WEBVTT - Broadcasting Live from the US Open 0:00:02.920 --> 0:00:07.240 Bloomberg Audio Studios, Podcasts, radio news. 0:00:08.520 --> 0:00:12.880 This is Bloomberg Business Wait inside from the reporters and 0:00:13.080 --> 0:00:16.640 editors who bring you America's most trusted business magazine, plus 0:00:16.720 --> 0:00:20.840 global business, finance and tech news. The Bloomberg Business Week 0:00:20.880 --> 0:00:29.880 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:30.040 --> 0:00:36.680 Keep on. We are definitely keeping our eye on the 0:00:36.720 --> 0:00:39.360 ball here at the US Open. I'm also keeping my 0:00:39.600 --> 0:00:42.360 nose on whatever that is. French fries smell. 0:00:43.800 --> 0:00:47.680 Interesting? Interesting? You went there? I brought Carol. I brought 0:00:47.680 --> 0:00:49.680 Carol French fries yesterday. Something you have to know about 0:00:49.720 --> 0:00:52.440 Carol Masser is she has never met a French fry 0:00:52.520 --> 0:00:54.880 she didn't love. It's like her secret snack. 0:00:55.240 --> 0:00:57.760 You can dip them in mayonnaise. That's not about that 0:00:58.120 --> 0:00:58.720 so yummy. 0:00:59.000 --> 0:01:03.000 So there were some pretty good fresh French fries yesterday 0:01:03.000 --> 0:01:05.880 here at the US Open. Brought her some. Hey, we're 0:01:05.880 --> 0:01:08.039 talking about food, because I love talking about food. You 0:01:08.080 --> 0:01:10.240 know what's more expensive than it was last year? 0:01:11.280 --> 0:01:11.800 Honey deuce? 0:01:11.920 --> 0:01:14.880 Yeah, twenty three bucks each, up from twenty two dollars 0:01:15.080 --> 0:01:15.640 last year. 0:01:15.720 --> 0:01:16.280 What's up with that? 0:01:16.319 --> 0:01:17.400 Melons inflation? 0:01:17.959 --> 0:01:18.160 Yeah? 0:01:18.280 --> 0:01:21.280 Okay, okay, so kind of a perfect segue to talk 0:01:21.400 --> 0:01:25.520 about the Fed's reserve FED reserves preferred measure. I have 0:01:25.600 --> 0:01:28.240 not had any honey juices, I promise not yet. The 0:01:28.240 --> 0:01:30.960 Fed's preferred measure of underlying US inflation, which we got 0:01:31.040 --> 0:01:33.559 earlier this morning. So this was a focal point heading 0:01:33.560 --> 0:01:35.960 into the Labor Day holiday weekend. It rose at a 0:01:36.040 --> 0:01:39.959 mile pace, and household spending picked up in July, reinforcing 0:01:39.959 --> 0:01:42.880 policymakers plan to start cutting interest rates next month. It 0:01:42.920 --> 0:01:46.200 was interesting we talked earlier right on Bloomberg Intelligence, how 0:01:46.200 --> 0:01:49.520 this might have felt a little bit like a Goldilock's economy, 0:01:49.960 --> 0:01:52.240 or more evidence of it. Molly Smith is Bloomberg News 0:01:52.240 --> 0:01:54.400 Economics editor, and she joins us here on site at 0:01:54.400 --> 0:01:56.360 the US Open. So good to have you here with us. 0:01:56.480 --> 0:01:57.440 So amazy to be here. 0:01:57.720 --> 0:01:59.080 Our annual tradition. 0:01:58.880 --> 0:02:00.400 I know, and it's a good one. It's a really 0:02:00.440 --> 0:02:03.200 good one. We're gonna talk tennis in a moment. The report, 0:02:03.360 --> 0:02:06.400 it feels like it's just all falling into place. How 0:02:06.400 --> 0:02:07.000 do you see it? 0:02:07.480 --> 0:02:10.120 So yeah, I mean, this is obviously, of course, what 0:02:10.160 --> 0:02:11.440 you would want to see if we are going to 0:02:11.440 --> 0:02:14.160 talk about pyking, a soft landing of the economy. For 0:02:14.240 --> 0:02:17.040 inflation to be moderating for consumers to keep spending, and 0:02:17.160 --> 0:02:20.840 that's exactly what the recipe would be. Just some cautionary 0:02:20.880 --> 0:02:23.720 note though, to keep in mind, is that you know 0:02:23.880 --> 0:02:25.960 a lot of people were flagging about this report with 0:02:26.080 --> 0:02:28.480 regards to consumer spending. Is that a lot of it 0:02:28.560 --> 0:02:31.680 really reflected the rebound in auto sales after the cyber 0:02:31.760 --> 0:02:34.560 attack in June, and that how disruptive that was for 0:02:34.600 --> 0:02:38.200 the industry. Outside of that, it was a little bit 0:02:38.200 --> 0:02:41.360 more mixed. And of course, looking at the income growth 0:02:41.400 --> 0:02:44.240 measures and the saving rates dropping down not great, not great. 0:02:44.280 --> 0:02:47.160 That doesn't pode well for consumer spending going forward. And 0:02:47.200 --> 0:02:49.480 we also got the University of Michigan data later in 0:02:49.520 --> 0:02:53.239 the morning looking at measures of consumer finances also feeling 0:02:53.320 --> 0:02:55.679 very stretched there, which could also pose a risk to 0:02:55.680 --> 0:02:56.600 spending going forward. 0:02:56.720 --> 0:02:58.440 I know you're focused on the macro, but I got 0:02:58.440 --> 0:03:00.000 to bring in this headline that we just heard from 0:03:00.120 --> 0:03:02.960 Amy Morris just crossing the Bloomberg terminal, Goldman Sack set 0:03:03.000 --> 0:03:06.200 to layoff over thirteen hundred workers. This is according to 0:03:06.200 --> 0:03:09.760 The Wall Street Journal. They're planning to cut between three 0:03:09.840 --> 0:03:13.440 to four percent of its workforce. Typically. The Journal's Lauren 0:03:13.480 --> 0:03:15.720 Thomas right. So Goldman aims to trim between two percent 0:03:15.760 --> 0:03:19.200 and seven percent of its workforce annually based on various 0:03:19.200 --> 0:03:22.160 performance factors. When you see a headline like that, as 0:03:22.160 --> 0:03:25.520 an economics editor, do your spidy senses start to tangle? 0:03:25.560 --> 0:03:28.320 It all could be going on, I mean, especially because 0:03:28.360 --> 0:03:30.280 the lay of the word of the land has really 0:03:30.280 --> 0:03:32.399 been that layoffs are very low. So when you see 0:03:32.400 --> 0:03:34.399 that this is happening at a company that we all 0:03:34.440 --> 0:03:36.880 know about, of course you're like, what's going on here? 0:03:36.960 --> 0:03:39.360 I mean, we do know that Goldman, So the other 0:03:39.560 --> 0:03:42.080 several of the other banks have been laying off workers 0:03:42.160 --> 0:03:45.000 recently in different batches. You know that they had got 0:03:45.160 --> 0:03:46.960 they had over hired a lot, you know, in the 0:03:46.960 --> 0:03:49.080 past couple of years. So I think a lot of 0:03:49.120 --> 0:03:51.640 people this seems to be looked at generally is more 0:03:51.680 --> 0:03:54.840 a moderating of the workforce rather than a wholesale cutting 0:03:54.920 --> 0:03:56.440 of it. I mean, of course I haven't read the 0:03:56.440 --> 0:03:58.640 story yet, but that seems to be what a lot 0:03:58.680 --> 0:03:59.960 of the vibe is by. 0:04:00.000 --> 0:04:01.680 But more broadly, where we. 0:04:01.640 --> 0:04:04.800 Have seen more of the struggle in hiring has been 0:04:04.840 --> 0:04:07.640 in white collar professions. And this has been where you 0:04:07.680 --> 0:04:10.480 would expect, right now to see more of the layoffs happening. 0:04:10.560 --> 0:04:12.800 I find it interesting because we've had conversations with Geena 0:04:12.840 --> 0:04:16.160 Martin Adams about bank earnings in general that that has 0:04:16.200 --> 0:04:18.400 been a standout. So I feel like, you know, the 0:04:18.440 --> 0:04:21.279 financial sector has performed, and yet you're still seeing some 0:04:21.279 --> 0:04:23.599 trimming of the workforce. And as you said, it's not 0:04:23.640 --> 0:04:26.200 a case that we've heard layoffs in general. We've heard 0:04:26.240 --> 0:04:28.800 companies maybe not hiring as aggressively, but they haven't been 0:04:28.880 --> 0:04:30.880 laying off workers. I also feel like you and I 0:04:30.960 --> 0:04:33.160 keep talking to people who say we're getting now we 0:04:33.240 --> 0:04:35.680 used to get one or two resumes for a job, 0:04:35.720 --> 0:04:38.520 Now we're getting forty, like huge jumps. To me, it 0:04:38.560 --> 0:04:40.719 says there's a shift and people coming out of college 0:04:40.920 --> 0:04:42.279 having a tough time finding jobs. 0:04:42.400 --> 0:04:45.159 It is definitely a tough job market to work in 0:04:45.240 --> 0:04:47.640 right now. And it's so it pains me to say 0:04:47.680 --> 0:04:49.560 that in a way because when you look at the numbers, 0:04:49.600 --> 0:04:51.640 it really doesn't feel that way. Where you still have 0:04:51.920 --> 0:04:54.200 a pace of hiring that's well over one hundred thousand 0:04:54.279 --> 0:04:56.720 jobs a month, that the unemployment rate, yes has been 0:04:56.760 --> 0:04:59.600 going up, but still is historically low, that wage gains 0:04:59.600 --> 0:05:02.800 are still positive it's hard to square that with this 0:05:02.839 --> 0:05:04.520 is still a tough job market. But I think the 0:05:04.520 --> 0:05:07.000 way to reconcile it is that what I tell my 0:05:07.080 --> 0:05:09.240 friends is that it's not a job market where I 0:05:09.240 --> 0:05:11.640 would quit my job voluntarily if I didn't have something 0:05:11.680 --> 0:05:15.200 else lined up, you know, just experiencing what it's like, 0:05:15.240 --> 0:05:17.680 even if you just wanted to like casually spit out 0:05:17.680 --> 0:05:19.800 your resume and see what other options are out there. 0:05:19.800 --> 0:05:22.120 The amount of ghosting that is still happening, and how 0:05:22.120 --> 0:05:25.320 many weeks, months can go by without hearing something. I mean, 0:05:25.360 --> 0:05:28.440 when we talk to job seekers, this is regularly bring 0:05:28.480 --> 0:05:31.240 back that it's just been a brutal environment out there. 0:05:31.279 --> 0:05:32.880 Statistics don't show that at all. 0:05:33.000 --> 0:05:35.719 And that's what's very frustrating too, that, like I think 0:05:35.760 --> 0:05:37.719 what I've really learned a lot from my job in 0:05:37.839 --> 0:05:41.000 like squaring the economic statistics with the real world. When 0:05:41.040 --> 0:05:42.960 I post about some of these things on LinkedIn and 0:05:43.040 --> 0:05:46.440 other social media and you see the comments, and I 0:05:46.440 --> 0:05:48.359 don't feel like I'm being attacked, but I hear like 0:05:48.400 --> 0:05:51.440 these people are almost like yelling, like the numbers are lying. 0:05:51.520 --> 0:05:54.080 This is not the real lived experience, Like this is 0:05:54.080 --> 0:05:58.000 a horrible economy, Like people are feeling like so stretched 0:05:58.080 --> 0:06:01.080 thin in every which way. And yeah, I can imagine 0:06:01.080 --> 0:06:02.920 if you are somebody who feels that way and you 0:06:03.200 --> 0:06:05.919 hear people like us saying, you know, inflation's moderating, like 0:06:05.960 --> 0:06:09.239 this is Goldilocks, everything's great. It doesn't feel that way. 0:06:09.400 --> 0:06:12.440 Also, serious political implications ahead of the presidential election. We'll 0:06:12.440 --> 0:06:15.080 hear the candidates talking even more I think in the 0:06:15.080 --> 0:06:17.320 coming weeks about the economy. Before we let you go, 0:06:18.000 --> 0:06:22.000 we're talking tennis. Molly, absolutely, while we're here, you follow 0:06:22.040 --> 0:06:25.640 this like nobody else. What's been on your radar this year? 0:06:25.680 --> 0:06:27.360 Who should we be watching? What's shocked you? 0:06:27.360 --> 0:06:28.200 You're excited about? 0:06:28.200 --> 0:06:30.200 Oh? I mean last night? Of course, the upset with 0:06:30.279 --> 0:06:33.760 Alcaraz was just I challenge anybody who had that on 0:06:33.800 --> 0:06:34.520 their Bengo card. 0:06:34.520 --> 0:06:35.159 Please tell me. 0:06:35.320 --> 0:06:37.120 I certainly did not see. 0:06:36.920 --> 0:06:40.240 That coming, especially from I'll say his name again if 0:06:40.279 --> 0:06:42.720 you guys hadn't heard it before, Bodic van Essential from 0:06:42.760 --> 0:06:45.960 the Netherlands. This guy's had a horrible year, was contemplating 0:06:46.040 --> 0:06:48.880 retiring going into this tournament, and man, I hope this 0:06:48.960 --> 0:06:50.960 helps him turn it around. You know, he was a 0:06:51.000 --> 0:06:53.680 top almost twenty player a couple of years ago, so 0:06:54.000 --> 0:06:55.960 what a win for him, even if his face doesn't 0:06:56.000 --> 0:06:57.800 show it. He's one of those guys who doesn't really 0:06:57.839 --> 0:06:59.760 give you a whole lot to work with. But that 0:06:59.920 --> 0:07:02.360 was fascinating last night. A lot of great Americans in 0:07:02.440 --> 0:07:04.839 action today. I'm gonna try to see Shelton and Tiafo 0:07:04.920 --> 0:07:05.279 after this. 0:07:05.440 --> 0:07:06.720 Who do you think he's gonna win that match? 0:07:07.240 --> 0:07:07.440 Oh? 0:07:07.520 --> 0:07:07.719 Man? 0:07:07.800 --> 0:07:11.880 I mean, I think Ben has a bit more firepower 0:07:11.960 --> 0:07:15.080 coming into it. But Tiafo has really turned his season 0:07:15.080 --> 0:07:16.680 around when he got a new coach in the middle 0:07:16.720 --> 0:07:18.800 of the year, and just love to see that. You know, 0:07:18.840 --> 0:07:21.320 He's really had a tough time since he was in 0:07:21.360 --> 0:07:23.360 the semis here a couple of years ago and just 0:07:23.360 --> 0:07:25.840 has had a bit of a lack luster result since then. 0:07:25.960 --> 0:07:27.120 That's when he lost to Alcarez. 0:07:27.360 --> 0:07:29.360 Yes, I mean that was an incredible match and may 0:07:29.440 --> 0:07:32.000 broke into the top ten then and just has fallen 0:07:32.000 --> 0:07:33.640 a bit by the wayside since then. But he had 0:07:33.640 --> 0:07:35.680 a great run up to this tournament, reaching the finals 0:07:35.680 --> 0:07:38.960 in Cincinnati. This could be really huge for him, so, 0:07:39.040 --> 0:07:41.480 I I mean, look, you have you love to see 0:07:41.480 --> 0:07:42.320 any American win though. 0:07:42.360 --> 0:07:43.840 Right on the women's side of thing, is it all 0:07:43.840 --> 0:07:45.280 about Cocoa, I. 0:07:45.560 --> 0:07:48.040 Would say, it's a you know, it's really Sablanca's tournament 0:07:48.080 --> 0:07:50.560 to lose, and she's gonna be playing later tonight. I think, 0:07:50.640 --> 0:07:53.240 you know, she's really the big favorite right now. Would 0:07:53.280 --> 0:07:55.600 not be surprising to see the two of them make 0:07:55.640 --> 0:07:59.480 another deep run like they did last year. Uh yeah, 0:07:59.560 --> 0:08:02.440 I mean I hate to see Rebaka to pull out again. 0:08:02.520 --> 0:08:04.360 This is the number four player in the world and 0:08:04.400 --> 0:08:08.080 who's really just struggled with her health so much. I mean, 0:08:08.080 --> 0:08:10.680 this is like what the at least eighth tournament she's 0:08:10.680 --> 0:08:12.320 pulled out of this year because of some kind of 0:08:12.320 --> 0:08:16.360 injury or illness, and I just hope that whatever's going 0:08:16.400 --> 0:08:18.960 on with her gets better because she when she is playing, 0:08:19.000 --> 0:08:21.720 she is unstoppable. So it's just it's really hard to see. 0:08:22.200 --> 0:08:26.040 I am just thirty seconds. Is there anybody out there 0:08:26.040 --> 0:08:29.000 that you see is possibly like another Serena or something. 0:08:29.040 --> 0:08:30.360 I hate to say that because I feel like there 0:08:30.360 --> 0:08:32.480 are athletes like that that are you know, once in 0:08:32.520 --> 0:08:34.319 a generation or something, But I don't know. 0:08:34.720 --> 0:08:35.840 I mean, it's so much pressure. 0:08:35.880 --> 0:08:37.680 I mean, of course, like Cooco would be like the 0:08:37.720 --> 0:08:40.400 obvious candidate to say that right now, just because of 0:08:40.400 --> 0:08:42.840 her age, and what she's already accomplished. But you know, 0:08:42.880 --> 0:08:44.840 I love her attitude about it. I think, you know, 0:08:45.000 --> 0:08:47.680 she still recognizes there's so much improvement to be done 0:08:47.760 --> 0:08:49.880 and she's taking the steps. And I love her coach too. 0:08:49.920 --> 0:08:51.480 So Brad Gilbert, do you hear me? 0:08:51.720 --> 0:08:52.120 Big fan? 0:08:52.280 --> 0:08:52.600 All right? 0:08:52.640 --> 0:08:54.320 Good stuff? As always, she's got some fun things on 0:08:54.360 --> 0:08:56.480 social media. We're gonna talk about that maybe with John 0:08:56.520 --> 0:08:58.720 Wortheim a little bit later on. So good. This is 0:08:58.720 --> 0:09:00.840 a tradition and annual tradition, and we always look forward 0:09:00.880 --> 0:09:03.480 to Molly Heanks find hey you watching Molly Smith economics 0:09:03.480 --> 0:09:05.679 thateer at Bloomberg News on site with us here at 0:09:05.679 --> 0:09:06.280 the US Open. 0:09:06.440 --> 0:09:09.880 Okay, from tennis to the NFL. You recall earlier this week, Carol. 0:09:10.240 --> 0:09:13.600 NFL voters owners voted to allow private equity firms to 0:09:13.600 --> 0:09:17.079 buy stakes in their franchises. It's a move expected to 0:09:17.160 --> 0:09:20.520 attract billions in fresh capital while boosting team valuations that 0:09:21.080 --> 0:09:22.600 I mean, come on, had already been surging. 0:09:22.720 --> 0:09:26.559 Yeah, absolutely, private equity is interested folks in another area 0:09:26.600 --> 0:09:28.880 as well other stuff. In a Bloomberg Business Week story, 0:09:29.000 --> 0:09:32.200 Bloomberg's Ira Boodway writes about how private equity has set 0:09:32.200 --> 0:09:35.520 its sites on the thirty billion dollar youth sports industry, 0:09:35.520 --> 0:09:38.600 which is like whoa here with more in a story. 0:09:38.640 --> 0:09:41.480 It's also a personal story. Is Bloomberg News Business of 0:09:41.520 --> 0:09:45.040 Sports reporter Ira Budway. He's back at our Bloomberg Studio, 0:09:45.120 --> 0:09:47.559 Interactive Broker Studio, back at Bloomberg headquarters. 0:09:48.000 --> 0:09:50.240 Iira, good to have you with us this afternoon. Can 0:09:50.240 --> 0:09:53.760 you start with the personal angle? You your personal connection 0:09:53.800 --> 0:09:54.400 to this story? 0:09:54.720 --> 0:09:56.000 Yeah, I mean, I don't know what you guys are 0:09:56.040 --> 0:09:58.120 doing this weekend, but I will be watching my daughter 0:09:58.160 --> 0:09:59.559 play soccer in a tournament. 0:09:59.600 --> 0:10:00.520 And that's what I do. 0:10:00.480 --> 0:10:02.360 With most of my weekends, watch one of my two 0:10:02.480 --> 0:10:06.560 kids play baseball or soccer, one of the sports they play. 0:10:06.640 --> 0:10:09.840 So this story kind of springs from my own experience. 0:10:09.840 --> 0:10:11.960 I was up in Cooperstown this summer watching my twelve 0:10:12.000 --> 0:10:15.000 year old some play baseball at one of these tournaments 0:10:15.000 --> 0:10:17.559 that brings in thousands of twelve year olds every summer, 0:10:17.600 --> 0:10:21.520 and the other tournament down the road, Cooperstown All Star 0:10:21.600 --> 0:10:24.480 Village just so happens to have been bought recently by 0:10:25.120 --> 0:10:28.600 David Blitzer and Josh Harris to private equity billionaires who 0:10:28.679 --> 0:10:33.440 have formed a company with multiple leagues and tournaments and 0:10:33.520 --> 0:10:36.440 camps that they call unrivaled sports, and they're part of 0:10:36.440 --> 0:10:40.840 this big wave of new investment and consolidation in the industry. 0:10:42.960 --> 0:10:45.760 Can I say that? When I first read your headline, 0:10:45.800 --> 0:10:51.600 I'm like, only because private equity and I think about 0:10:52.400 --> 0:10:57.800 their ownership of veterinarians and vets. I think about healthcare, like, 0:10:57.960 --> 0:11:00.880 we've got the stories out there, right of private equity 0:11:00.920 --> 0:11:03.439 comes in and it doesn't always go so well. So 0:11:04.000 --> 0:11:06.080 tell us about the impact. What are they doing and 0:11:06.120 --> 0:11:08.520 are they doing this about you know, juicing returns for 0:11:08.600 --> 0:11:10.680 investors or that's really not the case here? 0:11:11.320 --> 0:11:13.320 Yeah, you know, that was kind of what I wanted 0:11:13.320 --> 0:11:15.880 to know, you know, was this another sort of nursing 0:11:15.920 --> 0:11:18.760 homes and real estate and all these things that private 0:11:18.760 --> 0:11:21.520 equity has come in and arguably made things worse for consumers? 0:11:22.040 --> 0:11:23.680 Is that what we're going to get here? And and 0:11:23.720 --> 0:11:26.640 in youth sports there's a particular problem already of it 0:11:26.760 --> 0:11:31.160 being expensive and exclusive and pressurized and not really about 0:11:31.160 --> 0:11:33.520 sort of the fund and the social emotion, social and 0:11:33.520 --> 0:11:35.240 emotional learning that you want to get out of it 0:11:35.800 --> 0:11:38.320 for kids. So that was what I brought to it. 0:11:38.360 --> 0:11:41.160 I wanted to kind of hear their case for what 0:11:41.200 --> 0:11:43.560 they plan to do. In the case of Unrivaled, you know, 0:11:43.679 --> 0:11:45.839 I think it calling it private equity is maybe a 0:11:45.920 --> 0:11:49.000 little bit unfair because these are investments where they didn't 0:11:49.040 --> 0:11:51.959 raise a fund and there's no promised exit or return, 0:11:52.040 --> 0:11:54.160 and they plan to hold them, they say, for a 0:11:54.160 --> 0:11:56.760 long time. So what they want to do at Unrivaled, 0:11:56.800 --> 0:12:00.360 with their various assets is expand they base going to 0:12:00.360 --> 0:12:03.560 bring in capital and talent and make them bigger and better. 0:12:04.000 --> 0:12:07.640 And instead of maybe a program that serves four hundred kids, 0:12:07.679 --> 0:12:09.520 they want to make it serve eight hundred kids. So 0:12:09.559 --> 0:12:11.720 in the case of Cooperstown All Star Village, they bought 0:12:12.080 --> 0:12:15.040 another sixty six acres next to their site in Onlyonta, 0:12:15.120 --> 0:12:17.600 New York, and they're going to double it, you know, 0:12:17.640 --> 0:12:20.640 over time. So that's what they say they're about in 0:12:20.679 --> 0:12:22.640 this case. But they are also not the only ones 0:12:22.679 --> 0:12:24.839 getting into the business and private equity, and some of 0:12:24.880 --> 0:12:28.000 these are your traditional private equity firms that you know 0:12:28.240 --> 0:12:31.200 need to seek an exit and maximize profit. 0:12:33.200 --> 0:12:35.560 Hey, let's take a step back here and sort of 0:12:35.600 --> 0:12:38.000 like help explain to us in the next minute that 0:12:38.040 --> 0:12:40.120 we have or two minutes we have with you how 0:12:40.200 --> 0:12:42.240 we got to this place with youth sports. I mean, 0:12:42.360 --> 0:12:45.400 I thought youth sports a few generations ago were about 0:12:45.480 --> 0:12:48.960 kicking the ball around, building team building. Maybe you know 0:12:49.040 --> 0:12:50.720 a dad is one of the coaches on the team, 0:12:50.800 --> 0:12:53.319 or a mom as a coach on one of the team. 0:12:53.600 --> 0:12:56.520 When did money become such a big part of it. 0:12:56.520 --> 0:13:00.199 It's been a few forces working together. I think part 0:13:00.200 --> 0:13:02.880 of it is just social pressures have taken both the 0:13:03.000 --> 0:13:05.560 unsupervised sport away. We just don't allow kids to do 0:13:05.600 --> 0:13:08.000 that kind of thing anymore. And you know, two parents 0:13:08.080 --> 0:13:12.040 working the dad volunteer coach is also increasingly untenable, and 0:13:12.080 --> 0:13:15.319 so you've got in their place these travel teams that 0:13:15.400 --> 0:13:18.600 are professionally coached, and then you have just this desire 0:13:18.679 --> 0:13:22.240 to get kids scholarships or into elite schools, and so 0:13:22.600 --> 0:13:25.679 sports have become this sort of less about what you're 0:13:25.679 --> 0:13:27.400 doing right now and how you're enjoying it, and more 0:13:27.440 --> 0:13:29.719 about how it helps you get to that brass ring 0:13:29.800 --> 0:13:33.160 or that next step. And that means that parents are 0:13:33.200 --> 0:13:35.960 willing to spend on coaching and on equipment and on 0:13:36.480 --> 0:13:39.040 travel and everything else. And so that has made it 0:13:39.720 --> 0:13:43.120 a rather than you know, recreation a business. 0:13:45.440 --> 0:13:48.120 Hey, just real quickly, just got about thirty seconds. My 0:13:48.280 --> 0:13:51.000 concern is that money, once again is going to make 0:13:51.040 --> 0:13:54.000 it these kind of opportunities for those who can afford 0:13:54.040 --> 0:13:57.559 it and then cut out those where sometimes someone who 0:13:57.600 --> 0:14:00.280 is from a poorer background, to be quite blunt, had 0:14:00.280 --> 0:14:03.600 an opportunity to rise up courtesy of sports just quickly. 0:14:03.880 --> 0:14:05.640 Yeah, I mean this is not a good way to 0:14:05.679 --> 0:14:09.079 develop and identify talent, to use basically wealth as a 0:14:09.120 --> 0:14:11.160 way to find the kids who get to play. So 0:14:11.720 --> 0:14:15.280 just in terms of you know, competing, you really want 0:14:15.320 --> 0:14:19.240 to expand access and not make it more exclusive. 0:14:21.720 --> 0:14:24.000 Well it's a great read. There's so much fun detail 0:14:24.040 --> 0:14:26.920 in there, and it's like one of those who knew 0:14:26.920 --> 0:14:28.720 that this was going on, although it doesn't surprise me. 0:14:28.880 --> 0:14:32.040 Hey, we're private equity. We'll find a way, Yes, our 0:14:32.080 --> 0:14:32.520 a good way. 0:14:32.560 --> 0:14:34.880 Business of Sports reporter at Bloomberg News. Check out his 0:14:35.080 --> 0:14:37.640 Bloomberg Business Week story at Bloomberg dot com and on 0:14:37.720 --> 0:14:38.560 Bloomberg Terminal. 0:14:39.680 --> 0:14:43.160 You're listening to the Bloomberg Business Week podcast. Catch us 0:14:43.280 --> 0:14:46.520 live weekday afternoons from two to five pm Eastern. Listen 0:14:46.560 --> 0:14:49.200 on applecar Play and then brout Auto with a Bloomberg 0:14:49.240 --> 0:14:52.520 Business app or watch US live on YouTube. 0:14:53.280 --> 0:14:55.440 US Open has always been a place to see and 0:14:55.600 --> 0:14:57.640 be seen in a big way if you just check 0:14:57.680 --> 0:14:59.480 out some of those at the court side. And I 0:14:59.520 --> 0:15:01.320 know when we go to watch matches or over the 0:15:01.360 --> 0:15:03.120 past years, especially if you do a night match, a 0:15:03.120 --> 0:15:06.480 really popular one, a big one, the cameras will move 0:15:06.520 --> 0:15:08.520 around and all of a sudden you're seeing, you know, 0:15:08.680 --> 0:15:09.240 a celeb. 0:15:09.280 --> 0:15:11.840 There's always know where the celebs are sitting, don't they. 0:15:11.800 --> 0:15:13.120 Yeah, and you know how many times they've come on 0:15:13.240 --> 0:15:18.080 US zero. That's the way it rolls. It's okay, I'm 0:15:18.120 --> 0:15:18.600 good with that. 0:15:19.240 --> 0:15:21.560 With that, Hey, we actually know a little bit about 0:15:21.600 --> 0:15:25.320 this because our own Bloomberg New senior reporter Jillian Tan, 0:15:25.400 --> 0:15:27.880 who is a fan of tennis, plays tennis. She's back 0:15:27.880 --> 0:15:31.040 here at the US Open. She wrote about what is 0:15:31.040 --> 0:15:34.520 the hottest celebrity ticket out there right now? Jillian, good 0:15:34.520 --> 0:15:35.160 to see you, welcome. 0:15:35.240 --> 0:15:36.120 Yeah, thanks for having me. 0:15:36.240 --> 0:15:39.800 Okay, So before we get to who's been here, you know, 0:15:40.520 --> 0:15:45.160 which include Jessica Biel, Questlow, Alec Baldwin and Moore, how 0:15:45.240 --> 0:15:47.760 do celebrities get connected with seats here? 0:15:47.880 --> 0:15:49.360 So I think the whole thing, right, it's a whole 0:15:49.400 --> 0:15:51.640 thing right now, everyone sort of you know, talks to 0:15:51.720 --> 0:15:54.640 their own team, speaks to their agents. The agents put 0:15:54.680 --> 0:15:56.840 an ask into the USTA and there are just so 0:15:56.880 --> 0:16:00.760 many sponsors here. So if the USTA President box is full, 0:16:01.000 --> 0:16:04.280 there's like mowatt is that how you pronounce it? Proet 0:16:04.400 --> 0:16:09.040 It depends depends on if you or America Emira. You've 0:16:09.040 --> 0:16:12.960 got Polo, Ralph Lauren, but doebal Tequila. Everyone's just scattered 0:16:13.000 --> 0:16:17.080 around Arthur ash Stadium. So John Rahm, the live golfer, 0:16:17.440 --> 0:16:20.000 his live golf team is sponsored by this tequila brown 0:16:20.040 --> 0:16:23.360 so he rocked in on Monday Tuesday. Everyone just sort 0:16:23.360 --> 0:16:25.720 of you know, calls, makes the ask and then shows 0:16:25.760 --> 0:16:27.640 up when the sponsors can fit them in. 0:16:27.720 --> 0:16:29.440 So they're not buying tickets, No, these. 0:16:29.320 --> 0:16:30.280 Are all free tickets. 0:16:30.640 --> 0:16:34.360 Come on, so the tickets? Why aren't they paying? 0:16:35.160 --> 0:16:36.560 What about us? Please? 0:16:38.240 --> 0:16:38.400 Wait? 0:16:38.520 --> 0:16:42.000 Has tennis always been so popular among celebrities? 0:16:42.360 --> 0:16:44.280 So right now you know that the view is that 0:16:44.280 --> 0:16:47.960 there's like a cultural ape sorry boutman voice challenges. The 0:16:47.960 --> 0:16:51.160 movie starring Zendaya grossed ninety four million this year, so 0:16:51.200 --> 0:16:53.880 that's you know, been huge for tennis. But during the pandemic, 0:16:53.880 --> 0:16:56.560 there was just a huge boost and amateur players, not 0:16:56.600 --> 0:16:58.960 only in the US but just globally, so that there's 0:16:58.960 --> 0:17:01.520 just a lot of attention and on the sport luxury 0:17:01.520 --> 0:17:04.119 brands have started to capitalize on it. You've seen Yanixenner 0:17:04.160 --> 0:17:07.119 the world number one. He's, you know, an ambassador for Gucci. 0:17:07.119 --> 0:17:09.760 You've got Alcoraz who unfortunately lost last night. He's an 0:17:09.760 --> 0:17:13.280 ambassador of Louis Vuitton. So is Naomi Osaka. So a 0:17:13.280 --> 0:17:15.679 lot of these folks are building their brands outside the 0:17:15.680 --> 0:17:17.399 court and people are paying attention. 0:17:18.000 --> 0:17:22.239 It seems like other sports like basketball have really in 0:17:22.400 --> 0:17:26.879 the past attracted this court side celebrity. Yeah, is it 0:17:26.960 --> 0:17:28.520 tennis a hoter ticket now? 0:17:29.200 --> 0:17:32.000 Arguably so, especially because there's only fourteen days here at 0:17:32.040 --> 0:17:34.800 Arthur ash right, So basketball we're looking to it. There's 0:17:34.800 --> 0:17:37.280 forty one home games per team. That's so many that 0:17:37.520 --> 0:17:40.160 you know, celebrities can pop in nix and nets, give 0:17:40.280 --> 0:17:42.840 jay Z high fives and his Empire state of Mind hit. 0:17:43.760 --> 0:17:45.760 But no, now the basketball players are the ones that 0:17:45.800 --> 0:17:46.720 are court side here. 0:17:47.200 --> 0:17:50.200 Well, you mentioned jay Z, I mean didn't they Also 0:17:50.240 --> 0:17:53.480 in terms of the USTA leaning on culture, in terms 0:17:53.480 --> 0:17:55.520 of I think they've got a new theme song and 0:17:55.640 --> 0:17:57.280 they tell us a little bit about that how they 0:17:57.320 --> 0:17:59.840 are embracing kind of the celebrity moment. 0:18:00.240 --> 0:18:02.840