1 00:00:00,760 --> 00:00:02,840 Speaker 1: This is the Business of Sports. 2 00:00:02,840 --> 00:00:06,240 Speaker 2: Sports are the greatest unscripted show owner. 3 00:00:06,120 --> 00:00:08,240 Speaker 3: The next generation of players who really grew up with 4 00:00:08,320 --> 00:00:09,600 Speaker 3: tech and believe in tech. 5 00:00:09,720 --> 00:00:11,960 Speaker 2: Your face is your ticket, your face is your wallet, 6 00:00:12,039 --> 00:00:13,760 Speaker 2: your face is your access to a club. 7 00:00:13,880 --> 00:00:17,520 Speaker 3: These are such iconic and important buildings for businesses. 8 00:00:17,680 --> 00:00:20,160 Speaker 4: For fans, COVID was one of the best things that 9 00:00:20,160 --> 00:00:21,000 Speaker 4: ever happened to go. 10 00:00:21,239 --> 00:00:23,280 Speaker 3: The NFL is a bulletproof business. 11 00:00:23,400 --> 00:00:26,000 Speaker 2: Racing is unique because there is absolutely no reason why 12 00:00:26,040 --> 00:00:27,000 Speaker 2: we can't compete with the guys. 13 00:00:27,000 --> 00:00:28,080 Speaker 3: I'm wall It's pro pickleball. 14 00:00:28,120 --> 00:00:30,040 Speaker 2: Real, are people really going to tune into this? 15 00:00:30,280 --> 00:00:32,760 Speaker 3: If you're playing moneyball with a huge bag of money, 16 00:00:32,920 --> 00:00:34,280 Speaker 3: you're going to be really, really good. 17 00:00:34,400 --> 00:00:37,479 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 18 00:00:39,360 --> 00:00:42,360 Speaker 5: This is the Bloomberg Business of Sports for week, explore 19 00:00:42,400 --> 00:00:44,720 Speaker 5: the big money issues in the world of sports. 20 00:00:44,800 --> 00:00:47,240 Speaker 2: I'm Michael Barr, I'm Damian Sassauer. 21 00:00:46,720 --> 00:00:47,680 Speaker 6: And I'm Benesa Prodromo. 22 00:00:47,880 --> 00:00:52,080 Speaker 5: Coming up, we'll talk youth sports and the sports tech 23 00:00:52,159 --> 00:00:56,120 Speaker 5: platform that supports over twenty five million coaches, players, parents 24 00:00:56,120 --> 00:00:57,840 Speaker 5: and administrators across the country. 25 00:00:58,160 --> 00:01:00,840 Speaker 2: We'll also get under the hood Dick's boarding goods and 26 00:01:00,880 --> 00:01:04,200 Speaker 2: figure out what is exactly driving its success relative to 27 00:01:04,240 --> 00:01:04,920 Speaker 2: its competitors. 28 00:01:05,040 --> 00:01:08,520 Speaker 5: Hmmm, all that is on the way. But first, President 29 00:01:08,520 --> 00:01:11,800 Speaker 5: Donald Trump is wanting some cities that he could take 30 00:01:11,920 --> 00:01:14,759 Speaker 5: some major international sports events away from them. 31 00:01:14,880 --> 00:01:17,000 Speaker 7: Ataway House of an earlier this week, the President told 32 00:01:17,000 --> 00:01:19,559 Speaker 7: reporters that he would consider moving the twenty twenty six 33 00:01:19,640 --> 00:01:22,520 Speaker 7: FIFA World Cup out of Boston and shift the twenty 34 00:01:22,560 --> 00:01:25,080 Speaker 7: twenty eight Olympics from Los Angeles if he thought the 35 00:01:25,120 --> 00:01:28,120 Speaker 7: cities weren't properly prepared or if conditions were unsafe. 36 00:01:28,240 --> 00:01:29,760 Speaker 5: Here's the president on that issue. 37 00:01:29,800 --> 00:01:32,360 Speaker 4: If somebody is doing a bad job, and if I 38 00:01:32,400 --> 00:01:36,560 Speaker 4: feel there's unsafe conditions, I would call Johnny, the head 39 00:01:36,560 --> 00:01:39,240 Speaker 4: of FIFA, who's phenomenal, and I would say, let's move 40 00:01:39,280 --> 00:01:40,240 Speaker 4: it to another location. 41 00:01:41,000 --> 00:01:41,760 Speaker 5: And he would do that. 42 00:01:41,800 --> 00:01:44,720 Speaker 4: He would love to do it, but he'd do it 43 00:01:44,800 --> 00:01:46,920 Speaker 4: very easily. He'd do it, and this is the right 44 00:01:46,959 --> 00:01:49,640 Speaker 4: time to do it. If I thought Boston was doing 45 00:01:49,680 --> 00:01:53,440 Speaker 4: something that was going to be cause safety conditions for 46 00:01:54,000 --> 00:01:58,400 Speaker 4: the World Cup, I could say the same thing for 47 00:01:58,480 --> 00:02:00,360 Speaker 4: the Olympics, because you know we have events center in 48 00:02:00,400 --> 00:02:03,880 Speaker 4: different locations. For the Olympics, it's based in la If 49 00:02:03,880 --> 00:02:06,720 Speaker 4: I thought La was not going to be prepared properly. 50 00:02:06,760 --> 00:02:09,440 Speaker 4: I would move it to another location if I had to. 51 00:02:09,880 --> 00:02:13,360 Speaker 5: For more on this and what having these events mean 52 00:02:13,480 --> 00:02:17,440 Speaker 5: to places like Boston and Los Angeles, we welcome Bloomberg 53 00:02:17,560 --> 00:02:21,200 Speaker 5: see Taylor who has done reporting on this straight. Welcome 54 00:02:21,520 --> 00:02:23,400 Speaker 5: to the Bloomberg Business of Sports. 55 00:02:23,480 --> 00:02:25,359 Speaker 6: Thanks for having me back this to. 56 00:02:25,320 --> 00:02:28,040 Speaker 5: Start from the beginning, Can he take away the games? 57 00:02:28,320 --> 00:02:35,200 Speaker 8: It's not feasible, Like operationally, it's nearly impossible. I'm not 58 00:02:35,200 --> 00:02:38,440 Speaker 8: going to say anything's impossible, but it's like this has 59 00:02:38,480 --> 00:02:41,600 Speaker 8: been in the works for several years. You know, there 60 00:02:41,600 --> 00:02:45,200 Speaker 8: are a bunch of contracts involved there, international contracts. It 61 00:02:45,240 --> 00:02:48,160 Speaker 8: would seem like I know him and Jihnny Infantina, the 62 00:02:48,240 --> 00:02:53,040 Speaker 8: FIFA president, are very chummy. So maybe he could kind 63 00:02:53,040 --> 00:02:56,880 Speaker 8: of work that and get the FIFA president to move 64 00:02:56,919 --> 00:03:00,800 Speaker 8: it if he if he desired. But the president himself, 65 00:03:01,720 --> 00:03:04,880 Speaker 8: as far as we know, cannot move it. 66 00:03:04,880 --> 00:03:06,120 Speaker 6: It's just too far along. 67 00:03:07,480 --> 00:03:09,400 Speaker 7: So one of the things that struck me about the 68 00:03:09,480 --> 00:03:12,320 Speaker 7: comments was that he said he also could move the 69 00:03:12,480 --> 00:03:16,160 Speaker 7: LA Olympics, you know, if he so desired. But also 70 00:03:16,960 --> 00:03:19,919 Speaker 7: it was bypassing the fact that LA also has World 71 00:03:19,919 --> 00:03:23,959 Speaker 7: Cup games, right, So what is he do you think, 72 00:03:24,400 --> 00:03:27,000 Speaker 7: you know, thinks there's something that's going to change the 73 00:03:27,000 --> 00:03:29,280 Speaker 7: next three years that LA wouldn't be ready to host 74 00:03:29,320 --> 00:03:31,480 Speaker 7: the Olympics, but they're fine to host the World Cup 75 00:03:31,480 --> 00:03:31,880 Speaker 7: next year. 76 00:03:32,560 --> 00:03:36,720 Speaker 8: I think that he is just kind of going for 77 00:03:36,840 --> 00:03:40,840 Speaker 8: anything he can when it comes to these Blue cities. 78 00:03:41,920 --> 00:03:44,440 Speaker 8: You know, this isn't the first time he's targeted Boston 79 00:03:44,760 --> 00:03:49,280 Speaker 8: or LA or or you know, Newsom or Boston or 80 00:03:49,360 --> 00:03:53,160 Speaker 8: Michelle wou So he has been trying to crack down 81 00:03:53,200 --> 00:03:56,839 Speaker 8: in any way he can on them not complying with 82 00:03:57,400 --> 00:03:59,480 Speaker 8: his mandates that he's brought up, you know, whether it's 83 00:03:59,480 --> 00:04:02,920 Speaker 8: about Emma cration or or you know, just general crime 84 00:04:03,160 --> 00:04:06,480 Speaker 8: or anything. He's kind of he's kind of gotten some 85 00:04:06,680 --> 00:04:10,040 Speaker 8: friction with them from anyone who's kind of standing in 86 00:04:10,080 --> 00:04:12,560 Speaker 8: his way. So it's kind of, you know, to be 87 00:04:12,600 --> 00:04:15,960 Speaker 8: seen like can he actually do it? We don't think 88 00:04:16,000 --> 00:04:18,520 Speaker 8: so as far as I know, you know, and the 89 00:04:18,760 --> 00:04:20,520 Speaker 8: people that I've spoken to have been like, well, this 90 00:04:20,600 --> 00:04:23,360 Speaker 8: is just too far along, like you said, Yeah, LA 91 00:04:23,520 --> 00:04:26,680 Speaker 8: is also hosting the World Cup Games and has been 92 00:04:26,720 --> 00:04:30,320 Speaker 8: also gearing up for the twenty twenty eight Olympics, which 93 00:04:30,480 --> 00:04:33,680 Speaker 8: takes years and years and years of preparation. There are 94 00:04:34,240 --> 00:04:37,680 Speaker 8: nations involved, like across the globe, So it's not just 95 00:04:37,760 --> 00:04:40,159 Speaker 8: about the US, and it's not just about what Trump wants. 96 00:04:40,400 --> 00:04:43,840 Speaker 8: Everyone kind of has a stake in this, specifically when 97 00:04:43,880 --> 00:04:47,080 Speaker 8: it comes to the Olympics. So you know, it's just 98 00:04:47,200 --> 00:04:50,040 Speaker 8: a little too far along. It would it would take, 99 00:04:50,120 --> 00:04:54,000 Speaker 8: it would take a lot of effort to really truly 100 00:04:54,120 --> 00:04:56,240 Speaker 8: peel it back. He can't just simply be like, well, 101 00:04:56,320 --> 00:04:57,599 Speaker 8: let's just move it somewhere else. 102 00:04:57,720 --> 00:04:59,760 Speaker 2: Well, I mean, I mean three, I take your point 103 00:04:59,800 --> 00:05:02,960 Speaker 2: on the operational infeasibility of moving an event such as this. 104 00:05:03,040 --> 00:05:06,400 Speaker 2: They take that. You know, that's rit But I think, 105 00:05:06,560 --> 00:05:07,680 Speaker 2: you know, we have to take a step back and 106 00:05:07,720 --> 00:05:09,719 Speaker 2: look at what he's what he's arguing. He's saying that 107 00:05:09,760 --> 00:05:12,159 Speaker 2: conditions are unsafe. So in the case of Los Angeles 108 00:05:12,200 --> 00:05:14,360 Speaker 2: with the Olympics, for example, he's saying that Newsom can't 109 00:05:14,360 --> 00:05:17,279 Speaker 2: protect them from wildfires. My point is, if the president 110 00:05:17,320 --> 00:05:19,960 Speaker 2: fears for the safety of I don't know, the citizens 111 00:05:19,960 --> 00:05:23,919 Speaker 2: of Boston, I mean, can't can he legally just stop it? 112 00:05:23,960 --> 00:05:24,640 Speaker 3: Can't he do that? 113 00:05:25,200 --> 00:05:28,040 Speaker 8: Of course he can, you know, he can propose it, right, 114 00:05:28,320 --> 00:05:31,720 Speaker 8: but Trump can basically say he's going to do anything right, 115 00:05:32,480 --> 00:05:35,240 Speaker 8: you know, I guess with the transit projects, like for example, 116 00:05:35,240 --> 00:05:37,720 Speaker 8: with congestion pricing, he said, I'm gonna stop that, and 117 00:05:38,160 --> 00:05:42,120 Speaker 8: you know, you know he was sued. Like the courts 118 00:05:42,120 --> 00:05:44,680 Speaker 8: got together and like, actually, no, we're gonna block this 119 00:05:44,720 --> 00:05:50,640 Speaker 8: from happening. So there is intervention that will likely take place, 120 00:05:50,680 --> 00:05:53,240 Speaker 8: and not just from you know, these cities who are 121 00:05:53,279 --> 00:05:56,520 Speaker 8: being impacted, but probably the nations who, like I said, 122 00:05:56,560 --> 00:05:58,440 Speaker 8: have a stake in this, have a financial stake in this, 123 00:05:58,520 --> 00:06:00,640 Speaker 8: have already put a lot of money towards that are 124 00:06:00,680 --> 00:06:06,159 Speaker 8: already preparing to come here for the game. So it's 125 00:06:06,279 --> 00:06:10,200 Speaker 8: just not feasible. Is it legal? That's still kind of 126 00:06:10,279 --> 00:06:10,920 Speaker 8: up for debate. 127 00:06:11,000 --> 00:06:13,200 Speaker 7: FIFA put out a statement that was this blanket statement 128 00:06:13,240 --> 00:06:17,800 Speaker 7: that said essentially, the US government and safety concern they 129 00:06:17,839 --> 00:06:20,520 Speaker 7: are basically in charge of safety and they have the 130 00:06:20,680 --> 00:06:24,720 Speaker 7: right to do this, but shree, tell me, like what 131 00:06:24,760 --> 00:06:25,400 Speaker 7: you think on that? 132 00:06:25,480 --> 00:06:25,680 Speaker 5: Is it? 133 00:06:25,760 --> 00:06:28,480 Speaker 7: More so they're like, listen, we know it's not going 134 00:06:28,520 --> 00:06:31,000 Speaker 7: to happen, so we'd rather just not make an enemy 135 00:06:31,040 --> 00:06:31,599 Speaker 7: out of Trump. 136 00:06:31,960 --> 00:06:33,720 Speaker 6: I think that is the situation. 137 00:06:33,880 --> 00:06:35,800 Speaker 8: I think that's been the situation for a lot of 138 00:06:36,760 --> 00:06:39,560 Speaker 8: entities and politicians and cities and states that have been 139 00:06:39,640 --> 00:06:44,880 Speaker 8: targeted by Trump on just virtually anything. I think that 140 00:06:45,279 --> 00:06:48,360 Speaker 8: the current stance that a lot of these folks are 141 00:06:48,400 --> 00:06:52,120 Speaker 8: taking is like, yeah, like you said, I they don't 142 00:06:52,160 --> 00:06:54,800 Speaker 8: even know if this is because this is kind of unprecedented, 143 00:06:55,000 --> 00:06:57,720 Speaker 8: Like they don't even know if this is a possibility, 144 00:06:57,800 --> 00:06:59,680 Speaker 8: or how this would go, how long it would take. 145 00:07:00,680 --> 00:07:04,279 Speaker 8: You know, they know what's at stake, but it's so 146 00:07:04,480 --> 00:07:07,760 Speaker 8: far along that it's extremely unrealistic that he can snap 147 00:07:07,800 --> 00:07:10,200 Speaker 8: a finger and it'll all go go away. 148 00:07:10,440 --> 00:07:13,080 Speaker 5: Well, I see, that's the thing. You have so many 149 00:07:13,320 --> 00:07:17,520 Speaker 5: governing bodies, and you have very strong governing bodies, Which 150 00:07:17,560 --> 00:07:20,400 Speaker 5: brings me to the point. If you are a supporter 151 00:07:20,600 --> 00:07:24,520 Speaker 5: in Boston and you just heard the President say that, 152 00:07:24,960 --> 00:07:27,040 Speaker 5: you're thinking, hey man, we got a lot of coin 153 00:07:27,120 --> 00:07:31,720 Speaker 5: going into this. How much money is Boston expected to 154 00:07:31,800 --> 00:07:33,040 Speaker 5: make with the World Cup? 155 00:07:33,240 --> 00:07:36,720 Speaker 8: So Boston itself is expecting to get a one point 156 00:07:36,720 --> 00:07:41,000 Speaker 8: one billion economic you know, wind fall from this. So 157 00:07:41,200 --> 00:07:45,000 Speaker 8: it's an I think La with the Olympics, not even 158 00:07:45,040 --> 00:07:47,680 Speaker 8: the World Cup, but with the Olympics. I think La 159 00:07:47,880 --> 00:07:50,520 Speaker 8: as a city is expecting about eighteen billion up to 160 00:07:50,560 --> 00:07:54,480 Speaker 8: eighteen billion from some projections that I've seen. So there's 161 00:07:54,520 --> 00:07:58,600 Speaker 8: a lot of you know, money on the table here 162 00:07:58,680 --> 00:08:01,400 Speaker 8: that they're like, Okay, we're putting in all of this effort. 163 00:08:01,480 --> 00:08:04,080 Speaker 8: This is going to be our return on investment. And 164 00:08:04,600 --> 00:08:08,680 Speaker 8: you know that kind of benefits these regents, even even 165 00:08:08,760 --> 00:08:11,960 Speaker 8: if temporarily, like it's creating jobs and and you know, 166 00:08:12,360 --> 00:08:15,520 Speaker 8: the hotel sector and and you know, the hospitality sector 167 00:08:15,600 --> 00:08:15,920 Speaker 8: is going to. 168 00:08:15,920 --> 00:08:17,480 Speaker 6: See like a big boost. 169 00:08:18,680 --> 00:08:22,560 Speaker 8: And I just don't think that not only is it 170 00:08:22,720 --> 00:08:27,720 Speaker 8: not feasible to kind of just do it overnight, but 171 00:08:28,040 --> 00:08:34,760 Speaker 8: it is detrimental to the cities. So I think that 172 00:08:34,880 --> 00:08:38,480 Speaker 8: Trump is trying to scare blue cities in their leaders, 173 00:08:38,520 --> 00:08:40,520 Speaker 8: which he kind of has been doing. Boston has been 174 00:08:41,240 --> 00:08:44,120 Speaker 8: you know, kind of a punching bag for I mean, 175 00:08:44,440 --> 00:08:48,080 Speaker 8: this whole year when it comes to just like a 176 00:08:48,120 --> 00:08:51,920 Speaker 8: swath of his policies. So I'm not surprised that he 177 00:08:52,000 --> 00:08:55,480 Speaker 8: has targeted Boston in this in this situation, I'm sure 178 00:08:55,480 --> 00:08:58,560 Speaker 8: if you know, he's targeted Chicago, and he's and he's 179 00:08:58,760 --> 00:09:02,480 Speaker 8: targeted Portland. If we're trying to see a pattern here, 180 00:09:02,520 --> 00:09:05,320 Speaker 8: it's all blue cities in blue states where he's like, 181 00:09:06,080 --> 00:09:08,520 Speaker 8: you know you don't agree with me, you're not complying. 182 00:09:09,600 --> 00:09:11,640 Speaker 8: I'm going to find a way to hit you where 183 00:09:11,640 --> 00:09:15,560 Speaker 8: it hurts. If he can actually do that in time 184 00:09:16,440 --> 00:09:22,120 Speaker 8: and derail something that's happening in mere months, I would 185 00:09:22,200 --> 00:09:26,360 Speaker 8: be very, very surprised if he was able to really 186 00:09:26,440 --> 00:09:27,200 Speaker 8: get this off. 187 00:09:27,080 --> 00:09:29,800 Speaker 6: Course, what would have to happen very soon exactly. 188 00:09:29,840 --> 00:09:32,200 Speaker 7: And we have yet to see a city step up 189 00:09:32,200 --> 00:09:35,480 Speaker 7: and be like, hey, we're ready, So let's play a 190 00:09:35,520 --> 00:09:39,360 Speaker 7: game here and see who would actually like is it 191 00:09:39,440 --> 00:09:42,760 Speaker 7: the matter of any one basically with an NFL stadium 192 00:09:42,840 --> 00:09:43,719 Speaker 7: could step up and. 193 00:09:43,679 --> 00:09:45,920 Speaker 6: Be like, hey, we're ready. 194 00:09:48,520 --> 00:09:52,520 Speaker 8: Well, in all fairness, these these cities kind of put 195 00:09:52,559 --> 00:09:55,280 Speaker 8: in their bid when Biden, when the Biden administration was 196 00:09:55,600 --> 00:09:58,360 Speaker 8: still in the White House, so you know, this has 197 00:09:58,400 --> 00:09:59,840 Speaker 8: been long before. 198 00:10:00,840 --> 00:10:02,640 Speaker 6: So I do think that. 199 00:10:03,240 --> 00:10:05,559 Speaker 8: You know, in the cities defense, it takes a very 200 00:10:05,679 --> 00:10:10,240 Speaker 8: long time to prep they're not ready yet, which you 201 00:10:10,320 --> 00:10:13,600 Speaker 8: and I have talked about, like they're still not ready. 202 00:10:13,840 --> 00:10:17,960 Speaker 8: When they will be ready is another conversation. But I 203 00:10:18,000 --> 00:10:21,880 Speaker 8: don't think that any other city has been, like, has 204 00:10:21,880 --> 00:10:25,000 Speaker 8: gotten the funding and has really been, you know, prepping 205 00:10:25,160 --> 00:10:29,800 Speaker 8: to do this in the same way. Maybe maybe you know, 206 00:10:30,000 --> 00:10:33,559 Speaker 8: a city that hosts the Super Bowl often. I mean, 207 00:10:33,600 --> 00:10:36,319 Speaker 8: but you know, Vegas, Vegas, that would be fun. 208 00:10:36,480 --> 00:10:36,680 Speaker 1: Gus. 209 00:10:37,520 --> 00:10:39,600 Speaker 2: Look, I mean you make a great point sary in 210 00:10:39,640 --> 00:10:41,760 Speaker 2: that preparation is everything. The amount of money that's already 211 00:10:41,760 --> 00:10:44,360 Speaker 2: be invested to get these cities game ready, I mean 212 00:10:44,400 --> 00:10:46,120 Speaker 2: it's it's I mean, it's a lot of money ready. 213 00:10:46,200 --> 00:10:48,760 Speaker 2: We're talking tens if not you know, more millions of dollars. 214 00:10:48,840 --> 00:10:51,600 Speaker 2: And so look at what the federal government is just 215 00:10:51,640 --> 00:10:53,240 Speaker 2: into the city of New York, you know, with holding 216 00:10:53,280 --> 00:10:55,800 Speaker 2: funds for the trans big transfer project. That's eighteen billion, 217 00:10:55,880 --> 00:10:58,439 Speaker 2: I mean right there. So it's not like we can 218 00:10:58,520 --> 00:10:59,960 Speaker 2: discount that this can't happen. 219 00:11:00,360 --> 00:11:03,880 Speaker 8: If Trump is successful in moving the you know, World 220 00:11:03,880 --> 00:11:06,560 Speaker 8: Cup games, I don't think that they would happen on time. 221 00:11:06,679 --> 00:11:09,360 Speaker 8: I don't think people have already bought tickets. Like, it's 222 00:11:09,360 --> 00:11:11,560 Speaker 8: not even about the cities and then the you know, 223 00:11:11,720 --> 00:11:14,000 Speaker 8: nations across the globe that have that have a financial 224 00:11:14,040 --> 00:11:16,719 Speaker 8: stake in this. But it's also people have prepared their 225 00:11:16,720 --> 00:11:19,240 Speaker 8: own pockets. The fans are also kind of you know, 226 00:11:19,480 --> 00:11:21,640 Speaker 8: setting themselves up to be like, oh, I'm you know, 227 00:11:21,679 --> 00:11:23,760 Speaker 8: I'm gonna follow my team or I'm planning on being 228 00:11:23,800 --> 00:11:26,120 Speaker 8: in Seattle or you know, so on and so forth. 229 00:11:26,160 --> 00:11:29,600 Speaker 8: So it has already trickled down to the fans, So 230 00:11:29,800 --> 00:11:33,360 Speaker 8: that's not gonna go overwhel either. And to your point 231 00:11:33,440 --> 00:11:37,200 Speaker 8: about Trump and how he's kind of, you know, set 232 00:11:37,240 --> 00:11:41,760 Speaker 8: out to pause these transit you know projects in Chicago 233 00:11:41,920 --> 00:11:47,600 Speaker 8: and in New York. You know he can withhold the 234 00:11:47,640 --> 00:11:51,040 Speaker 8: funding for sure, But what I've heard in my reporting 235 00:11:51,040 --> 00:11:51,600 Speaker 8: on that. 236 00:11:51,600 --> 00:11:54,440 Speaker 6: Is that a lot of these projects. 237 00:11:54,280 --> 00:11:57,560 Speaker 8: When Trump was coming into office, they were like, we're 238 00:11:57,600 --> 00:12:01,240 Speaker 8: gonna try to really hit the ground running, get funding 239 00:12:01,320 --> 00:12:04,640 Speaker 8: to get us further along so that Trump can't do 240 00:12:04,760 --> 00:12:08,120 Speaker 8: what he's trying to do now like they have enough 241 00:12:08,520 --> 00:12:11,960 Speaker 8: or they say for the next few years, right, They're like, 242 00:12:12,040 --> 00:12:14,680 Speaker 8: we have enough financial runway that it's going to be 243 00:12:14,720 --> 00:12:16,560 Speaker 8: too late for him to step in and be like 244 00:12:16,640 --> 00:12:17,160 Speaker 8: never mind. 245 00:12:17,520 --> 00:12:21,040 Speaker 6: So that's what that's kind of the posturing. 246 00:12:21,120 --> 00:12:23,440 Speaker 8: I think with a lot of these with New York 247 00:12:23,480 --> 00:12:27,120 Speaker 8: specifically and also Chicago, and I think that's the same 248 00:12:27,160 --> 00:12:28,000 Speaker 8: situation here. 249 00:12:28,040 --> 00:12:29,360 Speaker 6: There's just too much. 250 00:12:29,480 --> 00:12:33,480 Speaker 8: They're too far along to where it would just not 251 00:12:33,760 --> 00:12:37,280 Speaker 8: be operationally feasible. 252 00:12:37,720 --> 00:12:40,440 Speaker 6: Are thanks to Bloomberg Tree Taylor for joining us coming up. 253 00:12:40,360 --> 00:12:42,760 Speaker 2: On the show, we turn to what Dick Sporting Goods 254 00:12:43,000 --> 00:12:43,600 Speaker 2: is doing. 255 00:12:43,440 --> 00:12:47,440 Speaker 5: Right for Damien Sasaur and Vanessa Bernomo. I'm Michael Barr. 256 00:12:47,480 --> 00:12:50,920 Speaker 5: You are listening to the Bloomberg Business of Sports Bloomberg 257 00:12:51,080 --> 00:12:52,840 Speaker 5: Radio around the world. 258 00:12:57,600 --> 00:13:01,600 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 259 00:13:03,240 --> 00:13:05,880 Speaker 5: This is the Bloomberg Business of Sports when we explore 260 00:13:05,880 --> 00:13:08,040 Speaker 5: the big money issues in the world of sports. 261 00:13:08,160 --> 00:13:11,120 Speaker 2: I'm Michael Barr, I'm Damian Sasauer, and I'm n Esa Promo. 262 00:13:11,480 --> 00:13:14,280 Speaker 2: Dick Sporting Goods is doing something right. They've added a 263 00:13:14,559 --> 00:13:17,240 Speaker 2: ton of stories at a time where online shopping is 264 00:13:17,320 --> 00:13:19,680 Speaker 2: dominating sales, and a lot of it has to do 265 00:13:19,720 --> 00:13:21,920 Speaker 2: with parent spending money on kids sports. 266 00:13:22,280 --> 00:13:26,320 Speaker 5: Bloomberg News Global Business of Sports reporter Ira Budway has 267 00:13:26,360 --> 00:13:30,280 Speaker 5: a new Bloomberg Business Week feature that takes a closer 268 00:13:30,280 --> 00:13:34,080 Speaker 5: look at what's going right with Dick's Sporting Goods, and 269 00:13:34,160 --> 00:13:38,000 Speaker 5: he is here now to talk to us about it. Iira, 270 00:13:38,280 --> 00:13:41,160 Speaker 5: welcome back to the Bloomberg Business of Sports. 271 00:13:41,400 --> 00:13:42,199 Speaker 3: Thank you. 272 00:13:42,200 --> 00:13:45,080 Speaker 5: You wrote an article, a great essay, the secret to 273 00:13:45,400 --> 00:13:50,439 Speaker 5: Dick's Sporting Goods thirteen billion dollar boom. Well, what's the secret? 274 00:13:50,640 --> 00:13:54,080 Speaker 3: This secret is people like me spending more money than 275 00:13:54,120 --> 00:13:58,480 Speaker 3: they should because their kids play sports and they are 276 00:13:58,559 --> 00:14:02,120 Speaker 3: constantly at Dick's and it's it's a great it's a 277 00:14:02,400 --> 00:14:04,280 Speaker 3: you know. The reason I wrote this was because I 278 00:14:04,320 --> 00:14:06,560 Speaker 3: have this. I wouldn't say love hate, but it's like 279 00:14:06,800 --> 00:14:08,880 Speaker 3: I can't get away from the store. But I kind 280 00:14:08,880 --> 00:14:11,960 Speaker 3: of like it, you know, I enjoy myself. And but 281 00:14:12,240 --> 00:14:14,440 Speaker 3: you look back and you look back at my own 282 00:14:14,440 --> 00:14:16,880 Speaker 3: spending there, because it's all tracked by their loyalty app, 283 00:14:16,880 --> 00:14:19,000 Speaker 3: and it's like, oh, I've spent like three grand in 284 00:14:19,000 --> 00:14:22,040 Speaker 3: the last two or three years on a whole bunch 285 00:14:22,040 --> 00:14:23,880 Speaker 3: of things there. You know, it just adds up past. 286 00:14:24,800 --> 00:14:26,880 Speaker 7: It's so interesting because I think one of the other 287 00:14:26,960 --> 00:14:30,720 Speaker 7: things that you had mentioned was in this this world 288 00:14:30,720 --> 00:14:34,520 Speaker 7: of online spending, people are still going into the Dick's 289 00:14:34,560 --> 00:14:35,760 Speaker 7: sporting good stores. 290 00:14:35,800 --> 00:14:37,040 Speaker 6: Why do people go in person? 291 00:14:37,240 --> 00:14:38,720 Speaker 3: Yeah, I mean, I think a big part of their 292 00:14:38,720 --> 00:14:41,680 Speaker 3: success is that they sell stuff that you want to 293 00:14:41,680 --> 00:14:44,560 Speaker 3: touch it before you buy it. Now, other sporting good 294 00:14:44,640 --> 00:14:46,640 Speaker 3: chains have died, so they've done other things. 295 00:14:46,640 --> 00:14:49,240 Speaker 6: All I used to spend my whole life there. 296 00:14:49,280 --> 00:14:51,520 Speaker 3: So it's not like they just fell into this. But 297 00:14:51,840 --> 00:14:54,680 Speaker 3: I think part of the reason they've been able to 298 00:14:55,120 --> 00:14:59,240 Speaker 3: find this formula is that people want to feel a 299 00:14:59,280 --> 00:15:01,400 Speaker 3: glove before they buy it. They want to feel cleats 300 00:15:01,400 --> 00:15:03,320 Speaker 3: on their feet before they buy them, and it's it's 301 00:15:03,360 --> 00:15:07,720 Speaker 3: a little bit more immune to online commerce than like 302 00:15:07,760 --> 00:15:10,040 Speaker 3: a T shirt or other things where you just order 303 00:15:10,040 --> 00:15:12,120 Speaker 3: in three sizes and send the two back kind of thing. 304 00:15:12,280 --> 00:15:14,960 Speaker 2: Well, Ira, let's put some numbers around just exactly the 305 00:15:15,000 --> 00:15:17,080 Speaker 2: scale of Dicks starting out in Binghamton. But I mean, 306 00:15:17,120 --> 00:15:19,920 Speaker 2: now it's got what seven hundred and twenty stores. Annual 307 00:15:19,920 --> 00:15:24,720 Speaker 2: sales have doubled to thirteen billions since twenty nineteen, profits 308 00:15:24,720 --> 00:15:27,280 Speaker 2: have tripled over the period, and they just announced their 309 00:15:27,320 --> 00:15:30,960 Speaker 2: intention to purchase foot Locker. So I mean for me, 310 00:15:31,160 --> 00:15:33,720 Speaker 2: I mean, like, where's all the money coming from? Is 311 00:15:33,760 --> 00:15:36,600 Speaker 2: it really coming from justice, what's the demographic? Like, what's 312 00:15:36,640 --> 00:15:38,560 Speaker 2: their sweet spot? Who are they catering to. 313 00:15:39,040 --> 00:15:41,160 Speaker 3: They have done a good job of hitting like the 314 00:15:41,960 --> 00:15:45,440 Speaker 3: middle to upper middle class customer who has been very resilient. 315 00:15:45,680 --> 00:15:48,000 Speaker 3: So if you look at the brands that they carry, 316 00:15:48,080 --> 00:15:52,600 Speaker 3: you know, it's on running, it's Nike, it's Yetti coolers, 317 00:15:53,120 --> 00:15:56,120 Speaker 3: it's stuff that is not on the cheap end of 318 00:15:56,160 --> 00:15:58,720 Speaker 3: what they offer. They have a house brand that kind 319 00:15:58,720 --> 00:16:01,040 Speaker 3: of so that they can hit that customer. And Ed Stack, 320 00:16:01,080 --> 00:16:04,560 Speaker 3: their longtime CEO, the son of Dick Stack, the founder, 321 00:16:04,840 --> 00:16:08,800 Speaker 3: he said, look, we we want to serve that customer 322 00:16:08,840 --> 00:16:11,040 Speaker 3: who's at the middle to lower middle, but really our 323 00:16:11,080 --> 00:16:13,160 Speaker 3: core is the upper middle demographic. 324 00:16:13,440 --> 00:16:15,560 Speaker 2: Well, I think what was so interesting was, I mean 325 00:16:15,600 --> 00:16:17,320 Speaker 2: you met with the son of the founder, son of 326 00:16:17,320 --> 00:16:20,360 Speaker 2: Dick Stack. And in the early days when they were deciding, 327 00:16:20,400 --> 00:16:23,920 Speaker 2: I mean, get this one, when they were deciding where 328 00:16:23,960 --> 00:16:27,120 Speaker 2: to build a Dicks, they look for best buys Is 329 00:16:27,160 --> 00:16:29,880 Speaker 2: that right? And like, I don't think all the beauty, 330 00:16:29,920 --> 00:16:31,960 Speaker 2: but they looked for like where the foot traffic was there, 331 00:16:32,240 --> 00:16:35,160 Speaker 2: and then they went around the town. Is that right 332 00:16:35,320 --> 00:16:37,720 Speaker 2: to look for like people building play sets or building 333 00:16:37,720 --> 00:16:39,360 Speaker 2: pools or something. I mean, is that right? 334 00:16:39,760 --> 00:16:39,920 Speaker 4: Yeah? 335 00:16:40,000 --> 00:16:42,160 Speaker 3: He said. It was two things. They started with where's 336 00:16:42,200 --> 00:16:44,080 Speaker 3: where's the best buy, because that's just like a good 337 00:16:44,080 --> 00:16:46,640 Speaker 3: proxy for like, of course they've done their homework right, 338 00:16:47,160 --> 00:16:50,080 Speaker 3: And then they would drive around the neighborhood where there 339 00:16:50,200 --> 00:16:52,160 Speaker 3: was the best buy and just look for swing sets 340 00:16:52,160 --> 00:16:54,640 Speaker 3: and yards. Brilliant because that was a sign of kids 341 00:16:54,680 --> 00:16:58,480 Speaker 3: and they know that families are just so key business. 342 00:16:58,520 --> 00:17:01,320 Speaker 3: So that's they know that. Like when I told him 343 00:17:01,400 --> 00:17:03,080 Speaker 3: how old my kids were, I have an eleven year 344 00:17:03,080 --> 00:17:04,520 Speaker 3: old and a thirteen year old. They both play a 345 00:17:04,560 --> 00:17:07,400 Speaker 3: lot of sports. He was like, well, we love families 346 00:17:07,400 --> 00:17:09,280 Speaker 3: that age because you're going to be doing this for 347 00:17:09,320 --> 00:17:11,240 Speaker 3: a long time, you know. And he knows he's had 348 00:17:11,280 --> 00:17:14,000 Speaker 3: he had five kids who all played sports. He's kind 349 00:17:14,000 --> 00:17:16,280 Speaker 3: of done with that part of his life. But he 350 00:17:16,480 --> 00:17:18,159 Speaker 3: knew exactly you know how he. 351 00:17:18,560 --> 00:17:20,520 Speaker 2: Well, well, I mean, Michael Barr knows this. You know, 352 00:17:20,520 --> 00:17:22,520 Speaker 2: we're in the world of finance here, and you know, 353 00:17:22,600 --> 00:17:24,560 Speaker 2: if you look back into the early days of mortgage 354 00:17:24,600 --> 00:17:26,760 Speaker 2: backed securities and things like that, you know, you'll ask 355 00:17:26,760 --> 00:17:28,719 Speaker 2: people at Black Rock and Morgan Stanley and they'll tell 356 00:17:28,760 --> 00:17:30,600 Speaker 2: you the truth. They used to travel around town and 357 00:17:30,640 --> 00:17:32,880 Speaker 2: be like, oh, this person's building an extension on his house. 358 00:17:32,960 --> 00:17:33,399 Speaker 5: They're going to. 359 00:17:33,400 --> 00:17:36,080 Speaker 2: Prepay on their mortgage. Let's buy these bonds, right, So 360 00:17:36,160 --> 00:17:39,200 Speaker 2: I mean it works. I mean, come on, Michael Barr, Well, 361 00:17:39,680 --> 00:17:42,240 Speaker 2: the philosophy works well. And this is something else I 362 00:17:42,240 --> 00:17:45,399 Speaker 2: didn't know, yes, because I'm stupid, because you know, I 363 00:17:45,400 --> 00:17:50,320 Speaker 2: didn't realize this. The Dick's House of sports stores. They're 364 00:17:50,400 --> 00:17:54,400 Speaker 2: double the size of those standard locations. I didn't even 365 00:17:54,480 --> 00:17:58,080 Speaker 2: realize there was a sports store, so the same, Yeah, 366 00:17:58,080 --> 00:17:58,880 Speaker 2: well what is that? 367 00:17:59,000 --> 00:18:02,800 Speaker 3: This is a new con they have started to They 368 00:18:02,840 --> 00:18:04,840 Speaker 3: describe it as sort of disrupting their own business. They 369 00:18:04,880 --> 00:18:06,560 Speaker 3: tried to build a store that was better than what 370 00:18:06,640 --> 00:18:09,320 Speaker 3: they had, and they've done about twenty of them. And 371 00:18:09,359 --> 00:18:11,199 Speaker 3: so I went down to the one near Pittsburgh near 372 00:18:11,240 --> 00:18:15,639 Speaker 3: their headquarters where they've bought. They used the shell of 373 00:18:15,680 --> 00:18:18,120 Speaker 3: an old seers so it's more than one hundred thousand 374 00:18:18,160 --> 00:18:20,440 Speaker 3: square feet, and what they've done is they've added rock 375 00:18:20,480 --> 00:18:24,919 Speaker 3: climbing walls, there's a turf field outside, there's batting cages, 376 00:18:24,960 --> 00:18:28,560 Speaker 3: there's places to putt and rip open packs of cards, 377 00:18:28,920 --> 00:18:32,119 Speaker 3: and so they're basically leaning into the experiential part of this, 378 00:18:32,200 --> 00:18:34,400 Speaker 3: and I think it's pretty clever because in my experience, 379 00:18:34,960 --> 00:18:36,600 Speaker 3: a lot of the times, like my kids want to 380 00:18:36,600 --> 00:18:38,720 Speaker 3: go there, and you see other like middle schoolers, they're 381 00:18:38,800 --> 00:18:41,119 Speaker 3: just horsing around with stuff, and I'm sure that for 382 00:18:41,240 --> 00:18:43,240 Speaker 3: like store managers, it's a headache, but they're trying to 383 00:18:43,320 --> 00:18:45,080 Speaker 3: turn that bug into a feature. 384 00:18:45,200 --> 00:18:45,360 Speaker 5: Right. 385 00:18:45,440 --> 00:18:48,280 Speaker 3: They know that they can pull people in with all 386 00:18:48,280 --> 00:18:50,639 Speaker 3: this stuff for the kids to do, and while the 387 00:18:50,720 --> 00:18:53,720 Speaker 3: kids are doing that. I'm walking around looking at you know, 388 00:18:54,040 --> 00:18:57,359 Speaker 3: maybe a pair of running shoes attempting me. So it's 389 00:18:57,400 --> 00:18:58,520 Speaker 3: a pretty clever strategy. 390 00:18:58,760 --> 00:19:00,920 Speaker 6: I saw one the other day had the turf field 391 00:19:00,920 --> 00:19:02,480 Speaker 6: on the outside, and I was busy. 392 00:19:02,600 --> 00:19:04,600 Speaker 7: I was so confused, and I was like, did they 393 00:19:04,800 --> 00:19:07,359 Speaker 7: just put a ransom like soccer field on this? 394 00:19:07,560 --> 00:19:09,720 Speaker 2: Do you remember the McDonald's, the McDonald's that used to 395 00:19:09,800 --> 00:19:10,440 Speaker 2: have a hole. 396 00:19:10,280 --> 00:19:13,120 Speaker 7: Well that was the best, but like, I mean those 397 00:19:13,119 --> 00:19:15,040 Speaker 7: were the best, but like the turf field, like, they 398 00:19:15,040 --> 00:19:17,520 Speaker 7: don't have like games and stuff there, do they. 399 00:19:17,680 --> 00:19:20,359 Speaker 3: It's interesting how they program it. They will invite like 400 00:19:20,520 --> 00:19:23,800 Speaker 3: leagues and camps to come. But they said that that 401 00:19:23,960 --> 00:19:27,320 Speaker 3: in this one outside Pittsburgh, people have learned the schedule 402 00:19:27,440 --> 00:19:30,040 Speaker 3: and there's free play time and people will just show 403 00:19:30,119 --> 00:19:33,600 Speaker 3: up and play, you know, touch football or soccer or 404 00:19:33,760 --> 00:19:35,960 Speaker 3: use the track. If you're looking to buy a bicycle 405 00:19:35,960 --> 00:19:38,840 Speaker 3: from them, they will bring you up and put you 406 00:19:38,880 --> 00:19:40,760 Speaker 3: on the track and you can ride it around there. 407 00:19:40,840 --> 00:19:43,480 Speaker 3: So they found a lot of ways to use it 408 00:19:44,160 --> 00:19:47,400 Speaker 3: and customers have already kind of discovered it and it's 409 00:19:47,440 --> 00:19:49,399 Speaker 3: bringing people there just just to play. 410 00:19:49,600 --> 00:19:50,480 Speaker 6: Yeah, that's crazy. 411 00:19:50,600 --> 00:19:52,200 Speaker 7: And I think the other thing that we really need 412 00:19:52,240 --> 00:19:54,119 Speaker 7: to know here is like last year, parents spent more 413 00:19:54,160 --> 00:19:57,479 Speaker 7: than forty billion dollars on their kids in U sports, right, 414 00:19:57,520 --> 00:20:00,960 Speaker 7: And it's an increase from forty six percent since twenty nineteen. 415 00:20:01,160 --> 00:20:03,399 Speaker 7: But that can't just be like pandemic spending, right, Like 416 00:20:03,480 --> 00:20:05,000 Speaker 7: why such a big increase do. 417 00:20:04,920 --> 00:20:06,600 Speaker 3: You think it is? Yeah, I mean this is a 418 00:20:06,640 --> 00:20:09,760 Speaker 3: booming industry, and it's interesting because I think some of 419 00:20:09,800 --> 00:20:14,200 Speaker 3: it is driven by it's been kind of professionalized and 420 00:20:14,240 --> 00:20:16,800 Speaker 3: there's like a kind of luxury aspect to it. In 421 00:20:16,840 --> 00:20:20,119 Speaker 3: baseball in particular, there's all this stuff now that the 422 00:20:20,160 --> 00:20:23,440 Speaker 3: bats costs more. You have sliding mits, you have heart shirts, 423 00:20:23,480 --> 00:20:27,159 Speaker 3: you have all this extra equipment elbow guards that I 424 00:20:27,240 --> 00:20:29,800 Speaker 3: never had as a kid. And so the sort of 425 00:20:29,800 --> 00:20:31,960 Speaker 3: baseline cost and then what you can spend if you 426 00:20:32,000 --> 00:20:34,840 Speaker 3: want to go for the deluxe is both have gone 427 00:20:34,920 --> 00:20:35,360 Speaker 3: up a lot. 428 00:20:35,400 --> 00:20:38,679 Speaker 2: Well, I'd be curious to know what percentage golf is 429 00:20:38,920 --> 00:20:41,520 Speaker 2: of total revenue because I'm sure with you know, golf 430 00:20:41,520 --> 00:20:44,360 Speaker 2: has become super popular since the pandemic, and they they 431 00:20:44,400 --> 00:20:47,520 Speaker 2: have become with their in house simulators and everything. I mean, 432 00:20:47,560 --> 00:20:49,640 Speaker 2: they fit for god, I mean, they become a go 433 00:20:49,680 --> 00:20:51,720 Speaker 2: to for a lot of golfers out there, so I'm 434 00:20:51,720 --> 00:20:53,639 Speaker 2: sure that's helped as well. But you know, before we 435 00:20:53,720 --> 00:20:55,960 Speaker 2: lose you here, Ira, talk to us about Game Changer. 436 00:20:56,040 --> 00:20:57,840 Speaker 2: You know what is game Changer? I mean, you know, 437 00:20:57,880 --> 00:21:00,480 Speaker 2: we heard about Dick's you know, investment in our rival, 438 00:21:00,600 --> 00:21:03,080 Speaker 2: the youth sports conglomerate, you know, Blitzer, Harris and all 439 00:21:03,160 --> 00:21:05,840 Speaker 2: that stuff, Like what else are they doing to approach 440 00:21:05,880 --> 00:21:07,000 Speaker 2: that youth sports segment? 441 00:21:07,480 --> 00:21:10,679 Speaker 3: So they are basically trying to create as many ways 442 00:21:10,720 --> 00:21:14,360 Speaker 3: of interacting with sports parents and with young athletes as 443 00:21:14,400 --> 00:21:16,359 Speaker 3: they can. They know that it's a big part of 444 00:21:16,359 --> 00:21:19,280 Speaker 3: what comes into their store and who their core customer is. 445 00:21:19,720 --> 00:21:22,439 Speaker 3: So several years ago they bought game Changer, which started 446 00:21:22,440 --> 00:21:25,000 Speaker 3: out as this app that lets you basically score a 447 00:21:25,000 --> 00:21:27,040 Speaker 3: baseball game on your phone, so if you're doing a 448 00:21:27,119 --> 00:21:29,879 Speaker 3: youth baseball game, you don't need an old score book. 449 00:21:30,080 --> 00:21:33,000 Speaker 3: But it's grown into something where you can watch the game. 450 00:21:33,040 --> 00:21:35,200 Speaker 3: You can you know, hang your phone behind the backstop 451 00:21:35,240 --> 00:21:38,040 Speaker 3: and then Grandma at home can watch the kid's game, 452 00:21:38,680 --> 00:21:42,320 Speaker 3: and all these other features that you know, registering for tournaments, 453 00:21:42,400 --> 00:21:45,280 Speaker 3: keeping track of rosters and so on. So dick S 454 00:21:45,280 --> 00:21:48,640 Speaker 3: bought that and it allows them to sync it up 455 00:21:48,680 --> 00:21:51,439 Speaker 3: with their loyalty program for instance, and they can when 456 00:21:51,480 --> 00:21:53,320 Speaker 3: you open Game Changer, they can try to sell you 457 00:21:53,359 --> 00:21:57,480 Speaker 3: the bat that they know you're gonna need. And they 458 00:21:57,800 --> 00:22:00,680 Speaker 3: told me that, you know, the person who has both 459 00:22:00,720 --> 00:22:04,480 Speaker 3: their loyalty score card app and Game Changer spends twice 460 00:22:04,520 --> 00:22:08,000 Speaker 3: as much as the person who just has the loyalty apps. 461 00:22:08,040 --> 00:22:10,240 Speaker 2: And they can their movements, right, like if they have 462 00:22:10,280 --> 00:22:12,720 Speaker 2: a game and you know, yeah, I don't know. You know, 463 00:22:13,600 --> 00:22:15,119 Speaker 2: a bunch of kids have a travel game. You know, 464 00:22:15,119 --> 00:22:17,119 Speaker 2: you're going to Delaware for the weekend. You know, like 465 00:22:17,400 --> 00:22:19,040 Speaker 2: there's a Dicks down there, like, hey, we know you're 466 00:22:19,040 --> 00:22:21,280 Speaker 2: gonna maybe need some extra balls or extra batting gloves 467 00:22:21,320 --> 00:22:21,760 Speaker 2: or whatever. 468 00:22:21,680 --> 00:22:24,560 Speaker 3: Right, or a hotel or hotel kinds of options, right. 469 00:22:24,640 --> 00:22:24,880 Speaker 5: Yeah. 470 00:22:24,960 --> 00:22:28,280 Speaker 3: And so between Game Changer and Unrivaled, which runs leagues 471 00:22:28,320 --> 00:22:31,400 Speaker 3: and camps, they kind of can watch the whole journey 472 00:22:31,760 --> 00:22:34,439 Speaker 3: and have a lot of ways to you know, target 473 00:22:34,480 --> 00:22:37,480 Speaker 3: customers and sell to them and keep in touch. 474 00:22:37,640 --> 00:22:40,440 Speaker 5: It's those products that I don't think about that Dick 475 00:22:40,640 --> 00:22:44,800 Speaker 5: sells that really are important. I mean coolers, and you know, 476 00:22:45,119 --> 00:22:48,040 Speaker 5: for example, it's like, Okay, you're watching your kid play 477 00:22:48,080 --> 00:22:50,560 Speaker 5: blah blah blah blah blah blah, and you've got to 478 00:22:50,560 --> 00:22:53,720 Speaker 5: bring in a cooler because you have some so you. 479 00:22:53,720 --> 00:22:55,359 Speaker 2: Don't want to heah, you don't want to carry a 480 00:22:55,359 --> 00:22:59,080 Speaker 2: can of beer and everybody right, you know, you know 481 00:22:59,160 --> 00:22:59,680 Speaker 2: the track. 482 00:23:00,000 --> 00:23:04,400 Speaker 5: Oh yeah, the products that they sell, it's a lot. Now. 483 00:23:04,520 --> 00:23:07,480 Speaker 5: Last time I went to by the Way a message 484 00:23:07,560 --> 00:23:12,080 Speaker 5: the Dicks sell more bowling equipment because I went to 485 00:23:12,320 --> 00:23:15,560 Speaker 5: Dick's one time and they said, no, We're doing a 486 00:23:15,600 --> 00:23:19,320 Speaker 5: new zillion more bowling equipment and I'm like, oh, right, 487 00:23:19,440 --> 00:23:23,280 Speaker 5: so but they have really done one whale of a 488 00:23:23,400 --> 00:23:27,919 Speaker 5: job ira in cornering the market, and I have to 489 00:23:27,960 --> 00:23:29,640 Speaker 5: salute them on that. Yeah. 490 00:23:29,680 --> 00:23:32,080 Speaker 3: I mean they are the standout in not just like 491 00:23:32,119 --> 00:23:34,600 Speaker 3: sporting goods, but in big box retail. They're one of 492 00:23:34,680 --> 00:23:37,159 Speaker 3: the main standouts of the last ten to fifteen years. 493 00:23:37,280 --> 00:23:39,919 Speaker 7: I think the interesting thing to me in your piece was, 494 00:23:40,000 --> 00:23:42,600 Speaker 7: and you said it about baseball and like that wall 495 00:23:42,680 --> 00:23:45,280 Speaker 7: of baseball gloves all being different colors, all the things, 496 00:23:45,320 --> 00:23:48,080 Speaker 7: and people spending all this different money. But there was 497 00:23:48,119 --> 00:23:51,040 Speaker 7: also this problem that we thought for a long time 498 00:23:51,160 --> 00:23:53,760 Speaker 7: that kids weren't getting into baseball, they didn't like it, 499 00:23:53,880 --> 00:23:56,919 Speaker 7: or does it just not follow into fandom of the MLB, 500 00:23:57,160 --> 00:23:59,879 Speaker 7: or is it like new people like a jazz to 501 00:24:00,119 --> 00:24:03,200 Speaker 7: some who wears like bright colored stuff that is really 502 00:24:03,280 --> 00:24:04,280 Speaker 7: changing that for them. 503 00:24:04,520 --> 00:24:07,159 Speaker 3: Yeah, it's sort of like it's a social media phenomenon. 504 00:24:07,240 --> 00:24:09,960 Speaker 3: I think in pan of bananas are a big part 505 00:24:10,000 --> 00:24:12,399 Speaker 3: of it. But and I just think there may also 506 00:24:12,480 --> 00:24:14,480 Speaker 3: be a I think there's a bit of a baseball 507 00:24:14,520 --> 00:24:17,560 Speaker 3: revival on now if you just look at the interest 508 00:24:17,600 --> 00:24:20,720 Speaker 3: in these playoffs. But certainly in my experience, like the 509 00:24:20,800 --> 00:24:23,439 Speaker 3: amount of drip that these kids bring with them to 510 00:24:23,640 --> 00:24:27,520 Speaker 3: a baseball game is different from when I was a kid, 511 00:24:27,680 --> 00:24:29,639 Speaker 3: So it's thriving in that regard. 512 00:24:30,600 --> 00:24:32,720 Speaker 2: Well, I'll tell you this, you know, with my children 513 00:24:32,800 --> 00:24:34,480 Speaker 2: now being a bit older than you and on the 514 00:24:34,480 --> 00:24:37,200 Speaker 2: other side of this equation, you know, when I drive by, 515 00:24:37,400 --> 00:24:39,399 Speaker 2: you know, the Dixon White Plains, New York, I actually 516 00:24:39,400 --> 00:24:40,720 Speaker 2: get a little bit of a tear in my eye 517 00:24:40,760 --> 00:24:42,920 Speaker 2: because I don't go in there near as much as 518 00:24:42,920 --> 00:24:44,439 Speaker 2: I used to. I mean, I used to live in 519 00:24:44,440 --> 00:24:46,360 Speaker 2: that place. But you know, I'm glad you still get 520 00:24:46,400 --> 00:24:46,560 Speaker 2: to go. 521 00:24:46,760 --> 00:24:51,200 Speaker 3: Yeah, I think it's winding down for me a little 522 00:24:51,240 --> 00:24:53,200 Speaker 3: bit already, just in terms of the amount of time 523 00:24:53,280 --> 00:24:55,000 Speaker 3: where the kids are like, can we just go there 524 00:24:56,560 --> 00:24:59,560 Speaker 3: to buy you know there. My kids are middle schoolers now, 525 00:24:59,560 --> 00:25:01,719 Speaker 3: so that's like, maybe not as but it still happens. 526 00:25:01,760 --> 00:25:04,760 Speaker 3: I still get those requests just go hang out at Dick. 527 00:25:05,560 --> 00:25:10,879 Speaker 5: You keep telling you, I wood Way you are goal. 528 00:25:11,080 --> 00:25:13,119 Speaker 5: Thank you so much, sir for joining us on the 529 00:25:13,119 --> 00:25:15,040 Speaker 5: Bloomberg Business of Sports. We appreciate it. 530 00:25:15,160 --> 00:25:15,879 Speaker 3: Always a pleasure. 531 00:25:16,480 --> 00:25:19,719 Speaker 5: Up next, we turn to another company doing well in 532 00:25:19,760 --> 00:25:23,280 Speaker 5: the growing business of youth sports for damiens Assauer and 533 00:25:23,440 --> 00:25:26,720 Speaker 5: Vanessa Perdomo. I'm Michael Barr. You're listening to the Bloomberg 534 00:25:26,760 --> 00:25:29,680 Speaker 5: Business of Sports from Bloomberg Radio around the world. 535 00:25:44,640 --> 00:25:48,639 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 536 00:25:49,800 --> 00:25:52,360 Speaker 5: Thanks for joining us on the Bloomberg Business of Sports, 537 00:25:52,400 --> 00:25:55,439 Speaker 5: where we explore the big money issues in the world 538 00:25:55,560 --> 00:25:56,160 Speaker 5: of sports. 539 00:25:56,240 --> 00:25:59,119 Speaker 2: I'm Michael Barr, I'm Damian Sasher, and I'm Vanessa Pronemo. 540 00:25:59,400 --> 00:26:03,760 Speaker 5: Team is home to the largest online community for youth sports. 541 00:26:03,880 --> 00:26:07,080 Speaker 2: It's a sports management platform. Michael Barr with an audience 542 00:26:07,119 --> 00:26:10,760 Speaker 2: of more than twenty five million youth sports coaches, administrators, 543 00:26:10,800 --> 00:26:15,119 Speaker 2: players and parents, and over nineteen thousand sports organizations. 544 00:26:15,680 --> 00:26:17,600 Speaker 7: Joining us now to talk about the platform and how 545 00:26:17,640 --> 00:26:19,480 Speaker 7: youth sports is growing as an industry. 546 00:26:19,520 --> 00:26:22,360 Speaker 6: Is Team Snap CEO Peter Francillis. 547 00:26:22,000 --> 00:26:25,000 Speaker 5: Peter, Welcome to the Bloomberg Business of Sports. 548 00:26:25,520 --> 00:26:27,600 Speaker 9: Thanks for having me excited to be here. 549 00:26:27,720 --> 00:26:31,879 Speaker 5: You are the CEO of Team Snap. What is that so? 550 00:26:32,000 --> 00:26:36,040 Speaker 9: Team Snap is the leading technology platform for youth sports. 551 00:26:36,600 --> 00:26:39,800 Speaker 9: We are in the pockets and hands of over twenty 552 00:26:39,800 --> 00:26:44,800 Speaker 9: five million coaches, players, parents, administrators. We've got nearly twenty 553 00:26:44,840 --> 00:26:48,119 Speaker 9: thousand clubs and leagues that use us to help organize 554 00:26:48,119 --> 00:26:51,960 Speaker 9: their operations. And so think about us as the connective 555 00:26:52,040 --> 00:26:57,240 Speaker 9: technology platform for everything from registrations, scheduling, rostering and financial 556 00:26:57,320 --> 00:27:00,320 Speaker 9: management on the club and league side. Through you know 557 00:27:00,359 --> 00:27:03,040 Speaker 9: how parents and coaches communicate each other with each other 558 00:27:03,160 --> 00:27:06,480 Speaker 9: through the largest mobile platform in youth sports. And that's 559 00:27:06,560 --> 00:27:09,280 Speaker 9: the day in and day out, very busy families, and 560 00:27:09,520 --> 00:27:12,840 Speaker 9: we are laser focused on trying to solve a lot 561 00:27:12,840 --> 00:27:15,119 Speaker 9: of that chaos and using technology to make youth sports 562 00:27:15,119 --> 00:27:16,080 Speaker 9: families lives easier. 563 00:27:16,480 --> 00:27:19,440 Speaker 7: I could imagine that is an extremely helpful business. You know, 564 00:27:19,480 --> 00:27:21,240 Speaker 7: I played sports my whole life. I can imagine my 565 00:27:21,320 --> 00:27:23,280 Speaker 7: parents would have really loved having something like this when 566 00:27:23,320 --> 00:27:25,399 Speaker 7: I was younger. So, Peter, can you tell us more 567 00:27:25,400 --> 00:27:28,159 Speaker 7: about how you know this was started and really just 568 00:27:28,200 --> 00:27:31,920 Speaker 7: the innovation of youth sports, because there's so much innovation 569 00:27:32,000 --> 00:27:34,000 Speaker 7: and technology that's going into youth sports right now. 570 00:27:34,040 --> 00:27:35,480 Speaker 6: I mean it's a completely different ball game. 571 00:27:35,560 --> 00:27:37,760 Speaker 9: Yeah, Look, this is a massive market. I'm sure we're 572 00:27:37,760 --> 00:27:40,199 Speaker 9: going to get into discussion around the size and scale, 573 00:27:40,200 --> 00:27:44,679 Speaker 9: and technology is a driving factor and helping to facilitate 574 00:27:44,760 --> 00:27:47,000 Speaker 9: much of that growth. You know, the company started fifteen 575 00:27:47,080 --> 00:27:49,920 Speaker 9: years ago with a very simple problem. At that point, 576 00:27:49,960 --> 00:27:52,560 Speaker 9: how do you help parents and coaches solve the issue 577 00:27:52,560 --> 00:27:53,520 Speaker 9: of showing up at the wrong. 578 00:27:53,320 --> 00:27:56,840 Speaker 3: Field at the wrong time. And this was a stage. 579 00:27:56,480 --> 00:27:58,760 Speaker 9: Where you know, it sounds like younger parents, you know, 580 00:27:58,800 --> 00:28:01,080 Speaker 9: like our generation, we're up in coming, and you know, 581 00:28:01,119 --> 00:28:05,560 Speaker 9: I remember vast memories of the phone chain, right and 582 00:28:05,600 --> 00:28:08,280 Speaker 9: you missed the phone chain. You didn't realize that the 583 00:28:08,280 --> 00:28:10,440 Speaker 9: game time had moved, or it was a different field, 584 00:28:10,520 --> 00:28:12,840 Speaker 9: or the game was canceled. And so as younger parents 585 00:28:12,840 --> 00:28:17,040 Speaker 9: were coming up, the app ecosystem was really gaining momentum. 586 00:28:18,000 --> 00:28:21,000 Speaker 9: This was an offering that really caught like wildfire from 587 00:28:21,000 --> 00:28:26,440 Speaker 9: a grassroots virality perspective, and over time the company continued 588 00:28:26,480 --> 00:28:28,919 Speaker 9: to evolve. I had the privilege of stepping in as 589 00:28:29,000 --> 00:28:31,400 Speaker 9: CEO back in April of twenty one, so about four 590 00:28:31,400 --> 00:28:34,000 Speaker 9: and a half years ago. I was part of a 591 00:28:34,040 --> 00:28:38,080 Speaker 9: growth equity PE investment firm that acquired the business. And 592 00:28:38,160 --> 00:28:40,000 Speaker 9: you know, since then, we've been off the races in 593 00:28:40,080 --> 00:28:42,960 Speaker 9: terms of the investment we put into the technology, the advancements, 594 00:28:43,320 --> 00:28:46,720 Speaker 9: the size and scale of our portfolio, and the reach 595 00:28:46,760 --> 00:28:47,640 Speaker 9: that we continue to develop. 596 00:28:48,160 --> 00:28:49,760 Speaker 2: Well, Peter, I really wish I had known about your 597 00:28:49,760 --> 00:28:52,080 Speaker 2: app a few years back when I was in Chappaqua 598 00:28:52,240 --> 00:28:54,280 Speaker 2: at a soccer match that was actually taking place in 599 00:28:54,280 --> 00:28:56,440 Speaker 2: Newer Shell. I mean, like it was crazy, but just 600 00:28:56,560 --> 00:29:00,360 Speaker 2: hear me out here, you know, it's such a brilliant idea. 601 00:29:00,840 --> 00:29:02,920 Speaker 2: Put some numbers around it for us. How many people 602 00:29:03,000 --> 00:29:05,200 Speaker 2: are on your platform and what are they paying? I see, 603 00:29:05,320 --> 00:29:08,520 Speaker 2: you know there's an ultra package, there's the premium package, 604 00:29:08,600 --> 00:29:10,880 Speaker 2: but it looks to be ten to twenty five per 605 00:29:10,920 --> 00:29:12,440 Speaker 2: month per user? Is that about right? 606 00:29:12,840 --> 00:29:14,440 Speaker 5: So we have a couple different offerings. 607 00:29:14,440 --> 00:29:16,360 Speaker 9: First, in terms of size and scale, Right, we have 608 00:29:16,400 --> 00:29:18,959 Speaker 9: over twenty five million registered users. We have about two 609 00:29:19,040 --> 00:29:21,840 Speaker 9: million on average using our platform on a daily basis. Right, 610 00:29:21,880 --> 00:29:26,959 Speaker 9: And so this is reach, it is distribution power, and 611 00:29:27,040 --> 00:29:29,760 Speaker 9: it is really a responsibility of us to continue to 612 00:29:29,800 --> 00:29:33,120 Speaker 9: innovate and be able to bring what the power of 613 00:29:33,120 --> 00:29:36,800 Speaker 9: this organizational technology can bring to youth sports. We do 614 00:29:36,880 --> 00:29:39,040 Speaker 9: have a couple of different ways in which we monetize 615 00:29:39,360 --> 00:29:42,760 Speaker 9: our subscriptions, dependent upon how whether it be a family, 616 00:29:42,920 --> 00:29:47,760 Speaker 9: a coach, or a league and club administrator operator wants 617 00:29:47,800 --> 00:29:49,840 Speaker 9: to buy our services. What you're looking on on our 618 00:29:49,840 --> 00:29:52,760 Speaker 9: website is more so focused on the coach if they 619 00:29:52,760 --> 00:29:56,880 Speaker 9: want to buy our mobile offering solely for the communication 620 00:29:57,040 --> 00:29:59,200 Speaker 9: organization of their team, and then we have more of 621 00:29:59,200 --> 00:30:03,000 Speaker 9: a traditional kind of SaaS subscription that's a B to 622 00:30:03,080 --> 00:30:07,600 Speaker 9: B focused offering for the operators and league owners and administrators. 623 00:30:07,920 --> 00:30:10,600 Speaker 5: I'm impressed because you're getting a lot of corporate brands 624 00:30:10,680 --> 00:30:15,000 Speaker 5: investing in sports, and we're talking about like Jersey, Mikes 625 00:30:15,040 --> 00:30:17,360 Speaker 5: and Toyota expand more. 626 00:30:17,400 --> 00:30:20,560 Speaker 9: On that look, we estimate that youth sports is a 627 00:30:20,720 --> 00:30:24,960 Speaker 9: forty billion dollar plus market at this time and on 628 00:30:25,120 --> 00:30:28,360 Speaker 9: Team Snap given them millions of users we have, you know, 629 00:30:28,360 --> 00:30:33,200 Speaker 9: these are typically heads of households, middle upper income families. 630 00:30:33,640 --> 00:30:36,000 Speaker 9: Our estimates is we have over three trillion dollars of 631 00:30:36,040 --> 00:30:38,840 Speaker 9: buying power alone just on our platform, and so that 632 00:30:38,960 --> 00:30:41,720 Speaker 9: is an opportunity for brands and the affinity of those 633 00:30:41,720 --> 00:30:44,880 Speaker 9: brands to really align themselves at a grassroots level in 634 00:30:44,960 --> 00:30:49,000 Speaker 9: the community, whether it be through our sponsorship offering, so 635 00:30:49,160 --> 00:30:54,480 Speaker 9: allowing a spectrum or a door dash or jersey mics 636 00:30:54,480 --> 00:30:57,640 Speaker 9: to put their jerseys, their logos on jerseys banners in 637 00:30:57,680 --> 00:31:00,800 Speaker 9: the outfield, but taking a large percentage of those dollars 638 00:31:00,800 --> 00:31:02,959 Speaker 9: and putting them right back into the team, right, and 639 00:31:03,000 --> 00:31:07,240 Speaker 9: allowing those organizations to help subsidize, whether it be the 640 00:31:07,280 --> 00:31:11,200 Speaker 9: cost of registration, fees, equipment, but really aligning their brand 641 00:31:11,400 --> 00:31:16,640 Speaker 9: with the most emotional times of a sport families week, right, 642 00:31:16,640 --> 00:31:17,920 Speaker 9: which is when the kids are on the field, on 643 00:31:17,920 --> 00:31:20,160 Speaker 9: the court, on the rink and they see us and 644 00:31:20,200 --> 00:31:23,440 Speaker 9: we are one of the largest channel across youth sports. 645 00:31:23,480 --> 00:31:24,400 Speaker 7: In order to. 646 00:31:24,200 --> 00:31:27,800 Speaker 9: Marry those large brands up with the grassroots organizations across 647 00:31:27,800 --> 00:31:28,280 Speaker 9: this country. 648 00:31:28,800 --> 00:31:31,120 Speaker 7: It's interesting, you know, when we're talking about the brands 649 00:31:31,160 --> 00:31:33,880 Speaker 7: that are coming in and also private equity investment that's 650 00:31:34,160 --> 00:31:36,200 Speaker 7: really taken hold in youth sports. 651 00:31:36,480 --> 00:31:38,040 Speaker 6: We see it a lot. We're seeing it a lot 652 00:31:38,040 --> 00:31:38,920 Speaker 6: more in sports in general. 653 00:31:39,160 --> 00:31:41,040 Speaker 7: One of the things I'm interested is do you think 654 00:31:41,200 --> 00:31:44,240 Speaker 7: it youth sports right now is actually a better investment 655 00:31:44,320 --> 00:31:48,120 Speaker 7: than professional sports because buying ten percent of an NFL 656 00:31:48,160 --> 00:31:50,200 Speaker 7: team will cost you a billion dollars. But if the 657 00:31:50,320 --> 00:31:52,680 Speaker 7: youth sports market is forty billion dollars on its own, 658 00:31:53,280 --> 00:31:56,440 Speaker 7: is that an easier quicker ROI or you know, what 659 00:31:56,760 --> 00:31:59,600 Speaker 7: are your thoughts on the investment part in U sports? 660 00:32:00,080 --> 00:32:01,560 Speaker 9: Might be a little bit biased, but I do think 661 00:32:01,600 --> 00:32:03,560 Speaker 9: there's a lot more work that goes in that needs 662 00:32:03,560 --> 00:32:05,720 Speaker 9: to go into the ROI on the investments on the 663 00:32:05,760 --> 00:32:08,760 Speaker 9: youth sports side, right, So think about the youth sports market. 664 00:32:08,800 --> 00:32:13,040 Speaker 9: First off, we need to parcel off the programming, right, 665 00:32:13,120 --> 00:32:18,120 Speaker 9: so those clubs, leagues, organizations that are providing the programming 666 00:32:18,160 --> 00:32:21,920 Speaker 9: of sport with the software and technology side, which is 667 00:32:21,920 --> 00:32:26,280 Speaker 9: where obviously my purview and where Team snap sits. And there, 668 00:32:26,320 --> 00:32:28,560 Speaker 9: you know, in any kind of traditional market as it 669 00:32:28,600 --> 00:32:31,640 Speaker 9: continues to mature, Yes, like private equity is going to 670 00:32:31,680 --> 00:32:35,160 Speaker 9: come in as companies mature and need a more sophisticated 671 00:32:35,200 --> 00:32:38,200 Speaker 9: capital partner to help fuel its growth, right, And so 672 00:32:38,240 --> 00:32:40,760 Speaker 9: we have been the luxury at Team Snapyard to partner 673 00:32:40,800 --> 00:32:43,720 Speaker 9: with a great growth equity firm called WAD Capital out 674 00:32:43,720 --> 00:32:46,040 Speaker 9: of Chicago. It's very bullish about the growth trajectory of 675 00:32:46,120 --> 00:32:50,160 Speaker 9: this business, but there is very similar to the professional league, 676 00:32:50,280 --> 00:32:53,760 Speaker 9: a scarcity of assets across youth sports that have both 677 00:32:53,800 --> 00:32:57,360 Speaker 9: the scale, the growth potential and the trajectory to warrant 678 00:32:57,840 --> 00:33:00,800 Speaker 9: that level of investment and sophisticated investor coming in. And 679 00:33:00,880 --> 00:33:02,760 Speaker 9: you know, on the software side, there's only a handful 680 00:33:02,760 --> 00:33:04,840 Speaker 9: of us that you know, you would argue as you 681 00:33:04,880 --> 00:33:07,280 Speaker 9: start to get into kind of one hundred million, five 682 00:33:07,320 --> 00:33:10,560 Speaker 9: hundred million plus valuations that can help to justify that 683 00:33:10,640 --> 00:33:11,680 Speaker 9: level or return. Well. 684 00:33:11,720 --> 00:33:15,400 Speaker 2: Peter, four million monthly active users, two million daily active users. 685 00:33:15,400 --> 00:33:18,240 Speaker 2: I think Team Snap process nearly one billion dollars in 686 00:33:18,320 --> 00:33:21,080 Speaker 2: payments in twenty twenty five year to date. I mean, 687 00:33:21,480 --> 00:33:24,040 Speaker 2: I just it's so brilliant what you've done here. 688 00:33:24,080 --> 00:33:24,320 Speaker 5: For me. 689 00:33:24,400 --> 00:33:27,280 Speaker 2: I mean, it's not just scheduling, you know, and tracking 690 00:33:27,320 --> 00:33:29,400 Speaker 2: games and getting you know, coaches to the right field 691 00:33:29,440 --> 00:33:32,440 Speaker 2: on time. It's practice plans, it's coaching tips, and you know, 692 00:33:32,520 --> 00:33:34,800 Speaker 2: for me, you know, it's the ability to give you know, 693 00:33:34,880 --> 00:33:38,080 Speaker 2: these these these regular people who are coaching their their 694 00:33:38,120 --> 00:33:40,320 Speaker 2: their you know, youth sports, you know, a chance to 695 00:33:40,360 --> 00:33:42,800 Speaker 2: coach with confidence and to organize the chaos, right, Peter, 696 00:33:42,880 --> 00:33:44,680 Speaker 2: I mean it's just so brilliant. And then to on 697 00:33:44,760 --> 00:33:47,720 Speaker 2: top of that, bolt the corporate sponsorship element that Michael 698 00:33:47,800 --> 00:33:50,640 Speaker 2: was referring to. I mean, wouldn't you, Michael, be more 699 00:33:50,640 --> 00:33:53,880 Speaker 2: inclined to bank at Truest than JP Morgan if your 700 00:33:54,160 --> 00:33:56,720 Speaker 2: son was playing with a little truist on is the 701 00:33:56,760 --> 00:33:58,240 Speaker 2: back of his jersey. I don't know. I mean I 702 00:33:58,280 --> 00:34:00,480 Speaker 2: think I might. I think I think it does mean different. 703 00:34:00,600 --> 00:34:03,120 Speaker 5: I'm going to bring up bowling again. If I had 704 00:34:03,240 --> 00:34:06,240 Speaker 5: my sponsor like I have on my bowling shirt. Hey, 705 00:34:06,560 --> 00:34:08,040 Speaker 5: that's where I'm going to buy the car. 706 00:34:08,440 --> 00:34:10,239 Speaker 2: I mean, are you seeing that, Peter t Are you 707 00:34:10,280 --> 00:34:14,560 Speaker 2: seeing it actually changing the buying behavior of parents and households? 708 00:34:14,640 --> 00:34:14,839 Speaker 1: Yeah? 709 00:34:14,840 --> 00:34:18,120 Speaker 9: Look, we you know, through our sponsorship, we've invested heavily 710 00:34:18,120 --> 00:34:20,680 Speaker 9: in a technology platform to help show the attribution of 711 00:34:20,719 --> 00:34:23,560 Speaker 9: the ROI back to the brand dollars that are going 712 00:34:23,600 --> 00:34:27,640 Speaker 9: into these communities, and as we survey parents and families 713 00:34:27,680 --> 00:34:29,200 Speaker 9: through the course of the season, at the end of it, 714 00:34:29,480 --> 00:34:31,160 Speaker 9: you know, some of the numbers are off the charts, right, 715 00:34:31,200 --> 00:34:35,320 Speaker 9: forty percent improvement in terms of brand recognition, over forty 716 00:34:35,360 --> 00:34:38,440 Speaker 9: percent improvement and brand affinity and the emotional connection that 717 00:34:38,480 --> 00:34:42,800 Speaker 9: those families that had been sponsored, or because we are 718 00:34:42,960 --> 00:34:45,919 Speaker 9: also kind of you know, geofencing field and being able 719 00:34:46,000 --> 00:34:48,840 Speaker 9: to show the foot traffic. It's there's a halo effect 720 00:34:49,480 --> 00:34:52,759 Speaker 9: no different than professional collegiate sponsorship that takes place. Right 721 00:34:52,760 --> 00:34:55,640 Speaker 9: If a team is going in to a tournament over 722 00:34:55,640 --> 00:34:59,680 Speaker 9: the weekend and there's a thousand teams participating, that's a 723 00:34:59,719 --> 00:35:04,120 Speaker 9: sign magnificant visibility of that brand that's front and center 724 00:35:04,480 --> 00:35:07,120 Speaker 9: of saying, hey, okay, you know, this brand cares about 725 00:35:07,160 --> 00:35:10,319 Speaker 9: our kids, this brand cares about our community, and the 726 00:35:10,400 --> 00:35:12,840 Speaker 9: data improves it, right, and there's no question about it. 727 00:35:12,880 --> 00:35:14,799 Speaker 9: And you know, not just on the sponsorship side, but 728 00:35:15,040 --> 00:35:17,880 Speaker 9: we have an incredible list of partners with the professional 729 00:35:17,920 --> 00:35:20,120 Speaker 9: leagues and you mentioned kind of the support and coaching. 730 00:35:20,520 --> 00:35:22,560 Speaker 9: You know, we've had the privilege of being able to 731 00:35:22,600 --> 00:35:28,560 Speaker 9: partner with the MLB, NFL, FLAG, NBA, MLS PLL on 732 00:35:28,840 --> 00:35:33,240 Speaker 9: bringing the focus to down to coaching right and developed 733 00:35:33,239 --> 00:35:36,000 Speaker 9: an entire coaching suite of content, I think, skills and 734 00:35:36,080 --> 00:35:39,439 Speaker 9: drills that were highly produced so that volunteer coaches, which 735 00:35:39,480 --> 00:35:41,880 Speaker 9: is also a huge shortage and challenge here in the country, 736 00:35:43,040 --> 00:35:46,600 Speaker 9: can feel more confident in what they're doing each day 737 00:35:46,880 --> 00:35:49,000 Speaker 9: and each week, even if they didn't coach in that 738 00:35:49,440 --> 00:35:52,040 Speaker 9: specific sport, right, And so helping to arm those coaches 739 00:35:52,080 --> 00:35:55,480 Speaker 9: through an entire offering and in partnership with those professional 740 00:35:55,520 --> 00:35:57,480 Speaker 9: leagues that is really geared on improving the quality of 741 00:35:57,480 --> 00:35:58,520 Speaker 9: coaching across this country. 742 00:35:58,760 --> 00:36:03,360 Speaker 5: One thing that really makes this very successful today's parents. 743 00:36:03,880 --> 00:36:07,919 Speaker 5: One they are more digitally active and two they're more 744 00:36:07,960 --> 00:36:11,040 Speaker 5: time constrained. Back in the day, Hey, I got to 745 00:36:11,080 --> 00:36:14,200 Speaker 5: watch my soaps. All my children is coming on in 746 00:36:14,200 --> 00:36:16,120 Speaker 5: one life to live and get out of the way, 747 00:36:16,160 --> 00:36:19,560 Speaker 5: general hospitals coming on after that. We don't have that 748 00:36:19,719 --> 00:36:24,279 Speaker 5: time anymore. It's and this whole thing that you are 749 00:36:24,400 --> 00:36:27,279 Speaker 5: behind seems to help parents very well. 750 00:36:27,600 --> 00:36:31,320 Speaker 9: Yeah, And we acquired a business called Mojo Sports about 751 00:36:31,360 --> 00:36:32,600 Speaker 9: a year and a half, just a year and a 752 00:36:32,600 --> 00:36:36,160 Speaker 9: half ago, and Mojo was started by two co founders, 753 00:36:36,239 --> 00:36:39,480 Speaker 9: Reach Schaffner and Venture what had been Here's might know 754 00:36:39,520 --> 00:36:43,279 Speaker 9: the name ran all of Disney Television ABC Television under 755 00:36:43,320 --> 00:36:45,960 Speaker 9: Bob Aiger for a decade plus worldwide. And you know 756 00:36:46,000 --> 00:36:47,799 Speaker 9: he left in twenty nineteen and his two kids were 757 00:36:47,800 --> 00:36:50,279 Speaker 9: young teenagers and he thought there's got to be a 758 00:36:50,280 --> 00:36:54,840 Speaker 9: better way to bring the Disney production level of media 759 00:36:54,880 --> 00:36:59,200 Speaker 9: into youth sports and create an entire media platform from 760 00:36:59,440 --> 00:37:01,560 Speaker 9: all of kind of the coaching content and those videos 761 00:37:01,560 --> 00:37:04,160 Speaker 9: that we're talking about all the way through live game 762 00:37:04,239 --> 00:37:07,879 Speaker 9: video streaming, highlight creation. And you know, we've been hard 763 00:37:07,880 --> 00:37:11,120 Speaker 9: at work and bringing that technology into the Team Snap ecosystem, 764 00:37:11,160 --> 00:37:13,319 Speaker 9: and you know, we'll be coming out with some very 765 00:37:13,400 --> 00:37:15,879 Speaker 9: large releases at the end of this year, and we're 766 00:37:15,920 --> 00:37:18,319 Speaker 9: focused very much on that exact challenge, like how do 767 00:37:18,360 --> 00:37:22,239 Speaker 9: you help families capture the memories of youth sport? And 768 00:37:22,280 --> 00:37:24,520 Speaker 9: this isn't about the data analytics, It's not about how 769 00:37:24,520 --> 00:37:26,960 Speaker 9: fast the kids running across the field. It's for that 770 00:37:27,040 --> 00:37:30,120 Speaker 9: four to fourteen year old kind of the Disney family 771 00:37:30,160 --> 00:37:32,279 Speaker 9: of sport. If I'm not able to get see the 772 00:37:32,280 --> 00:37:35,319 Speaker 9: game because I'm traveling, how can I tune in either 773 00:37:35,440 --> 00:37:38,040 Speaker 9: live or get a sixty second clip of all of 774 00:37:38,040 --> 00:37:41,160 Speaker 9: the highlights from my son after the game? And you know, 775 00:37:41,200 --> 00:37:44,120 Speaker 9: we think this youth sports streaming market is somewhere in 776 00:37:44,160 --> 00:37:46,279 Speaker 9: the range of twelve to fifteen billion dollars here in 777 00:37:46,320 --> 00:37:48,359 Speaker 9: the US, and it's one of the largest sports stream 778 00:37:48,400 --> 00:37:50,400 Speaker 9: markets that no one's talking about and we're going to 779 00:37:50,480 --> 00:37:52,640 Speaker 9: go hard after it, and we're very focused on bringing 780 00:37:52,680 --> 00:37:55,680 Speaker 9: that level of value and this next generation of technology 781 00:37:55,760 --> 00:37:58,480 Speaker 9: to the tens of millions of sports families across the country. 782 00:37:58,600 --> 00:38:01,239 Speaker 7: All Right, thanks to Peter frinzillis joining us. He's chief 783 00:38:01,280 --> 00:38:04,400 Speaker 7: executive officer of the youth sports management platform Team Snap. 784 00:38:04,760 --> 00:38:07,799 Speaker 5: And hey, now, thank you for joining us. For my 785 00:38:07,880 --> 00:38:12,080 Speaker 5: colleagues Damian Sasauer and Vanessa Perdomo, I'm Michael Barr. Tune 786 00:38:12,080 --> 00:38:15,040 Speaker 5: in again next week for the latest on the stories 787 00:38:15,080 --> 00:38:17,760 Speaker 5: moving big old money in the world of sports. 788 00:38:17,800 --> 00:38:20,160 Speaker 2: And don't forget to subscribe to our podcast see you 789 00:38:20,239 --> 00:38:23,160 Speaker 2: never miss an episode. Find that on Apple, Spotify or 790 00:38:23,200 --> 00:38:25,279 Speaker 2: anywhere else you get your podcasts. 791 00:38:25,640 --> 00:38:29,200 Speaker 5: You're listening to the Bloomberg Business of Sports from Bloomberger 792 00:38:29,320 --> 00:38:30,760 Speaker 5: Radio around the world.