1 00:00:00,640 --> 00:00:03,199 Speaker 1: This is Bloomberg Business of Sports. 2 00:00:03,360 --> 00:00:06,200 Speaker 2: Business of sports can be intimidating for hard for a 3 00:00:06,240 --> 00:00:07,160 Speaker 2: start to break into. 4 00:00:07,280 --> 00:00:10,160 Speaker 3: We really appreciate what our owners are actually there, you 5 00:00:10,160 --> 00:00:11,440 Speaker 3: know with us through the journey. 6 00:00:11,440 --> 00:00:15,000 Speaker 4: Teams ours especially have been very intentional to diversify at 7 00:00:15,000 --> 00:00:16,280 Speaker 4: all levels of the Unfinished Eye. 8 00:00:16,280 --> 00:00:19,320 Speaker 3: We're in the golden years for the NFL and college football. 9 00:00:19,360 --> 00:00:22,400 Speaker 5: Our demographic reach has continued to explode. 10 00:00:22,520 --> 00:00:26,120 Speaker 4: This is going to be really unlocking the streaming platform 11 00:00:26,200 --> 00:00:27,160 Speaker 4: for sports fans. 12 00:00:27,240 --> 00:00:28,600 Speaker 1: Sports evaluations arising. 13 00:00:28,760 --> 00:00:29,720 Speaker 2: We'll see when they peak. 14 00:00:29,760 --> 00:00:32,400 Speaker 6: You don't have to be the best in your sports 15 00:00:32,400 --> 00:00:35,280 Speaker 6: and make a whole ton of money. 16 00:00:35,360 --> 00:00:38,240 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 17 00:00:39,800 --> 00:00:42,879 Speaker 2: This is the Bloomberg Business of Sports where we explore 18 00:00:42,960 --> 00:00:45,879 Speaker 2: the big money issues in the world of sports. I'm 19 00:00:45,920 --> 00:00:51,680 Speaker 2: Michael Barr, along with my colleagues Garlett Foo and Damian Sasaur. 20 00:00:52,000 --> 00:00:55,520 Speaker 2: The Gangs all back. We've got a busy show today. 21 00:00:56,080 --> 00:00:59,360 Speaker 2: We'll talk with the general manager and the head coach 22 00:00:59,600 --> 00:01:04,360 Speaker 2: of the UWNBA team. The Golden State Valkyries plus private 23 00:01:04,440 --> 00:01:08,640 Speaker 2: equity firms are pushing more and more into the sports world. 24 00:01:08,840 --> 00:01:13,080 Speaker 2: We'll check in on that space with Velocity Capital Management 25 00:01:13,160 --> 00:01:17,280 Speaker 2: founding partner David Abrams. All that and more straight ahead 26 00:01:17,319 --> 00:01:20,240 Speaker 2: on the Bloomberg Business of Sports. But first, we saw 27 00:01:20,319 --> 00:01:22,920 Speaker 2: a lot of big sports headlines this week. 28 00:01:23,240 --> 00:01:26,120 Speaker 4: Saudi Arabia was confirmed as the host of the twenty 29 00:01:26,200 --> 00:01:28,440 Speaker 4: thirty four World Cup, marking the second time in a 30 00:01:28,520 --> 00:01:30,720 Speaker 4: decade that the tournament will be in the Gulf region. 31 00:01:30,800 --> 00:01:33,399 Speaker 7: That's right, Scarlett, And we also found out that legendary 32 00:01:33,560 --> 00:01:37,039 Speaker 7: NFL head coach Bill Belichick will make his next knop 33 00:01:37,080 --> 00:01:38,600 Speaker 7: and it won't be in the pros, guys, It'll be 34 00:01:38,600 --> 00:01:40,880 Speaker 7: at UNC into a three year deal to coach the 35 00:01:40,920 --> 00:01:43,959 Speaker 7: football team at the University of North Carolina. 36 00:01:44,000 --> 00:01:46,640 Speaker 2: But if you didn't think that was big enough, the 37 00:01:46,880 --> 00:01:52,080 Speaker 2: biggest money headline we saw in sports was from Juan Soto. 38 00:01:52,520 --> 00:01:57,400 Speaker 2: He's trading in his Yankees pinstripes to Mets orange and blue. 39 00:01:57,640 --> 00:02:00,480 Speaker 7: And that's not a small deal. Michael Barr he aked 40 00:02:00,520 --> 00:02:03,400 Speaker 7: a record breaking shattering is more like a fifteen year, 41 00:02:03,480 --> 00:02:06,080 Speaker 7: seven hundred and sixty five million dollar deal with the 42 00:02:06,120 --> 00:02:08,320 Speaker 7: New York Mets, and he is now the highest paid 43 00:02:08,360 --> 00:02:10,360 Speaker 7: player in all of professional sports. 44 00:02:10,560 --> 00:02:13,040 Speaker 4: So here's Juan Soto speaking to reporters at a press 45 00:02:13,040 --> 00:02:15,399 Speaker 4: conference just a few days after the deal was announced 46 00:02:15,440 --> 00:02:16,400 Speaker 4: about his decision. 47 00:02:16,639 --> 00:02:20,600 Speaker 6: Mats is a great negotiation and what they have done 48 00:02:21,680 --> 00:02:26,720 Speaker 6: in the past couple of years, showing all the ability 49 00:02:26,919 --> 00:02:29,800 Speaker 6: to keep winning, to keep growing a team, to try 50 00:02:29,840 --> 00:02:33,520 Speaker 6: to grow a dynasty. Is one of the most important 51 00:02:33,520 --> 00:02:37,760 Speaker 6: teams that Finny. What you were seeing from those side, 52 00:02:37,760 --> 00:02:42,160 Speaker 6: it was unbelievable. And the buds and everything in the 53 00:02:42,160 --> 00:02:45,720 Speaker 6: field and the future that this team has. He has 54 00:02:45,800 --> 00:02:47,160 Speaker 6: a lot to do with my decision. 55 00:02:47,600 --> 00:02:51,600 Speaker 2: That's a giggling happy Wan Soto speaking to reporters courtesy 56 00:02:51,840 --> 00:02:56,360 Speaker 2: of the MLB Network. The MLB world is still reacting 57 00:02:56,400 --> 00:02:59,600 Speaker 2: to the deal, including Alex Rodriguez. He sat down with 58 00:02:59,720 --> 00:03:03,640 Speaker 2: Jason Kelly for a special edition of their podcast, The Deal. 59 00:03:04,120 --> 00:03:07,120 Speaker 2: Ay Rod talked about how he felt when it was 60 00:03:07,280 --> 00:03:09,880 Speaker 2: him at the center of the free agency bidding war, 61 00:03:10,280 --> 00:03:13,440 Speaker 2: when he was around the same age as Sodo and 62 00:03:13,639 --> 00:03:16,799 Speaker 2: hiding in a secret location while the bids came. 63 00:03:16,680 --> 00:03:20,560 Speaker 3: In excitement and anxiety. I'm not sure which one. I 64 00:03:20,600 --> 00:03:22,720 Speaker 3: had both, you know, forever stuck in this location for 65 00:03:22,760 --> 00:03:25,320 Speaker 3: ten days, but I was twenty four, Jason, and one 66 00:03:25,360 --> 00:03:28,119 Speaker 3: of the great benefits of you know, entering the major 67 00:03:28,200 --> 00:03:30,880 Speaker 3: leagues at eighteen. Is it takes you to six years 68 00:03:30,880 --> 00:03:33,639 Speaker 3: to become a free agent. Now, remember Scott Bors had 69 00:03:33,639 --> 00:03:35,880 Speaker 3: me three years prior to that. He had me at 70 00:03:35,920 --> 00:03:38,600 Speaker 3: fifteen years old. So for nine years, from fifteen to 71 00:03:38,680 --> 00:03:42,040 Speaker 3: twenty four, he was training me almost like a robot, 72 00:03:42,400 --> 00:03:45,200 Speaker 3: feeding me, giving me the information, preparing me for this 73 00:03:45,320 --> 00:03:48,200 Speaker 3: big heavyweight battle. And when that battle came, just like 74 00:03:48,280 --> 00:03:51,440 Speaker 3: Juan Soto, we were ready. He was ready and I 75 00:03:51,480 --> 00:03:54,720 Speaker 3: was ready. I knew he was ready. Twenty minutes after 76 00:03:54,760 --> 00:03:58,000 Speaker 3: the last out when they got eliminated that Juan Soto 77 00:03:58,040 --> 00:04:00,320 Speaker 3: had his hat backwards. He did a postgame press conference. 78 00:04:00,320 --> 00:04:02,440 Speaker 3: I'm not sure if you saw it. He basically said, 79 00:04:02,600 --> 00:04:06,320 Speaker 3: everybody starts at ground zero, nobody has an advantage. And 80 00:04:06,360 --> 00:04:08,880 Speaker 3: that's when I said, Oh, the Yankees are in trouble. 81 00:04:09,360 --> 00:04:13,440 Speaker 2: Former Yankee superstar Alex Rodriguez there speaking with Jason Kelly 82 00:04:13,720 --> 00:04:16,840 Speaker 2: on a special edition of The Deal about the many 83 00:04:16,880 --> 00:04:21,440 Speaker 2: parallels between his free agency and one Sodos. For more 84 00:04:21,600 --> 00:04:25,240 Speaker 2: on One Sodo's massive deal with the Mets, we welcome 85 00:04:25,320 --> 00:04:31,040 Speaker 2: Bloomberg opinion columnist Connorson, whose latest work argues that Sodo's 86 00:04:31,240 --> 00:04:36,560 Speaker 2: record setting deal is good for the sport. Oh my goodness, gracious, well, 87 00:04:36,800 --> 00:04:38,440 Speaker 2: the heck, let's just jump right into it. 88 00:04:38,480 --> 00:04:38,680 Speaker 8: Man. 89 00:04:38,760 --> 00:04:43,040 Speaker 2: It's like conn of this deal. It's off the charts, unbelievable, 90 00:04:43,520 --> 00:04:43,880 Speaker 2: it is. 91 00:04:44,040 --> 00:04:46,040 Speaker 5: And what was interesting to me was that he had 92 00:04:46,160 --> 00:04:48,560 Speaker 5: a chance two years ago, when he was still with 93 00:04:48,600 --> 00:04:52,560 Speaker 5: the Washington Nationals, to sign a fifteen year, forty million 94 00:04:52,560 --> 00:04:55,080 Speaker 5: dollars extension and he turned it down, and he made 95 00:04:55,120 --> 00:04:57,920 Speaker 5: an extra three hundred million dollars from him. So it's 96 00:04:57,960 --> 00:04:59,760 Speaker 5: sort of the implications of the fact that he turned 97 00:04:59,760 --> 00:05:02,400 Speaker 5: that down he took this and what it means for 98 00:05:02,440 --> 00:05:05,080 Speaker 5: other teams going forward as they think about their young 99 00:05:05,120 --> 00:05:07,080 Speaker 5: players who could be the next Soda. 100 00:05:07,240 --> 00:05:10,520 Speaker 4: So what's the lesson connor for general managers of other 101 00:05:10,640 --> 00:05:13,240 Speaker 4: teams in terms of how they approach or how they 102 00:05:13,240 --> 00:05:15,679 Speaker 4: think about locking up young talent. 103 00:05:16,560 --> 00:05:18,440 Speaker 5: Well, as I wrote in the column, there's been about 104 00:05:18,440 --> 00:05:21,440 Speaker 5: a fifteen year trend where teams would really focus on 105 00:05:21,480 --> 00:05:23,960 Speaker 5: the draft, hope that some of their young players would 106 00:05:23,960 --> 00:05:26,919 Speaker 5: show promise, and then when they were really just barely 107 00:05:26,960 --> 00:05:28,720 Speaker 5: in the major leagues, like only been in the majors 108 00:05:28,720 --> 00:05:31,760 Speaker 5: for at most a year or two, sort of sign 109 00:05:31,839 --> 00:05:34,479 Speaker 5: them to an eight or nine year deal, which would 110 00:05:34,560 --> 00:05:36,400 Speaker 5: lead players to get paid more on the front end, 111 00:05:37,000 --> 00:05:39,120 Speaker 5: but if they turned out to be really good, sacrifice 112 00:05:39,120 --> 00:05:41,560 Speaker 5: them earning potential on the back end and have them 113 00:05:41,600 --> 00:05:44,400 Speaker 5: become free agents at say thirty instead of twenty seven. 114 00:05:45,120 --> 00:05:47,320 Speaker 5: And that worked really well for the teams they ended 115 00:05:47,400 --> 00:05:49,559 Speaker 5: up getting in a lot of cases stars at below 116 00:05:49,600 --> 00:05:53,280 Speaker 5: market value at their peak. But it led to in 117 00:05:53,320 --> 00:05:55,640 Speaker 5: the case of players, you become a free agent at 118 00:05:55,640 --> 00:05:57,479 Speaker 5: an age when maybe teams don't want to sign you 119 00:05:57,520 --> 00:06:00,159 Speaker 5: for long term deals because you're a little older. For 120 00:06:00,200 --> 00:06:01,760 Speaker 5: the sport as a hole, in fans, it just led 121 00:06:01,800 --> 00:06:04,760 Speaker 5: to a kind of dull atmosphere because maybe your team 122 00:06:04,839 --> 00:06:08,000 Speaker 5: had their star for a decade. But as we're talking 123 00:06:08,040 --> 00:06:11,560 Speaker 5: to this week, the excitement of these big contracts, big 124 00:06:11,560 --> 00:06:14,400 Speaker 5: players moving last year, so hey Otani going from the 125 00:06:14,400 --> 00:06:16,599 Speaker 5: Angels to Dodgers. I think it is better for the 126 00:06:16,640 --> 00:06:18,240 Speaker 5: interests in the sport as a whole if you do 127 00:06:18,279 --> 00:06:21,320 Speaker 5: have these mega deals and teams change and players changing teams. 128 00:06:21,600 --> 00:06:24,600 Speaker 7: Connor said Bloomberg opinion columnists SODO seven hundred and sixty 129 00:06:24,640 --> 00:06:27,000 Speaker 7: five million dollar deal will make baseball better, but baseball 130 00:06:27,400 --> 00:06:29,680 Speaker 7: better from the perspective of whom right I mean? That 131 00:06:29,760 --> 00:06:31,120 Speaker 7: is the real question here, And I think you'd hit 132 00:06:31,120 --> 00:06:32,839 Speaker 7: the nail on the head here, Connor. I mean it 133 00:06:32,920 --> 00:06:35,120 Speaker 7: is Sodo turning down that four hundred and forty million 134 00:06:35,160 --> 00:06:37,680 Speaker 7: dollar deal a few years back, taking a bet on himself. 135 00:06:38,000 --> 00:06:40,240 Speaker 7: That is the real story here. And for me, I mean, 136 00:06:40,520 --> 00:06:42,920 Speaker 7: my goodness, I mean, Scott Boris must be a modern 137 00:06:43,000 --> 00:06:45,680 Speaker 7: day Jerry Maguire. I mean the risk of injury, right, 138 00:06:45,760 --> 00:06:47,960 Speaker 7: think about that, you know, Sodo, something could have happened. 139 00:06:47,960 --> 00:06:49,880 Speaker 7: I mean, this is we're not talking about rod Tidwell here, 140 00:06:49,880 --> 00:06:52,280 Speaker 7: we're talking Aboutjuan Soto. So you know, talk to us 141 00:06:52,279 --> 00:06:54,960 Speaker 7: about the bet that Wan Soto made on himself and 142 00:06:55,000 --> 00:06:57,359 Speaker 7: now he put himself in this position and what that 143 00:06:57,400 --> 00:06:59,839 Speaker 7: means for future ball players going down the road exactly. 144 00:07:00,040 --> 00:07:02,360 Speaker 5: So, I think what we can see from the Sodo deal, 145 00:07:02,440 --> 00:07:04,200 Speaker 5: he's he's very, very good. I don't think he's as 146 00:07:04,240 --> 00:07:07,360 Speaker 5: good as Alex Rodriguez was at his peak. But he's 147 00:07:07,360 --> 00:07:10,040 Speaker 5: being paid by the Mets for the next five for 148 00:07:10,080 --> 00:07:13,000 Speaker 5: the next five years, sixty million dollars a year. So, 149 00:07:13,040 --> 00:07:15,680 Speaker 5: in a way, Boris has figured out that the market 150 00:07:15,760 --> 00:07:17,920 Speaker 5: value on a maybe one or two year basis for 151 00:07:18,320 --> 00:07:20,320 Speaker 5: players in their prime and their mid to late twenties 152 00:07:20,720 --> 00:07:23,240 Speaker 5: is sixty million dollars a year. So if you're a 153 00:07:23,280 --> 00:07:26,160 Speaker 5: young player thinking about betting on yourself or taking one 154 00:07:26,200 --> 00:07:29,520 Speaker 5: of these long term, possibly team friendly deals when you're 155 00:07:29,560 --> 00:07:32,240 Speaker 5: twenty two twenty three, you've got to think, you know, 156 00:07:32,880 --> 00:07:35,000 Speaker 5: if the team's offered me twenty five thirty million dollars 157 00:07:35,040 --> 00:07:37,480 Speaker 5: and I'm twenty seven, twenty eight, twenty nine, but I 158 00:07:37,520 --> 00:07:39,760 Speaker 5: think at that point I can maybe get sixty million 159 00:07:39,840 --> 00:07:42,320 Speaker 5: or more with inflation. You've got to kind of wave 160 00:07:42,320 --> 00:07:44,160 Speaker 5: that risk reward and how likely you think it is 161 00:07:44,200 --> 00:07:46,160 Speaker 5: that you'll be worth that at that age. And so 162 00:07:46,200 --> 00:07:47,840 Speaker 5: I think that's sort of the trade off that young 163 00:07:47,840 --> 00:07:48,680 Speaker 5: players have to weigh. 164 00:07:49,320 --> 00:07:52,840 Speaker 2: Now, I'm a Detroit Tigers fan. I'm a Detroit guy. 165 00:07:53,520 --> 00:07:58,920 Speaker 2: Can't see anybody going so Here's but I gotta say, 166 00:07:59,000 --> 00:08:02,920 Speaker 2: if I'm a Detroit Tigers player, I'm kind of mad 167 00:08:02,960 --> 00:08:07,880 Speaker 2: as hell because the entire payroll for the team annually 168 00:08:08,520 --> 00:08:14,440 Speaker 2: is around eighteen point five million dollars. Now, I mean, 169 00:08:15,320 --> 00:08:18,520 Speaker 2: one Soto could my the Detroit Tigers for that ten 170 00:08:18,640 --> 00:08:19,280 Speaker 2: times over. 171 00:08:19,800 --> 00:08:19,960 Speaker 6: Well. 172 00:08:20,000 --> 00:08:21,760 Speaker 5: I think in the case of the Tigers, you had 173 00:08:21,760 --> 00:08:24,440 Speaker 5: the Miguel Cabrera contract, which was kind of one of 174 00:08:24,480 --> 00:08:27,200 Speaker 5: the reasons why teams don't want to pay thirty somethings 175 00:08:27,200 --> 00:08:30,480 Speaker 5: to long term deals because he was overweight and making whatever, 176 00:08:30,520 --> 00:08:33,360 Speaker 5: thirty forty million dollars in his late thirties, And maybe 177 00:08:33,360 --> 00:08:36,000 Speaker 5: that's one reason why ownership there has become a little 178 00:08:36,040 --> 00:08:38,319 Speaker 5: more stingy about these deals. And so I think it's 179 00:08:38,320 --> 00:08:40,959 Speaker 5: really teams have gotten a lot smarter about realizing you 180 00:08:41,000 --> 00:08:42,520 Speaker 5: want to pay guys. You want to pay them migal 181 00:08:42,600 --> 00:08:44,800 Speaker 5: Cabrera as the one Soto's when they're twenty seven, not 182 00:08:44,840 --> 00:08:45,600 Speaker 5: when they're thirty seven. 183 00:08:45,800 --> 00:08:47,920 Speaker 4: Connor, I wonder if you could also fold in some 184 00:08:48,120 --> 00:08:52,920 Speaker 4: macro factors into why teams are now basically signing these 185 00:08:52,920 --> 00:08:56,679 Speaker 4: players to these super long term contracts. Does inflation drive 186 00:08:56,760 --> 00:08:59,200 Speaker 4: long term contracts? A dollar tomorrow worth less than a 187 00:08:59,240 --> 00:09:02,920 Speaker 4: dollar today. Teams feel more comfortable shelling out big money 188 00:09:02,960 --> 00:09:05,160 Speaker 4: in the you know, in the early part of the contract. 189 00:09:05,280 --> 00:09:07,240 Speaker 5: Part of it is with the there's not a salary 190 00:09:07,280 --> 00:09:09,880 Speaker 5: cap and baseball, but there is a luxury tax. So 191 00:09:09,920 --> 00:09:12,240 Speaker 5: if you can spread out the money over more years, 192 00:09:12,240 --> 00:09:15,560 Speaker 5: you're not getting hicked by that salary or the luxury. 193 00:09:15,200 --> 00:09:15,760 Speaker 2: Tax as much. 194 00:09:15,800 --> 00:09:18,040 Speaker 5: So I don't think anybody expects Toda to be a 195 00:09:18,040 --> 00:09:20,280 Speaker 5: great player when he's forty. But if you're the Mets, 196 00:09:20,320 --> 00:09:22,520 Speaker 5: you'd rather just pay him sixty million dollars in twenty 197 00:09:22,559 --> 00:09:25,400 Speaker 5: twenty five, rather than say, seventy five million dollars and 198 00:09:25,480 --> 00:09:26,520 Speaker 5: only have him for ten years. 199 00:09:26,760 --> 00:09:28,440 Speaker 7: Connor, before I ask you this next question, I just 200 00:09:28,480 --> 00:09:30,400 Speaker 7: have to clarify for our audience and for myself as well. 201 00:09:30,440 --> 00:09:32,040 Speaker 7: You grew up in Bethesda, right, so I imagine you're 202 00:09:32,040 --> 00:09:33,920 Speaker 7: an Oriel Span and I think you live down around 203 00:09:33,960 --> 00:09:36,400 Speaker 7: the Atlanta area of Brookhaven if I'm not mistaken, which 204 00:09:36,400 --> 00:09:38,880 Speaker 7: makes you maybe a brave span. Also, before I ask 205 00:09:38,920 --> 00:09:42,359 Speaker 7: you about Stevie Cohen and the New York Mets stealing, 206 00:09:42,440 --> 00:09:45,160 Speaker 7: I mean, this is craziness. This isn't about just any 207 00:09:45,200 --> 00:09:47,720 Speaker 7: New York Yankee player bailing on the team for the Mets. 208 00:09:47,760 --> 00:09:51,280 Speaker 7: This is about Juan Soto bailing on the New York 209 00:09:51,360 --> 00:09:53,600 Speaker 7: Yankees for the Mets. Talked to us about what this 210 00:09:53,720 --> 00:09:56,199 Speaker 7: means for New York sports and for the Mets going forward. 211 00:09:56,320 --> 00:09:58,280 Speaker 5: I think it sure shows the shift in the New 212 00:09:58,360 --> 00:10:01,600 Speaker 5: York bounce of power, where, especially after the Great Financial Crisis, 213 00:10:01,600 --> 00:10:04,400 Speaker 5: the Mets were for a variety of reasons not a 214 00:10:04,400 --> 00:10:07,520 Speaker 5: position to spend big money on talent, and now with 215 00:10:07,640 --> 00:10:10,880 Speaker 5: Cohen they are, and so Cohen, you know, the Mets 216 00:10:10,880 --> 00:10:12,280 Speaker 5: are used to being a little brother in New York. 217 00:10:12,400 --> 00:10:15,960 Speaker 5: But Cohen's richer than the Yankees ownership, and he's clearly 218 00:10:16,000 --> 00:10:16,679 Speaker 5: motivated to win. 219 00:10:17,240 --> 00:10:18,000 Speaker 2: Does not care. 220 00:10:17,880 --> 00:10:20,080 Speaker 5: About staying under the luxury tax. He's like, this is 221 00:10:20,120 --> 00:10:22,080 Speaker 5: my guy, and I think part of him probably loves 222 00:10:22,080 --> 00:10:25,440 Speaker 5: the fact that the Yankees are here feeling like, you know, 223 00:10:25,640 --> 00:10:28,440 Speaker 5: their guy left for the Mets, like that's never happened before. Yeah, 224 00:10:28,480 --> 00:10:31,160 Speaker 5: I'm sure he's just loving this shift. 225 00:10:31,600 --> 00:10:34,640 Speaker 4: The Yankees GM Brian Cashman did say he has no regrets. 226 00:10:34,679 --> 00:10:37,400 Speaker 4: The team has no regrets regrets about pon Soto not 227 00:10:37,520 --> 00:10:41,640 Speaker 4: signing on with the Yankees. Connor, I wonder also about 228 00:10:41,880 --> 00:10:45,200 Speaker 4: teams having to ensure these contracts. I mean, the premiums 229 00:10:45,240 --> 00:10:48,520 Speaker 4: on these massive contracts must be getting a little bit 230 00:10:49,840 --> 00:10:52,079 Speaker 4: out of reach for the teams. How do you ensure 231 00:10:52,080 --> 00:10:54,120 Speaker 4: against something like this pictures? 232 00:10:54,280 --> 00:10:56,439 Speaker 5: I mean, sorry, hitters tend to be more durable than pitchers, 233 00:10:56,559 --> 00:10:58,640 Speaker 5: so at least he's got that going for him. It's 234 00:10:58,640 --> 00:11:00,520 Speaker 5: sort of you're not going to see a get a 235 00:11:00,520 --> 00:11:04,599 Speaker 5: fifteen year contract but hitters in general are probably a 236 00:11:04,600 --> 00:11:06,000 Speaker 5: little bit cheaper to ensure than a picture. 237 00:11:06,520 --> 00:11:09,079 Speaker 2: Now, I'm going to go back to the Yankees Mets 238 00:11:09,120 --> 00:11:10,840 Speaker 2: and why he left the Yankees. 239 00:11:10,880 --> 00:11:12,800 Speaker 7: There was a report, Yes, I know what you're going 240 00:11:12,880 --> 00:11:14,920 Speaker 7: to say, now, okay. 241 00:11:14,640 --> 00:11:17,200 Speaker 2: The Yankee said, look, we're going to give you seven 242 00:11:17,280 --> 00:11:20,120 Speaker 2: hundred and sixty million. Yeah, but no, it was the 243 00:11:20,160 --> 00:11:20,679 Speaker 2: seven sixty. 244 00:11:20,679 --> 00:11:22,280 Speaker 7: They wouldn't let his family into the stadium. Is't that 245 00:11:22,280 --> 00:11:23,880 Speaker 7: what you're going about to say? Well, there was some 246 00:11:23,880 --> 00:11:25,680 Speaker 7: something but security he wasn't happy. 247 00:11:26,160 --> 00:11:27,800 Speaker 2: Yeah, it was something like that. 248 00:11:27,640 --> 00:11:30,000 Speaker 7: That came out after the fact. So I mean, like, 249 00:11:30,160 --> 00:11:31,720 Speaker 7: you know, I mean, I kind of what do you 250 00:11:31,760 --> 00:11:33,360 Speaker 7: know what we're talking about here? Like there was some 251 00:11:33,480 --> 00:11:36,560 Speaker 7: rumor that at some point during the season, Juan Soto's 252 00:11:36,600 --> 00:11:39,440 Speaker 7: family got escorted out of Yankee Stadium and it didn't 253 00:11:39,480 --> 00:11:43,040 Speaker 7: resonate well with him obviously, and that that drove that 254 00:11:43,080 --> 00:11:44,560 Speaker 7: was a big factor in his decision to choose the 255 00:11:44,559 --> 00:11:47,040 Speaker 7: Mets of the Yankees. Any any clarity truth to that, By. 256 00:11:46,960 --> 00:11:50,080 Speaker 2: The way, seven hundred millions heard Yankees. 257 00:11:50,440 --> 00:11:52,200 Speaker 5: I hadn't heard that specific point, but I do know 258 00:11:52,240 --> 00:11:55,199 Speaker 5: that the Yankees offered him seven to sixty over sixteen 259 00:11:55,240 --> 00:11:57,839 Speaker 5: years instead of fifteen the average annel value was a 260 00:11:57,840 --> 00:12:00,199 Speaker 5: little bit different. There's a big signing bonus, which means 261 00:12:00,200 --> 00:12:03,000 Speaker 5: he's getting paid more upfront, and he can opt out 262 00:12:03,160 --> 00:12:05,920 Speaker 5: after five years, I believe, so if he's still a 263 00:12:05,920 --> 00:12:07,719 Speaker 5: great player in five years, he could opt out and 264 00:12:07,760 --> 00:12:10,600 Speaker 5: then sign another twelve year deal at even more money. 265 00:12:10,760 --> 00:12:12,840 Speaker 5: So there's a lot going for him with us Mets contract. 266 00:12:12,960 --> 00:12:15,880 Speaker 2: Hones Sin, you are the man. Thank you, sir for 267 00:12:16,000 --> 00:12:18,040 Speaker 2: joining us on the Bloomberg Business of Sports. 268 00:12:18,400 --> 00:12:19,640 Speaker 5: Thanks for having me hour. 269 00:12:19,679 --> 00:12:23,439 Speaker 2: Thanks to Bloomberg opinion columnist Connor Sin for joining us up. Next, 270 00:12:23,679 --> 00:12:28,599 Speaker 2: we turn to the newest WNBA team, the Golden State Valkyries. 271 00:12:28,800 --> 00:12:33,079 Speaker 2: For my colleagues Scarlett Fou and Damian Sasaur. I'm Michael Barr. 272 00:12:33,320 --> 00:12:37,440 Speaker 2: You're listening to the Bloomberg Business of Sports from Bloomberg Radio. 273 00:12:37,600 --> 00:12:38,960 Speaker 2: Around the world. 274 00:12:51,200 --> 00:12:55,319 Speaker 1: You're listening to Bloomberg Business of Sports from Bloomberg Radio. 275 00:12:56,559 --> 00:12:59,040 Speaker 2: This is the Bloomberg Business of Sports where we explore 276 00:12:59,080 --> 00:13:02,280 Speaker 2: the big money issues world of sports. Michael Barr, Scarlett 277 00:13:02,360 --> 00:13:06,000 Speaker 2: Fu and Damian Sasaur. We'll be back a bit later 278 00:13:06,040 --> 00:13:10,400 Speaker 2: in the program. Join him. Mcnow is Bloomberg original sports 279 00:13:10,400 --> 00:13:16,520 Speaker 2: correspondent Vanessa Perdomo. The WNBA's newest franchise is the Golden 280 00:13:16,520 --> 00:13:19,880 Speaker 2: State Valkyries, and joining us now to talk about the 281 00:13:20,000 --> 00:13:26,600 Speaker 2: club's fresh expansion draft is the general manager Ohema Nayanan 282 00:13:26,960 --> 00:13:31,480 Speaker 2: and head coach Natalie Nakassi. Well, folks, welcome to the 283 00:13:31,520 --> 00:13:35,680 Speaker 2: Bloomberg business of sports. We are so appreciative, and first 284 00:13:35,679 --> 00:13:40,960 Speaker 2: of all, we are congratulations because the Valkyries are going 285 00:13:41,000 --> 00:13:44,160 Speaker 2: to do some damage here I can see coming up. 286 00:13:44,280 --> 00:13:46,760 Speaker 2: So I'm going to start this one, if I may, 287 00:13:47,360 --> 00:13:52,120 Speaker 2: with coach Natalie Nicasse, because I enjoyed what you said 288 00:13:52,160 --> 00:13:55,560 Speaker 2: when you were going through the initial draft to get 289 00:13:55,559 --> 00:13:58,240 Speaker 2: the players and you were asked as like, well, what 290 00:13:58,240 --> 00:14:00,520 Speaker 2: are you looking for in your players, and coach you 291 00:14:00,559 --> 00:14:04,320 Speaker 2: said they better hit some threes. So can you expand 292 00:14:04,360 --> 00:14:04,959 Speaker 2: more on that? 293 00:14:05,760 --> 00:14:08,600 Speaker 9: Yeah, no, I mean you can win by getting the basket. 294 00:14:08,720 --> 00:14:10,000 Speaker 1: The ball in the basket, right. 295 00:14:11,679 --> 00:14:14,040 Speaker 9: No, we want to play, you know, we want to 296 00:14:14,040 --> 00:14:16,720 Speaker 9: play fast paced. We want to play selfless. So you know, 297 00:14:16,760 --> 00:14:19,840 Speaker 9: imagine you're on the court and if you got two defenders, 298 00:14:20,200 --> 00:14:23,520 Speaker 9: pass it because someone else is open, right, And we 299 00:14:23,560 --> 00:14:25,840 Speaker 9: want to take quality shots, like I really believe in 300 00:14:25,880 --> 00:14:29,400 Speaker 9: taking quality shots over quantity, and then that's what I'm saying, 301 00:14:29,480 --> 00:14:31,080 Speaker 9: is like, we got to make threes, but if they're 302 00:14:31,200 --> 00:14:33,720 Speaker 9: quality threes, if they're open threes, those are the ones 303 00:14:33,720 --> 00:14:34,120 Speaker 9: we want. 304 00:14:35,040 --> 00:14:35,280 Speaker 6: Yeah. 305 00:14:35,320 --> 00:14:38,400 Speaker 10: Absolutely. You know obviously, you guys just had your expansion 306 00:14:38,480 --> 00:14:40,560 Speaker 10: draft and so you finally are starting to get players 307 00:14:40,600 --> 00:14:43,000 Speaker 10: in the building. Oh Imma, you've been part of the 308 00:14:43,040 --> 00:14:46,400 Speaker 10: team now since since May, so about seven months of 309 00:14:46,560 --> 00:14:49,440 Speaker 10: not having any players. You know, I'm curious like what 310 00:14:49,520 --> 00:14:52,160 Speaker 10: those first few months were for you, and you know 311 00:14:52,240 --> 00:14:55,440 Speaker 10: those conversations between you and Jess about how to build 312 00:14:55,440 --> 00:14:57,920 Speaker 10: out a brand in the early days that she obviously 313 00:14:58,000 --> 00:14:59,960 Speaker 10: did it at angel City and the NWSLF. So how 314 00:15:00,320 --> 00:15:02,640 Speaker 10: how are those early days for you and building out 315 00:15:02,640 --> 00:15:04,280 Speaker 10: a team without having a team. 316 00:15:04,680 --> 00:15:08,600 Speaker 11: Great question. I let just do all things business, which 317 00:15:08,640 --> 00:15:14,600 Speaker 11: includes brands and marketing, and she hired a staff that 318 00:15:14,760 --> 00:15:17,320 Speaker 11: is elite, as you can tell from our colors and 319 00:15:17,320 --> 00:15:21,840 Speaker 11: our all of our different logos, which allowed me not 320 00:15:22,080 --> 00:15:24,720 Speaker 11: to have to even think about that, right, So my 321 00:15:24,760 --> 00:15:31,000 Speaker 11: first couple of months were higher with as much intentionality 322 00:15:31,040 --> 00:15:36,160 Speaker 11: as possible. So I hired Fanya Tchernovets. She was the 323 00:15:36,400 --> 00:15:40,600 Speaker 11: GM of the London Lions who just recently won the 324 00:15:40,680 --> 00:15:44,400 Speaker 11: yuro Old Cup about seven months ago or eight months 325 00:15:44,440 --> 00:15:47,960 Speaker 11: ago now, and asked her to become my VP of 326 00:15:48,000 --> 00:15:53,440 Speaker 11: Ops and she said yes, thankfully. And her and I 327 00:15:53,480 --> 00:15:56,520 Speaker 11: have just been on this journey of you know, hiring 328 00:15:57,040 --> 00:16:00,240 Speaker 11: as many people as possible and all the different worlds 329 00:16:00,320 --> 00:16:03,880 Speaker 11: that we're going to need. And you know, the big 330 00:16:05,000 --> 00:16:09,760 Speaker 11: public one was to hire a coach, and we were 331 00:16:09,800 --> 00:16:13,400 Speaker 11: so fortunate that number one coach nally picked up the 332 00:16:13,440 --> 00:16:18,240 Speaker 11: phone and too she said yes after a pretty intense 333 00:16:18,560 --> 00:16:24,120 Speaker 11: uh search as well. And you know, from there then 334 00:16:24,800 --> 00:16:27,800 Speaker 11: the blank slate, you know, started to take shape a 335 00:16:27,840 --> 00:16:30,480 Speaker 11: little bit with a little bit of color, because these 336 00:16:30,480 --> 00:16:35,280 Speaker 11: are two individuals that I think that, uh, this organization 337 00:16:35,480 --> 00:16:41,280 Speaker 11: will grow organically, authentically and the most competitively because of 338 00:16:41,400 --> 00:16:45,800 Speaker 11: their breath of experience and their prior. 339 00:16:47,000 --> 00:16:47,400 Speaker 2: Jobs. 340 00:16:47,960 --> 00:16:51,960 Speaker 11: And then you know, all eyes were to how do 341 00:16:52,000 --> 00:17:01,560 Speaker 11: we create the most inclusive welcoming experience for our athletes 342 00:17:03,240 --> 00:17:07,840 Speaker 11: that other duties as assigned construction manager, Right, we have 343 00:17:08,880 --> 00:17:13,639 Speaker 11: a practice facility that's getting refurbished. They're building us a 344 00:17:13,640 --> 00:17:18,040 Speaker 11: brand new locker room at the Chase Center which is 345 00:17:18,080 --> 00:17:23,560 Speaker 11: only five years old. So and then all of a sudden, 346 00:17:23,800 --> 00:17:27,160 Speaker 11: like we need to bring players in. So it's been 347 00:17:27,359 --> 00:17:31,000 Speaker 11: an interesting seven months. I would say no day is 348 00:17:31,119 --> 00:17:37,320 Speaker 11: the same, and that's exactly why I took the opportunity. 349 00:17:37,400 --> 00:17:41,240 Speaker 2: I want to start with general manager Ohima and then 350 00:17:41,480 --> 00:17:45,880 Speaker 2: also with coach Nicasse in that order. And I want 351 00:17:45,880 --> 00:17:49,760 Speaker 2: to bring a math problem. See, the Chase Center has 352 00:17:49,840 --> 00:17:55,000 Speaker 2: a capacity of eighteen thousand people. You have already surpassed 353 00:17:55,800 --> 00:18:01,600 Speaker 2: twenty thousand season ticket deposits already now the last time. 354 00:18:01,720 --> 00:18:05,639 Speaker 2: Now I'm no algebra fans, but the last time I checked, 355 00:18:05,840 --> 00:18:08,120 Speaker 2: that's a great math problem to have. 356 00:18:09,720 --> 00:18:18,600 Speaker 11: Indeed, and yeah, again I'm going to let Jess and 357 00:18:18,680 --> 00:18:23,600 Speaker 11: her folks figure out that math. I think, you know, 358 00:18:24,040 --> 00:18:28,879 Speaker 11: to have twenty thousand and close to twenty one thousand 359 00:18:29,040 --> 00:18:33,000 Speaker 11: now individuals who are just waiting online to buy season 360 00:18:33,080 --> 00:18:38,120 Speaker 11: tickets is a testament to how hungry the Bay is 361 00:18:38,320 --> 00:18:42,160 Speaker 11: for a WNBA team. And I think that that number, 362 00:18:43,200 --> 00:18:47,080 Speaker 11: while it is over capacity, Jess and her team are 363 00:18:47,119 --> 00:18:47,840 Speaker 11: going to figure it out. 364 00:18:50,080 --> 00:18:52,800 Speaker 9: Yeah, have you guys ever been in a suite? So 365 00:18:54,880 --> 00:18:57,800 Speaker 9: all the pack those suites because you know, there's some 366 00:18:57,920 --> 00:19:00,440 Speaker 9: sitting and then there's some standing and then some people 367 00:19:00,440 --> 00:19:01,480 Speaker 9: eating food and drinks. 368 00:19:01,880 --> 00:19:04,840 Speaker 10: So I would love to come to the suite at 369 00:19:04,880 --> 00:19:07,960 Speaker 10: Chase Center actually free Valkyries game, So please extend the invitation. 370 00:19:08,040 --> 00:19:12,920 Speaker 10: Tis love to come. Oh great, Natalie, you know, I'd 371 00:19:12,920 --> 00:19:16,000 Speaker 10: love to hear from you on this side of you know, 372 00:19:16,520 --> 00:19:21,360 Speaker 10: after the draft and realizing has this you know, has 373 00:19:21,359 --> 00:19:23,880 Speaker 10: this sunk in for you? That the over the last 374 00:19:23,920 --> 00:19:25,560 Speaker 10: few years, you know, one of the concerns of the 375 00:19:25,640 --> 00:19:27,359 Speaker 10: league has been there's only been one hundred and forty 376 00:19:27,359 --> 00:19:30,040 Speaker 10: four roster spots, right and now with you guys coming 377 00:19:30,080 --> 00:19:33,800 Speaker 10: on board officially now officially drafting new people new and 378 00:19:33,920 --> 00:19:37,680 Speaker 10: having more spots, there are places for more talent in 379 00:19:38,200 --> 00:19:40,160 Speaker 10: the league. Has that sunk in for you? And what's 380 00:19:40,200 --> 00:19:43,240 Speaker 10: the impact of that being able to have more players 381 00:19:43,280 --> 00:19:44,760 Speaker 10: in this league? 382 00:19:45,320 --> 00:19:48,040 Speaker 9: Yeah, I think that's a great opportunity for more women, 383 00:19:48,160 --> 00:19:51,440 Speaker 9: just because it's hard to make cuts in our training camp. 384 00:19:51,520 --> 00:19:54,520 Speaker 9: It is really hard, like we battle on who are 385 00:19:54,640 --> 00:19:57,040 Speaker 9: the last three or four players? And so I think 386 00:19:57,080 --> 00:19:59,560 Speaker 9: it's great that we have more space. We have more 387 00:19:59,560 --> 00:20:01,800 Speaker 9: space for coaches, we have more space for the front office. 388 00:20:01,800 --> 00:20:05,280 Speaker 9: I think it's great and we're going through you know, 389 00:20:05,320 --> 00:20:08,600 Speaker 9: the international now bringing more international players over. I think 390 00:20:08,640 --> 00:20:11,560 Speaker 9: that is really good because there's so much talent over there, 391 00:20:12,000 --> 00:20:14,320 Speaker 9: and so we just want to be really inclusive and 392 00:20:14,440 --> 00:20:15,920 Speaker 9: just this make this league grow. 393 00:20:18,720 --> 00:20:23,160 Speaker 2: One player that has really expanded the exposure to the 394 00:20:23,280 --> 00:20:28,639 Speaker 2: w NBA, of course, has been Caitlin Clark and whoever 395 00:20:28,640 --> 00:20:32,040 Speaker 2: would like to comment on it. Time Magazine has named 396 00:20:32,040 --> 00:20:37,840 Speaker 2: her Athlete of the Year, and that's doing something. Can 397 00:20:37,920 --> 00:20:40,120 Speaker 2: either one of you guys comment on that and what 398 00:20:40,160 --> 00:20:42,840 Speaker 2: the exposure means for the WNBA? 399 00:20:44,119 --> 00:20:49,000 Speaker 11: Yeah, I mean I worked with Caitlyn with my tenure 400 00:20:49,040 --> 00:20:51,439 Speaker 11: at USA Basketball, so I've known her since she was 401 00:20:51,480 --> 00:20:56,000 Speaker 11: fifteen years old and to see her growth to be 402 00:20:56,280 --> 00:21:01,840 Speaker 11: named such a prestigious award is is just a testament 403 00:21:01,920 --> 00:21:05,040 Speaker 11: to her and her work ethic, and she's done it 404 00:21:05,080 --> 00:21:09,080 Speaker 11: with so much grace. She's unapologetic of you know who 405 00:21:09,119 --> 00:21:13,359 Speaker 11: she is. I would say this rookie class has brought 406 00:21:13,400 --> 00:21:16,159 Speaker 11: a lot of new eyeballs to the w n b 407 00:21:16,280 --> 00:21:23,880 Speaker 11: A and we're grateful for that. And there are athletes 408 00:21:24,160 --> 00:21:26,639 Speaker 11: currently in the w n b A that have also 409 00:21:28,040 --> 00:21:35,399 Speaker 11: had similar careers, right, and so the the collaboration of 410 00:21:35,440 --> 00:21:38,440 Speaker 11: the two, I think that there's like a world for both, right, 411 00:21:39,640 --> 00:21:43,000 Speaker 11: and we're just happy that we get to work with 412 00:21:43,040 --> 00:21:48,280 Speaker 11: these athletes, either with them or against them. Uh in 413 00:21:48,359 --> 00:21:50,320 Speaker 11: the w n b A, which is the best league 414 00:21:50,320 --> 00:21:50,760 Speaker 11: in the world. 415 00:21:51,280 --> 00:21:53,639 Speaker 9: I just wanted to add lean and agree with Ohama 416 00:21:53,720 --> 00:21:56,320 Speaker 9: like she's a generational talent. I mean that word is 417 00:21:56,320 --> 00:21:59,040 Speaker 9: just going to carry on as she goes because she's 418 00:21:59,080 --> 00:22:01,200 Speaker 9: been bringing so many to the game and that has 419 00:22:01,240 --> 00:22:04,119 Speaker 9: helped us tremendously. But I think what kind of hasn't 420 00:22:04,160 --> 00:22:06,520 Speaker 9: been talked maybe enough about, is just her handle with 421 00:22:06,840 --> 00:22:09,320 Speaker 9: the grace of all the pressure that she's kind of 422 00:22:09,359 --> 00:22:13,639 Speaker 9: been all every day she's doing interviews. I mean, you know, 423 00:22:13,720 --> 00:22:16,399 Speaker 9: with we have Kate Martin who had to have a 424 00:22:16,440 --> 00:22:18,880 Speaker 9: ton of interviews as well, you know, just because of 425 00:22:19,040 --> 00:22:22,200 Speaker 9: the Iowa connection and all the viewership that they got 426 00:22:22,200 --> 00:22:24,640 Speaker 9: with Iowa and just watching them go through it. It's 427 00:22:24,680 --> 00:22:27,320 Speaker 9: just it's a lot, you know, every day, just imagine, 428 00:22:27,359 --> 00:22:30,520 Speaker 9: I mean doing this every day. So just handling herself 429 00:22:30,520 --> 00:22:32,280 Speaker 9: with grace, I think, you know, she should get a 430 00:22:32,320 --> 00:22:33,120 Speaker 9: lot of credit for that. 431 00:22:33,280 --> 00:22:35,119 Speaker 10: I one of the things I'd love to talk to 432 00:22:35,160 --> 00:22:38,880 Speaker 10: you guys both about and you both come from interesting places, 433 00:22:38,960 --> 00:22:41,760 Speaker 10: right and Natalie, you were just the aces Ohama. You 434 00:22:41,800 --> 00:22:44,199 Speaker 10: were just at the Liberty two of the best, you know, 435 00:22:44,280 --> 00:22:48,160 Speaker 10: franchises over the last few years, most successful, and that 436 00:22:48,240 --> 00:22:51,520 Speaker 10: also means successful in ownership. And they have both really 437 00:22:51,520 --> 00:22:55,760 Speaker 10: great ownership that you know has transcended the Size obviously 438 00:22:55,880 --> 00:22:58,080 Speaker 10: or like I would say, cream of the crop. This 439 00:22:58,119 --> 00:23:00,520 Speaker 10: is me as a Liberty fan, but they're the crop 440 00:23:00,520 --> 00:23:03,080 Speaker 10: when it comes to investing into this league, investing into 441 00:23:03,080 --> 00:23:07,400 Speaker 10: women's sports before it was really the cool thing to do, right. So, Haima, 442 00:23:07,520 --> 00:23:10,479 Speaker 10: can you really talk to me about that about working 443 00:23:10,520 --> 00:23:13,400 Speaker 10: with ownership and do you see that ownership with Joe 444 00:23:13,440 --> 00:23:15,640 Speaker 10: lacub and this organization the Valkyries. 445 00:23:16,160 --> 00:23:21,239 Speaker 11: Yeah, the ownership group I've just I have had the 446 00:23:21,280 --> 00:23:24,760 Speaker 11: privilege of working with probably the two best ownership groups 447 00:23:25,680 --> 00:23:29,119 Speaker 11: and in the w you know, Natalie can will add 448 00:23:29,160 --> 00:23:33,440 Speaker 11: to that as well from her experience. What I will 449 00:23:33,480 --> 00:23:38,639 Speaker 11: say is, first and foremost, each of the owners that 450 00:23:38,680 --> 00:23:43,200 Speaker 11: I've worked with, both the Size and mister Joe, they're 451 00:23:43,240 --> 00:23:49,720 Speaker 11: passionate humans. They care, uh, they are very intentional with 452 00:23:51,160 --> 00:23:58,159 Speaker 11: their dollars, and they're unapologetic about their sheer joy of 453 00:23:58,720 --> 00:24:07,159 Speaker 11: investing in women's women's sports more specifically, and they in 454 00:24:07,200 --> 00:24:11,200 Speaker 11: addition though allow us to do our jobs right. They 455 00:24:11,280 --> 00:24:16,719 Speaker 11: are collaborative humans. They understand that we are the experts 456 00:24:16,760 --> 00:24:21,600 Speaker 11: in this in this field, and they provide the confidence 457 00:24:21,640 --> 00:24:25,680 Speaker 11: that we need on days that may not go as well, 458 00:24:25,840 --> 00:24:28,240 Speaker 11: to tell us, you know, like brush it off and 459 00:24:28,359 --> 00:24:34,000 Speaker 11: keep it going. And I was nervous, to be quite honest, 460 00:24:34,640 --> 00:24:39,000 Speaker 11: leaving the Liberty having had all the relationships that I 461 00:24:39,080 --> 00:24:44,119 Speaker 11: had for five years, and then coming to the Golden 462 00:24:44,160 --> 00:24:49,680 Speaker 11: State Valkyries, and throughout my interview process, all the individuals 463 00:24:49,680 --> 00:24:53,399 Speaker 11: that I met just showed me that you you can 464 00:24:54,560 --> 00:24:57,520 Speaker 11: leave a good thing and walk into another good thing. 465 00:24:59,000 --> 00:25:04,359 Speaker 11: And seven months later, I don't even know why it 466 00:25:04,440 --> 00:25:07,240 Speaker 11: was nervous, because it's just been such a seamless transition. 467 00:25:08,119 --> 00:25:12,360 Speaker 2: Our thanks to Golden State Valkyries general manager Ohema Nyanen 468 00:25:12,480 --> 00:25:17,040 Speaker 2: and head coach Natalie Nakassi for joining us. Up next 469 00:25:17,119 --> 00:25:19,879 Speaker 2: on the show, we turned to private equity in the 470 00:25:20,000 --> 00:25:25,000 Speaker 2: sports world with Velocity Capitol Management founding partner David Abrams. 471 00:25:25,080 --> 00:25:28,719 Speaker 2: His firm just entered a unique deal with the Texas 472 00:25:28,760 --> 00:25:33,200 Speaker 2: Permanent School Fund for my colleagues Scarlett Food, Damien Sasaur, 473 00:25:33,359 --> 00:25:37,080 Speaker 2: and Vanessa Perdomo. I'm Michael Barr. You're listening to the 474 00:25:37,119 --> 00:25:41,639 Speaker 2: Bloomberg Business of Sports from Bloomberg Radio. Around the world. 475 00:25:47,359 --> 00:25:51,520 Speaker 1: You're listening to Bloomberg Business of Sports from Bloomberg Radio. 476 00:25:53,040 --> 00:25:55,399 Speaker 2: Thanks for joining us on the Bloomberg Business of Sports, 477 00:25:55,440 --> 00:25:58,280 Speaker 2: where we explore the big money issues and world of sports. 478 00:25:58,280 --> 00:26:01,720 Speaker 2: I'm Michael Barr, along with my colleagues Scarlett Fou and 479 00:26:01,960 --> 00:26:02,960 Speaker 2: Damien Sasover. 480 00:26:03,280 --> 00:26:05,919 Speaker 4: And this week NFL league owners approve the sale of 481 00:26:05,960 --> 00:26:08,760 Speaker 4: two teams selling ten percent stakes to private equity firms. 482 00:26:08,760 --> 00:26:11,000 Speaker 7: That's right, Scarlett. The Buffalo bill sold a ten percent 483 00:26:11,040 --> 00:26:14,040 Speaker 7: stake to Arctos Partners and the Miami Dolphins sold a 484 00:26:14,080 --> 00:26:16,000 Speaker 7: ten percent stake to Aris Management. 485 00:26:16,400 --> 00:26:19,600 Speaker 2: And we're expecting a lot more similar moves down the 486 00:26:19,680 --> 00:26:22,520 Speaker 2: road as more private equity firms look to get a 487 00:26:22,560 --> 00:26:25,439 Speaker 2: foothold in sports. Here now to take us through the 488 00:26:25,440 --> 00:26:29,400 Speaker 2: growth of private equity in sports is Velocity Capital Management 489 00:26:29,560 --> 00:26:31,680 Speaker 2: founding partner David Abrams. 490 00:26:31,760 --> 00:26:34,879 Speaker 4: We're also joined by Texas Permanent School Fund CEO and 491 00:26:35,040 --> 00:26:40,119 Speaker 4: CIO Bob Borden, who recently invested into Velocity's flagship opportunity fund. 492 00:26:40,760 --> 00:26:44,320 Speaker 2: David, Bob, Welcome to the Bloomberg Business of Sports. 493 00:26:44,480 --> 00:26:45,560 Speaker 12: Thank you for having us. 494 00:26:45,800 --> 00:26:48,640 Speaker 2: I'm going to start with David if I may, the 495 00:26:48,840 --> 00:26:54,520 Speaker 2: Velocity Capital Management founding partner. This must be great news 496 00:26:54,680 --> 00:26:57,880 Speaker 2: because we're going to see more and more of this, 497 00:26:58,600 --> 00:27:05,480 Speaker 2: of the capital of the small equities coming in and 498 00:27:05,520 --> 00:27:10,320 Speaker 2: eventually maybe we can afford some of these big old two, three, 499 00:27:10,480 --> 00:27:12,320 Speaker 2: four billion dollar teams. 500 00:27:12,520 --> 00:27:16,439 Speaker 12: Well, we are both humbled and grateful for our partnership 501 00:27:16,440 --> 00:27:20,800 Speaker 12: with Bob and the Texas Permanent School Fund Corporation. Bob 502 00:27:20,800 --> 00:27:22,639 Speaker 12: will talk a little bit about our history and some 503 00:27:22,720 --> 00:27:25,439 Speaker 12: of the things we've done together, but we really believe 504 00:27:25,480 --> 00:27:30,120 Speaker 12: that this is the first time that we've seen where 505 00:27:30,160 --> 00:27:34,240 Speaker 12: an institutional allocator has said we don't want to just 506 00:27:34,320 --> 00:27:37,600 Speaker 12: invest in a specific fund and be in private equity 507 00:27:37,680 --> 00:27:41,480 Speaker 12: or credit, but we want to build a platform to 508 00:27:41,600 --> 00:27:46,160 Speaker 12: take advantage of the disruption and commercialization we're seeing across 509 00:27:46,240 --> 00:27:50,760 Speaker 12: the broader entertainment, sports, and media ecosystem. And with the 510 00:27:50,800 --> 00:27:54,400 Speaker 12: partnership we have, we think that we can be of 511 00:27:54,600 --> 00:28:00,520 Speaker 12: an operationally intensive partner for the middle market, which where 512 00:28:00,520 --> 00:28:04,040 Speaker 12: we believe there's, you know, the most attractive risk adjusted opportunities. 513 00:28:04,600 --> 00:28:06,720 Speaker 4: So, Bob, let me bring you into the conversation. What 514 00:28:06,840 --> 00:28:09,919 Speaker 4: have you seen take place in this sector that convinced 515 00:28:09,960 --> 00:28:12,919 Speaker 4: you that you want to bring the Texas PSF into 516 00:28:13,320 --> 00:28:16,359 Speaker 4: this part of the business. Was it a specific deal, 517 00:28:16,560 --> 00:28:17,720 Speaker 4: was it a specific sport? 518 00:28:18,680 --> 00:28:21,520 Speaker 8: Well, you know, when I look at it over a 519 00:28:21,560 --> 00:28:24,560 Speaker 8: long period of time, you know this this really evolved 520 00:28:24,560 --> 00:28:29,919 Speaker 8: from you know, franchises that were owned by dynasty families 521 00:28:29,960 --> 00:28:33,560 Speaker 8: for decades on ends, and really the revenue sources were 522 00:28:33,600 --> 00:28:37,320 Speaker 8: primarily around you know, cable television contracts. And now we 523 00:28:37,400 --> 00:28:41,040 Speaker 8: have a brave new world of all kinds of delivery 524 00:28:41,120 --> 00:28:45,479 Speaker 8: of the experience, not only through media and streaming, but 525 00:28:45,520 --> 00:28:52,920 Speaker 8: through surrounding entertainment and functions broader around the entire sports event. 526 00:28:53,800 --> 00:29:00,080 Speaker 8: And it's really a disruption of an ancient model that 527 00:29:00,600 --> 00:29:04,880 Speaker 8: is creating a world of opportunity. And it's still in 528 00:29:04,920 --> 00:29:09,360 Speaker 8: its nascent stages of you know, what are ultimately going 529 00:29:09,400 --> 00:29:16,080 Speaker 8: to be the best mechanisms to monetize the entire experience. 530 00:29:16,320 --> 00:29:22,360 Speaker 8: And David's assembled a top flight team. And David and 531 00:29:22,360 --> 00:29:25,280 Speaker 8: I have experienced going back to the great financial Crisis, 532 00:29:25,320 --> 00:29:28,719 Speaker 8: that has given me great confidence in his ability to execute. 533 00:29:29,440 --> 00:29:33,600 Speaker 8: And you know, I think that's it's a good time 534 00:29:33,680 --> 00:29:38,080 Speaker 8: to really assemble teams and back them with capital while 535 00:29:38,120 --> 00:29:42,920 Speaker 8: there is this consolidation opportunity in this sector. 536 00:29:43,600 --> 00:29:46,040 Speaker 7: Well, Bob, our audience, we know David all too well. 537 00:29:46,080 --> 00:29:48,280 Speaker 7: We know him from Harris Blitzer and Apollo. I mean, 538 00:29:48,320 --> 00:29:49,960 Speaker 7: forget about David. We want to hear more about you, 539 00:29:50,000 --> 00:29:51,680 Speaker 7: and we need to bring you in properly. You're the 540 00:29:51,720 --> 00:29:54,880 Speaker 7: CEO and CIO of the fifty two billion dollar Beast, 541 00:29:54,960 --> 00:29:58,440 Speaker 7: the Texas Permanent Fund, and you're investing in a sports 542 00:29:58,480 --> 00:30:01,800 Speaker 7: focused private equity and I'm going to pitch yourself. Well, Bob, 543 00:30:01,840 --> 00:30:05,240 Speaker 7: I really am here. Collar Capital saying eighty one percent 544 00:30:05,240 --> 00:30:08,680 Speaker 7: they surveyed one point nine trillion in assets under management 545 00:30:08,680 --> 00:30:11,760 Speaker 7: pension funds like yourself, eighty one percent reported the risks 546 00:30:11,760 --> 00:30:14,360 Speaker 7: of sports funds are too great, too great to invest 547 00:30:14,360 --> 00:30:16,320 Speaker 7: in these trophy assets as you put them. Talk to 548 00:30:16,440 --> 00:30:18,920 Speaker 7: us about what makes Velocity different in your mind? 549 00:30:19,880 --> 00:30:22,760 Speaker 8: Yeah, well, yeah, the risks of doing it with the 550 00:30:22,800 --> 00:30:27,200 Speaker 8: wrong team are certainly high. And I that's not a pun. 551 00:30:28,360 --> 00:30:32,120 Speaker 8: I mean the you know, the wrong management group. You know, 552 00:30:32,160 --> 00:30:35,520 Speaker 8: this is somewhat analogous to the early days of you know, 553 00:30:36,080 --> 00:30:38,120 Speaker 8: internet search engines, you know, and there was a lot 554 00:30:38,200 --> 00:30:43,800 Speaker 8: of viable ideas and competitors, but you know, once the 555 00:30:43,800 --> 00:30:46,200 Speaker 8: industry really coalesced. You know, you had two or three 556 00:30:46,400 --> 00:30:52,560 Speaker 8: obvious leaders. It's also a very bifurcated industry. You know 557 00:30:52,720 --> 00:30:55,520 Speaker 8: where at the very you know top, you have these 558 00:30:55,600 --> 00:30:58,560 Speaker 8: you know, multi billion dollars you said earlier, two or 559 00:30:58,560 --> 00:31:00,400 Speaker 8: three billion. I think the check size is now are 560 00:31:00,440 --> 00:31:02,640 Speaker 8: going to be five to ten billion for certainly for 561 00:31:02,800 --> 00:31:07,680 Speaker 8: NFL franchises. And that's hard to play in because you know, 562 00:31:07,720 --> 00:31:11,400 Speaker 8: they're big checks and very liquid. But all of the 563 00:31:11,440 --> 00:31:17,480 Speaker 8: infrastructure in and around major sporting events has got a 564 00:31:17,480 --> 00:31:23,640 Speaker 8: great opportunity for consolidation and scale, and you know, Velocities 565 00:31:23,640 --> 00:31:25,320 Speaker 8: put together a really good team. 566 00:31:25,640 --> 00:31:27,000 Speaker 7: Well, Bob, I think you can hit the nail on 567 00:31:27,000 --> 00:31:29,400 Speaker 7: the head here. You're not buying a sports franchise per se, 568 00:31:29,440 --> 00:31:33,040 Speaker 7: You're buying into Velocity in their holdings like Parrella Motorsports, Elevate. 569 00:31:33,120 --> 00:31:34,760 Speaker 7: David tell us a little bit about what's going on 570 00:31:34,800 --> 00:31:37,120 Speaker 7: with X Games, some of the you know, portfolio holdings, 571 00:31:37,200 --> 00:31:39,560 Speaker 7: how the fund is structured, and you know what lies ahead. 572 00:31:40,320 --> 00:31:43,600 Speaker 12: Well, I think Elevate is a perfect example of this 573 00:31:43,680 --> 00:31:47,000 Speaker 12: partnership and why we're so excited. There was some news 574 00:31:47,000 --> 00:31:51,600 Speaker 12: out the other day about both Velocity and Texas Permanent 575 00:31:51,600 --> 00:31:55,479 Speaker 12: School Fund and Levy putting significant capital on the balance sheet. 576 00:31:55,800 --> 00:31:58,960 Speaker 12: But I think one of the big differentiators of this 577 00:31:59,040 --> 00:32:04,640 Speaker 12: partnership is how Texas Permanent School Fund is not just 578 00:32:05,320 --> 00:32:08,280 Speaker 12: a typical asset allocator. And the reason they'll bring that 579 00:32:08,400 --> 00:32:12,480 Speaker 12: up is we have the ability to provide holistic solutions 580 00:32:12,840 --> 00:32:16,720 Speaker 12: to various intellectual property rights holders. And if I think 581 00:32:16,720 --> 00:32:19,680 Speaker 12: about Elevate, you know, one of the big initiatives for 582 00:32:19,800 --> 00:32:24,160 Speaker 12: us as a company is what the disruption is going 583 00:32:24,240 --> 00:32:28,880 Speaker 12: to lead to in college athletics, and so there's lots 584 00:32:28,920 --> 00:32:30,640 Speaker 12: of different ways to figure out how to work with 585 00:32:30,680 --> 00:32:33,840 Speaker 12: the university, whether it's the NIL space, whether it's helping 586 00:32:33,880 --> 00:32:38,800 Speaker 12: build the stadium, whether it's helping monetize their ticketing inventory. 587 00:32:39,640 --> 00:32:42,920 Speaker 12: Elevate can do a lot of different things, but Texas 588 00:32:42,920 --> 00:32:47,680 Speaker 12: Permanent School Fund can provide capital that's private equity oriented, credit, 589 00:32:47,960 --> 00:32:51,120 Speaker 12: real estate, and do let Bob to talk about the 590 00:32:51,200 --> 00:32:55,400 Speaker 12: last point, which is the name permanent is there for 591 00:32:55,480 --> 00:32:59,880 Speaker 12: a reason because it's permanent capital where you can hold 592 00:32:59,880 --> 00:33:04,520 Speaker 12: an asset for thirty years. There's very few examples of 593 00:33:04,680 --> 00:33:08,760 Speaker 12: other investment firms who have had access to that capital, 594 00:33:09,240 --> 00:33:12,120 Speaker 12: and that allows us to solve problems for rights holders. 595 00:33:12,560 --> 00:33:15,320 Speaker 8: Well, you know, I was mentioned earlier, what you know 596 00:33:15,440 --> 00:33:19,760 Speaker 8: our peers do. We're the largest educational endowment in the 597 00:33:19,800 --> 00:33:27,400 Speaker 8: country and actually knocking on sixty billion today. The lessons 598 00:33:27,440 --> 00:33:29,760 Speaker 8: that I learned over the years when you've got you know, 599 00:33:30,480 --> 00:33:33,840 Speaker 8: good partners and investment firms, and I think that you know, 600 00:33:33,920 --> 00:33:37,520 Speaker 8: we're where my peers have you know, left a lot 601 00:33:37,520 --> 00:33:41,400 Speaker 8: of meat on the bone. Is putting everything in boxes, 602 00:33:41,600 --> 00:33:44,959 Speaker 8: you know, hiring talented firms to manage one, you know, 603 00:33:45,200 --> 00:33:49,200 Speaker 8: very narrowly defined aspect of the fund, and you know, 604 00:33:49,280 --> 00:33:51,640 Speaker 8: kind of report back on that. And I found that, 605 00:33:51,760 --> 00:33:54,040 Speaker 8: you know, there's incredible talent at some of these firms, 606 00:33:54,040 --> 00:33:57,240 Speaker 8: and they're doing a lot of interesting things, not just 607 00:33:57,480 --> 00:33:59,720 Speaker 8: the little slice that you may have hired them for. 608 00:34:00,760 --> 00:34:03,720 Speaker 8: Necessity being the mother of invention. In the mid two thousands, 609 00:34:03,760 --> 00:34:07,520 Speaker 8: I was tapped to run the South Carolina Investment Commission. 610 00:34:07,600 --> 00:34:11,280 Speaker 8: It was thirty five billion dollars and I was hired 611 00:34:11,320 --> 00:34:13,960 Speaker 8: and given an attorney and an admin and said, build 612 00:34:13,960 --> 00:34:21,480 Speaker 8: a cutting edge endowment style pension solution. And I realized 613 00:34:21,520 --> 00:34:24,640 Speaker 8: that we were going to have to really leverage partners 614 00:34:24,760 --> 00:34:27,160 Speaker 8: a lot more than have traditionally been done, and by 615 00:34:27,160 --> 00:34:30,319 Speaker 8: providing more free form capital that can be put to use, 616 00:34:30,440 --> 00:34:34,160 Speaker 8: and not only in funds, but in co investments, direct investments, 617 00:34:34,640 --> 00:34:40,000 Speaker 8: both in debt, inequity and real assets, seating platforms, et cetera. 618 00:34:40,440 --> 00:34:44,360 Speaker 8: A much more fungible form of capital that makes you 619 00:34:44,840 --> 00:34:50,000 Speaker 8: a true partner with that group is a key to success. 620 00:34:50,480 --> 00:34:54,880 Speaker 8: It's a way to access a lot of opportunities. And 621 00:34:55,160 --> 00:34:58,960 Speaker 8: using those lessons along with the experience that I had 622 00:34:59,000 --> 00:35:04,719 Speaker 8: with David, you know, see this space as ripe for development. 623 00:35:05,640 --> 00:35:09,160 Speaker 8: Consolidation is almost you know, a late stage word. You know, 624 00:35:09,239 --> 00:35:12,720 Speaker 8: this is still very nascent in some of the technologies 625 00:35:12,800 --> 00:35:17,560 Speaker 8: and other services in and around entertainment, just not only 626 00:35:17,600 --> 00:35:20,960 Speaker 8: the hospitality, but you know, the branding and naming rights 627 00:35:20,960 --> 00:35:23,759 Speaker 8: and a lot of these things. And those who who 628 00:35:23,880 --> 00:35:26,799 Speaker 8: figure it out and can do it at you know, 629 00:35:27,400 --> 00:35:31,800 Speaker 8: reasonable scale, you know well, will come out ahead. 630 00:35:32,000 --> 00:35:34,839 Speaker 4: So David, can you give us some more of an 631 00:35:34,920 --> 00:35:38,040 Speaker 4: idea of what specific opportunities look like as we head 632 00:35:38,080 --> 00:35:40,560 Speaker 4: into twenty twenty five. I think about the college space 633 00:35:40,600 --> 00:35:45,160 Speaker 4: because philosophy focuses on middle market companies. So we're not 634 00:35:45,160 --> 00:35:47,799 Speaker 4: talking NFL teams, right, that's no longer middle market. But 635 00:35:47,920 --> 00:35:51,920 Speaker 4: if you're talking about businesses or opportunities within college athletics. 636 00:35:52,480 --> 00:35:54,800 Speaker 4: Obviously that space is growing by leaps and bounds. You 637 00:35:54,840 --> 00:35:57,960 Speaker 4: have Bill Belichick, who led the Patriots to multiple Super 638 00:35:58,000 --> 00:36:01,640 Speaker 4: Bowl victories, now joining the United Excuse me, the University 639 00:36:01,680 --> 00:36:05,400 Speaker 4: of North Carolina's football team. College athletics is becoming more 640 00:36:05,400 --> 00:36:07,400 Speaker 4: and more professionalized. It's no longer going to just be 641 00:36:07,440 --> 00:36:08,400 Speaker 4: middle market anymore. 642 00:36:09,320 --> 00:36:13,040 Speaker 12: Well, I think the Belichick announcement is interesting, but it's 643 00:36:13,080 --> 00:36:16,960 Speaker 12: a lot more than just hiring a football coach to 644 00:36:17,080 --> 00:36:18,799 Speaker 12: build the football program. 645 00:36:19,680 --> 00:36:22,680 Speaker 4: You and c is what do you see then starting 646 00:36:22,719 --> 00:36:25,319 Speaker 4: with Bill Belichick joining UNC and how what kind of 647 00:36:25,320 --> 00:36:27,160 Speaker 4: opportunities does that open your eyes up. 648 00:36:27,160 --> 00:36:31,640 Speaker 12: To college athletics. This you can use the word professional sports, 649 00:36:31,640 --> 00:36:34,760 Speaker 12: but they're entertainment and media businesses. It just so happens 650 00:36:34,760 --> 00:36:37,920 Speaker 12: that the talent is also going to get a college education. 651 00:36:37,960 --> 00:36:41,920 Speaker 12: At the same time, Bill Belichick is away for North 652 00:36:41,920 --> 00:36:47,680 Speaker 12: Carolina to build a global brand which will attract athletes, 653 00:36:48,400 --> 00:36:53,959 Speaker 12: which drives the revenue generation of the intellectual property rights 654 00:36:53,960 --> 00:36:57,319 Speaker 12: of University of North Carolina. So when people want to 655 00:36:57,320 --> 00:36:59,759 Speaker 12: come to North Carolina now it's I get access to 656 00:37:00,080 --> 00:37:02,600 Speaker 12: one of the most successful NFL coaches of all time, 657 00:37:03,239 --> 00:37:06,719 Speaker 12: his network of contacts around the world. So if I'm 658 00:37:06,719 --> 00:37:10,440 Speaker 12: coming to play, they have a fantastic women's soccer team, 659 00:37:10,680 --> 00:37:13,319 Speaker 12: I'm gonna get access to Bill Belichick. Maybe you can't 660 00:37:13,480 --> 00:37:17,240 Speaker 12: build my brand even And that is where college sports 661 00:37:17,320 --> 00:37:19,480 Speaker 12: is going. You just saw the example of what happened 662 00:37:19,880 --> 00:37:23,359 Speaker 12: at University of Michigan, where all the resources was Tom 663 00:37:23,400 --> 00:37:26,520 Speaker 12: Brady and Dave Portney were put into attracting talent for 664 00:37:26,560 --> 00:37:31,240 Speaker 12: the university. It's the same exact reason why this happened 665 00:37:31,280 --> 00:37:34,440 Speaker 12: at North Carolina, because it's a way for them to 666 00:37:35,040 --> 00:37:39,919 Speaker 12: present an opportunity to talent that other universities can't match. 667 00:37:40,080 --> 00:37:43,120 Speaker 2: David bob Man, what a pleasure to talk to you guys. 668 00:37:43,160 --> 00:37:46,040 Speaker 2: Thank you for joining us on the Bloomberg Business of Sports. 669 00:37:46,280 --> 00:37:49,320 Speaker 12: Thank you for having us. We look forward to coming back. 670 00:37:49,360 --> 00:37:53,120 Speaker 2: Our thanks to both Velocity Capital Management founding partner David 671 00:37:53,120 --> 00:37:58,520 Speaker 2: Abrams and Texas Permanent School Fund CEO and CIO Bob 672 00:37:58,600 --> 00:38:02,120 Speaker 2: Borden for joining us. Thank you for joining us for 673 00:38:02,280 --> 00:38:06,120 Speaker 2: my colleague Scarlett Pooh and Damian Sasaur. I'm Michael Barr. 674 00:38:06,320 --> 00:38:08,799 Speaker 2: Tune in again next week for the latest on the 675 00:38:08,880 --> 00:38:12,360 Speaker 2: stories moving big old money in the world of sports, 676 00:38:12,440 --> 00:38:15,439 Speaker 2: and don't forget to catch our podcast on all your 677 00:38:15,600 --> 00:38:20,400 Speaker 2: podcast platforms. You're listening to the Bloomberg Business of Sports 678 00:38:20,440 --> 00:38:23,160 Speaker 2: from Bloomberg Radio around the world.