:05:24,760 --> 00:05:28,080 Speaker 3: It was really strong season, and they were betting on sports, 103 00:05:28,080 --> 00:05:30,920 Speaker 3: they were betting on entertainment, and they were placing those 104 00:05:30,960 --> 00:05:34,240 Speaker 3: combo bets. It was really a combination of all the new, 105 00:05:34,279 --> 00:05:37,200 Speaker 3: busy things that tradition market does. 106 00:05:37,680 --> 00:05:41,040 Speaker 7: Denizia, this is something new. When I'm used to betting 107 00:05:41,120 --> 00:05:44,000 Speaker 7: on a game, I'm used to like Benny the bookie, 108 00:05:44,279 --> 00:05:46,720 Speaker 7: or maybe I'll go to Draft Kings and this and 109 00:05:46,720 --> 00:05:50,680 Speaker 7: that whatever, and now with Calci this is like the 110 00:05:50,720 --> 00:05:53,920 Speaker 7: prediction market. It's a totally different atmosphere. 111 00:05:54,160 --> 00:05:56,240 Speaker 3: Yeah, it's a different there is no house, that's what 112 00:05:56,279 --> 00:05:59,480 Speaker 3: they say. That, of course is kind of a level 113 00:05:59,600 --> 00:06:02,640 Speaker 3: they're a lot of issues with that. Of course, prediction 114 00:06:02,680 --> 00:06:06,120 Speaker 3: market comes with market makers, and when you think of 115 00:06:06,160 --> 00:06:08,480 Speaker 3: market makers, you have to think about those big Wall 116 00:06:08,480 --> 00:06:12,880 Speaker 3: Street names that are handling the plumbing for stocks and bonds. 117 00:06:12,920 --> 00:06:15,280 Speaker 3: And you know, we've been talking about Jane Street, We've 118 00:06:15,320 --> 00:06:19,480 Speaker 3: been talking about Jump, We've been talking about especially since 119 00:06:19,560 --> 00:06:24,000 Speaker 3: Kahana uh in Uh is a Caushi prediction is a 120 00:06:24,160 --> 00:06:29,080 Speaker 3: Caushi market maker. Uh So there definitely is that activity. 121 00:06:29,360 --> 00:06:31,919 Speaker 3: Of course, the whole concept and prediction market, there is 122 00:06:32,279 --> 00:06:37,040 Speaker 3: a rivalry. There is a lot of criticism against sports 123 00:06:37,080 --> 00:06:40,440 Speaker 3: books that you know, they're against the average player. One 124 00:06:40,480 --> 00:06:43,840 Speaker 3: prediction market we get this peer to peer experience, eye 125 00:06:43,839 --> 00:06:46,640 Speaker 3: trade and new trade on the other side. Uh And 126 00:06:46,720 --> 00:06:49,360 Speaker 3: it is a more fair game, of course, where you 127 00:06:49,480 --> 00:06:52,560 Speaker 3: have to see because there are many different analysis of 128 00:06:52,600 --> 00:06:56,039 Speaker 3: how much average lose, average user loses, and et cetera, 129 00:06:56,080 --> 00:06:59,440 Speaker 3: et cetera. But what we heard about the game, for example, 130 00:06:59,600 --> 00:07:04,039 Speaker 3: is Jordan Bender from Citizens said the pricing on prediction 131 00:07:04,200 --> 00:07:07,080 Speaker 3: market was a little bit better on the day of 132 00:07:07,120 --> 00:07:12,280 Speaker 3: the game. Of course, it really depends. His analysis has 133 00:07:12,320 --> 00:07:14,880 Speaker 3: shown pretty different numbers over time. But when it comes 134 00:07:14,880 --> 00:07:19,960 Speaker 3: to the game itself, we're definitely so some better prices 135 00:07:20,240 --> 00:07:22,120 Speaker 3: from prediction markets compared to bookies. 136 00:07:22,480 --> 00:07:25,400 Speaker 9: I think the interesting thing to me is is the 137 00:07:25,480 --> 00:07:29,040 Speaker 9: boom just because people are like, this is new, I 138 00:07:29,080 --> 00:07:31,160 Speaker 9: want to try it out, Or is it because of 139 00:07:31,160 --> 00:07:33,440 Speaker 9: all the different things they offer, like because people are. 140 00:07:33,320 --> 00:07:35,560 Speaker 8: Allowed to bet on the halftime show or trade on 141 00:07:35,560 --> 00:07:36,200 Speaker 8: those things too. 142 00:07:36,720 --> 00:07:39,640 Speaker 3: I think it's a combination. I feel though with sports 143 00:07:39,680 --> 00:07:43,120 Speaker 3: book obviously you have kind of a more limited audience 144 00:07:43,200 --> 00:07:46,160 Speaker 3: in the first place that obviously prediction markets is in 145 00:07:46,240 --> 00:07:51,400 Speaker 3: more states. You have layer on that that prediction markets 146 00:07:51,400 --> 00:07:55,080 Speaker 3: can be accessed by people under twenty one, which for. 147 00:07:55,120 --> 00:07:58,800 Speaker 8: Sportsbooks, that is another thing that's very odd to be 148 00:07:58,880 --> 00:08:02,440 Speaker 8: a really big Oh yeah. 149 00:08:01,480 --> 00:08:03,120 Speaker 2: So there's no age liment at. 150 00:08:03,000 --> 00:08:05,400 Speaker 3: All on prediction No, I think in most of them 151 00:08:05,440 --> 00:08:07,400 Speaker 3: you have to be above eighteen. But you know, in 152 00:08:08,440 --> 00:08:11,000 Speaker 3: between eighteen and twenty one, that's a pretty big audience 153 00:08:11,040 --> 00:08:14,440 Speaker 3: of people who are probably quite excited about sports, right, 154 00:08:15,520 --> 00:08:16,640 Speaker 3: So that's definitely help him. 155 00:08:16,760 --> 00:08:19,440 Speaker 7: And that's another thing that people can bet on through 156 00:08:19,520 --> 00:08:23,400 Speaker 7: Calshi and they did trying to predict who are going 157 00:08:23,440 --> 00:08:27,000 Speaker 7: to be the guests during the halftime performance for Bad Bunny. 158 00:08:27,160 --> 00:08:30,360 Speaker 7: In case people didn't know, remember that wedding sequence that 159 00:08:30,440 --> 00:08:33,360 Speaker 7: you saw that was for real. You know, you saw 160 00:08:33,400 --> 00:08:36,360 Speaker 7: them smack Drew will give a good kiss and then 161 00:08:36,400 --> 00:08:40,280 Speaker 7: they separated and here's Lady Gaga and I'm sure I'm 162 00:08:40,280 --> 00:08:43,439 Speaker 7: wonder if people bet on that and many other performances. 163 00:08:43,679 --> 00:08:46,480 Speaker 3: Yeah, I mean that was where all the controversy was. 164 00:08:47,040 --> 00:08:50,319 Speaker 3: There wasn't too much drama incomes to the outcome of 165 00:08:50,360 --> 00:08:52,520 Speaker 3: the game and the bets about it. But actually the 166 00:08:52,600 --> 00:08:56,160 Speaker 3: drama and prediction market was all about performance. For example, 167 00:08:56,240 --> 00:08:59,120 Speaker 3: Cardi b caused a lot of drama because she was 168 00:08:59,200 --> 00:09:03,960 Speaker 3: present and there was a bet on who is going 169 00:09:04,040 --> 00:09:08,800 Speaker 3: to perform on the super Boar and she was lip syncing, 170 00:09:08,880 --> 00:09:12,280 Speaker 3: she was dancing, so we saw two different outcomes. We 171 00:09:12,320 --> 00:09:14,120 Speaker 3: had pretty much the same bed on caw Shei, pretty 172 00:09:14,160 --> 00:09:17,960 Speaker 3: much the same bed on poly Market. What happened is 173 00:09:18,000 --> 00:09:21,680 Speaker 3: that caw Shei stepped in to resolve the contract and 174 00:09:21,720 --> 00:09:24,960 Speaker 3: they pretty much resolved it at where it stands, so 175 00:09:25,000 --> 00:09:27,880 Speaker 3: it was like seventy six cents for yes and like 176 00:09:28,280 --> 00:09:31,400 Speaker 3: twenty something for no. A Polly Market took a totally 177 00:09:31,400 --> 00:09:35,000 Speaker 3: different approach based on their rules. It counted that this 178 00:09:35,200 --> 00:09:37,719 Speaker 3: was a yes and she did perform, but the way 179 00:09:37,760 --> 00:09:41,520 Speaker 3: prediction mark kit works is that after this is resolved, 180 00:09:41,559 --> 00:09:45,200 Speaker 3: you can get disputed. So it's been disputed twice. So 181 00:09:45,880 --> 00:09:48,880 Speaker 3: it was a complicated bit that no one probably imagined 182 00:09:48,920 --> 00:09:51,880 Speaker 3: that such a thing will call so much drama, but 183 00:09:52,040 --> 00:09:55,839 Speaker 3: clearly just shows you how harder prediction markets is actually 184 00:09:55,920 --> 00:10:00,480 Speaker 3: settling figuring out what is a yes and and knowing 185 00:10:00,520 --> 00:10:04,000 Speaker 3: how much additional layers of drama it causes after a 186 00:10:04,080 --> 00:10:04,880 Speaker 3: bed is them. 187 00:10:05,200 --> 00:10:07,559 Speaker 8: Right as we were talking about that, just then it 188 00:10:08,120 --> 00:10:10,720 Speaker 8: kind of almost changed my mind. I feel like maybe 189 00:10:10,760 --> 00:10:13,400 Speaker 8: she didn't perform, Like I guess if you're if we're 190 00:10:13,400 --> 00:10:18,760 Speaker 8: talking about performance, but I personally predicted that two people 191 00:10:18,760 --> 00:10:20,880 Speaker 8: would perform and then five people would like kind of 192 00:10:20,920 --> 00:10:24,280 Speaker 8: just show up. So I feel like it is different. 193 00:10:24,720 --> 00:10:28,360 Speaker 8: But on that is the reason, Like we're looking at 194 00:10:28,360 --> 00:10:33,160 Speaker 8: the controversy there and all of that. Like I'm I'm 195 00:10:33,200 --> 00:10:40,160 Speaker 8: wondering because sports bets don't have that problem like like 196 00:10:40,480 --> 00:10:43,120 Speaker 8: with prediction markets, they have this this problem that they 197 00:10:43,160 --> 00:10:43,960 Speaker 8: need to figure out. 198 00:10:44,640 --> 00:10:46,760 Speaker 2: Is that either so much riskier? Like how do you 199 00:10:46,840 --> 00:10:48,440 Speaker 2: regulate that stuff? I guess this is what I'm really 200 00:10:48,440 --> 00:10:49,040 Speaker 2: trying to figure out. 201 00:10:49,080 --> 00:10:51,120 Speaker 8: How do you regulate what's on prediction markets, and that's 202 00:10:51,160 --> 00:10:52,920 Speaker 8: why sports bettings. 203 00:10:53,040 --> 00:10:55,400 Speaker 3: Is it safer? Would you say no? That's a great 204 00:10:55,520 --> 00:10:58,120 Speaker 3: point because sports betting is something that's been around for 205 00:10:58,160 --> 00:11:01,960 Speaker 3: a while. If you'd like like more limited number of 206 00:11:02,040 --> 00:11:05,160 Speaker 3: topics and things you'd bet, Like, the whole concept of 207 00:11:05,200 --> 00:11:08,000 Speaker 3: prediction market is like, Oh, you're going to financialize everything. 208 00:11:08,000 --> 00:11:10,240 Speaker 3: You're gonna bet on everything. You're gonna bet on music, 209 00:11:10,800 --> 00:11:13,560 Speaker 3: You're gonna bet on Jesus Christ's return. You can bet 210 00:11:13,640 --> 00:11:16,520 Speaker 3: on pretty much everything. And that opens a hope and 211 00:11:16,600 --> 00:11:19,440 Speaker 3: door books of like, oh, but how do you define 212 00:11:19,440 --> 00:11:21,120 Speaker 3: what's a yes? How do you define what's to no? 213 00:11:21,600 --> 00:11:27,280 Speaker 3: If it's something as abstract, how do you even define it? 214 00:11:27,440 --> 00:11:30,000 Speaker 3: What happened if someone manipulates it? What if it's a 215 00:11:30,080 --> 00:11:32,920 Speaker 3: mention market and I'm aware I'm the coin based CEO 216 00:11:33,280 --> 00:11:35,320 Speaker 3: and I'm on an earning scorel and i just start 217 00:11:35,400 --> 00:11:37,160 Speaker 3: reading all the words on the mention. 218 00:11:37,120 --> 00:11:40,960 Speaker 2: Markets, which is happened it? Yeah, it's a complete mess. 219 00:11:41,880 --> 00:11:45,079 Speaker 3: Obviously, this is harder to do on a sports book. 220 00:11:45,280 --> 00:11:50,959 Speaker 3: There is a whole insider trading issue with prediction markets 221 00:11:50,960 --> 00:11:53,440 Speaker 3: that they have been fighting with, and it's kind of 222 00:11:53,520 --> 00:11:55,640 Speaker 3: really hard to figure out. Even if I'm like a 223 00:11:55,679 --> 00:12:00,000 Speaker 3: performer or I oversee, like I randomly see Bad Bunnies 224 00:12:00,080 --> 00:12:02,440 Speaker 3: rehearsal and I know so much about performance and I 225 00:12:02,520 --> 00:12:05,960 Speaker 3: put the money. But then it's not necessarily inside of information. 226 00:12:06,120 --> 00:12:08,359 Speaker 3: I just passed by, So am I insider? 227 00:12:08,480 --> 00:12:09,520 Speaker 4: What if I make money? 228 00:12:09,720 --> 00:12:12,360 Speaker 3: It's just like pretty much the wild Wild West. That's 229 00:12:12,480 --> 00:12:14,720 Speaker 3: just like all this phomation contracts. 230 00:12:14,720 --> 00:12:17,800 Speaker 8: It's the thing I just can't understand about it. It's 231 00:12:17,800 --> 00:12:19,880 Speaker 8: someone who's working in the stadium. Yeah, they don't know 232 00:12:19,960 --> 00:12:22,320 Speaker 8: Bad Bunny. They they didn't talk to him about his performance, 233 00:12:22,320 --> 00:12:24,280 Speaker 8: but they saw all the rehearsals and they could have 234 00:12:24,280 --> 00:12:25,120 Speaker 8: put up all the money. 235 00:12:25,200 --> 00:12:28,439 Speaker 7: Yeah, that's a very good point because I mean unless 236 00:12:28,520 --> 00:12:31,760 Speaker 7: Lady Gaga was, you know, in a big barrel and 237 00:12:31,840 --> 00:12:34,800 Speaker 7: she's just wheeled out there at the last minute, How 238 00:12:34,800 --> 00:12:37,400 Speaker 7: can you not know somebody's going to be seeing that 239 00:12:38,040 --> 00:12:42,520 Speaker 7: place bet? Yeah, I mean you can't. It's there they are. 240 00:12:42,920 --> 00:12:44,160 Speaker 7: I don't see how you can avoid it. 241 00:12:44,200 --> 00:12:47,280 Speaker 3: And are those people insiders? Did they sign an ndia 242 00:12:47,400 --> 00:12:49,440 Speaker 3: not to mention it? Are they allowed to bet? And 243 00:12:49,840 --> 00:12:50,880 Speaker 3: I mean, how do you even. 244 00:12:50,720 --> 00:12:51,120 Speaker 5: Deal with that? 245 00:12:51,200 --> 00:12:53,520 Speaker 3: How do you prepare? Like do you sign NDA's for 246 00:12:53,559 --> 00:12:56,000 Speaker 3: every single bet on the product market, right. 247 00:12:55,800 --> 00:12:56,200 Speaker 9: How is she? 248 00:12:56,800 --> 00:12:58,360 Speaker 2: It's a gray gray area. 249 00:12:58,559 --> 00:13:01,760 Speaker 8: Our thanks to Bloomberg News cross Asset reporter Danita Sikova. 250 00:13:02,280 --> 00:13:05,640 Speaker 7: Up next, we turned to basketball and speak with the 251 00:13:05,679 --> 00:13:10,880 Speaker 7: President of Business Operations for the NBA Charlotte Hornets, Orbanessa Pronomo. 252 00:13:11,040 --> 00:13:14,120 Speaker 7: I'm Michael Laura. You are listen to the Bloomberg Business 253 00:13:14,120 --> 00:13:16,679 Speaker 7: of Sports Bloomberg Radio around the world. 254 00:13:20,240 --> 00:13:24,240 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 255 00:13:26,240 --> 00:13:29,000 Speaker 7: This is the Bloomberg Business of Sports where we explore 256 00:13:29,040 --> 00:13:31,320 Speaker 7: the big money issues in the world of sports. 257 00:13:31,400 --> 00:13:33,400 Speaker 2: I'm Michael Barr and I'm Vanessa Pronomo. 258 00:13:33,760 --> 00:13:37,319 Speaker 7: We turned now to the NBA. Now that we're at 259 00:13:37,360 --> 00:13:41,560 Speaker 7: the unofficial halfway point in the season, the NBA All 260 00:13:41,600 --> 00:13:42,520 Speaker 7: Star Break. 261 00:13:42,440 --> 00:13:44,800 Speaker 8: All Star Weekend festivities are going on in LA, but 262 00:13:44,840 --> 00:13:46,760 Speaker 8: we wanted to head to Charlotte to check in on 263 00:13:46,800 --> 00:13:49,240 Speaker 8: a franchise that's got a young core and has been 264 00:13:49,280 --> 00:13:51,439 Speaker 8: playing pretty well, the Charlotte Hornets. 265 00:13:51,559 --> 00:13:55,080 Speaker 7: Yes, they have. Joining us now is Shelley Kay at Weston. 266 00:13:55,320 --> 00:13:58,880 Speaker 7: She is the President of Business Operations for Hornets Sports 267 00:13:58,960 --> 00:14:02,840 Speaker 7: and Entertainment Group, the owners of the Charlotte Hornets and 268 00:14:02,960 --> 00:14:07,720 Speaker 7: operators of the Spectrum Center. Lle Welcome to the Bloomberg 269 00:14:07,760 --> 00:14:08,800 Speaker 7: Business of Sports. 270 00:14:09,120 --> 00:14:10,199 Speaker 4: Thank you for having me. 271 00:14:10,880 --> 00:14:13,960 Speaker 7: Uh you know, I have to bring this up because 272 00:14:14,320 --> 00:14:17,520 Speaker 7: you have someone who is going to be in the 273 00:14:17,679 --> 00:14:24,440 Speaker 7: All Star Game, and this young man, con Knoople aka beast. 274 00:14:24,320 --> 00:14:25,600 Speaker 10: Can's already made a pair. 275 00:14:26,000 --> 00:14:27,000 Speaker 2: He's got three. 276 00:14:28,040 --> 00:14:32,600 Speaker 7: Oh my goodness, the convent this this young man. He 277 00:14:32,760 --> 00:14:37,280 Speaker 7: was first round, fourth overall in the twenty twenty five draft. 278 00:14:37,480 --> 00:14:39,880 Speaker 7: And I see why you picked this guy. 279 00:14:41,600 --> 00:14:42,200 Speaker 4: Absolutely. 280 00:14:42,280 --> 00:14:44,800 Speaker 5: Con has been amazing and he has been amazing on 281 00:14:44,920 --> 00:14:47,000 Speaker 5: and off the court. I have to tell you, you know, 282 00:14:47,240 --> 00:14:49,560 Speaker 5: his energy, his commitment, his dedication. 283 00:14:50,160 --> 00:14:51,560 Speaker 4: A lot of people don't realize. 284 00:14:51,640 --> 00:14:55,160 Speaker 5: You know, he actually played when he was at Summer 285 00:14:55,240 --> 00:14:57,640 Speaker 5: League when we won the championship. That was you know, 286 00:14:57,680 --> 00:15:00,360 Speaker 5: this winning in this momentum started really in a summer 287 00:15:00,560 --> 00:15:04,160 Speaker 5: during Summer League and he was playing with stitches in 288 00:15:04,200 --> 00:15:06,800 Speaker 5: his head. He got ahead, but and he was still 289 00:15:06,800 --> 00:15:08,880 Speaker 5: playing because he's so committed, so dedicated. 290 00:15:09,240 --> 00:15:11,960 Speaker 4: He's been a great energy and a great teammate. I 291 00:15:12,000 --> 00:15:14,400 Speaker 4: think the team loves him. He's really all about team, 292 00:15:14,440 --> 00:15:16,600 Speaker 4: which is so important to us. So it's been great 293 00:15:16,640 --> 00:15:17,120 Speaker 4: having him. 294 00:15:17,840 --> 00:15:19,800 Speaker 8: That's, you know, one of the things we definitely want 295 00:15:19,840 --> 00:15:22,800 Speaker 8: to get into winning the Summer League, and you know, 296 00:15:22,880 --> 00:15:25,560 Speaker 8: having that momentum going into the season and having this 297 00:15:25,640 --> 00:15:29,240 Speaker 8: strong rookie class and having con come in from your seat, 298 00:15:29,440 --> 00:15:32,440 Speaker 8: you know, as president of business operations, how you know, 299 00:15:32,480 --> 00:15:34,680 Speaker 8: how much do you apply that strategy when you're looking 300 00:15:34,720 --> 00:15:36,800 Speaker 8: at how to bring up this rookie class and you know, 301 00:15:37,440 --> 00:15:38,400 Speaker 8: how does that apply for you? 302 00:15:39,400 --> 00:15:39,600 Speaker 10: Yeah? 303 00:15:39,640 --> 00:15:42,200 Speaker 5: Look, I think it's been great in our organization. I 304 00:15:42,200 --> 00:15:44,480 Speaker 5: think for any organization, Like when you think about rookies, 305 00:15:44,480 --> 00:15:46,880 Speaker 5: I think about in a business the intern class. The 306 00:15:46,880 --> 00:15:49,880 Speaker 5: intern class is so important. Some of your future leaders 307 00:15:49,880 --> 00:15:52,000 Speaker 5: are in that intern class. They bring new ideas, they 308 00:15:52,000 --> 00:15:54,560 Speaker 5: bring new energy, they challenge the norms, they make you 309 00:15:54,600 --> 00:15:55,560 Speaker 5: better as an organization. 310 00:15:55,640 --> 00:15:57,800 Speaker 4: And I think it's no different for our rookie class. 311 00:15:58,560 --> 00:16:00,360 Speaker 5: You know, I give a lot of credit to Jeff 312 00:16:00,400 --> 00:16:03,440 Speaker 5: Peterson and what he and his team has brought in. 313 00:16:03,760 --> 00:16:08,120 Speaker 5: You know, we've got Kahn and Ryan and Liam and Sion, 314 00:16:08,440 --> 00:16:12,560 Speaker 5: and these guys bring such a strong collegiate background of 315 00:16:12,680 --> 00:16:18,160 Speaker 5: team camaraderie and toughness and just a resilience that has 316 00:16:18,200 --> 00:16:20,760 Speaker 5: really helped an added value to our young core. 317 00:16:21,480 --> 00:16:25,040 Speaker 4: So they've really really jelped well very early. 318 00:16:25,120 --> 00:16:27,520 Speaker 5: I think it was great to hear even in the 319 00:16:27,600 --> 00:16:32,240 Speaker 5: off season, right after you know, the draft, our veterans 320 00:16:32,240 --> 00:16:35,640 Speaker 5: were actually going to their practices, which is not the 321 00:16:35,760 --> 00:16:36,480 Speaker 5: norm in the. 322 00:16:36,480 --> 00:16:38,600 Speaker 4: NBA, right But it was really that. 323 00:16:38,680 --> 00:16:42,240 Speaker 5: Early team camaraderie, camaraderie that started, and we certainly saw 324 00:16:42,280 --> 00:16:44,440 Speaker 5: a glimpse of that in Summer League as we were 325 00:16:44,480 --> 00:16:45,960 Speaker 5: on the journey to winning that championship. 326 00:16:46,440 --> 00:16:49,640 Speaker 7: I like the energy that the Hornets have. At one point, 327 00:16:49,680 --> 00:16:53,320 Speaker 7: you had a nine game winning streak. Uh. Now, this 328 00:16:53,400 --> 00:16:55,720 Speaker 7: is a really bad time for me to say that 329 00:16:55,960 --> 00:16:59,080 Speaker 7: I'm a native Detroiter. I won't say what happened in 330 00:16:59,160 --> 00:17:01,600 Speaker 7: the game, y'all look it up. That's it. That's all 331 00:17:01,600 --> 00:17:05,399 Speaker 7: I'm gonna say. What I am saying is you guys 332 00:17:05,480 --> 00:17:08,000 Speaker 7: have the energy. I think you guys have a shot 333 00:17:08,040 --> 00:17:08,920 Speaker 7: to make the playoffs. 334 00:17:10,720 --> 00:17:13,320 Speaker 5: Look, I love to hear that, and I will say 335 00:17:13,880 --> 00:17:15,359 Speaker 5: and it doesn't come out of my mouth, but I 336 00:17:15,400 --> 00:17:17,600 Speaker 5: have heard that from a lot of people actually very 337 00:17:17,640 --> 00:17:20,119 Speaker 5: early on. And look, I think what you're seeing. The 338 00:17:20,200 --> 00:17:23,840 Speaker 5: nine game win streak was such great momentum. But this 339 00:17:23,920 --> 00:17:27,760 Speaker 5: really started over two years ago with new ownership with 340 00:17:27,880 --> 00:17:30,960 Speaker 5: Rick Snall and Gate Plokin having a very clear vision 341 00:17:31,080 --> 00:17:34,560 Speaker 5: of being a premier NBA and entertainment franchise, of setting 342 00:17:34,600 --> 00:17:37,479 Speaker 5: the foundation that we're going to bring in talent and 343 00:17:37,520 --> 00:17:40,359 Speaker 5: we're gonna be we're gonna build a winning culture. And 344 00:17:40,400 --> 00:17:43,080 Speaker 5: I think what you're seeing over that nine game wind streak, 345 00:17:43,480 --> 00:17:46,199 Speaker 5: which included, by the way, a twenty point comeback against 346 00:17:46,240 --> 00:17:49,560 Speaker 5: New Orleans, it was one of our longest win streaks 347 00:17:49,600 --> 00:17:53,160 Speaker 5: in two decades with our organization, you're just seeing the 348 00:17:53,240 --> 00:17:57,080 Speaker 5: outcome of a lot of work that Charles Lee, who's 349 00:17:57,600 --> 00:18:01,560 Speaker 5: our head coach, he comes from organizations, he comes from 350 00:18:01,600 --> 00:18:04,960 Speaker 5: having won two championships, you know, with the Celtics and 351 00:18:05,000 --> 00:18:05,359 Speaker 5: the Bucks. 352 00:18:05,400 --> 00:18:07,560 Speaker 4: He comes understanding what when in culture. 353 00:18:07,320 --> 00:18:11,199 Speaker 5: Means and you see him really infusing that into the 354 00:18:11,240 --> 00:18:14,520 Speaker 5: team very early, and it's all behind the scenes. And 355 00:18:14,800 --> 00:18:16,679 Speaker 5: again it's great that now our fans can see that 356 00:18:16,720 --> 00:18:18,960 Speaker 5: come to life and what came out to be again 357 00:18:19,000 --> 00:18:21,680 Speaker 5: a nine game win streak, and it's just momentum. We're 358 00:18:21,720 --> 00:18:23,879 Speaker 5: looking to do this for the long term, not just 359 00:18:23,920 --> 00:18:27,359 Speaker 5: a one time momentum phase, and so we're really excited 360 00:18:27,359 --> 00:18:28,679 Speaker 5: about what's to come in the future. 361 00:18:29,080 --> 00:18:30,639 Speaker 8: Shelly, I want to talk a little bit more about 362 00:18:30,640 --> 00:18:32,920 Speaker 8: that and about the new ownership. Like you said, they 363 00:18:32,960 --> 00:18:34,479 Speaker 8: came in just a couple of years ago, and then 364 00:18:34,480 --> 00:18:37,440 Speaker 8: you came in right after that. Tell us about those 365 00:18:37,440 --> 00:18:40,159 Speaker 8: early conversations that you had with them, that you knew 366 00:18:40,280 --> 00:18:41,920 Speaker 8: that this would be a good place for you and 367 00:18:42,240 --> 00:18:43,840 Speaker 8: you believed in what they're trying to build. 368 00:18:44,800 --> 00:18:48,360 Speaker 5: Absolutely, it's you know, when my first conversations with Rick 369 00:18:48,400 --> 00:18:52,040 Speaker 5: and Gabe, I felt their passion and it's hard. I'm 370 00:18:52,040 --> 00:18:53,639 Speaker 5: excited for everybody to get to know them. Actually, more 371 00:18:53,640 --> 00:18:55,080 Speaker 5: people are going to get to know Rick because he's 372 00:18:55,119 --> 00:18:59,280 Speaker 5: in the Celebrity Game and All Star. But they are 373 00:18:59,320 --> 00:19:03,520 Speaker 5: passionate about basketball. They're passionate about basketball, They're passionate about winning. 374 00:19:03,520 --> 00:19:06,920 Speaker 5: They both are obviously very successful, and I kind of 375 00:19:06,960 --> 00:19:09,560 Speaker 5: say this, they're just good human beings, but they're really 376 00:19:09,640 --> 00:19:13,639 Speaker 5: driven by a winning culture. And so they've assembled a 377 00:19:13,720 --> 00:19:17,200 Speaker 5: team with Jeff Peterson. He was their first hire. Jeff 378 00:19:17,240 --> 00:19:21,600 Speaker 5: comes with again great background, great success in his career. 379 00:19:22,119 --> 00:19:24,879 Speaker 5: My first conversation when I talked to even Jeff, I 380 00:19:24,960 --> 00:19:27,680 Speaker 5: knew right away that he had a same alignment and 381 00:19:27,720 --> 00:19:30,679 Speaker 5: commitment to excellence and just being the best, and that 382 00:19:30,680 --> 00:19:32,360 Speaker 5: we were gonna be able to build this together. 383 00:19:33,040 --> 00:19:34,280 Speaker 4: And then his first hire was. 384 00:19:34,320 --> 00:19:38,440 Speaker 5: Jeff Charles Lee again who came with a great background 385 00:19:38,640 --> 00:19:41,320 Speaker 5: and just the energy. So we in the front office 386 00:19:41,320 --> 00:19:43,879 Speaker 5: are aligned so well and just we have one vision, 387 00:19:44,119 --> 00:19:46,280 Speaker 5: which is again starts from Rick and Gabe, which is 388 00:19:46,320 --> 00:19:49,920 Speaker 5: to be a premier franchise and we are just committed 389 00:19:49,960 --> 00:19:51,720 Speaker 5: to that and we're committed to that for the long haul. 390 00:19:52,359 --> 00:19:54,640 Speaker 2: When you're looking at the market a little bit more, 391 00:19:54,880 --> 00:19:55,760 Speaker 2: can you tell us about that? 392 00:19:55,760 --> 00:19:58,080 Speaker 8: Obviously you were with the Calves for a long time 393 00:19:58,160 --> 00:20:01,719 Speaker 8: and being in the Cleveland market now going into Charlotte, 394 00:20:01,840 --> 00:20:05,000 Speaker 8: how do you know what's your strategy around these these 395 00:20:05,200 --> 00:20:07,120 Speaker 8: a bit of it smaller markets, But like you said, 396 00:20:07,160 --> 00:20:10,879 Speaker 8: obviously Charlotte and Carolina have this really deep basketball culture, 397 00:20:10,920 --> 00:20:15,040 Speaker 8: So what's the strategy around those markets and expanding it. 398 00:20:15,880 --> 00:20:17,720 Speaker 5: Yeah, no, it's a great question because look, it's a 399 00:20:17,720 --> 00:20:19,639 Speaker 5: growth market and so what we know right now is 400 00:20:19,640 --> 00:20:24,080 Speaker 5: we have legacy fans. Actually, Charlotte had the NBA attendance 401 00:20:24,200 --> 00:20:27,639 Speaker 5: record for over nine straight years early when it started 402 00:20:27,680 --> 00:20:29,840 Speaker 5: in its infancy back in the eighties when it was 403 00:20:29,880 --> 00:20:34,040 Speaker 5: an expansion team. People love Del Curry, Muggy Bulls and 404 00:20:34,040 --> 00:20:35,919 Speaker 5: by the way, they're still all on staff. We're actually 405 00:20:36,400 --> 00:20:41,320 Speaker 5: recognizing and going to retire Dell's jersey March nineteenth. So 406 00:20:41,440 --> 00:20:44,560 Speaker 5: we know we have a market that is connected to sport, 407 00:20:44,600 --> 00:20:46,760 Speaker 5: but we also have a market that has one hundred 408 00:20:46,760 --> 00:20:50,440 Speaker 5: and fifty seven people daily moving here, So that means 409 00:20:50,480 --> 00:20:52,840 Speaker 5: there's a lot of transplants that may have other connections 410 00:20:52,840 --> 00:20:55,159 Speaker 5: to other teams. So for us, what we think from 411 00:20:55,160 --> 00:20:57,600 Speaker 5: a strategic standpoint, it's literally about connecting. 412 00:20:57,640 --> 00:20:58,000 Speaker 4: We've got it. 413 00:20:58,080 --> 00:21:00,320 Speaker 5: We want to create a sense of pride, create a 414 00:21:00,320 --> 00:21:02,639 Speaker 5: product that people can be proud of. But also we 415 00:21:02,680 --> 00:21:06,040 Speaker 5: have I think a market that understands civic engagement and civic. 416 00:21:05,760 --> 00:21:07,399 Speaker 4: Commitment and how important that is. 417 00:21:08,160 --> 00:21:09,840 Speaker 5: And so we just think we're also, by the way, 418 00:21:09,880 --> 00:21:13,919 Speaker 5: North Carolina was ranked number one by CNBC as a 419 00:21:13,960 --> 00:21:16,600 Speaker 5: state to do business two years in a row, so 420 00:21:16,640 --> 00:21:20,600 Speaker 5: there's a lot of momentum on the business side here also, 421 00:21:20,800 --> 00:21:22,879 Speaker 5: So we just think we're in an exciting opportunity and a 422 00:21:22,920 --> 00:21:25,440 Speaker 5: market of growth, and we're happy to play a part 423 00:21:25,480 --> 00:21:27,719 Speaker 5: of that and be a part of that the continued growth. 424 00:21:27,840 --> 00:21:30,040 Speaker 7: I love Musy. I did I remember when he came 425 00:21:30,080 --> 00:21:32,320 Speaker 7: in the league. I'm like, yeah, sure. 426 00:21:33,560 --> 00:21:36,280 Speaker 8: I also want to note though, before shell. You had 427 00:21:36,320 --> 00:21:38,639 Speaker 8: mentioned you came from a basketball background, and we have 428 00:21:38,720 --> 00:21:42,440 Speaker 8: to let people know you played Division one basketball, right 429 00:21:42,440 --> 00:21:45,159 Speaker 8: this is this wasn't a oh you know, you know, 430 00:21:45,200 --> 00:21:46,800 Speaker 8: it came from the sport a little bit. You know, 431 00:21:46,880 --> 00:21:49,760 Speaker 8: you were really into it, and that just proves the whole, 432 00:21:49,840 --> 00:21:53,760 Speaker 8: you know, theory that women executive women in sports and 433 00:21:54,040 --> 00:21:58,160 Speaker 8: across business actually played at high level of sports. 434 00:21:58,240 --> 00:22:01,080 Speaker 2: It's a very high statistic on that, actually, Chillie. 435 00:22:01,119 --> 00:22:03,080 Speaker 8: Can you tell us more about how like being an 436 00:22:03,080 --> 00:22:05,720 Speaker 8: athlete and being in the game and all of that, 437 00:22:05,760 --> 00:22:07,960 Speaker 8: you know, influences your leadership style. 438 00:22:08,840 --> 00:22:11,040 Speaker 4: Vanessa, you are so accurate with that. 439 00:22:11,240 --> 00:22:13,399 Speaker 5: People ask all the time about my skill set and 440 00:22:13,760 --> 00:22:16,560 Speaker 5: everything that I learned. I attribute all of it literally 441 00:22:16,560 --> 00:22:18,399 Speaker 5: outside of my parents, my mom and dad. 442 00:22:18,480 --> 00:22:21,119 Speaker 4: Of course, the rest has really been basketball. 443 00:22:21,160 --> 00:22:23,680 Speaker 5: I have learned so many skill set in the business 444 00:22:23,680 --> 00:22:28,280 Speaker 5: side from basketball, tenacity, toughness, how to deal with change, adversity. 445 00:22:28,600 --> 00:22:30,320 Speaker 5: You know, I didn't have the best I actually had 446 00:22:30,320 --> 00:22:34,040 Speaker 5: a great high school career. I was challengeding my collegiate career. 447 00:22:34,080 --> 00:22:36,920 Speaker 5: I played for a short period overseas near a Prague, 448 00:22:37,119 --> 00:22:39,480 Speaker 5: got cut, had to come back and figure out life. 449 00:22:39,920 --> 00:22:43,960 Speaker 5: So I'm tested but I also think it made me stronger, 450 00:22:43,960 --> 00:22:46,560 Speaker 5: and so now I actually take opportunity like coming here 451 00:22:46,600 --> 00:22:49,160 Speaker 5: to this market. You know, the team has been and 452 00:22:49,240 --> 00:22:52,160 Speaker 5: not been the most winning ist team over that it's 453 00:22:52,280 --> 00:22:56,040 Speaker 5: past a few decades, and so I saw the opportunity 454 00:22:56,080 --> 00:22:58,680 Speaker 5: and that excites me. So I think basketball actually helped 455 00:22:58,680 --> 00:23:02,480 Speaker 5: to create that in me, which is about drive. And 456 00:23:03,400 --> 00:23:05,960 Speaker 5: by the way, team it's all about teams. So certainly 457 00:23:06,040 --> 00:23:09,360 Speaker 5: understanding that leading the organization, it's all about team. All 458 00:23:09,400 --> 00:23:12,320 Speaker 5: of those skill sets came from basketball. And I have 459 00:23:12,440 --> 00:23:15,080 Speaker 5: two young girls that are three and six and one 460 00:23:15,200 --> 00:23:17,560 Speaker 5: is just starting in basketball and she's I can see 461 00:23:17,560 --> 00:23:19,919 Speaker 5: her learning those skill sets very early. So we believe 462 00:23:19,920 --> 00:23:22,359 Speaker 5: in the power of sport and importance of sports, especially 463 00:23:22,400 --> 00:23:23,400 Speaker 5: even women in sports. 464 00:23:23,640 --> 00:23:25,639 Speaker 8: And lastly, here you know, Shelley as we close up, 465 00:23:25,880 --> 00:23:29,359 Speaker 8: obviously you know big big new arenas or the shiny 466 00:23:29,400 --> 00:23:32,840 Speaker 8: new thing, you know, across all sports really and it's 467 00:23:32,920 --> 00:23:35,639 Speaker 8: really helping drive valuations. And now in the NBA we 468 00:23:35,680 --> 00:23:38,760 Speaker 8: see valuation skyrocketing. I mean across all sports, but really 469 00:23:38,800 --> 00:23:40,400 Speaker 8: in the NBA we see two teams at the over 470 00:23:40,440 --> 00:23:43,360 Speaker 8: ten billion dollar valuations. Is that something that you think 471 00:23:43,400 --> 00:23:45,680 Speaker 8: about at all when you're thinking about growth of revenue 472 00:23:45,720 --> 00:23:47,800 Speaker 8: and all of those things that you have to think about. 473 00:23:47,960 --> 00:23:50,920 Speaker 8: Are you thinking at all of you know, growing your valuation? 474 00:23:52,280 --> 00:23:53,439 Speaker 4: You know, we don't lead that. 475 00:23:53,480 --> 00:23:55,080 Speaker 5: The great thing I love about Rick and Gabe is 476 00:23:55,119 --> 00:23:57,480 Speaker 5: it's not about just money here. They're doing it because 477 00:23:57,480 --> 00:24:00,119 Speaker 5: they want to win and have a winning team and 478 00:24:00,160 --> 00:24:02,080 Speaker 5: culture on and off the court that the fans can 479 00:24:02,119 --> 00:24:04,600 Speaker 5: be proud of. Absolutely, we want to be responsible in 480 00:24:04,640 --> 00:24:07,960 Speaker 5: our business efforts. One example of that is Rick and 481 00:24:08,000 --> 00:24:12,119 Speaker 5: Gabe invested in a brand new practices So we have 482 00:24:12,160 --> 00:24:15,480 Speaker 5: a novant help practice facility that we're building. It should 483 00:24:15,480 --> 00:24:19,000 Speaker 5: be finished next spring right behind the Spectrum Center. 484 00:24:19,600 --> 00:24:22,080 Speaker 4: And what that is is about our vision. 485 00:24:21,800 --> 00:24:24,240 Speaker 5: To be a world to have a world class facilities, right, 486 00:24:24,320 --> 00:24:26,360 Speaker 5: so we want a place that we can actually retain 487 00:24:26,520 --> 00:24:29,919 Speaker 5: top talent in the NBA and attract new talent and 488 00:24:29,960 --> 00:24:33,080 Speaker 5: have a place that's top clat and you think about 489 00:24:33,400 --> 00:24:37,200 Speaker 5: throughout the industry that has all the best again when 490 00:24:37,200 --> 00:24:40,399 Speaker 5: you think about facilities and resources. We're also going to 491 00:24:40,440 --> 00:24:42,639 Speaker 5: have orthopedic center in there that's open to the public 492 00:24:42,680 --> 00:24:45,240 Speaker 5: and our three hundred employees will be housed in this 493 00:24:45,320 --> 00:24:47,600 Speaker 5: facility because Rick and Gabe thought it was important to 494 00:24:48,040 --> 00:24:51,359 Speaker 5: nurture collaboration. So when you talk about valuation, it's I 495 00:24:51,359 --> 00:24:54,560 Speaker 5: think it's important to understand investing in the facility is 496 00:24:54,680 --> 00:24:57,240 Speaker 5: it starts there right, and if we do that right, 497 00:24:57,520 --> 00:24:59,879 Speaker 5: we're going to get partners that align. We've had great 498 00:25:00,080 --> 00:25:03,920 Speaker 5: long term strategic partners. We just announced Judy Health, which 499 00:25:03,960 --> 00:25:07,840 Speaker 5: is a great tech company and that provides transparent benefits 500 00:25:07,400 --> 00:25:11,159 Speaker 5: to customers and fans. We just added Honeywall, which is 501 00:25:11,240 --> 00:25:15,120 Speaker 5: amazing and building automation, and they're going to help our players, 502 00:25:15,200 --> 00:25:18,200 Speaker 5: fans and employees become better, even truest. 503 00:25:18,560 --> 00:25:19,959 Speaker 4: That's really a part of our practice. 504 00:25:19,960 --> 00:25:23,240 Speaker 5: Facility in connecting with our fancies are long term strategic partners. 505 00:25:23,600 --> 00:25:27,000 Speaker 5: All of those investments and partnerships help long term right 506 00:25:27,040 --> 00:25:30,040 Speaker 5: as you think about what's how our organizations valued. And 507 00:25:30,080 --> 00:25:32,000 Speaker 5: then we have great core partners that are already here, 508 00:25:32,000 --> 00:25:35,800 Speaker 5: like Bank of America that's headquartered right here in Charlotte 509 00:25:35,840 --> 00:25:39,760 Speaker 5: and really committed to community. So all of these things 510 00:25:39,760 --> 00:25:42,440 Speaker 5: are important, and when you invest on the front end, 511 00:25:42,520 --> 00:25:45,119 Speaker 5: I think ultimately the valuation comes, but it has to 512 00:25:45,119 --> 00:25:47,080 Speaker 5: start with the right reason, and we're doing it to 513 00:25:47,560 --> 00:25:49,880 Speaker 5: create a winning culture and for our fans. 514 00:25:49,800 --> 00:25:51,320 Speaker 2: Our thanks to Shelley Kayak Weston. 515 00:25:51,359 --> 00:25:54,760 Speaker 8: She's President of business Operations for Hornet Sports and Entertainment Group. 516 00:25:55,080 --> 00:25:59,040 Speaker 7: I'm next returned to the world of minor league baseball. 517 00:25:59,160 --> 00:26:02,080 Speaker 7: That was straight up on the Bloomberg Business of Sports 518 00:26:02,400 --> 00:26:05,880 Speaker 7: Michael Barr with Wnessa Normal. You are listen to Bloomberg 519 00:26:06,000 --> 00:26:09,000 Speaker 7: Business of Sports from Bloomberg Radio around the world. 520 00:26:11,680 --> 00:26:13,800 Speaker 1: This is Caroline Hyde and I'm Ed Ludlow. 521 00:26:13,880 --> 00:26:17,800 Speaker 5: Join us for Bloomberg Technology, a daily podcast focusing exclusively 522 00:26:17,920 --> 00:26:20,760 Speaker 5: on technology, innovation and the future of business. 523 00:26:20,800 --> 00:26:23,199 Speaker 1: We bring you the latest headlines from Silicon Valley and 524 00:26:23,240 --> 00:26:25,719 Speaker 1: conversations with tech's biggest decision makers. 525 00:26:25,760 --> 00:26:27,680 Speaker 7: You have to have a pro innovation mindset. 526 00:26:27,720 --> 00:26:28,920 Speaker 4: We were partnered with OPENERI. 527 00:26:29,119 --> 00:26:31,680 Speaker 3: We've all experienced this incredible. 528 00:26:31,240 --> 00:26:32,879 Speaker 2: Revolution Bloomberg Technology. 529 00:26:33,000 --> 00:26:36,320 Speaker 1: Listen on Apple, Corplay and Android, Water with the Bloomberg 530 00:26:36,320 --> 00:26:38,639 Speaker 1: Business App, and anywhere you get your podcasts. 531 00:26:38,680 --> 00:26:41,520 Speaker 3: Bloomberg Podcasts context changes everything. 532 00:26:42,640 --> 00:26:46,639 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 533 00:26:48,080 --> 00:26:50,560 Speaker 7: Thanks for joining us on the Bloomberg Business of Sports, 534 00:26:50,600 --> 00:26:53,280 Speaker 7: where we explore the big money issues. I'm not talking 535 00:26:53,320 --> 00:26:56,879 Speaker 7: that small quartered nickel dimes stuff. Big money is using 536 00:26:56,960 --> 00:26:58,360 Speaker 7: the world of Sports. 537 00:26:58,200 --> 00:26:59,760 Speaker 2: Michael Barr and I'm Vanessa Proderma. 538 00:27:00,200 --> 00:27:03,680 Speaker 7: We're in the dead of winter, but spring is right 539 00:27:03,680 --> 00:27:06,720 Speaker 7: around the corner, and with that it is a new 540 00:27:06,960 --> 00:27:08,080 Speaker 7: baseball season. 541 00:27:08,520 --> 00:27:09,160 Speaker 2: That's why Michael. 542 00:27:09,200 --> 00:27:11,040 Speaker 8: In a few weeks back, you, me and Damien got 543 00:27:11,040 --> 00:27:13,639 Speaker 8: a chance to speak with Mike Carney, he's CEO of 544 00:27:13,640 --> 00:27:16,720 Speaker 8: On Deck Partners, about his firm's recent purchase of two 545 00:27:16,840 --> 00:27:18,000 Speaker 8: minor league baseball clubs. 546 00:27:18,359 --> 00:27:21,800 Speaker 7: Carney's On Deck Partners is a relatively new entity owned 547 00:27:21,840 --> 00:27:26,080 Speaker 7: by none other than Mark Lazar's private equity firm, Avenue 548 00:27:26,080 --> 00:27:26,800 Speaker 7: Capitol Group. 549 00:27:27,480 --> 00:27:29,840 Speaker 8: Let's listen into our conversation with Mike Carney on his 550 00:27:29,920 --> 00:27:33,040 Speaker 8: company's latest acquisitions in the business of minor league baseball. 551 00:27:33,200 --> 00:27:36,840 Speaker 10: We're super excited to formally launch the brand. It's been 552 00:27:37,040 --> 00:27:40,600 Speaker 10: a long time that we've been developing it together with 553 00:27:40,680 --> 00:27:45,679 Speaker 10: the Avenue team, and you know, with together with our 554 00:27:45,720 --> 00:27:48,320 Speaker 10: announcement of our first two acquisitions and the announcement of 555 00:27:48,320 --> 00:27:51,640 Speaker 10: our brand, we really couldn't be more thrilled to have 556 00:27:51,720 --> 00:27:55,560 Speaker 10: two really, really great teams, you know, to kick this off, 557 00:27:56,200 --> 00:27:59,360 Speaker 10: Vicelia and Montgomery. I get asked a question a lot 558 00:27:59,400 --> 00:28:03,359 Speaker 10: why those two and it really comes down to the 559 00:28:03,359 --> 00:28:06,360 Speaker 10: fact that you know, we see a lot of value 560 00:28:06,520 --> 00:28:09,560 Speaker 10: in these in these teams that are in you know, 561 00:28:09,600 --> 00:28:13,480 Speaker 10: these these you know, small to mid size markets that 562 00:28:13,520 --> 00:28:17,439 Speaker 10: really have rich, rich history, rich history both with the 563 00:28:17,480 --> 00:28:21,000 Speaker 10: teams as well as just the markets themselves. Viceilia Montgomery 564 00:28:21,040 --> 00:28:24,040 Speaker 10: really are very different markets. And we can talk more 565 00:28:24,080 --> 00:28:29,439 Speaker 10: about that, but but the the tradition and the richness 566 00:28:29,480 --> 00:28:33,280 Speaker 10: of of and what baseball means to these communities is 567 00:28:33,359 --> 00:28:36,639 Speaker 10: really what what drew us to them. And you know, 568 00:28:36,680 --> 00:28:40,360 Speaker 10: the initial reactions from from fans, you know, from from 569 00:28:40,400 --> 00:28:44,080 Speaker 10: the community, from the municipality has all just been, you know, 570 00:28:44,280 --> 00:28:47,880 Speaker 10: really overwhelmingly positive, which has been really great for us 571 00:28:47,880 --> 00:28:51,440 Speaker 10: to hear from the mayors, the city councils and and 572 00:28:51,600 --> 00:28:55,040 Speaker 10: uh the business owners on down. It's just been it's 573 00:28:55,080 --> 00:28:57,760 Speaker 10: been really tremendous and and so look we're just getting started. 574 00:28:57,800 --> 00:29:00,959 Speaker 10: So we are going to be back out there over 575 00:29:01,000 --> 00:29:03,960 Speaker 10: the next couple of weeks, one in Montgomery and one 576 00:29:03,960 --> 00:29:07,640 Speaker 10: in vice Elia, you know, to keep keep building the momentum. 577 00:29:07,640 --> 00:29:08,680 Speaker 10: And we're really excited about it. 578 00:29:08,720 --> 00:29:13,400 Speaker 7: And Vanessa, I should add that Montgomery Biscuits, Alabama based. 579 00:29:13,480 --> 00:29:16,320 Speaker 7: I love that they are the double A affiliate of 580 00:29:16,360 --> 00:29:20,080 Speaker 7: the Tampa Bay Rays and the California base Rawhide. The 581 00:29:20,080 --> 00:29:23,400 Speaker 7: fasonality of raw Hide. They are the single a affiliate 582 00:29:23,440 --> 00:29:24,560 Speaker 7: of the Arizona. 583 00:29:24,160 --> 00:29:28,080 Speaker 8: Diamondbacks, right exactly, So he mentioned exactly your point there, Mike, 584 00:29:28,120 --> 00:29:31,640 Speaker 8: you mentioned it. It's these community aspects of it which 585 00:29:31,720 --> 00:29:34,360 Speaker 8: is really interesting. And then obviously it's the talent pool 586 00:29:34,400 --> 00:29:36,920 Speaker 8: for big league teams. Those are the things that are 587 00:29:36,920 --> 00:29:39,480 Speaker 8: looking at. But when you're looking at it from institutional 588 00:29:39,520 --> 00:29:42,880 Speaker 8: capital and why you're investing in these places, what is 589 00:29:43,160 --> 00:29:45,959 Speaker 8: the business case to buy these minor league teams? 590 00:29:46,280 --> 00:29:47,800 Speaker 10: Yeah, I mean, look, there's there's been a lot of 591 00:29:47,800 --> 00:29:52,080 Speaker 10: capital that's been coming in to sports, and minor league baseball, 592 00:29:52,240 --> 00:29:54,600 Speaker 10: you know, hasn't seen as much of the investment historically. 593 00:29:54,880 --> 00:29:59,760 Speaker 10: And because these are very interesting and unique businesses. Every 594 00:29:59,800 --> 00:30:03,960 Speaker 10: can munity is very unique, you know, these these aren't 595 00:30:04,000 --> 00:30:06,520 Speaker 10: a lot of the investments that come into sports, maybe 596 00:30:06,560 --> 00:30:09,480 Speaker 10: in new leagues, you know, they may be in in 597 00:30:10,200 --> 00:30:13,080 Speaker 10: kind of niche sports. In this case, you have a 598 00:30:13,160 --> 00:30:15,240 Speaker 10: sport that's been around for one hundred and fifty years. 599 00:30:15,240 --> 00:30:17,280 Speaker 10: You've got you know, the minor leagues themselves have been 600 00:30:17,280 --> 00:30:21,160 Speaker 10: around for one hundred plus years. You know, Vicelia, you know, 601 00:30:21,200 --> 00:30:23,959 Speaker 10: They've had their team for you know, eighty years. Montgomery's 602 00:30:23,960 --> 00:30:26,920 Speaker 10: had theirs for twenty years. So these are really long 603 00:30:27,040 --> 00:30:31,600 Speaker 10: standing businesses that just really haven't had the ability to scale. 604 00:30:32,160 --> 00:30:36,680 Speaker 10: They've they've really been very hyper local businesses. And what 605 00:30:36,720 --> 00:30:40,200 Speaker 10: institutional capital can really do, especially in these smaller, mid 606 00:30:40,240 --> 00:30:45,680 Speaker 10: sized markets, is build capability. Whereas you know, the the 607 00:30:45,680 --> 00:30:47,400 Speaker 10: mom and pops that have run this for you know, 608 00:30:47,440 --> 00:30:49,720 Speaker 10: for decades, they don't have the ability to scale in 609 00:30:49,760 --> 00:30:52,280 Speaker 10: that way. You know, because the Vicelia Montgomery aren't going 610 00:30:52,320 --> 00:30:54,920 Speaker 10: to be drawing national crowds, you know, they're drawing drawing 611 00:30:55,000 --> 00:30:58,760 Speaker 10: hyper local crowds, and so investing in these hyper local markets, 612 00:30:58,960 --> 00:31:02,440 Speaker 10: you know, it can be very it can be very fragmented. Well, 613 00:31:02,680 --> 00:31:04,400 Speaker 10: we have the ability now to be able to scale that. 614 00:31:04,440 --> 00:31:05,600 Speaker 6: Well, Mike, you know, when I was looking at the 615 00:31:05,640 --> 00:31:08,239 Speaker 6: basally raw Hide, and you know, I was looking at 616 00:31:08,280 --> 00:31:10,880 Speaker 6: a team who's played their games at Valley Strong Ballpark, 617 00:31:10,960 --> 00:31:13,720 Speaker 6: the same ballpark since its inception in nineteen forty six. 618 00:31:13,760 --> 00:31:17,680 Speaker 6: But what's interesting here is they've had actually what nine names, right, 619 00:31:17,720 --> 00:31:21,040 Speaker 6: because it reflects that they've had nine parent affiliated Major 620 00:31:21,080 --> 00:31:23,960 Speaker 6: League Baseball. So I didn't realize in single A that 621 00:31:24,120 --> 00:31:26,640 Speaker 6: happens a lot, right like where you know, when you're 622 00:31:26,720 --> 00:31:29,520 Speaker 6: the single a affiliate for the Colorado Rockies, the next 623 00:31:29,600 --> 00:31:32,080 Speaker 6: year you're the Diamondbacks. I mean, does that happen very often? 624 00:31:32,120 --> 00:31:34,640 Speaker 6: And you know, I mean for me, I mean what 625 00:31:34,720 --> 00:31:37,720 Speaker 6: I kind of read into is it really does make visally, 626 00:31:38,080 --> 00:31:40,400 Speaker 6: you know, an interesting place because they must be really 627 00:31:40,440 --> 00:31:43,840 Speaker 6: tied to their local team regardless of where these players 628 00:31:43,880 --> 00:31:45,200 Speaker 6: are going and where they're going to play in their 629 00:31:45,200 --> 00:31:46,840 Speaker 6: major careers. Or am I wrong to misread? Am I 630 00:31:46,840 --> 00:31:47,400 Speaker 6: misreading that? 631 00:31:47,440 --> 00:31:50,120 Speaker 10: You're You're totally right, And you know, in today's day 632 00:31:50,120 --> 00:31:52,960 Speaker 10: and age, you know, the parent club is looking for 633 00:31:53,040 --> 00:31:56,440 Speaker 10: really top tier facilities and they're going to be going 634 00:31:56,480 --> 00:31:59,720 Speaker 10: to markets that have top tier facilities that have they 635 00:31:59,800 --> 00:32:02,800 Speaker 10: want to have full ballparks also, and this is what 636 00:32:02,840 --> 00:32:05,560 Speaker 10: an institutional capital and our group in particular, can do 637 00:32:05,800 --> 00:32:08,400 Speaker 10: is be able to make sure that that you know, 638 00:32:08,440 --> 00:32:10,880 Speaker 10: the stadium is full cheering on the team, that there's 639 00:32:10,920 --> 00:32:14,200 Speaker 10: an amazing weight room and training facility, and you know, 640 00:32:14,240 --> 00:32:16,880 Speaker 10: we've built great relationships with the player development teams at 641 00:32:16,920 --> 00:32:19,040 Speaker 10: the Parents. This is going to be really really important 642 00:32:19,040 --> 00:32:21,240 Speaker 10: going forward because you know, as you've seen, you know, 643 00:32:21,760 --> 00:32:24,400 Speaker 10: sports just keeps getting more and more competitive, and these 644 00:32:24,480 --> 00:32:27,520 Speaker 10: now become really, you know, competitive differentiators for the parents. 645 00:32:27,920 --> 00:32:30,640 Speaker 7: We're talking with Mike Curney, the chief executive office here 646 00:32:30,960 --> 00:32:34,920 Speaker 7: for on deck partners, if you have not been to 647 00:32:35,120 --> 00:32:39,640 Speaker 7: a minor league baseball game, go because you will have 648 00:32:40,040 --> 00:32:43,640 Speaker 7: one heck of a time. I remember going to see 649 00:32:43,680 --> 00:32:46,600 Speaker 7: several of them, and I love the little contest where 650 00:32:46,600 --> 00:32:49,000 Speaker 7: you got the little cars running around and he's got 651 00:32:49,000 --> 00:32:51,120 Speaker 7: the sun roof open, and then you got to throw 652 00:32:51,200 --> 00:32:54,200 Speaker 7: something in the car to go try to win a prize. 653 00:32:54,560 --> 00:32:57,920 Speaker 7: If I feel miserably I hit some poor man in. 654 00:32:57,880 --> 00:33:01,640 Speaker 8: The head, you hit someone in the head, it's slipped. 655 00:33:03,600 --> 00:33:08,360 Speaker 7: But my point is minor league baseball, I can see 656 00:33:08,360 --> 00:33:13,840 Speaker 7: it as we continue on and budgets for families continue on, 657 00:33:14,480 --> 00:33:16,920 Speaker 7: that's really the way to go if you if you 658 00:33:16,920 --> 00:33:18,080 Speaker 7: want to take the entire. 659 00:33:17,880 --> 00:33:21,440 Speaker 10: Family out, it is I mean, any professional sporting event 660 00:33:21,520 --> 00:33:23,200 Speaker 10: you go to with the family of four, you know 661 00:33:23,240 --> 00:33:25,360 Speaker 10: you need to be prepared to spend hundreds of dollars. 662 00:33:25,680 --> 00:33:28,560 Speaker 10: And one thing that that you know for on deck 663 00:33:28,600 --> 00:33:31,600 Speaker 10: partners that that is going to be absolutely critical for 664 00:33:31,640 --> 00:33:33,720 Speaker 10: our strategy is is we're going to have a relentless 665 00:33:33,760 --> 00:33:36,200 Speaker 10: focus on the fan and what does that mean. That 666 00:33:36,240 --> 00:33:38,600 Speaker 10: means that we are going to maintain that history that 667 00:33:38,680 --> 00:33:40,920 Speaker 10: minor league baseball, that has been core to minor league 668 00:33:40,920 --> 00:33:44,320 Speaker 10: baseball for one hundred plus years, which is family friendly, 669 00:33:44,360 --> 00:33:48,360 Speaker 10: affordable fun for kids. You know, summertime, whether kids are 670 00:33:48,400 --> 00:33:50,640 Speaker 10: out of school, there's a kids play zone for kids 671 00:33:50,720 --> 00:33:53,480 Speaker 10: to go play in. You know, there's there's a cold 672 00:33:53,480 --> 00:33:55,200 Speaker 10: beer for the adults. You know, we're going to make 673 00:33:55,200 --> 00:33:58,000 Speaker 10: sure that this is that that brand, that that brand remains. 674 00:33:58,000 --> 00:34:00,160 Speaker 10: And Michael, by the way, since we've been talking out 675 00:34:00,200 --> 00:34:03,480 Speaker 10: the biscuits, we do have a biscuit toss in Montgomery, 676 00:34:05,000 --> 00:34:06,880 Speaker 10: you know, Rush biscuit. 677 00:34:07,000 --> 00:34:07,640 Speaker 7: Yeah. 678 00:34:07,400 --> 00:34:09,160 Speaker 6: Well, you know what I just want I want to 679 00:34:09,160 --> 00:34:10,920 Speaker 6: go there about Montgomery and I want to like kind 680 00:34:10,960 --> 00:34:12,600 Speaker 6: of look at the differences like Messalia. You know, you 681 00:34:12,600 --> 00:34:14,800 Speaker 6: think Sierre on a mountains, what like one hundred and 682 00:34:14,840 --> 00:34:17,160 Speaker 6: fifty called two hundred thousand people in that area. You 683 00:34:17,160 --> 00:34:20,440 Speaker 6: know probably you're but Montgomery's much bigger. Montgomery, I mean, 684 00:34:20,440 --> 00:34:22,200 Speaker 6: the metropolitan is like four hundred thousand. 685 00:34:21,960 --> 00:34:22,680 Speaker 7: Plus, that's right. 686 00:34:22,800 --> 00:34:25,160 Speaker 6: They have universities there, they have I think an air 687 00:34:25,200 --> 00:34:28,200 Speaker 6: Force base there. You know, so so you know tapping 688 00:34:28,200 --> 00:34:30,919 Speaker 6: into that community. Tell us how you how on deck 689 00:34:31,040 --> 00:34:33,520 Speaker 6: kind of seizes on that opportunity. How do you see 690 00:34:33,520 --> 00:34:35,640 Speaker 6: that opportunity? I mean, are you working with a lot 691 00:34:35,640 --> 00:34:38,399 Speaker 6: of those largest employers in the region making them aware. 692 00:34:38,400 --> 00:34:41,040 Speaker 6: Are you working with, for example, the regional airports to 693 00:34:41,080 --> 00:34:43,360 Speaker 6: make sure that, you know, for people who want to 694 00:34:43,360 --> 00:34:44,880 Speaker 6: fly in maybe and see a game, they can do. 695 00:34:44,960 --> 00:34:46,560 Speaker 6: I mean again, like, how do you how do you 696 00:34:46,680 --> 00:34:49,960 Speaker 6: build attendance? How do you how do you improve the 697 00:34:50,000 --> 00:34:50,880 Speaker 6: valuation of the club? 698 00:34:51,640 --> 00:34:53,839 Speaker 10: Yeah, it's a great question, and maybe I'll start kind 699 00:34:53,840 --> 00:34:56,520 Speaker 10: of top down, and I think you know, to to 700 00:34:56,600 --> 00:34:59,120 Speaker 10: really believe in minor league baseball, you have to believe 701 00:34:59,120 --> 00:35:01,600 Speaker 10: in the future of these kind of tier two and 702 00:35:01,640 --> 00:35:04,680 Speaker 10: tier three markets. You have to believe that that, you know, 703 00:35:04,760 --> 00:35:07,200 Speaker 10: America is going to continue to thrive, not just in 704 00:35:07,239 --> 00:35:09,680 Speaker 10: the biggest metropolis, but they're going to continue to thrive 705 00:35:09,840 --> 00:35:13,120 Speaker 10: in these smaller markets. And as population grows in these 706 00:35:13,280 --> 00:35:16,360 Speaker 10: smaller markets, they need to have entertainment. And for a 707 00:35:16,360 --> 00:35:18,560 Speaker 10: lot of the marks you're going to see us, you know, 708 00:35:18,920 --> 00:35:21,319 Speaker 10: invest in, they're going to be the markets where the 709 00:35:21,360 --> 00:35:25,479 Speaker 10: ballpark really is that central entertainment hub, not not something 710 00:35:25,560 --> 00:35:28,360 Speaker 10: where you have all different kinds of entertainment options where 711 00:35:28,640 --> 00:35:32,279 Speaker 10: the community really relies on these ballparks, and I think 712 00:35:32,400 --> 00:35:34,480 Speaker 10: you know where where sometimes you know, the mom and 713 00:35:34,480 --> 00:35:36,840 Speaker 10: pops or the you know, the former owners have have struggled, 714 00:35:36,920 --> 00:35:40,040 Speaker 10: is that these these communities rely on grassroots marketing. Grassroots 715 00:35:40,080 --> 00:35:42,279 Speaker 10: marketing is inherently hard to do. It's hard to do 716 00:35:42,360 --> 00:35:44,359 Speaker 10: because it's fragmented. You know, how do you reach out 717 00:35:44,520 --> 00:35:46,960 Speaker 10: you know, with a with an individual, one to one touch, 718 00:35:47,280 --> 00:35:49,000 Speaker 10: you know, with the local community. It's hard to do. 719 00:35:50,080 --> 00:35:51,680 Speaker 10: And we're going to be able to focus on that 720 00:35:51,680 --> 00:35:53,720 Speaker 10: because we're going to be able to develop that centrally 721 00:35:53,760 --> 00:35:56,040 Speaker 10: and then be able to have the local customized approach. 722 00:35:56,600 --> 00:35:58,319 Speaker 10: We're gonna we're going to really focus on that. I 723 00:35:58,320 --> 00:36:00,160 Speaker 10: think you hit on a really good point about Montgomery. 724 00:36:01,040 --> 00:36:03,400 Speaker 10: You know, I still live full time in Washington, d C. 725 00:36:03,719 --> 00:36:05,479 Speaker 10: I was with the Washington Nationals for a long time, 726 00:36:06,120 --> 00:36:09,040 Speaker 10: and the military is central to that community. There is 727 00:36:09,080 --> 00:36:11,840 Speaker 10: a direct flight from Washington, DC to Montgomery, Alabama. 728 00:36:11,880 --> 00:36:12,440 Speaker 7: Why is that? 729 00:36:12,680 --> 00:36:16,000 Speaker 10: Because the military is so critical in both Montgomery and DC, 730 00:36:16,719 --> 00:36:19,600 Speaker 10: and and you're gonna see us really reach out in 731 00:36:19,680 --> 00:36:21,600 Speaker 10: new ways to the military community. A lot of the 732 00:36:21,640 --> 00:36:23,400 Speaker 10: things that that we did at the Washington Nationals I 733 00:36:23,400 --> 00:36:27,160 Speaker 10: think will apply locally. By the way, Vaselia also has 734 00:36:27,239 --> 00:36:30,760 Speaker 10: has a big military community. You know, military and baseball 735 00:36:30,760 --> 00:36:34,520 Speaker 10: goes hand in hand as American traditions, and so you'll 736 00:36:34,520 --> 00:36:35,600 Speaker 10: continue to see us lean into that. 737 00:36:35,680 --> 00:36:38,840 Speaker 8: Ted Williams, my dad played in the military and baseball baseball. 738 00:36:39,480 --> 00:36:39,680 Speaker 7: Yeah. 739 00:36:39,760 --> 00:36:42,280 Speaker 8: I love hearing stories playing in like Korea and Japan 740 00:36:42,320 --> 00:36:43,440 Speaker 8: and all these like fun stuff. 741 00:36:43,440 --> 00:36:44,919 Speaker 2: But it was like, were are you there to fight? 742 00:36:44,960 --> 00:36:45,680 Speaker 2: You were playing baseball. 743 00:36:45,719 --> 00:36:47,080 Speaker 4: It's interesting, you know. 744 00:36:47,200 --> 00:36:50,520 Speaker 6: My last question for you, I'm sure you're aware. KKR 745 00:36:50,640 --> 00:36:54,280 Speaker 6: is said to have bought Arctus, which is another competing, 746 00:36:54,440 --> 00:36:57,319 Speaker 6: very large sports related private equity firm. Everyone knows who 747 00:36:57,320 --> 00:37:00,279 Speaker 6: they are. What does this mean for the asset? What 748 00:37:00,280 --> 00:37:01,880 Speaker 6: does this mean for you all? I mean, are you 749 00:37:01,960 --> 00:37:04,399 Speaker 6: looking at that with beated interest? I mean, like, would 750 00:37:04,400 --> 00:37:06,920 Speaker 6: do you do you see this as being something that 751 00:37:07,040 --> 00:37:09,799 Speaker 6: you know is going to potentially happen again and again 752 00:37:09,840 --> 00:37:11,960 Speaker 6: and again. You if you see where I'm going. 753 00:37:11,800 --> 00:37:14,680 Speaker 10: Here, Yeah, I'm excited for you know, I know, I 754 00:37:14,719 --> 00:37:17,440 Speaker 10: know the guys at Arctose and I'm excited for them, 755 00:37:17,680 --> 00:37:21,440 Speaker 10: you know, I anytime there is there's really professional institutional 756 00:37:21,480 --> 00:37:23,600 Speaker 10: capital coming into minor league baseball. I see it as 757 00:37:23,640 --> 00:37:26,319 Speaker 10: a good thing. You know, we partner hand in hand 758 00:37:26,320 --> 00:37:28,960 Speaker 10: with Major League Baseball. Major League Baseball's all in on 759 00:37:29,000 --> 00:37:32,520 Speaker 10: what we're doing here. You know, we the more parties 760 00:37:32,520 --> 00:37:34,160 Speaker 10: that are coming in to make this better. This is 761 00:37:34,200 --> 00:37:37,240 Speaker 10: a rising tide, you know, lifts all ships kind of scenario. 762 00:37:38,560 --> 00:37:40,560 Speaker 10: And uh, you know, we all know each other and 763 00:37:40,560 --> 00:37:43,000 Speaker 10: and you know, everybody who's coming in has the same 764 00:37:43,000 --> 00:37:44,919 Speaker 10: interest in mind to be able to you know, to 765 00:37:44,920 --> 00:37:47,319 Speaker 10: to drive greater value for these local clubs. I think 766 00:37:47,320 --> 00:37:50,239 Speaker 10: our approaches are all very different, and that's good, you know, 767 00:37:50,280 --> 00:37:52,320 Speaker 10: because we can have we can have a different dialogue 768 00:37:52,320 --> 00:37:55,120 Speaker 10: with minor league Baseball owners and and and you know 769 00:37:55,120 --> 00:37:58,040 Speaker 10: there's going to be different approaches and and we support that. 770 00:37:58,080 --> 00:38:01,120 Speaker 10: But but ultimately, you know, congrats guys on the big 771 00:38:01,160 --> 00:38:02,439 Speaker 10: news and we're thrilled for them. 772 00:38:02,960 --> 00:38:07,719 Speaker 7: Mike Kearney, Chief executive Officer, on Deck Partners, Thank you, sir. 773 00:38:07,800 --> 00:38:11,120 Speaker 7: You are now an old friends the Bloomberg Business of Sports. 774 00:38:11,239 --> 00:38:11,960 Speaker 7: Thanks for coming. 775 00:38:12,000 --> 00:38:14,200 Speaker 10: Thank you guys so much for having me now. 776 00:38:14,400 --> 00:38:17,600 Speaker 7: Thanks to On Deck Partners CEO Mike Kearney for speaking 777 00:38:17,640 --> 00:38:21,279 Speaker 7: with us. What happens to the time that does it. 778 00:38:21,400 --> 00:38:24,359 Speaker 7: For this week's episode of The Bloomberg Business of. 779 00:38:24,320 --> 00:38:26,160 Speaker 2: Sports, Thanks for joining us. 780 00:38:26,160 --> 00:38:27,960 Speaker 8: Tune in again next week for the latest on the 781 00:38:28,000 --> 00:38:30,360 Speaker 8: stories moving big money in the world of sports. And 782 00:38:30,480 --> 00:38:33,920 Speaker 8: don't forget to subscribe to our podcast find out on Apple, Spotify, 783 00:38:34,160 --> 00:38:37,279 Speaker 8: the Bloomberg Business App, and all your favorite podcast platforms. 784 00:38:37,400 --> 00:38:39,040 Speaker 8: And if you tune in this week, you'll hear a 785 00:38:39,080 --> 00:38:42,920 Speaker 8: special bonus conversation I had with WWE pro and social 786 00:38:42,920 --> 00:38:45,680 Speaker 8: media celebrity Logan Paul about his involvement in the world 787 00:38:45,719 --> 00:38:46,440 Speaker 8: of collectibles. 788 00:38:46,800 --> 00:38:51,200 Speaker 7: Plus, subscribe to the Bloomberg Business of Sports newsletters so 789 00:38:51,320 --> 00:38:54,960 Speaker 7: you can stay up to date with all of Bloomberg's 790 00:38:55,000 --> 00:38:58,200 Speaker 7: top reporting in the world of sports. Or Vanessa Bernomo, 791 00:38:58,320 --> 00:39:01,880 Speaker 7: I'm Michael Barr. You are listening to The Bloomberg Business 792 00:39:01,960 --> 00:39:04,560 Speaker 7: of Sports from Bloomberg Radio around the world.