WEBVTT - USTA's Sherr on Revenue Drivers, Luxury, at the US Open (Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleven, Brio to Washington,

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<v Speaker 1>d C, Bloomberg to Boston, Bloomberg twelve d to San Francisco,

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<v Speaker 1>Bloomberg nine to the country Suis Exam Channel one nineteen,

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<v Speaker 1>and around the globe the Bloomberg Radio Plus athen Boomberg

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<v Speaker 1>dot com. This is taking Stock, taking Stock live in

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<v Speaker 1>the US Tennis Open here in Flushing Meadows, Crown Up Park,

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<v Speaker 1>Queen's New York On Kathleen Hayes, my co host, Pim

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<v Speaker 1>Fox on vacation. He'll be back Tuesday after the long weekend.

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<v Speaker 1>This long weekend, I certainly hope to spend a lot

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<v Speaker 1>of time here at the Open watching a ton of tennis.

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<v Speaker 1>I don't know if I'll get into a luxury box.

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<v Speaker 1>I have been on occasion. They are absolutely beautiful. We're

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<v Speaker 1>gonna take a look at the luxury boxes and the

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<v Speaker 1>part they've played in this big, big renovation. You think

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<v Speaker 1>we're modeling your home is a big deal. Well, they've

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<v Speaker 1>been going to town here at the U. S t A.

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<v Speaker 1>We want to talk about that portly with their chief

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<v Speaker 1>revenue officer. Now I want to talk to Charlie Pellett

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<v Speaker 1>he's back in Bloomberg World headquarters with a Bloomberg Business fashion.

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<v Speaker 1>I thank you very much, Kathleen Hayes looking at green

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<v Speaker 1>on the screen. Twenty nine minutes to go ahead of

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<v Speaker 1>the close on this Friday, ahead of a long holiday weekend.

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<v Speaker 1>We are brought to you by Sector Spider e t S.

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<v Speaker 1>Why by a single stock when you can invest in

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<v Speaker 1>the entire sector of visits sector sp d rs dot

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<v Speaker 1>com or call one eight six six. Sector et F

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<v Speaker 1>stocks are edging higher with an earlier rally losing some

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<v Speaker 1>steam amid underwhelming labor market data that did little of

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<v Speaker 1>bolster competence. Growth will be steady enough to support stronger

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<v Speaker 1>corporate earnings. Pay Rolls up by a hundred and fifty

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<v Speaker 1>one thousand in August, but that was below the median

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<v Speaker 1>estimate in a Bloomberg survey of one hundred eighty thousand.

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<v Speaker 1>The jobless rate and labor participation rate held steady. Reaction

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<v Speaker 1>from Bill Gross, who manages an unconstrained bond fund for

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<v Speaker 1>Janics appital I listened to Yelen, and I listened to

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<v Speaker 1>Stan Fisher, and you know, basically at Jackson, hol Villan

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<v Speaker 1>said that if things continue as they as they are continuing. Yes,

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<v Speaker 1>you just pointed out the two hundred thousand is the

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<v Speaker 1>twelve month every time jobs. But you know, I would

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<v Speaker 1>say that she would think that this is a continuation

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<v Speaker 1>of a positive trend. A ten year down nine thirty

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<v Speaker 1>seconds yield one point six percent lu Lu, Lum and

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<v Speaker 1>Athletic are shares down the most in almost nine months

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<v Speaker 1>after its forecast missed some estimates. Lulu down ten point

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<v Speaker 1>one percent, smp op eight to gain a four tenths

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<v Speaker 1>of one percent, Gold up seven tenths of one percent,

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<v Speaker 1>three thirty two on Wall Street. Now we'll look at

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<v Speaker 1>other news from around the world. Thank you, Charlie from

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<v Speaker 1>the Bloomberg news room. I'm Jill Schneider. Russian President Vladimir

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<v Speaker 1>Putin sat down for a rare and exclusive interview with

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<v Speaker 1>Bloomberg Editor in chief John Michael Thwaite. Speaking through an interpreter,

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<v Speaker 1>Putin refused to take sides in the U. S. Presidential rate,

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<v Speaker 1>in which he has been accused of secretly favoring Donald Trump.

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<v Speaker 1>We are ready to work for venue President Box, of course.

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<v Speaker 1>I also wants to say that it depends on how

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<v Speaker 1>the future administration is. If someone says that they wants

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<v Speaker 1>to work in Russia, we will welcome with I used

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<v Speaker 1>to put. And if someone, as we said, although it

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<v Speaker 1>maybe station, wants to get rid of us, that will

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<v Speaker 1>be a completely different approach. But we will survive it.

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<v Speaker 1>And it's not clear who has more to lose of

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<v Speaker 1>that approach. Hillary Clinton used at least eight blackberries during

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<v Speaker 1>her tenure as Secretary of State, but the FBI could

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<v Speaker 1>not get any of them during its investigation. In addition

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<v Speaker 1>to the eight devices, the FBI said there were at

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<v Speaker 1>least five additional mobile devices they sought as part of

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<v Speaker 1>their inquiry. One person interviewed by the FBI said he

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<v Speaker 1>recalled two instances in which Clinton's devices were destroyed by quote,

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<v Speaker 1>breaking them in half or hitting them with a hammer.

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<v Speaker 1>Those are among some of the details released today by

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<v Speaker 1>the FBI. New Jersey govern Or Chris Christie says he

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<v Speaker 1>is ending a nearly four decade old tax agreement between

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<v Speaker 1>his state and Pennsylvania. The deal let residents working in

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<v Speaker 1>either state pay taxes at their home state's rate. Christie

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<v Speaker 1>says he will reconsider his decision if the Democratic led

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<v Speaker 1>legislature finds two d fifty million dollars in savings from

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<v Speaker 1>public worker health benefits. Global News twenty four hours a day,

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<v Speaker 1>powered by more than twenty d journalists and analysts in

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<v Speaker 1>more than one twenty countries. I'm Jill Schneider. This is Bloomberg, Charlie,

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<v Speaker 1>and we thank you and again recapping equities high smp

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<v Speaker 1>op eight to nine, a gain of four tenths of

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<v Speaker 1>one percent. I'm Charlie Pelton. That's sub Bloomberg Business Flash,

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<v Speaker 1>Bloomberg taking Stock the Lux Life, stocks, funds, real estate.

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<v Speaker 1>I've got houses in l A, Paris and Vale. It's

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<v Speaker 1>good to be keen. You've they got the Finis shifts

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<v Speaker 1>around waiting for you to face your offer. You must

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<v Speaker 1>be rich tad and you nobody have two calibtons set

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<v Speaker 1>Bloomberg taking Stock the Lux Life on Bloomberg Radio. We're

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<v Speaker 1>live froms Tennis Open, Flushing Meadows, Corona Park, Queens, New York,

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<v Speaker 1>UH the site every year August early September, two weeks

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<v Speaker 1>of non stock tennis, the fourth Grand Slam, the final

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<v Speaker 1>Grand Slam turn of the year. For my money, of course,

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<v Speaker 1>the number one. And a man who has does so

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<v Speaker 1>much to put this together is joining us now. Lucierry's

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<v Speaker 1>chief Revenue Officer for the U. S t A. Because

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<v Speaker 1>you want to talk about what's going on here and

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<v Speaker 1>start with this whole luxury level. Anybody can come to

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<v Speaker 1>the Open, but you can sure live high on the

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<v Speaker 1>hog when you come out here, right sure. So we're

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<v Speaker 1>very proud of the fact that anyone can come to

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<v Speaker 1>the US Open. We have over seven hundred thousand fans

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<v Speaker 1>who will attend this year. But corporate hospitality is absolutely

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<v Speaker 1>a pillar of um the event. The fact that we're

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<v Speaker 1>here in New York. We're here in New York every year,

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<v Speaker 1>unlike some other events that moved from location to location,

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<v Speaker 1>has allowed us to invest into permanent hospitality properties and

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<v Speaker 1>and and products uh And as a result, many of

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<v Speaker 1>our sponsors and and and other guests were able to

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<v Speaker 1>take advantage of those things. It's it's it's a big

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<v Speaker 1>part of what has maybe Open a successful seven years.

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<v Speaker 1>You've been working as the chief revenue officer here LU

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<v Speaker 1>before in your one of your past lives, you worked

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<v Speaker 1>at Medicine Square Garden. Compared to me, if I'm if

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<v Speaker 1>I'm a big bank company, what why and how I

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<v Speaker 1>select one of the luxury boxes here at the Open

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<v Speaker 1>in the same way or a different way I might

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<v Speaker 1>select it for a different kind of sporting event. Sure,

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<v Speaker 1>so there are a couple of things that make this

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<v Speaker 1>event unique, certainly unique relative to other North American sort

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<v Speaker 1>of team sports and leagues, the ones that we we

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<v Speaker 1>would typically think of. I think first and foremost, tennis

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<v Speaker 1>is a global sport. So if you're thinking about the

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<v Speaker 1>U s Open, you need to think of us close

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<v Speaker 1>it to an Olympic Games, which is quite timely closer

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<v Speaker 1>to a World Cup than a a Yankee game in

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<v Speaker 1>New York Nick Games something of that New York Giants

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<v Speaker 1>because of the global interest um, which then translates to

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<v Speaker 1>from a corporate standpoint, they're able to leverage global interest

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<v Speaker 1>in in attending. I think that's a big piece. The

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<v Speaker 1>other piece that is critically important to our success um

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<v Speaker 1>both financially and and uh in in exposure and attention.

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<v Speaker 1>Tennis is the most successful sport from a gender neutrality standpoint, right,

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<v Speaker 1>and and so our audience is fifty fifty male female,

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<v Speaker 1>our viewership is fifty fifty male female, our participation, our

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<v Speaker 1>prize money. On every level that you view tennis, UM,

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<v Speaker 1>we've achieved a level of gender equity that you don't

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<v Speaker 1>see and from a hosting standpoint, to translate that back

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<v Speaker 1>to your question, what you have our wives who will

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<v Speaker 1>bring their husbands, husbands who will bring their wives, and

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<v Speaker 1>the appeal of the event is just that much broader

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<v Speaker 1>than perhaps a football game, a baseball game, which again

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<v Speaker 1>translates to more desire to attend, which is the currency

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<v Speaker 1>that many of our partners are looking to leverage. Very

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<v Speaker 1>good point. And of course, you don't have to be

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<v Speaker 1>a tennis player to love the Open, although a lot

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<v Speaker 1>of people who come to tennis tournaments also play tennis. Yes, Now,

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<v Speaker 1>can you share with me any if Kathleen Hayes Incorporated

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<v Speaker 1>wanted to get a luxury box here at the Open

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<v Speaker 1>about how much I'd be spending? You don't we we

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<v Speaker 1>we don't share that information. Most of our boxes now

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<v Speaker 1>have been tied up with long time legacy subscribers dating

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<v Speaker 1>back when this venue was built. If a suite does

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<v Speaker 1>come available, we typically will divide that into twenty four

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<v Speaker 1>sessions and rent it on a procession basis, and that

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<v Speaker 1>that can be dollars up to north of a hundred

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<v Speaker 1>thousand dollars depending on the session um, and that has

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<v Speaker 1>been quite a significant business for us now, the retractable

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<v Speaker 1>roof has been used a couple of times, you know,

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<v Speaker 1>in the first just few days of this tournament. I'm

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<v Speaker 1>sure everybody's very happy to have it. As the chief

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<v Speaker 1>revenue officer, when you look down the road for the

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<v Speaker 1>U S t A and the U S open, what's

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<v Speaker 1>on your list? What are people asking you to do?

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<v Speaker 1>What would you like to do to continue to upgrade

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<v Speaker 1>and build this tournament and the facilities. It's a great question. Um.

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<v Speaker 1>You know, the focus of our renovation has really been,

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<v Speaker 1>i think visually on the roof, and it was a

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<v Speaker 1>significant investment. But the reality is the roof in and

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<v Speaker 1>of itself doesn't contribute to revenue growth. It doesn't allow

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<v Speaker 1>us to sell another ticket. Um, it doesn't. Uh, it

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<v Speaker 1>really doesn't help in that respect. But schedule certainty is

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<v Speaker 1>critical for fans, critical for our players, and critical for

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<v Speaker 1>our broadcast partners as well. As we look to the future,

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<v Speaker 1>we've already announced plans to rebuild our Louis Armstrong Stadium

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<v Speaker 1>that will reopen in a team with its own retractable roof. UM.

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<v Speaker 1>We continue every year to look at the on site experience.

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<v Speaker 1>How do we create more dining options, more entertainment options,

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<v Speaker 1>more shopping options, and and that's where our focus will be. Well,

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<v Speaker 1>Louis Armstrong have luxury suitets. No, no, I'm sure we'll

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<v Speaker 1>hold fourteen thousand, which is about four thousand more than

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<v Speaker 1>the current venue, but there are no suits in that.

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<v Speaker 1>Are you a tennis fan. I am a tennis fan.

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<v Speaker 1>I buy playing standards. I wouldn't compare with many of

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<v Speaker 1>my US Okay, you want to make it, put any

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<v Speaker 1>money on who wins on the men's side, I won't sign.

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<v Speaker 1>Here's what I know. We will have a championship here

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<v Speaker 1>on Saturday night. We will have a championship here on

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<v Speaker 1>on Sunday, and we won't have to wait till Monday

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<v Speaker 1>like we did for the past five years in a

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<v Speaker 1>row because it rains during the then final. Well, thank

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<v Speaker 1>you so much for joining me. Louis is great, my pleasure.

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<v Speaker 1>I appreciate the opportunity. Lu Share is a cheap revenue

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<v Speaker 1>officer at the u s T a United States Tennis Association.

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<v Speaker 1>Lu Share a big part of the US Tennis Association's

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<v Speaker 1>efforts here at the US Open. I'm Kathleen Hayes and

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<v Speaker 1>this is Bloomberg coming up. We are going to take

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<v Speaker 1>a look at the stock market. It's had a pretty

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<v Speaker 1>decent day. Take a look at the jobs report as

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<v Speaker 1>well on what it means for trading ahead. This is

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<v Speaker 1>Bloomberg