1 00:00:02,440 --> 00:00:06,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:07,720 --> 00:00:10,280 Speaker 2: This is Bloomberg Business of Sports. 3 00:00:10,440 --> 00:00:13,239 Speaker 3: Business of Sports can be intimidating for hard for a 4 00:00:13,320 --> 00:00:14,240 Speaker 3: start to break into. 5 00:00:14,320 --> 00:00:17,319 Speaker 4: We really appreciate when our owners are actually there, you know, 6 00:00:17,400 --> 00:00:18,480 Speaker 4: with us through the journey. 7 00:00:18,520 --> 00:00:22,200 Speaker 1: Teams ours especially been very intentional to diversify at all 8 00:00:22,280 --> 00:00:23,040 Speaker 1: levels of the company. 9 00:00:23,120 --> 00:00:26,360 Speaker 5: Maybe we're the golden years for the NFL and college football. 10 00:00:26,440 --> 00:00:29,520 Speaker 4: Our demographic reach has continued to expande. 11 00:00:29,560 --> 00:00:33,200 Speaker 1: This is going to be really unlocking the streaming platform 12 00:00:33,280 --> 00:00:34,240 Speaker 1: for sports fans. 13 00:00:34,320 --> 00:00:36,760 Speaker 6: Sports evaluations are rising. We'll see when they peak. 14 00:00:36,840 --> 00:00:39,479 Speaker 2: You don't have to be the best in your sports 15 00:00:39,479 --> 00:00:42,360 Speaker 2: and make a whole ton of money. 16 00:00:42,400 --> 00:00:45,640 Speaker 7: Bloomberg Business of Sports from Bloomberg Radio. 17 00:00:46,680 --> 00:00:49,600 Speaker 2: This is the Bloomberg Business of Sports show, where we 18 00:00:49,640 --> 00:00:51,760 Speaker 2: explore the big money issues in the world of sports. 19 00:00:51,960 --> 00:00:54,680 Speaker 2: I'm Michael Barr, along with Mike Colleague, Scarlett Fu and 20 00:00:54,880 --> 00:01:00,600 Speaker 2: Damian Sasaur. Coming up, we'll talk with Speedway Motorsports President 21 00:01:00,760 --> 00:01:06,000 Speaker 2: and CEO Marcus Smith about the new Ten Tenths Motor Club. 22 00:01:06,240 --> 00:01:09,720 Speaker 3: It's centered around a two mile track right outside the 23 00:01:09,800 --> 00:01:13,080 Speaker 3: traditional Charlotte Motor Speedway and we've got about one hundred 24 00:01:13,080 --> 00:01:17,759 Speaker 3: acres that include an area with the clubhouse, the new 25 00:01:17,840 --> 00:01:21,760 Speaker 3: track that we just unveiled, and a garage area that 26 00:01:21,800 --> 00:01:26,679 Speaker 3: we can where you can keep your cars your collection. 27 00:01:27,120 --> 00:01:30,480 Speaker 2: Plus we'll talk about the sports real estate and venue 28 00:01:30,520 --> 00:01:34,560 Speaker 2: space with the founder, chairman and CEO of SERGE, which 29 00:01:34,600 --> 00:01:38,680 Speaker 2: stands for Sports and Entertainment real Estate Global Holdings. All 30 00:01:38,720 --> 00:01:41,360 Speaker 2: that is straight ahead on the Bloomberg Business of Sports, 31 00:01:41,360 --> 00:01:45,200 Speaker 2: But first we check in with Bloomberg US sports business 32 00:01:45,240 --> 00:01:49,640 Speaker 2: reporter hey Randa Williams about a few stories that he 33 00:01:49,760 --> 00:01:54,000 Speaker 2: is following, including how the NFL's first real foray and 34 00:01:54,120 --> 00:01:58,200 Speaker 2: private equity investment with Washington Commanders is working out. Rando, 35 00:01:58,640 --> 00:01:59,920 Speaker 2: welcome back, my man. 36 00:02:00,000 --> 00:02:01,760 Speaker 6: I appreciate you for having me, and you're kind of 37 00:02:01,760 --> 00:02:02,680 Speaker 6: singing my name here. 38 00:02:03,040 --> 00:02:06,680 Speaker 2: I love it. Well, let's start with that man with 39 00:02:06,800 --> 00:02:10,880 Speaker 2: the NFL and the private equity. How is that working 40 00:02:10,919 --> 00:02:12,639 Speaker 2: out with the Washington Commanders. 41 00:02:13,000 --> 00:02:16,760 Speaker 6: Well, Josh Harris is seven and two. So look, I 42 00:02:16,800 --> 00:02:20,679 Speaker 6: think that Harris has owned sports teams before. He's familiar 43 00:02:20,720 --> 00:02:22,919 Speaker 6: with this, and so yes, he's a private equity guy. 44 00:02:23,320 --> 00:02:25,480 Speaker 6: But I think his previous experience of running the seventy 45 00:02:25,520 --> 00:02:28,480 Speaker 6: six ers and running the Devils like stepping into this role. 46 00:02:28,520 --> 00:02:30,840 Speaker 6: He's not some rookie and he had an idea of 47 00:02:30,880 --> 00:02:33,640 Speaker 6: what he wanted to do. He just happens to be 48 00:02:33,680 --> 00:02:36,280 Speaker 6: in private equity and as a whole lot of cash. 49 00:02:36,400 --> 00:02:39,240 Speaker 5: Well, Randall, I mean, certainly, Josh Harris has experienced running 50 00:02:39,560 --> 00:02:42,040 Speaker 5: professional franchises, from the Devils to the seventy six ers 51 00:02:42,080 --> 00:02:44,560 Speaker 5: and now with the Commanders. But my goodness, who could 52 00:02:44,560 --> 00:02:46,760 Speaker 5: have thought that he would be picking with the first 53 00:02:46,840 --> 00:02:49,600 Speaker 5: pick overall, the potential NFL rookie of the year and 54 00:02:49,680 --> 00:02:53,200 Speaker 5: the third best quarterback in the NFL right now, Jaden Daniels. 55 00:02:53,240 --> 00:02:54,960 Speaker 5: I mean, is that more luck or is that you know? 56 00:02:55,360 --> 00:02:57,880 Speaker 5: Is that something to do with skill and experience? 57 00:02:58,080 --> 00:02:58,240 Speaker 7: Well? 58 00:02:58,240 --> 00:02:59,760 Speaker 2: I have him in my fantasy football. 59 00:03:00,120 --> 00:03:04,359 Speaker 6: So the second overall pick, p rob gets a handoff 60 00:03:04,440 --> 00:03:06,799 Speaker 6: right up for them, Daniels keeps it, scoot check to 61 00:03:06,840 --> 00:03:07,200 Speaker 6: the Ed. 62 00:03:07,160 --> 00:03:11,200 Speaker 5: Jarde touch Jowld touchdown, Washington Shanger. 63 00:03:11,360 --> 00:03:11,880 Speaker 3: Daniels. 64 00:03:11,880 --> 00:03:14,680 Speaker 6: Again, I think it has to do with experience. When 65 00:03:14,760 --> 00:03:17,040 Speaker 6: when he was hiring his staff a lot there were 66 00:03:17,040 --> 00:03:20,400 Speaker 6: a lot of reports about how this process was very unique. 67 00:03:20,400 --> 00:03:23,320 Speaker 6: He formed an entire committee. The committee chose the general manager. 68 00:03:23,480 --> 00:03:25,080 Speaker 6: Then the general manager was a part of the hiring 69 00:03:25,120 --> 00:03:27,880 Speaker 6: process for the offensive coordinator and the head coach, and 70 00:03:27,919 --> 00:03:31,880 Speaker 6: Cliff Kingsbury is an offensive mastermind, and he's enabled Jayden 71 00:03:31,960 --> 00:03:35,440 Speaker 6: Daniels to succeed. Obviously, Jayden is super duper talented. He's 72 00:03:35,440 --> 00:03:39,440 Speaker 6: football smart, he delivers, he throws great balls. And so 73 00:03:39,600 --> 00:03:43,680 Speaker 6: with that in mind, he built a team around Jaden 74 00:03:43,760 --> 00:03:47,640 Speaker 6: Daniels and the rest and everyone else that has has 75 00:03:47,680 --> 00:03:48,400 Speaker 6: a lot of success. 76 00:03:48,560 --> 00:03:48,800 Speaker 7: Yeah. 77 00:03:48,840 --> 00:03:50,720 Speaker 5: Well, I mean, look, I mean he paid what six 78 00:03:50,840 --> 00:03:52,880 Speaker 5: some odd billion dollars, which at the time I think 79 00:03:53,000 --> 00:03:54,600 Speaker 5: was almost, you know, one and a half two billion 80 00:03:54,600 --> 00:03:56,800 Speaker 5: dollars more than anybody had ever paid for any NFL 81 00:03:56,800 --> 00:03:58,760 Speaker 5: franchise at the time. And we were laughing at him, right, 82 00:03:58,800 --> 00:04:01,240 Speaker 5: I mean, we're like Apollo Black, Josh Harris, I mean, 83 00:04:01,280 --> 00:04:03,800 Speaker 5: come on, you know, but it's it's unbelievable because not 84 00:04:03,840 --> 00:04:06,200 Speaker 5: only and by the way, when I said first overall, 85 00:04:06,200 --> 00:04:08,800 Speaker 5: pick Commander's first overall, gotcha, gay? 86 00:04:08,920 --> 00:04:09,760 Speaker 2: But what I. 87 00:04:09,760 --> 00:04:11,720 Speaker 5: Really you know, I mean, like the fact that they 88 00:04:11,800 --> 00:04:15,280 Speaker 5: made these free agent acquisitions. I'm talking Eckler, I'm talking 89 00:04:15,560 --> 00:04:17,560 Speaker 5: zach Ertz. You know, all of them seem to have 90 00:04:17,600 --> 00:04:20,120 Speaker 5: worked out. I mean, there's there's got to be something 91 00:04:20,200 --> 00:04:21,200 Speaker 5: more here than just luck. 92 00:04:21,640 --> 00:04:25,839 Speaker 6: No. I think having Cliff Kingsbury there to just you 93 00:04:25,880 --> 00:04:28,920 Speaker 6: think about who Cliff Kingsbury has worked with Patrick Mahomes 94 00:04:29,000 --> 00:04:31,360 Speaker 6: Kyler Murray to one guy, one rookie of the Year, 95 00:04:31,400 --> 00:04:34,520 Speaker 6: another guy who was throwing for seven hundred yards at 96 00:04:34,560 --> 00:04:37,240 Speaker 6: Texas Tech, and now he's with Jayden Daniels. The offense 97 00:04:37,320 --> 00:04:40,040 Speaker 6: is very quick and even when Jayden is off rhythm 98 00:04:40,160 --> 00:04:43,040 Speaker 6: or it's not in the script, he's still making smart 99 00:04:43,120 --> 00:04:46,200 Speaker 6: plays and that comes from coaching, that comes from experience, 100 00:04:46,240 --> 00:04:49,160 Speaker 6: and Cliff Kingsbury has both and Quinn is probably letting 101 00:04:49,200 --> 00:04:51,480 Speaker 6: him run the offense and then he's tweaking the defense. 102 00:04:51,560 --> 00:04:53,800 Speaker 6: The Commander's defense hasn't been great the entire year, but 103 00:04:53,839 --> 00:04:57,000 Speaker 6: they're steadily improving. And Zach and excuse me, Josh Harris 104 00:04:57,040 --> 00:04:59,080 Speaker 6: placed them both there and they're doing a great job. 105 00:04:59,480 --> 00:05:02,000 Speaker 2: Man, talk about a night and day difference from when 106 00:05:02,080 --> 00:05:06,760 Speaker 2: Dan Snyder's team this is you can't even compare it. 107 00:05:06,839 --> 00:05:10,320 Speaker 6: Man, I would love to see a I'd say four 108 00:05:10,480 --> 00:05:14,520 Speaker 6: seasons of an HBO series on the final two years 109 00:05:14,520 --> 00:05:18,159 Speaker 6: of Dan Snyder's Dan Snyder's tenure for the Commanders in 110 00:05:18,200 --> 00:05:21,360 Speaker 6: the first two seasons of Josh Aris maybe Josh Airis's 111 00:05:21,400 --> 00:05:22,800 Speaker 6: tenure just because. 112 00:05:22,720 --> 00:05:23,920 Speaker 2: It is night and day. 113 00:05:24,200 --> 00:05:28,120 Speaker 6: Even the morale difference between at the NFL league meetings. 114 00:05:28,279 --> 00:05:31,320 Speaker 6: This hungover the Dan Snyder allegations and the things that 115 00:05:31,360 --> 00:05:34,560 Speaker 6: he was being investigated for hung over the NFL owners 116 00:05:34,680 --> 00:05:37,080 Speaker 6: heads for a couple of years. There was some fear around, 117 00:05:37,080 --> 00:05:39,280 Speaker 6: oh what else is he going to expose? Now josh 118 00:05:39,279 --> 00:05:41,800 Speaker 6: aris private equity has been approved, the Commanders are a 119 00:05:41,839 --> 00:05:44,640 Speaker 6: safe space. Like, things are a lot better, and I 120 00:05:44,720 --> 00:05:47,880 Speaker 6: know that NFL owners and NFL personnel feel great about him. 121 00:05:47,920 --> 00:05:50,720 Speaker 5: Well, the Commanders aren't necessarily a safe place. I mean, 122 00:05:50,800 --> 00:05:53,320 Speaker 5: let's talk about the guardrail that collapsed back in twenty 123 00:05:53,360 --> 00:05:55,800 Speaker 5: twenty two at FedEx Field. Well, now it's Northwest Stadium, 124 00:05:55,880 --> 00:05:59,000 Speaker 5: right and the pipe that burst. I mean, what comes 125 00:05:59,040 --> 00:06:00,400 Speaker 5: next to We're going to get a new eighty in 126 00:06:00,480 --> 00:06:01,559 Speaker 5: Washington at some point. 127 00:06:01,680 --> 00:06:04,000 Speaker 6: At some point they're along road from that. Josh Harris 128 00:06:04,040 --> 00:06:06,520 Speaker 6: has identified twenty thirty as a potential target date. The 129 00:06:06,960 --> 00:06:09,680 Speaker 6: LISA at Northwest Stadium is up in twenty twenty seven, 130 00:06:09,760 --> 00:06:11,840 Speaker 6: so they have some work to do between now and then. 131 00:06:11,880 --> 00:06:16,279 Speaker 6: He's also identified RFK Stadiums as a site. But again 132 00:06:16,320 --> 00:06:19,000 Speaker 6: there's a November nineteenth vote that would put the control 133 00:06:19,080 --> 00:06:21,800 Speaker 6: of the stadium back in DC's hands. That does not 134 00:06:21,960 --> 00:06:24,120 Speaker 6: mean that DC is going to make a deal with 135 00:06:24,160 --> 00:06:26,359 Speaker 6: the commanders. Now, the commanders would have to make a 136 00:06:26,400 --> 00:06:28,279 Speaker 6: deal if it's a public private split. 137 00:06:28,520 --> 00:06:29,000 Speaker 2: I don't know. 138 00:06:29,040 --> 00:06:31,680 Speaker 6: There's so much u there's so much that has to 139 00:06:31,720 --> 00:06:34,400 Speaker 6: be done before we get there. There's also Virginia and 140 00:06:34,440 --> 00:06:37,000 Speaker 6: Maryland that are at play here. It is not a 141 00:06:38,320 --> 00:06:41,000 Speaker 6: it's not certain that they will end up playing at 142 00:06:41,080 --> 00:06:45,600 Speaker 6: RFK Stadium. They're exploring all different all three regions within 143 00:06:45,640 --> 00:06:46,120 Speaker 6: the DMV. 144 00:06:46,520 --> 00:06:49,080 Speaker 2: And it's still standing, the old RFK Stadium. It is. 145 00:06:49,320 --> 00:06:51,440 Speaker 2: It is man's well. 146 00:06:51,320 --> 00:06:53,440 Speaker 6: Okay, so but it's also set to be demolished. 147 00:06:53,480 --> 00:06:55,360 Speaker 2: Yeah, yeah, it's good. That's good. So well let's say, okay, 148 00:06:55,400 --> 00:06:59,040 Speaker 2: to demolished that that site, you build a new stadium there, 149 00:07:00,120 --> 00:07:01,680 Speaker 2: like you know, I got all this money to talk 150 00:07:01,720 --> 00:07:05,520 Speaker 2: about this, all right, So now do you do what 151 00:07:05,720 --> 00:07:08,880 Speaker 2: many other NFL teams are doing. You make it way 152 00:07:08,960 --> 00:07:11,880 Speaker 2: more than just a stadium. You make it an entire 153 00:07:12,000 --> 00:07:14,520 Speaker 2: complex where you got the eateries and all. 154 00:07:14,520 --> 00:07:16,360 Speaker 6: That's all you have to Do's that's what you have 155 00:07:16,440 --> 00:07:18,760 Speaker 6: to do. And I mean think about it. NFL teams 156 00:07:18,800 --> 00:07:21,800 Speaker 6: are playing eight to nine games in these stadiums, alternating 157 00:07:21,840 --> 00:07:24,720 Speaker 6: every other year, and so with that in mind, you 158 00:07:24,840 --> 00:07:26,760 Speaker 6: need to be able to build something that makes people 159 00:07:26,760 --> 00:07:29,080 Speaker 6: come and want to see this thing. And on top 160 00:07:29,120 --> 00:07:30,920 Speaker 6: of that, it isn't just it has to be a 161 00:07:31,040 --> 00:07:32,680 Speaker 6: nice stadium. People just don't want to They want to 162 00:07:32,680 --> 00:07:34,600 Speaker 6: see something that is state of the art. If you 163 00:07:34,720 --> 00:07:38,200 Speaker 6: drive by Allegiance Stadium, it is gorgeous. If you drive 164 00:07:38,240 --> 00:07:40,920 Speaker 6: by Sofi Stadium, you want to go inside. Each of 165 00:07:40,960 --> 00:07:43,560 Speaker 6: these new stadiums have an experience and a feel and 166 00:07:43,600 --> 00:07:46,920 Speaker 6: an environment. Now, keep in mind the real estate around 167 00:07:46,920 --> 00:07:49,320 Speaker 6: that takes time to develop. There's no billionaire that has 168 00:07:49,360 --> 00:07:51,920 Speaker 6: come in and built a stadium and immediately has placed 169 00:07:51,960 --> 00:07:54,880 Speaker 6: real estate. These things take time. So while you know 170 00:07:54,960 --> 00:07:58,320 Speaker 6: the real estate is important, if you ask Josh Harris today, 171 00:07:58,640 --> 00:08:00,760 Speaker 6: what does he want the real estate around the stadium 172 00:08:00,840 --> 00:08:02,600 Speaker 6: or the stadium? He wants the stadium first. 173 00:08:02,680 --> 00:08:05,560 Speaker 5: What's interesting to me, you know, you know, is I mean, 174 00:08:05,600 --> 00:08:07,400 Speaker 5: it seems like, you know, he's going to be searching 175 00:08:07,440 --> 00:08:09,120 Speaker 5: for a new president and I'm talking about Josh Harris 176 00:08:09,120 --> 00:08:11,400 Speaker 5: and the Commanders, and it seems like this stadium is 177 00:08:11,400 --> 00:08:13,120 Speaker 5: going to be front and center for him. And you 178 00:08:13,120 --> 00:08:14,920 Speaker 5: know what's interesting is if you do listen to people 179 00:08:14,920 --> 00:08:17,720 Speaker 5: like surgeon John Prascio Telly, it is about the mixed 180 00:08:17,800 --> 00:08:20,280 Speaker 5: use you know, around the stadium, getting you know, getting 181 00:08:20,400 --> 00:08:22,320 Speaker 5: you know, spectators there as early as possible, and not 182 00:08:22,360 --> 00:08:23,040 Speaker 5: letting him leave. 183 00:08:22,960 --> 00:08:23,840 Speaker 2: Until really, really late. 184 00:08:23,880 --> 00:08:25,960 Speaker 5: I mean, is that is that something that you envision, 185 00:08:27,040 --> 00:08:29,520 Speaker 5: you know that Josh Harris rather envisions as part of 186 00:08:29,520 --> 00:08:30,360 Speaker 5: the Commander's future. 187 00:08:30,600 --> 00:08:33,079 Speaker 6: I think so, But again it'll take time. I mean, 188 00:08:33,080 --> 00:08:35,760 Speaker 6: if you let's just say in his plan that they 189 00:08:35,760 --> 00:08:39,560 Speaker 6: get OURFK Stadium and the stadium is built by twenty thirty. 190 00:08:39,800 --> 00:08:42,360 Speaker 6: Once the stadium is complete, that doesn't include everything else. 191 00:08:42,400 --> 00:08:44,520 Speaker 6: And who knows what the public private is split if 192 00:08:44,559 --> 00:08:46,400 Speaker 6: it's if it's all private, if it's all public, we 193 00:08:46,480 --> 00:08:48,840 Speaker 6: just there's a lot that we don't know. And on 194 00:08:48,920 --> 00:08:51,000 Speaker 6: top of that, let's even if he funds the entire thing. 195 00:08:51,040 --> 00:08:52,760 Speaker 6: Do you really think that if Josh Harris puts all 196 00:08:52,760 --> 00:08:54,520 Speaker 6: of his money up into the stadium and he's going 197 00:08:54,559 --> 00:08:55,959 Speaker 6: to turn around and be like, oh, here's a mall, 198 00:08:56,000 --> 00:08:57,560 Speaker 6: here's a hotel, here's a casino. 199 00:08:57,760 --> 00:08:59,679 Speaker 2: I doubt it. Yeah, I doubt it. The public. 200 00:09:00,160 --> 00:09:02,920 Speaker 6: If my guess is there's going to need to be 201 00:09:03,000 --> 00:09:05,600 Speaker 6: some public money somewhere that has not been said from 202 00:09:05,640 --> 00:09:07,680 Speaker 6: any party. There's a lot that has to be determined, 203 00:09:07,720 --> 00:09:08,560 Speaker 6: But that's my guess. 204 00:09:08,800 --> 00:09:12,520 Speaker 2: Now moving to the NBA. Now, this is if I 205 00:09:12,559 --> 00:09:15,480 Speaker 2: said this sentence about twenty years ago, people will be like, 206 00:09:15,679 --> 00:09:18,880 Speaker 2: you're joking. No, this now we're talking some serious money. 207 00:09:19,000 --> 00:09:23,760 Speaker 2: Lebron James with spring Hill and the producer for the Kardashians, 208 00:09:24,000 --> 00:09:25,480 Speaker 2: they're talking about a merger deal. 209 00:09:26,000 --> 00:09:28,720 Speaker 6: Yes they are. Indeed, it's unclear what it'll look like, 210 00:09:28,880 --> 00:09:31,760 Speaker 6: but they're talking and sounds like it's gonna happen. 211 00:09:31,840 --> 00:09:33,280 Speaker 5: Well, let's go back a little bit here. I mean, 212 00:09:33,440 --> 00:09:37,000 Speaker 5: we're talking about the the the investment that Nike made 213 00:09:37,120 --> 00:09:39,080 Speaker 5: right in spring Hill. Back in twenty twenty one. It 214 00:09:39,120 --> 00:09:41,000 Speaker 5: was a very different environment. You know a lot of 215 00:09:41,000 --> 00:09:43,520 Speaker 5: these you know, twenty Century Fox, Paramount, Disney, everything was 216 00:09:43,559 --> 00:09:44,560 Speaker 5: trading at a premium there. 217 00:09:44,600 --> 00:09:47,199 Speaker 2: Now now we're seeing those times. 218 00:09:47,280 --> 00:09:49,000 Speaker 5: Yeah, it's a different right, So talk to us a 219 00:09:49,040 --> 00:09:51,880 Speaker 5: little bit about what we really believe the value you 220 00:09:51,920 --> 00:09:54,600 Speaker 5: know in this production company is, I mean, like what's 221 00:09:54,640 --> 00:09:56,960 Speaker 5: in the queue, what sort of projects are they working on, 222 00:09:57,000 --> 00:09:57,760 Speaker 5: what can we expect. 223 00:09:57,920 --> 00:10:00,400 Speaker 6: Well, I think their most their biggest project to me, 224 00:10:00,600 --> 00:10:03,640 Speaker 6: that or the most consistent project is The Shop. The 225 00:10:03,720 --> 00:10:06,040 Speaker 6: Shop is the one to me that has transcended culture 226 00:10:06,040 --> 00:10:07,760 Speaker 6: a little bit, just because of all the social clips 227 00:10:07,760 --> 00:10:12,800 Speaker 6: that it has uh that that have gone far beyond 228 00:10:12,840 --> 00:10:15,199 Speaker 6: social media that have been referred to in news. I mean, 229 00:10:15,440 --> 00:10:17,959 Speaker 6: if you love culture. Drake went on there and was 230 00:10:18,000 --> 00:10:21,240 Speaker 6: talking a little bit about his beef with Kanye West 231 00:10:21,240 --> 00:10:23,440 Speaker 6: and pusha t if you like jay Z. Jay Z's 232 00:10:23,480 --> 00:10:25,800 Speaker 6: on there talking about things. Barack Obama was on there. 233 00:10:25,840 --> 00:10:28,319 Speaker 6: They had Patrick Mahomes after the Super Bowl. Chadwick Boseman 234 00:10:28,480 --> 00:10:30,959 Speaker 6: was on there right before his tragic was going to 235 00:10:31,000 --> 00:10:34,280 Speaker 6: say Space Jam Space Jam too, but but I believe 236 00:10:34,400 --> 00:10:37,280 Speaker 6: Space Jam released like in the midst of the pandemic 237 00:10:37,320 --> 00:10:39,600 Speaker 6: around that, and so I don't think that kids were 238 00:10:39,640 --> 00:10:42,400 Speaker 6: really outside enough for it to be the exact same thing. 239 00:10:43,640 --> 00:10:46,080 Speaker 6: But they've They've had a lot of fun projects. But 240 00:10:46,120 --> 00:10:48,920 Speaker 6: I think you need to there needs to be some 241 00:10:48,960 --> 00:10:50,760 Speaker 6: sort of fun plus money. 242 00:10:52,000 --> 00:10:55,000 Speaker 2: Golf folks, so talk to us about full Well, who is? 243 00:10:55,080 --> 00:10:56,040 Speaker 6: Who is full Well? 244 00:10:56,080 --> 00:10:56,440 Speaker 8: Who is? 245 00:10:56,559 --> 00:10:59,320 Speaker 5: Eldridge Industries talked to us about Todd Bowley and his 246 00:10:59,360 --> 00:10:59,839 Speaker 5: interest there. 247 00:11:00,559 --> 00:11:01,000 Speaker 2: Uh Well. 248 00:11:01,000 --> 00:11:05,600 Speaker 6: Fullwell has produced the Kardashians. They produced Carpool Karaoke, and 249 00:11:05,640 --> 00:11:07,839 Speaker 6: as we know, the Kardashians are super popular. Everything they 250 00:11:07,840 --> 00:11:10,160 Speaker 6: touch seems to make money. I think Krpool Karaoke had 251 00:11:10,160 --> 00:11:13,600 Speaker 6: a fun ride. We'll have to see what type of 252 00:11:13,640 --> 00:11:16,240 Speaker 6: things that these two organizations are going to work together on. 253 00:11:16,880 --> 00:11:19,480 Speaker 6: I have no idea at this current moment what that 254 00:11:19,520 --> 00:11:22,199 Speaker 6: looks like, but we are all witnessed, as Nike would say. 255 00:11:22,200 --> 00:11:25,920 Speaker 2: Yeah, it's this. I mean, we are underestimating. Yes, we 256 00:11:25,960 --> 00:11:29,320 Speaker 2: always talk about Lebron James and Bronni on the court, 257 00:11:29,520 --> 00:11:33,360 Speaker 2: but we have to remember Lebron James is a savvy businessman. 258 00:11:33,559 --> 00:11:37,000 Speaker 6: Absolutely absolutely, he is a billionaire while he's still playing. 259 00:11:37,080 --> 00:11:39,920 Speaker 6: He has plans to eventually bid for the Las Vegas 260 00:11:40,040 --> 00:11:43,000 Speaker 6: NBA expansion team if Las Vegas has chosen in the process. 261 00:11:43,160 --> 00:11:45,440 Speaker 6: So he's he's trying to make money and that's not 262 00:11:45,480 --> 00:11:47,719 Speaker 6: going to stop. He's not going to retire and then 263 00:11:47,840 --> 00:11:49,400 Speaker 6: just oh what happened to Lebron? 264 00:11:49,400 --> 00:11:49,520 Speaker 2: Now? 265 00:11:49,520 --> 00:11:51,400 Speaker 6: I think he's going to continue to be a public 266 00:11:51,440 --> 00:11:54,960 Speaker 6: figure and if he becomes an NBA owner, iRED percent 267 00:11:54,960 --> 00:11:56,400 Speaker 6: assure you that he's going to be on the sidelines, 268 00:11:56,480 --> 00:11:58,320 Speaker 6: cheering for the team, or in that owners suit. 269 00:11:58,440 --> 00:12:01,439 Speaker 5: As savvy businessman and spends one and a half million 270 00:12:01,480 --> 00:12:03,640 Speaker 5: dollars a year on his health and business fitness. I 271 00:12:03,679 --> 00:12:06,120 Speaker 5: mean biohacking, like all this stuff. You hear all this 272 00:12:06,200 --> 00:12:08,200 Speaker 5: stuff they came out. I mean Lebron has really spent 273 00:12:08,320 --> 00:12:10,760 Speaker 5: one and a half million every year on his personal 274 00:12:10,800 --> 00:12:12,120 Speaker 5: health and fitness. 275 00:12:12,160 --> 00:12:16,400 Speaker 2: I mean, yeah, but it's a great investment. Exactly exactly, 276 00:12:17,240 --> 00:12:20,760 Speaker 2: Lebron James and Bronnie James. Man, how do you think 277 00:12:20,800 --> 00:12:22,480 Speaker 2: of the father son duo so far? 278 00:12:22,600 --> 00:12:24,160 Speaker 6: I think it's fun. I mean I think people are 279 00:12:24,200 --> 00:12:28,680 Speaker 6: overblowing it a bit in terms of uh oh Bronni 280 00:12:28,760 --> 00:12:32,360 Speaker 6: being selected to the Lakers. We've seen this happen in 281 00:12:32,480 --> 00:12:36,040 Speaker 6: front offices all the time. So for someone to say, oh, 282 00:12:36,120 --> 00:12:39,520 Speaker 6: Lebron is using his privilege, sure, who cares? It doesn't matter. 283 00:12:39,559 --> 00:12:44,440 Speaker 2: Have you seen the mix lately? Exactly? Randall williams our 284 00:12:44,679 --> 00:12:49,040 Speaker 2: very own US sports business reporter, Thank you again, man 285 00:12:49,080 --> 00:12:50,880 Speaker 2: for joining us on the Bloomberg Business of Sports. 286 00:12:50,920 --> 00:12:51,760 Speaker 6: It's always an honor. 287 00:12:52,320 --> 00:12:55,600 Speaker 2: Up next, we turned with the world of sports Venues 288 00:12:55,679 --> 00:12:58,959 Speaker 2: and real estate colleagues Damian Sasaur and Scarlett bou I 289 00:12:59,040 --> 00:13:02,400 Speaker 2: Michael Barr. You are listening to the Bloomberg Business of 290 00:13:02,440 --> 00:13:04,760 Speaker 2: Sports Bloomberger Radio around the world. 291 00:13:07,400 --> 00:13:11,000 Speaker 7: Everything you love about Bloomberg Radio is now inside your car. 292 00:13:11,200 --> 00:13:13,640 Speaker 2: Download the Bloomberg Business app featuring Apple. 293 00:13:13,480 --> 00:13:15,680 Speaker 7: Car Play and then right outo free in the MLF 294 00:13:15,760 --> 00:13:20,400 Speaker 7: store or on Google Play. You're listening to Bloomberg Business 295 00:13:20,400 --> 00:13:25,040 Speaker 7: of Sports from Bloomberg Radio. This is the Bloomberg Business 296 00:13:25,040 --> 00:13:27,360 Speaker 7: of Sports show where we explore the big money issues 297 00:13:27,400 --> 00:13:29,440 Speaker 7: the world of sports. I'm Michael Barr, along with my 298 00:13:29,480 --> 00:13:35,360 Speaker 7: colleague Scarlett Fu and Damian Sassauer. SEDGE, which stands for 299 00:13:35,520 --> 00:13:39,840 Speaker 7: Sports and Entertainment real Estate Global Holdings, is a platform 300 00:13:39,920 --> 00:13:44,080 Speaker 7: that focuses on investing in and developing real estate around 301 00:13:44,080 --> 00:13:48,120 Speaker 7: big sports and entertainment venues, and the group has the 302 00:13:48,160 --> 00:13:52,200 Speaker 7: backing from some of the biggest names in investing in sports. 303 00:13:52,760 --> 00:13:56,080 Speaker 7: And joining us to talk about the new venture is 304 00:13:56,280 --> 00:14:00,520 Speaker 7: SiGe Founder, chairman and CEO John Telly. 305 00:14:00,600 --> 00:14:03,200 Speaker 2: John. Welcome to the Bloomberg Business of Sports. 306 00:14:03,360 --> 00:14:05,760 Speaker 8: Thanks for having me. Really great to be here now. 307 00:14:05,920 --> 00:14:09,319 Speaker 2: Obviously, if you play sports, you got to have a 308 00:14:09,400 --> 00:14:12,880 Speaker 2: dag on place to play the game, which brings us 309 00:14:12,920 --> 00:14:16,520 Speaker 2: to real estate, which is what you guys really corner 310 00:14:16,600 --> 00:14:19,880 Speaker 2: and talk about. Let's talk about the impact first of 311 00:14:19,960 --> 00:14:24,280 Speaker 2: all about real estate and the investments that a lot 312 00:14:24,320 --> 00:14:27,280 Speaker 2: of sports teams are making in certain areas. 313 00:14:27,680 --> 00:14:29,800 Speaker 4: Yeah, i mean, when you look at sports valuations today, 314 00:14:29,800 --> 00:14:32,280 Speaker 4: they're at an all time high. You've got new media 315 00:14:32,360 --> 00:14:36,440 Speaker 4: deals coming out, and you've got owners looking for new 316 00:14:36,480 --> 00:14:40,960 Speaker 4: ways to rationalize the value, rationalize the investment, and generate 317 00:14:41,040 --> 00:14:41,640 Speaker 4: more profit. 318 00:14:42,800 --> 00:14:44,280 Speaker 8: That's one aspect of. 319 00:14:44,200 --> 00:14:46,960 Speaker 4: Real estate and where it comes in the other aspects 320 00:14:47,160 --> 00:14:49,120 Speaker 4: that's really exciting is the impact that it can have 321 00:14:49,160 --> 00:14:50,920 Speaker 4: on the community and the impact that it can have 322 00:14:51,000 --> 00:14:54,280 Speaker 4: on urban revitalization. And so when you get the combination 323 00:14:54,520 --> 00:14:59,760 Speaker 4: of team, real estate and community, you can create something 324 00:14:59,760 --> 00:15:01,040 Speaker 4: that's really powerful. 325 00:15:01,400 --> 00:15:06,000 Speaker 1: What's the calculus for deciding when to renovate an existing facility? 326 00:15:06,760 --> 00:15:09,640 Speaker 1: I'm thinking like Fenway Park, for instance, or Soldier Field 327 00:15:09,760 --> 00:15:12,720 Speaker 1: versus just going to a new location and starting from 328 00:15:12,760 --> 00:15:15,040 Speaker 1: scratch and building something state of the art from the 329 00:15:15,040 --> 00:15:18,160 Speaker 1: ground up. I mean, you know, everyone loves a new facility, 330 00:15:18,200 --> 00:15:21,680 Speaker 1: but it doesn't have the history, the tradition, and frankly, 331 00:15:22,000 --> 00:15:26,600 Speaker 1: you know, the the nostalgia that the traditional place carries. 332 00:15:26,960 --> 00:15:28,320 Speaker 8: Look, that's a that's a great question. 333 00:15:28,400 --> 00:15:31,120 Speaker 4: So, typically the useful life of the venue is anywhere 334 00:15:31,160 --> 00:15:34,240 Speaker 4: from twenty five to thirty five years. At that point 335 00:15:34,240 --> 00:15:37,840 Speaker 4: in time, you have to make a major capital investment. 336 00:15:38,120 --> 00:15:41,440 Speaker 4: If you look at MSG here in New York, that's 337 00:15:41,440 --> 00:15:44,720 Speaker 4: pretty landlocked by buildings, et cetera. And so when it 338 00:15:44,760 --> 00:15:48,360 Speaker 4: came time around you're thirty five or forty, they had 339 00:15:48,400 --> 00:15:50,480 Speaker 4: to put another billion and a half dollars in just 340 00:15:50,520 --> 00:15:51,280 Speaker 4: to keep it going. 341 00:15:52,000 --> 00:15:53,800 Speaker 1: How much would have cost it could instruct a new 342 00:15:53,800 --> 00:15:54,440 Speaker 1: one somewhere else? 343 00:15:54,600 --> 00:15:59,200 Speaker 4: Depending on where a typical MBA arena can cost anywhere 344 00:15:59,200 --> 00:16:01,360 Speaker 4: from one point five to two billion dollars. So you're 345 00:16:01,360 --> 00:16:05,520 Speaker 4: talking about renovating, You're talking about putting lipstick on an 346 00:16:05,520 --> 00:16:09,280 Speaker 4: older building, working working on the structural components, et cetera. 347 00:16:09,440 --> 00:16:11,320 Speaker 4: When when you could have a brand new one. Now, 348 00:16:11,480 --> 00:16:14,000 Speaker 4: MSG is unique in that it's landlocked in the center 349 00:16:14,080 --> 00:16:16,760 Speaker 4: of New York City, but a lot of times ownership 350 00:16:16,760 --> 00:16:19,680 Speaker 4: will take the opportunity to find a new location to 351 00:16:19,680 --> 00:16:20,440 Speaker 4: build something new. 352 00:16:20,680 --> 00:16:22,800 Speaker 5: So John, talk to us about the transition in terms 353 00:16:22,800 --> 00:16:25,080 Speaker 5: of you know, sentiment, right, I mean, historically you would 354 00:16:25,080 --> 00:16:27,280 Speaker 5: think like some of these teams, some of these team owners, 355 00:16:27,480 --> 00:16:29,040 Speaker 5: you know, they had to foot the build themselves where 356 00:16:29,040 --> 00:16:30,680 Speaker 5: they had to, you know, do a bond and get 357 00:16:30,720 --> 00:16:34,120 Speaker 5: taxpayer money, et cetera, et cetera. And and and that's 358 00:16:34,240 --> 00:16:36,800 Speaker 5: changed now, I mean, hasn't it. I mean, has that changed? 359 00:16:36,840 --> 00:16:40,760 Speaker 5: Just because now you can realize an actual rate of 360 00:16:40,920 --> 00:16:44,120 Speaker 5: return on your real estate investment in an arena or 361 00:16:44,160 --> 00:16:46,920 Speaker 5: a stadium, and talk to us about that whole concept, 362 00:16:46,920 --> 00:16:51,040 Speaker 5: that whole multi use concept of hotels and venues outside 363 00:16:51,080 --> 00:16:55,200 Speaker 5: of the stadium, keeping the the the audience there for longer. 364 00:16:55,240 --> 00:16:58,440 Speaker 5: I mean, is there any real kind of wind at 365 00:16:58,480 --> 00:17:01,200 Speaker 5: your backs with regard to that? Is that really something 366 00:17:01,240 --> 00:17:04,200 Speaker 5: that you know investors are looking to get behind here? 367 00:17:04,760 --> 00:17:04,920 Speaker 7: Oh? 368 00:17:05,000 --> 00:17:07,240 Speaker 4: Yeah, I mean, first and foremost, you have to look 369 00:17:07,240 --> 00:17:11,680 Speaker 4: at media consumption today. You can have two hundred events 370 00:17:11,720 --> 00:17:14,600 Speaker 4: at a venue. Back in the day you were talking 371 00:17:14,760 --> 00:17:17,919 Speaker 4: about the sporting events, plus twenty or thirty concerts. So 372 00:17:18,000 --> 00:17:21,200 Speaker 4: back in the day, you put those venues as far 373 00:17:21,280 --> 00:17:23,760 Speaker 4: outside from city center as possible, you put as much 374 00:17:23,760 --> 00:17:25,840 Speaker 4: parking lots around it, and you need as much public 375 00:17:25,880 --> 00:17:30,080 Speaker 4: money as possible, because economically they just didn't work. And 376 00:17:30,119 --> 00:17:33,400 Speaker 4: so when you look at reports from economists from back 377 00:17:33,480 --> 00:17:36,080 Speaker 4: of the day, they talk about these arenas as not 378 00:17:36,160 --> 00:17:40,160 Speaker 4: being economically viable or economically productive to invest in. That 379 00:17:40,400 --> 00:17:42,600 Speaker 4: is a thing of the past, unless you're talking to 380 00:17:42,640 --> 00:17:46,840 Speaker 4: a rent a professor. Okay, like it's just no longer true. 381 00:17:47,000 --> 00:17:50,399 Speaker 4: Today you'll go see Taylor Swift, You'll go see a fight, 382 00:17:50,480 --> 00:17:53,119 Speaker 4: You'll go see two sporting events. And that's just in 383 00:17:53,160 --> 00:17:57,440 Speaker 4: a week. And so with that increase of utilization, with 384 00:17:58,200 --> 00:18:01,080 Speaker 4: two hundred events that people are at ten eighteen thousand people, 385 00:18:01,119 --> 00:18:03,600 Speaker 4: that's four to five million people. What does that mean. 386 00:18:03,640 --> 00:18:05,119 Speaker 4: That means that the venue can now be in the 387 00:18:05,160 --> 00:18:08,520 Speaker 4: city center. It means that it's activated on a regular basis, 388 00:18:08,680 --> 00:18:11,200 Speaker 4: and it means that people are that are coming are 389 00:18:11,240 --> 00:18:15,119 Speaker 4: consuming media, but they also want to come early, eat food, 390 00:18:15,280 --> 00:18:16,480 Speaker 4: they want to stay late. 391 00:18:16,440 --> 00:18:18,960 Speaker 8: Have cocktails. And what does that do? That drives the 392 00:18:19,040 --> 00:18:19,879 Speaker 8: retail around. 393 00:18:19,920 --> 00:18:23,000 Speaker 4: It makes people want to live there, driving housing, and 394 00:18:23,080 --> 00:18:27,120 Speaker 4: most importantly, when you're building and you can support one 395 00:18:27,160 --> 00:18:31,240 Speaker 4: to three billion of development, it's creating jobs, lots of jobs, 396 00:18:31,359 --> 00:18:35,359 Speaker 4: lots of economic activity and really can be a stimulus 397 00:18:35,440 --> 00:18:38,160 Speaker 4: to drive economic revitalization. 398 00:18:37,560 --> 00:18:39,280 Speaker 8: Especially with all these cities that had kicked in the 399 00:18:39,320 --> 00:18:40,080 Speaker 8: teeth like COVID. 400 00:18:40,240 --> 00:18:41,960 Speaker 2: You hit the nail on the head when you said 401 00:18:42,000 --> 00:18:45,200 Speaker 2: twenty five years, because now the Cleveland Browns they're moving 402 00:18:45,280 --> 00:18:48,399 Speaker 2: to brook Park and they were just there like in 403 00:18:48,520 --> 00:18:51,639 Speaker 2: nineteen ninety nine, and I'm thinking, like, what what what 404 00:18:52,040 --> 00:18:53,720 Speaker 2: happened to the stadium? 405 00:18:53,720 --> 00:18:55,320 Speaker 1: Michael Barton, it is It's. 406 00:18:55,240 --> 00:18:57,879 Speaker 2: Like I'm still back in the dog Pound days and 407 00:18:57,920 --> 00:19:04,200 Speaker 2: now now they're moving to Park. The evolution of this 408 00:19:04,800 --> 00:19:07,680 Speaker 2: and the life, unless you want to put into the 409 00:19:07,720 --> 00:19:10,600 Speaker 2: history of a place, it continues on. 410 00:19:11,080 --> 00:19:13,800 Speaker 4: Look at what the what the Browns are doing are commendable. 411 00:19:13,840 --> 00:19:17,119 Speaker 4: What ownership there is doing is commendable. To build a 412 00:19:17,160 --> 00:19:20,399 Speaker 4: new modern NFL arena, put a cover on it that 413 00:19:20,480 --> 00:19:23,560 Speaker 4: really can can really activate the venue. And so you're 414 00:19:23,560 --> 00:19:25,400 Speaker 4: not only talking about the football games now you're talking 415 00:19:25,440 --> 00:19:28,520 Speaker 4: about other events too, and and so the vision that 416 00:19:28,560 --> 00:19:31,960 Speaker 4: they have for a large scale development around it's really exciting. 417 00:19:32,320 --> 00:19:35,600 Speaker 1: What is the single best example of a sports complex 418 00:19:35,640 --> 00:19:37,560 Speaker 1: that is located in the middle of the city and 419 00:19:38,000 --> 00:19:41,720 Speaker 1: does what you just described, you know, brings revitalization to 420 00:19:41,880 --> 00:19:45,240 Speaker 1: the area and keeps people coming in early, keeps them 421 00:19:45,240 --> 00:19:49,040 Speaker 1: there late, and is regularly activated so that there's what 422 00:19:49,480 --> 00:19:50,680 Speaker 1: no empty nights ever. 423 00:19:51,119 --> 00:19:53,200 Speaker 4: Look, I think I think there are definitely a couple 424 00:19:53,280 --> 00:19:55,639 Speaker 4: of examples across the industry that people look at. A 425 00:19:55,640 --> 00:19:57,760 Speaker 4: lot of people point to the Atlanta Braves and what 426 00:19:58,600 --> 00:20:01,680 Speaker 4: they did with the backing of Liberty Media. I think 427 00:20:01,720 --> 00:20:04,040 Speaker 4: that's that's an exciting project, was one of the first. 428 00:20:04,640 --> 00:20:06,880 Speaker 4: It was one of the first examples of where it 429 00:20:06,920 --> 00:20:10,080 Speaker 4: was done. I will say that hindsight's twenty twenty. I 430 00:20:10,080 --> 00:20:13,159 Speaker 4: think they could have went denser and built bigger. You 431 00:20:13,200 --> 00:20:16,719 Speaker 4: see it in la you see it in Boston, you 432 00:20:16,760 --> 00:20:18,679 Speaker 4: see it coming up in various markets. 433 00:20:18,680 --> 00:20:20,600 Speaker 1: But when you say Boston, you're talking about. 434 00:20:20,560 --> 00:20:23,199 Speaker 8: I'm telling you about the garden. Okay, the garden. 435 00:20:23,320 --> 00:20:25,120 Speaker 1: So where the Bruins play. 436 00:20:24,960 --> 00:20:26,080 Speaker 8: Yeah, where the Bruins play. 437 00:20:27,280 --> 00:20:27,560 Speaker 2: They did. 438 00:20:27,640 --> 00:20:29,960 Speaker 4: They did a great, a great job of integrating about 439 00:20:29,960 --> 00:20:33,960 Speaker 4: the facility as well as office towers and retail around it, 440 00:20:34,000 --> 00:20:36,240 Speaker 4: and in a nice way that spread a lot of 441 00:20:36,280 --> 00:20:37,800 Speaker 4: development in the neighborhood. 442 00:20:38,000 --> 00:20:39,960 Speaker 5: So, John, talk to me about when you meet with 443 00:20:40,000 --> 00:20:42,040 Speaker 5: a team owner or a team president. You know, what's 444 00:20:42,040 --> 00:20:44,560 Speaker 5: that conversation like, you know, when you're pitching surge, are 445 00:20:44,600 --> 00:20:48,879 Speaker 5: you pitching access to capital, access to expertise, development EXPERTI 446 00:20:49,240 --> 00:20:51,600 Speaker 5: I mean, talk to us just how involved your company 447 00:20:51,640 --> 00:20:53,080 Speaker 5: gets and in which way. 448 00:20:53,000 --> 00:20:56,240 Speaker 4: So so so we're pitching partnership first and foremost, and 449 00:20:56,280 --> 00:21:00,439 Speaker 4: we're and we're pitching a real fiduciary that they can trust. 450 00:21:00,560 --> 00:21:04,760 Speaker 4: So Surge back by Harris Splitzer, Sports and Entertainment back 451 00:21:04,840 --> 00:21:09,960 Speaker 4: by CIA with the board of very seasoned sports executives 452 00:21:10,000 --> 00:21:12,680 Speaker 4: as well as real estate executives, including Rick Clark that 453 00:21:12,840 --> 00:21:17,200 Speaker 4: just joined us, a former CEO and chairman of Brookfield, 454 00:21:17,240 --> 00:21:19,239 Speaker 4: growing that from five billion to two hundred billion. What 455 00:21:19,280 --> 00:21:23,880 Speaker 4: we're offering teams is a real fiduciary, real partner, an 456 00:21:23,920 --> 00:21:28,320 Speaker 4: expertise that money just simply can't buy. And when team 457 00:21:28,359 --> 00:21:32,400 Speaker 4: owners are thinking about these projects, they're thinking, One, I've 458 00:21:32,440 --> 00:21:33,960 Speaker 4: got a team in the area. That's a lot of 459 00:21:34,000 --> 00:21:37,120 Speaker 4: concentrated wealth. Two, I have to make a big investment 460 00:21:37,200 --> 00:21:42,359 Speaker 4: in the new venue, and then three how much more 461 00:21:42,400 --> 00:21:44,680 Speaker 4: should I put in the surrounding real estate? And these 462 00:21:44,800 --> 00:21:48,119 Speaker 4: venues could support one to three billion dollars of development, 463 00:21:48,280 --> 00:21:51,560 Speaker 4: or in some cases five to eight and if you 464 00:21:51,720 --> 00:21:54,640 Speaker 4: look at the equity debt mix of that, that could 465 00:21:54,640 --> 00:21:57,920 Speaker 4: be another billion to three billion dollars of equity. 466 00:21:57,960 --> 00:21:58,600 Speaker 8: That's a lot of. 467 00:21:58,560 --> 00:22:02,200 Speaker 4: Concentration for an owner, no matter how wealthy they are. 468 00:22:02,720 --> 00:22:05,960 Speaker 4: One and then two, being an owner just comes with 469 00:22:06,000 --> 00:22:10,000 Speaker 4: an incredible amount of civic responsibility. So the pressure to 470 00:22:10,119 --> 00:22:14,480 Speaker 4: produce a winning team, the pressure to be a civic 471 00:22:14,560 --> 00:22:19,720 Speaker 4: leader and provide civic service. Those those are just the 472 00:22:19,760 --> 00:22:22,040 Speaker 4: things that come with owning a team. Now, if you 473 00:22:22,119 --> 00:22:25,800 Speaker 4: talk about a big vision for surrounding real estate, that's 474 00:22:25,840 --> 00:22:29,560 Speaker 4: adding a layer of pressure that some owners, while while 475 00:22:30,119 --> 00:22:32,959 Speaker 4: it's a supportable, isn't necessarily something that they fully want 476 00:22:33,000 --> 00:22:33,600 Speaker 4: to stand. 477 00:22:33,359 --> 00:22:33,679 Speaker 8: Up to it. 478 00:22:33,720 --> 00:22:35,280 Speaker 4: So what we do is we come and say, hey, 479 00:22:35,400 --> 00:22:38,719 Speaker 4: we'll bring you the expertise, we'll bring the capital, and 480 00:22:38,760 --> 00:22:41,359 Speaker 4: we'll put our reputations on the line for giving this 481 00:22:41,400 --> 00:22:43,639 Speaker 4: big development. But at the same time we'll both be 482 00:22:43,760 --> 00:22:45,680 Speaker 4: driving positive benefit for the community. 483 00:22:45,760 --> 00:22:47,720 Speaker 2: And that's the other thing. And you mentioned a bit 484 00:22:47,760 --> 00:22:50,879 Speaker 2: about that back in the day. You know, Okay, you 485 00:22:51,000 --> 00:22:54,720 Speaker 2: put up Tiger Stadium and maybe ahead Hoot Robinson's Bar 486 00:22:54,960 --> 00:22:58,520 Speaker 2: next door, and that was about it. Now with the 487 00:22:58,680 --> 00:23:02,320 Speaker 2: entire complex and that using Detroit as the example, you've 488 00:23:02,359 --> 00:23:07,240 Speaker 2: got Ford Field, you have Comerica Park right nearby, you 489 00:23:07,320 --> 00:23:10,440 Speaker 2: have where the Pistons play and the Red Wings play, 490 00:23:10,920 --> 00:23:16,000 Speaker 2: all in that complex with and the most important part 491 00:23:16,320 --> 00:23:22,160 Speaker 2: is that you have a bunch of restaurants and casinos. 492 00:23:22,640 --> 00:23:26,320 Speaker 2: I mean, it's it takes this now to make this go. 493 00:23:27,640 --> 00:23:27,880 Speaker 8: Yeah. 494 00:23:27,920 --> 00:23:29,439 Speaker 4: And then and then if you look at where we 495 00:23:29,480 --> 00:23:33,719 Speaker 4: are today after COVID, right where people are people are 496 00:23:33,760 --> 00:23:37,720 Speaker 4: still delayed getting back to office, Where where retail in 497 00:23:37,800 --> 00:23:41,760 Speaker 4: some cities is shuttered, where the residential hasn't fully picked up. 498 00:23:42,320 --> 00:23:42,480 Speaker 8: Right. 499 00:23:42,520 --> 00:23:45,840 Speaker 4: So you take you take those trends, You take the 500 00:23:45,840 --> 00:23:48,760 Speaker 4: fact that a lot of the investment industry today is 501 00:23:48,880 --> 00:23:54,919 Speaker 4: focused on logistics, data centers and kind of what I 502 00:23:55,000 --> 00:23:59,320 Speaker 4: call stay at home type investments is supposed to get 503 00:23:59,320 --> 00:24:01,879 Speaker 4: out of the home type investments. When you look at 504 00:24:01,880 --> 00:24:04,480 Speaker 4: those trends, and then you look for what can be 505 00:24:04,520 --> 00:24:08,160 Speaker 4: catalysts for revitalization, for getting people off the couch, getting 506 00:24:08,160 --> 00:24:10,760 Speaker 4: people out of the home, getting people back to the office. 507 00:24:11,000 --> 00:24:13,920 Speaker 4: That's where sports and entertainment real estate development really comes in. 508 00:24:14,480 --> 00:24:17,440 Speaker 4: And we're out in the market telling people that it's 509 00:24:17,440 --> 00:24:20,040 Speaker 4: a different asset lass. It's not your regular way real 510 00:24:20,160 --> 00:24:23,760 Speaker 4: estate development. It's sports and entertainment real estate development. It 511 00:24:23,800 --> 00:24:28,080 Speaker 4: performs differently, it provides a different civic value, and it's 512 00:24:28,119 --> 00:24:30,639 Speaker 4: something that's really exciting not only for the teams and 513 00:24:30,680 --> 00:24:32,520 Speaker 4: the community, but for investors as well. 514 00:24:32,680 --> 00:24:35,600 Speaker 1: You talk about civic value. There's a lack of affordable 515 00:24:35,680 --> 00:24:39,920 Speaker 1: housing across the country. What is Searge doing, if anything, 516 00:24:40,000 --> 00:24:42,280 Speaker 1: to add to the supply in a meaningful way. 517 00:24:43,280 --> 00:24:45,840 Speaker 4: That's a great question and a super important one. So 518 00:24:46,520 --> 00:24:49,160 Speaker 4: in the projects that we look at doing, there will 519 00:24:49,160 --> 00:24:53,639 Speaker 4: typically be an affordable component. So we're looking at at. 520 00:24:53,560 --> 00:24:54,840 Speaker 1: Is it a percentage of the total. 521 00:24:55,000 --> 00:24:57,680 Speaker 4: So we're looking at creative first, We're looking at creating 522 00:24:57,800 --> 00:25:00,840 Speaker 4: the retail and the retail experience that the people. Then 523 00:25:00,840 --> 00:25:03,080 Speaker 4: we're putting up the multi family. Then we're looking at 524 00:25:03,080 --> 00:25:07,320 Speaker 4: hospitality and office as part of that multi family. Given 525 00:25:07,359 --> 00:25:09,800 Speaker 4: the scale of the projects that we're talking about, we're 526 00:25:09,800 --> 00:25:12,360 Speaker 4: working closely with the community the city is in the States, 527 00:25:12,520 --> 00:25:14,480 Speaker 4: and affordability as a key component. 528 00:25:14,840 --> 00:25:17,360 Speaker 2: Jonathan, thank you sir for coming here on the Bloomberg 529 00:25:17,400 --> 00:25:18,080 Speaker 2: Businesses Sports. 530 00:25:18,280 --> 00:25:19,800 Speaker 8: Thank you all for having me. I appreciate it. 531 00:25:20,280 --> 00:25:22,959 Speaker 2: Up next on the show, we will talk about a 532 00:25:23,000 --> 00:25:28,000 Speaker 2: new venture between the Speedway Motorsports and Hendrick Motorsports that 533 00:25:28,320 --> 00:25:33,040 Speaker 2: gearheads will love. I wonder who that can be for 534 00:25:33,240 --> 00:25:37,720 Speaker 2: my colleagues, Scarlett Food, Damien Sasaur, I'm Michael gearhead Bar. 535 00:25:38,040 --> 00:25:41,119 Speaker 2: You're listening to the Bloomberg Business of Sports from Bloomberg Radio. 536 00:25:41,200 --> 00:26:01,120 Speaker 2: Around the world, you're listening to Bloomberg of Sports from 537 00:26:01,200 --> 00:26:05,359 Speaker 2: Bloomberg Radio. Thanks for joining us on the Bloomberg Business 538 00:26:05,400 --> 00:26:07,600 Speaker 2: of Sports show, where we explore the big money issues 539 00:26:07,680 --> 00:26:09,840 Speaker 2: the world of sports. I'm Michael Barr along with my 540 00:26:09,880 --> 00:26:14,520 Speaker 2: colleagues Damian Samseller and Scarlett fu Speedway Motorsports is teaming 541 00:26:14,600 --> 00:26:18,120 Speaker 2: up with Hendrick Motorsports on a new venture that will 542 00:26:18,200 --> 00:26:22,000 Speaker 2: work sort of like an automotive country club. It's called 543 00:26:22,240 --> 00:26:25,320 Speaker 2: ten Tenths Motor Club. And here to talk to us 544 00:26:25,320 --> 00:26:28,320 Speaker 2: about it and more in the world of fast cars 545 00:26:28,359 --> 00:26:33,440 Speaker 2: as Speedway Motorsports President and CEO Marcus Smith. Marcus, Welcome 546 00:26:33,520 --> 00:26:36,800 Speaker 2: to the Bloomberg Business of Sports. I love it. 547 00:26:36,840 --> 00:26:38,480 Speaker 3: I love it well, it's great to be with you all. 548 00:26:38,520 --> 00:26:39,280 Speaker 3: Thanks for having me. 549 00:26:39,520 --> 00:26:44,120 Speaker 2: So now let me start it this way. Speedway Motorsports 550 00:26:44,240 --> 00:26:48,280 Speaker 2: and you guys are starting something kind of brand new 551 00:26:48,359 --> 00:26:53,080 Speaker 2: here in terms of how you guys are marketing more 552 00:26:53,200 --> 00:26:56,920 Speaker 2: of the motorsports. I'll get into give me an address 553 00:26:56,960 --> 00:26:58,840 Speaker 2: to get to you guys in a second, because my 554 00:26:58,920 --> 00:27:00,920 Speaker 2: son and I would love to come on down and 555 00:27:01,960 --> 00:27:05,879 Speaker 2: but but take us through that because you obviously your father, 556 00:27:06,240 --> 00:27:10,000 Speaker 2: which is NASCAR Hall of Famer Brudent Smith. You must 557 00:27:10,040 --> 00:27:11,080 Speaker 2: have learned a lot from them. 558 00:27:11,840 --> 00:27:15,200 Speaker 3: Oh yeah, absolutely learned a ton from from my dad, 559 00:27:15,680 --> 00:27:20,160 Speaker 3: my brother's and sister and I. We had amazing parents 560 00:27:20,440 --> 00:27:23,679 Speaker 3: that taught us a lot, taught us great, you know, 561 00:27:23,800 --> 00:27:28,000 Speaker 3: just life lessons and value hard work, and and I 562 00:27:28,040 --> 00:27:29,760 Speaker 3: got to learn from a Hall of famer, which is 563 00:27:29,960 --> 00:27:34,600 Speaker 3: pretty amazing. Definitely a blessed guy. You know, we're in 564 00:27:34,600 --> 00:27:38,600 Speaker 3: the business, uh racing. We we have race tracks around 565 00:27:38,600 --> 00:27:42,120 Speaker 3: the country. We operate twelve different tracks and uh we're 566 00:27:42,160 --> 00:27:46,920 Speaker 3: we're home based in Charlotte at Charlotte Motor Speedway, and uh, 567 00:27:47,240 --> 00:27:49,399 Speaker 3: you know, we've we've got a little bit of the 568 00:27:49,400 --> 00:27:52,760 Speaker 3: car business and in the family as well. So it's 569 00:27:52,840 --> 00:27:56,440 Speaker 3: racing cars and selling cars, and it's one of those 570 00:27:56,440 --> 00:27:58,320 Speaker 3: things that just gets in your blood. 571 00:27:58,800 --> 00:28:00,520 Speaker 5: So Marcus, here's what I need to add. You have 572 00:28:00,560 --> 00:28:02,639 Speaker 5: to educate me because I'm not nearly as motorhead of 573 00:28:02,680 --> 00:28:04,800 Speaker 5: a motorhead as Michael barr Is. But you know, I'm 574 00:28:05,080 --> 00:28:08,040 Speaker 5: looking at you know this all everything that's going on 575 00:28:08,080 --> 00:28:11,000 Speaker 5: in football, baseball, basketball, these other sports about you know, 576 00:28:11,440 --> 00:28:14,160 Speaker 5: the land around the stadium, the land around, for example, 577 00:28:14,240 --> 00:28:18,199 Speaker 5: a racetrack, the mixed use purpose of you know, getting 578 00:28:18,240 --> 00:28:20,760 Speaker 5: your you know, your audience there as early as possible, 579 00:28:20,760 --> 00:28:23,040 Speaker 5: having them to stay as late as possible, you know 580 00:28:23,040 --> 00:28:25,520 Speaker 5: what I mean. Talk to me about whether or not 581 00:28:25,600 --> 00:28:29,159 Speaker 5: that same sort of that seems sort of vibe is 582 00:28:29,240 --> 00:28:31,439 Speaker 5: kind of coming into motorsports, is it. I mean, like, 583 00:28:31,680 --> 00:28:35,199 Speaker 5: you know, how do you, you know, see the sport growing. 584 00:28:35,280 --> 00:28:37,800 Speaker 5: I mean, are you involved in trying to bring that 585 00:28:37,880 --> 00:28:40,560 Speaker 5: audience there in a you know, kind of in a tighter, 586 00:28:40,600 --> 00:28:41,160 Speaker 5: closer way. 587 00:28:42,480 --> 00:28:46,440 Speaker 3: Yeah, It's it's an interesting kind of study because you 588 00:28:46,480 --> 00:28:51,520 Speaker 3: look at other sports, football, baseball, basketball, they're in town, right, 589 00:28:51,520 --> 00:28:55,080 Speaker 3: They're closer in city centers, and these racetracks typically are 590 00:28:55,160 --> 00:28:59,800 Speaker 3: out of town. But over the decades, the towns of 591 00:29:00,080 --> 00:29:05,280 Speaker 3: own and you know, Charlotte is a much bigger city. Dallas, 592 00:29:05,400 --> 00:29:09,560 Speaker 3: Fort Worth, we're in We're in Las Vegas, We're we're 593 00:29:09,560 --> 00:29:13,120 Speaker 3: in great markets where the populations have grown outward. And 594 00:29:13,200 --> 00:29:17,120 Speaker 3: now all the property around these racetracks is is closer 595 00:29:17,160 --> 00:29:20,080 Speaker 3: to the population centers. So you start to think about 596 00:29:20,160 --> 00:29:22,960 Speaker 3: how they can play a role. But there's also a 597 00:29:23,040 --> 00:29:25,800 Speaker 3: luxury in space, and I think that's that's part of 598 00:29:25,920 --> 00:29:31,760 Speaker 3: what we are trying to to magnify, to capitalize on 599 00:29:32,120 --> 00:29:35,640 Speaker 3: and to create a special space for people to drive 600 00:29:35,720 --> 00:29:40,360 Speaker 3: fast and to enjoy some cars, and also for you know, 601 00:29:40,480 --> 00:29:46,680 Speaker 3: we've got a lot of different mobility companies, autonomous vehicles, 602 00:29:47,600 --> 00:29:51,920 Speaker 3: particularly using our grounds for testing and research and development. 603 00:29:52,080 --> 00:29:54,280 Speaker 3: So things that that you can do in a big 604 00:29:54,320 --> 00:29:57,680 Speaker 3: space one thousand acres or more that you can't do 605 00:29:58,080 --> 00:29:59,880 Speaker 3: in a close urban area. 606 00:30:00,400 --> 00:30:04,000 Speaker 1: So just following on that, North Carolina, particularly the Charlotte area, 607 00:30:04,040 --> 00:30:07,000 Speaker 1: has seen a huge population growth over the last five 608 00:30:07,120 --> 00:30:10,320 Speaker 1: ten years, and I'm curious to hear how that has 609 00:30:10,480 --> 00:30:15,200 Speaker 1: changed up the demographic the clientele at NASCAR races, at 610 00:30:15,680 --> 00:30:18,000 Speaker 1: your racetracks overall. 611 00:30:18,080 --> 00:30:23,680 Speaker 3: Sure motorsports overall is just seeing a nice growth trend 612 00:30:23,720 --> 00:30:26,760 Speaker 3: over the last four or five years. I think a 613 00:30:26,800 --> 00:30:31,840 Speaker 3: lot of that is both driven by F one and NASCAR. 614 00:30:32,760 --> 00:30:35,760 Speaker 3: You know, NASCAR was the first major sport back during 615 00:30:35,800 --> 00:30:40,160 Speaker 3: the pandemic. We were running live events by May of 616 00:30:40,240 --> 00:30:45,960 Speaker 3: twenty twenty, and the growth of the exposure of racing 617 00:30:46,320 --> 00:30:51,000 Speaker 3: in America has grown with both F one and IndyCar 618 00:30:51,280 --> 00:30:55,160 Speaker 3: and NASCAR, and you know, it's a good it's a 619 00:30:55,160 --> 00:30:57,600 Speaker 3: great sport to watch it's a great sport for people 620 00:30:57,600 --> 00:31:00,920 Speaker 3: to be involved in. In our car our business, people 621 00:31:00,960 --> 00:31:04,440 Speaker 3: are buying more performance cars and there are more options 622 00:31:04,440 --> 00:31:08,600 Speaker 3: for performance cars than ever. So it's a it's a 623 00:31:08,640 --> 00:31:12,280 Speaker 3: hobby and uh in a in a pastime. Uh and 624 00:31:12,520 --> 00:31:15,520 Speaker 3: and for some it's a big collection that they can enjoy. 625 00:31:16,080 --> 00:31:18,680 Speaker 2: I want to get more into the racing bodies in 626 00:31:18,720 --> 00:31:23,920 Speaker 2: a second. But ten Tenths Motor Club and it's kind 627 00:31:23,920 --> 00:31:26,760 Speaker 2: of like, as you describe it, like a automotive country 628 00:31:26,840 --> 00:31:31,800 Speaker 2: club project. That's the address that we need for us 629 00:31:31,840 --> 00:31:34,720 Speaker 2: to come on down there. Tell us about that, all. 630 00:31:34,680 --> 00:31:36,160 Speaker 3: Right, ten Tenths Motor Club. 631 00:31:36,400 --> 00:31:36,880 Speaker 5: It is. 632 00:31:37,240 --> 00:31:42,080 Speaker 3: So the ten tenths is the motorsports term describing you know, 633 00:31:42,240 --> 00:31:48,080 Speaker 3: going on power and force through a through a race course. 634 00:31:48,280 --> 00:31:50,960 Speaker 3: And but if you think about it in life, getting 635 00:31:50,960 --> 00:31:53,280 Speaker 3: the most out of life, get living life. 636 00:31:53,000 --> 00:31:53,680 Speaker 7: To the fullest. 637 00:31:53,720 --> 00:31:56,080 Speaker 3: That's really what the ten Tenths Motor Club is about 638 00:31:57,200 --> 00:32:03,160 Speaker 3: for members and guests and their families. And so it's 639 00:32:02,720 --> 00:32:06,440 Speaker 3: a it's centered around a two mile track right outside 640 00:32:06,600 --> 00:32:09,760 Speaker 3: the traditional Charlotte Motor Speedway and we've got about one 641 00:32:09,840 --> 00:32:14,640 Speaker 3: hundred acres that include an area with the clubhouse, the 642 00:32:14,720 --> 00:32:18,960 Speaker 3: new track that we just unveiled and garage area that 643 00:32:19,000 --> 00:32:23,960 Speaker 3: we can where you can keep your cars, your collection, 644 00:32:25,240 --> 00:32:28,200 Speaker 3: both for individuals to have a garage villa and also 645 00:32:28,240 --> 00:32:33,480 Speaker 3: a collective garage area. It's it's a really amazing kind 646 00:32:33,480 --> 00:32:37,160 Speaker 3: of program. And whether you collect you know, old Dusenberg's 647 00:32:37,280 --> 00:32:41,600 Speaker 3: or brand new Bugattis and Ferraris, it kind of serves 648 00:32:41,960 --> 00:32:42,840 Speaker 3: all those purposes. 649 00:32:42,920 --> 00:32:44,600 Speaker 5: Now, Marcus, I'm sure you get this all the time. 650 00:32:44,800 --> 00:32:47,520 Speaker 5: F one, right, Formula one has just taken over in 651 00:32:47,560 --> 00:32:49,840 Speaker 5: a lot of ways. It was obviously began with Netflix, 652 00:32:49,880 --> 00:32:51,840 Speaker 5: and it's just kind of exploded off the back of that. 653 00:32:51,920 --> 00:32:54,800 Speaker 5: I mean, obviously Nascar is Nascar, but you know, talk 654 00:32:54,840 --> 00:32:56,400 Speaker 5: to us about, you know, the emergence of that F 655 00:32:56,440 --> 00:32:58,000 Speaker 5: one here in the US. We have Miami, we have 656 00:32:58,080 --> 00:33:00,800 Speaker 5: Las Vegas now, and obviously it looks like things are 657 00:33:00,880 --> 00:33:03,520 Speaker 5: kind of you know, moving away now that Red Bull's 658 00:33:03,600 --> 00:33:06,000 Speaker 5: not so in such a commanding kind of lead. 659 00:33:05,840 --> 00:33:06,320 Speaker 2: Of the sport. 660 00:33:06,360 --> 00:33:08,400 Speaker 5: You know, just curious to hear your thoughts on that 661 00:33:08,440 --> 00:33:10,080 Speaker 5: and what that means for for you all. 662 00:33:11,440 --> 00:33:14,240 Speaker 3: Yeah, I'm a big motorsports fan. I'm a I'm a 663 00:33:14,280 --> 00:33:17,560 Speaker 3: fan of auto racing across all the genres of auto 664 00:33:17,640 --> 00:33:21,560 Speaker 3: racing right, It's and that's different, you know, than than 665 00:33:21,600 --> 00:33:25,400 Speaker 3: watching football like NFL is is super fun to watch. 666 00:33:25,440 --> 00:33:28,320 Speaker 3: College football is fun to watch, and their their genres 667 00:33:28,320 --> 00:33:32,520 Speaker 3: within football, racing is is similar. And you know, F 668 00:33:32,600 --> 00:33:37,680 Speaker 3: one's growth around the US has been really exciting to watch. 669 00:33:38,320 --> 00:33:42,440 Speaker 3: I think for NASCAR, for US, it's been great because 670 00:33:43,040 --> 00:33:45,840 Speaker 3: fans that tune into F one also look at at 671 00:33:45,920 --> 00:33:49,080 Speaker 3: NASCAR and they can see some really exciting racing. I think, 672 00:33:49,960 --> 00:33:52,720 Speaker 3: you know, the Drivers Survive show on Netflix shows a 673 00:33:52,760 --> 00:33:57,760 Speaker 3: great off track you know, human interest of F one. 674 00:33:57,960 --> 00:34:02,040 Speaker 3: The the on track is sometimes exciting. I think NASCAR 675 00:34:02,200 --> 00:34:07,000 Speaker 3: is always you know, really competitive, really exciting racing to watch. 676 00:34:07,160 --> 00:34:10,719 Speaker 3: And that's a big, a big plus for us. We're 677 00:34:11,000 --> 00:34:14,040 Speaker 3: we're a racetrack company. We have racetracks. We want to 678 00:34:14,080 --> 00:34:16,720 Speaker 3: see cars race on on the track and have people 679 00:34:16,760 --> 00:34:19,080 Speaker 3: come in and had a great time. So the growth 680 00:34:19,120 --> 00:34:21,839 Speaker 3: of motorsports is a good thing for all of us 681 00:34:21,960 --> 00:34:22,800 Speaker 3: in our business. 682 00:34:23,120 --> 00:34:24,640 Speaker 5: You know, I just want to ask one question. I'm 683 00:34:24,640 --> 00:34:26,319 Speaker 5: looking at you know, the right up on the ten 684 00:34:26,400 --> 00:34:28,520 Speaker 5: Tenths Motor Club right and within there you've got this 685 00:34:28,560 --> 00:34:31,560 Speaker 5: one point seven mile circuit and you've got a twenty 686 00:34:31,600 --> 00:34:35,480 Speaker 5: thousand square foot special events facility, you know, members' garages, 687 00:34:35,600 --> 00:34:38,040 Speaker 5: all this stuff to you know, storage for high performance 688 00:34:38,040 --> 00:34:40,520 Speaker 5: motor Talk to us about, you know, the cost for 689 00:34:40,560 --> 00:34:43,040 Speaker 5: that type of a project. I mean, is that like 690 00:34:43,160 --> 00:34:44,600 Speaker 5: I mean, I mean, I'm just trying to compare it 691 00:34:44,600 --> 00:34:47,520 Speaker 5: to other stadium or sports related projects. Obviously I don't. 692 00:34:47,560 --> 00:34:48,840 Speaker 5: I don't think it's as much as if you were 693 00:34:48,840 --> 00:34:51,279 Speaker 5: building a football stadium. But talk to us about like, 694 00:34:51,320 --> 00:34:53,880 Speaker 5: do you need to you know, engage in public private 695 00:34:53,920 --> 00:34:56,440 Speaker 5: financing vehicles? How do you fund something like that? Do 696 00:34:56,480 --> 00:34:58,760 Speaker 5: you go to the private markets? Do you need bankers? 697 00:34:58,800 --> 00:34:59,439 Speaker 5: How does that work? 698 00:35:00,120 --> 00:35:00,960 Speaker 3: Great question? 699 00:35:01,080 --> 00:35:03,160 Speaker 2: Can I bring my trying to ask? 700 00:35:05,040 --> 00:35:10,040 Speaker 3: Yeah, great question. So for for us, I think it 701 00:35:10,200 --> 00:35:15,000 Speaker 3: is it is a significant investment, uh, with but with 702 00:35:15,080 --> 00:35:18,760 Speaker 3: a lot of expertise. You know, we're in the racetrack business, 703 00:35:19,000 --> 00:35:21,800 Speaker 3: and we've already we already have the land, we already 704 00:35:21,800 --> 00:35:26,279 Speaker 3: have all the the people involved in and getting the 705 00:35:26,360 --> 00:35:31,759 Speaker 3: job done and building it and maintaining and operating the facility. 706 00:35:31,880 --> 00:35:36,000 Speaker 3: So we're we're way ahead. It's almost like, uh, you know, 707 00:35:36,040 --> 00:35:40,000 Speaker 3: a great golf club adding a part three. You know, 708 00:35:40,160 --> 00:35:42,600 Speaker 3: so if you if you go to you go to 709 00:35:42,680 --> 00:35:47,080 Speaker 3: Augusta and and you see the new part three, it's 710 00:35:47,160 --> 00:35:49,840 Speaker 3: pretty phenomenal. But if you already have that land, you 711 00:35:49,840 --> 00:35:53,440 Speaker 3: already have the expertise to put the course down it 712 00:35:53,440 --> 00:35:56,920 Speaker 3: it helps a lot. So we've got, you know, some 713 00:35:56,960 --> 00:36:01,359 Speaker 3: real estate opportunities and some memberships. But the nice thing 714 00:36:01,440 --> 00:36:04,200 Speaker 3: is with a partner like Rick Hendrick, who's also a 715 00:36:04,239 --> 00:36:07,680 Speaker 3: Hall of Famer in the NASCAR world and a huge 716 00:36:07,920 --> 00:36:10,880 Speaker 3: car nut and somebody that you know, is one of 717 00:36:10,560 --> 00:36:15,600 Speaker 3: my heroes in life. He's a great partner on this project, 718 00:36:15,840 --> 00:36:20,640 Speaker 3: and I think combining our interest of the cars and 719 00:36:21,120 --> 00:36:25,120 Speaker 3: racetracks in the car culture as something exteteral winner. 720 00:36:25,680 --> 00:36:30,120 Speaker 2: Marcus Smith, President and CEO of Speedway Motorsports, thank you 721 00:36:30,239 --> 00:36:34,000 Speaker 2: so much, sir for serving up a motorhead. 722 00:36:34,600 --> 00:36:36,439 Speaker 1: A car nut or motor hat. And I've heard both. 723 00:36:36,520 --> 00:36:40,640 Speaker 2: I'm a motive yeah, yeah, I'm a motorhead. See it's like, 724 00:36:40,719 --> 00:36:42,480 Speaker 2: you know, because you know that means you got some 725 00:36:42,520 --> 00:36:44,960 Speaker 2: good a good strong engine. By the way, I've told 726 00:36:45,000 --> 00:36:50,440 Speaker 2: this story before about NASCAR is that somebody wrote, why 727 00:36:50,480 --> 00:36:52,760 Speaker 2: do you call it a motor It should be an engine? 728 00:36:52,800 --> 00:36:56,760 Speaker 2: And I said, you know why, because we're NASCAR. That's why. 729 00:36:58,960 --> 00:37:00,960 Speaker 1: I love it. 730 00:37:01,000 --> 00:37:03,080 Speaker 2: Oh, you're so kind. Thank you, sir. 731 00:37:03,840 --> 00:37:04,960 Speaker 3: Yeah, thanks for having me. 732 00:37:05,040 --> 00:37:07,680 Speaker 2: I appreciate that does it for this edition of The 733 00:37:07,680 --> 00:37:11,240 Speaker 2: Bloomberg Business of Sports. If you missed any of the show, 734 00:37:11,640 --> 00:37:14,520 Speaker 2: find it on demand now on the Bloomberg Business of 735 00:37:14,600 --> 00:37:19,040 Speaker 2: Sports podcast. Subscribe and listen now on Apple, Spotify, and 736 00:37:19,160 --> 00:37:22,799 Speaker 2: all your favorite podcast platforms. For my colleagues, Scarlett fou 737 00:37:22,920 --> 00:37:26,480 Speaker 2: and Damian Zassauer, I'm Michael Barr. Thanks for joining us. 738 00:37:26,680 --> 00:37:29,200 Speaker 2: Tune in again next week for the latest on the 739 00:37:29,239 --> 00:37:32,080 Speaker 2: stories moving big old money in the world of sports. 740 00:37:32,320 --> 00:37:35,960 Speaker 2: You're listening to Bloomberg Business of Sports from Bloomberg Radio 741 00:37:36,080 --> 00:37:37,080 Speaker 2: around the world.