WEBVTT - Bloomberg Special: The Business of the Super Bowl 0:00:02.520 --> 0:00:07.400 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:07.800 --> 0:00:09.960 Time now for a special edition of the Clothes the 0:00:10.000 --> 0:00:11.400 Business of the Super Bowl. 0:00:11.440 --> 0:00:12.799 We've got an all star lineup. 0:00:12.800 --> 0:00:15.960 We've got Kansas City Chiefs President Mark Donovan, New England 0:00:16.000 --> 0:00:19.720 Patriots CEO Robert Kraft, Fanjuel CEO Amy how among others. 0:00:19.840 --> 0:00:22.640 And joining me for this entire hour is Bloomberg Originals 0:00:22.800 --> 0:00:25.720 Chief Course Wanted Jason Kelly, Host of the Deal with 0:00:25.800 --> 0:00:28.280 Alisa Riguez and Jason Kelly. Great to have you, Hi, 0:00:28.720 --> 0:00:29.480 It's fantastic. 0:00:29.560 --> 0:00:32.000 What a Friday, I know, I mean the Friday to 0:00:32.040 --> 0:00:32.360 do this. 0:00:32.440 --> 0:00:35.000 Right, I'm imagining there's a lot of deal making going 0:00:35.040 --> 0:00:37.199 on in New Orleans right now with everyone from the 0:00:37.240 --> 0:00:38.360 sports industry gathering. 0:00:38.600 --> 0:00:41.400 Everyone is there. I mean everyone except us because you know, 0:00:41.400 --> 0:00:44.720 we're working for a living. But actually they are doing deals. 0:00:44.760 --> 0:00:46.280 I mean, this is when the big deals happen in 0:00:46.280 --> 0:00:49.519 the sports world, because the entire sports world, as you mentioned, 0:00:49.640 --> 0:00:52.080 sort of descends. Maybe they don't stay for the game, 0:00:52.400 --> 0:00:54.639 but they're at the parties, they're going to the conferences, 0:00:54.640 --> 0:00:56.080 they're doing the side meetings. 0:00:56.240 --> 0:00:57.680 It's amazing. We're going to check in. 0:00:57.640 --> 0:01:00.400 With Randa Williams, who's on the ground so much team, 0:01:00.440 --> 0:01:02.040 there a ton to talk about it, all right. 0:01:01.960 --> 0:01:04.520 So mind meld there for everyone in New Orleans. In 0:01:04.520 --> 0:01:06.920 the meantime, let's create straight to someone who's been living 0:01:06.959 --> 0:01:09.720 the business of the Super Bowl since twenty twenty. He 0:01:09.840 --> 0:01:12.000 is Kansas City Chiefs President Mark Donovan. 0:01:12.120 --> 0:01:12.360 Mark. 0:01:13.000 --> 0:01:15.640 Welcome to the program and congratulations on your fifth trip 0:01:15.680 --> 0:01:17.240 to the Big Show in six years. 0:01:17.680 --> 0:01:19.679 Thank you. I appreciate that. Great to be with you, guys. 0:01:19.760 --> 0:01:22.200 So, as the organization makes a run to become the 0:01:22.240 --> 0:01:26.080 first three Super Bowl champions, would you say you're more 0:01:26.200 --> 0:01:27.840 or less nervous this time around? 0:01:29.120 --> 0:01:31.360 You know, I think experience is a great teacher. 0:01:31.760 --> 0:01:36.440 So we've done this enough to realize of what makes 0:01:36.440 --> 0:01:37.199 it successful. 0:01:38.000 --> 0:01:38.800 We tweak things. 0:01:38.680 --> 0:01:41.400 Every year, but it's been a really smooth operation since 0:01:41.400 --> 0:01:44.600 we landed on Sunday night and started practicing this week, 0:01:44.640 --> 0:01:46.000 and it's going very very well. 0:01:46.120 --> 0:01:47.280 It's going very very well. 0:01:47.440 --> 0:01:49.600 I want to talk about the Chiefs as a brand 0:01:49.600 --> 0:01:52.280 because it's so much more than a regional team or 0:01:52.320 --> 0:01:54.600 even an American team at this point, right it is 0:01:54.640 --> 0:01:58.160 a global brand that really resonates with sports fans around 0:01:58.200 --> 0:02:01.400 the world. Talk a little bit about your organization's international 0:02:01.440 --> 0:02:04.840 efforts and how you have a new entertainment production studio 0:02:04.920 --> 0:02:07.160 that plays into that that really amplifies that. 0:02:08.000 --> 0:02:10.120 Yeah, it's a convergence of the platform that we're on 0:02:10.200 --> 0:02:11.639 right now. I mean, we have one of the most 0:02:11.639 --> 0:02:15.480 successful franchises in sport. We have the world converging and 0:02:15.639 --> 0:02:19.800 consuming content like never before. And then the international program 0:02:19.800 --> 0:02:22.160 at the NFL, launched back in twenty nineteen, gave us 0:02:22.240 --> 0:02:25.880 and other franchises the opportunity to aggressively pursue growth internationally, 0:02:26.360 --> 0:02:29.280 and we've been one of the more aggressive teams to 0:02:29.360 --> 0:02:31.960 do that. So the convergence of all this, on top 0:02:32.000 --> 0:02:34.000 of being in for the last five Super Bowl if 0:02:33.960 --> 0:02:36.480 for our last six Super Bowls, and the opportunity to 0:02:36.600 --> 0:02:39.200 constantly be out there with content is something that we've 0:02:39.200 --> 0:02:40.280 been very excited about. 0:02:40.360 --> 0:02:43.200 We taken advantage of and we've seen results from. 0:02:43.320 --> 0:02:46.680 So Foolish Cup Studios is something we launched this past 0:02:46.720 --> 0:02:49.119 week that give us the opportunity to create even more 0:02:49.160 --> 0:02:52.520 ideas and then distribute that content internationally hopefully. 0:02:53.080 --> 0:02:56.359 All Right, So Mark, obviously a chance to create more content. 0:02:56.639 --> 0:02:59.040 Let's be honest, this is Bluebirk. It's a chance to 0:02:59.080 --> 0:02:59.960 create more revenue. 0:03:00.040 --> 0:03:03.760 When you're this successful on the field, walk us through 0:03:04.360 --> 0:03:06.840 what it means to the top line, the bottom line 0:03:06.960 --> 0:03:10.760 of your team to be consistently in the big game. 0:03:10.960 --> 0:03:13.400 And you know, now going for your third straight win, 0:03:13.680 --> 0:03:14.800 what does it do for your business? 0:03:15.360 --> 0:03:17.560 Yeah, I think that's a fair question given the audience 0:03:17.600 --> 0:03:18.079 here today. 0:03:18.160 --> 0:03:20.680 I think that when you look at our business, we 0:03:20.760 --> 0:03:22.760 are on a platform we have never been on as 0:03:22.760 --> 0:03:26.440 a franchise before, and so we look at that as opportunity. 0:03:26.560 --> 0:03:29.320 What can we do in this platform to take advantage 0:03:29.320 --> 0:03:32.760 of this time to maximize the platform. So top line, 0:03:32.800 --> 0:03:36.880 bottom line is growing brand value first and foremost, and 0:03:36.920 --> 0:03:39.760 then everything that sort of comes off of that. And 0:03:39.840 --> 0:03:43.320 we are very successful in Germany after investing in there 0:03:43.320 --> 0:03:45.440 over the last four years. We're the number one team 0:03:45.480 --> 0:03:48.360 from brand value in Germany. We have the most revenue 0:03:48.360 --> 0:03:50.880 from a sponsorship base in Germany. We're looking to do 0:03:50.960 --> 0:03:53.240 that again and again and again as many as many 0:03:53.240 --> 0:03:55.880 times as we can. The opportunity in the platform that 0:03:55.920 --> 0:03:58.920 I speak of is the international market. So you know, 0:03:58.960 --> 0:04:02.040 as we grow, we now have the ability to grow 0:04:02.080 --> 0:04:04.360 internationally and that's really the focus. 0:04:04.320 --> 0:04:07.720 And so mark part of it is growing the audience 0:04:08.040 --> 0:04:10.680 and some of that comes from just showing the games. 0:04:11.040 --> 0:04:14.560 Also you mentioned the additional content, but also social media 0:04:14.560 --> 0:04:17.760 has been especially powerful for you guys. You are one 0:04:17.800 --> 0:04:20.800 of the most followed teams out there. How do you 0:04:20.839 --> 0:04:23.520 continue to grow that? And there are certain platforms that 0:04:23.560 --> 0:04:26.839 are working better for you overall. 0:04:26.960 --> 0:04:28.440 Yeah, So it's a combination of thing. 0:04:28.520 --> 0:04:30.840 It's one the superstars that we have on our team 0:04:31.200 --> 0:04:33.760 and what they've done with content with Patrick and with 0:04:33.800 --> 0:04:37.280 Travis with his podcast, and it's sort of dovetailing with 0:04:37.360 --> 0:04:40.440 that and then using the content that we have. We 0:04:40.520 --> 0:04:44.000 have a program on YouTube called The Franchise, which is 0:04:44.040 --> 0:04:47.120 an inside look at our team, where the first National 0:04:47.120 --> 0:04:50.680 Football League team to have over a million subscribers on YouTube. 0:04:50.800 --> 0:04:54.080 Where the second sports franchise in America behind the Golden 0:04:54.080 --> 0:04:56.640 State Warriors to do that. So those are the platforms 0:04:56.640 --> 0:04:58.640 that I'm talking about that you have to have the 0:04:58.720 --> 0:05:01.120 content to be able to take advantage of that. So 0:05:01.160 --> 0:05:03.279 we have a production studio in house that does the 0:05:03.440 --> 0:05:06.200 Franchise show. Now we've launched a production studio that will 0:05:06.240 --> 0:05:08.680 be more out of house to really look at partnerships 0:05:08.680 --> 0:05:09.160 around that. 0:05:10.080 --> 0:05:12.919 So is it frustrating then with all these plans and 0:05:12.960 --> 0:05:15.840 this incredible brand, not just in the US but globally 0:05:15.880 --> 0:05:18.520 to not have as much certainty as you'd like over 0:05:18.520 --> 0:05:21.400 where you're going to be playing in terms of stadium 0:05:21.520 --> 0:05:22.120 down the road. 0:05:23.200 --> 0:05:25.200 Yeah, So I would take that two different ways. 0:05:25.200 --> 0:05:27.600 One, we want to play more games internationally when we're 0:05:27.600 --> 0:05:29.800 given the opportunity, because we've seen the value of that 0:05:29.839 --> 0:05:30.440 and we've seen the. 0:05:30.360 --> 0:05:31.080 Benefit of that. 0:05:31.440 --> 0:05:34.400 As it relates to our domestic situation specifically in Kansas 0:05:34.400 --> 0:05:37.600 City with our stadium, we are pursuing two different options. 0:05:37.640 --> 0:05:41.400 One is renovation of the iconic Arrowhead Stadium and GHA 0:05:41.520 --> 0:05:45.080 field and then secondly investigating the opportunity to build a 0:05:45.440 --> 0:05:50.400 world class dome stadium. Two very different paths, and we 0:05:50.480 --> 0:05:53.200 have the advantage of having two different states that we 0:05:53.200 --> 0:05:56.120 can go down those paths on. I think, as I said, 0:05:56.200 --> 0:05:59.240 on the one hand, it's the iconic nature and how 0:05:59.279 --> 0:06:03.360 can you make a worldwide bucket list icon of a 0:06:03.480 --> 0:06:08.360 venue better through renovation? Versus if we build a brand news, 0:06:08.360 --> 0:06:11.640 state of the art film stadium, we have the opportunity 0:06:11.680 --> 0:06:15.400 to host even more events, so Super Bowls, Big Twelve Championships, 0:06:15.480 --> 0:06:18.440 National championships, as well as year round concerts and event. 0:06:18.520 --> 0:06:21.040 So it's an exciting place to be in. 0:06:21.200 --> 0:06:24.360 I will tell you personally, it's a very time consuming 0:06:24.400 --> 0:06:26.719 place because you're looking at a bunch of different options 0:06:26.760 --> 0:06:28.640 and you're dealing with politicians on both sides of the 0:06:28.680 --> 0:06:31.480 state line. They're both excited about the opportunity, and we 0:06:31.560 --> 0:06:33.039 just got to figure out what's the best thing for 0:06:33.080 --> 0:06:35.960 this franchise and for our fan base for the next generation. 0:06:36.040 --> 0:06:36.640 Yeah, it's doubly. 0:06:36.720 --> 0:06:38.839 It's pursuing lots of different paths and kind of seeing 0:06:38.839 --> 0:06:40.880 where they take you. I wonder if you would ever 0:06:40.920 --> 0:06:43.680 look to private equity or sell LP stakes to fund 0:06:43.800 --> 0:06:45.200 the construction of a new stadium. 0:06:45.920 --> 0:06:47.839 Well, we have the expert in the building on private 0:06:47.880 --> 0:06:51.520 equity program. Clark Hut is the chair of our organization. 0:06:51.560 --> 0:06:54.080 He's also the chair of the finance committee at the 0:06:54.120 --> 0:06:56.040 National Football League and he was really one of the 0:06:56.160 --> 0:06:59.479 architects with I think, what are your next guests in 0:06:59.480 --> 0:07:02.000 putting together other than private equity situation with the NFL, 0:07:02.040 --> 0:07:04.680 it gives us the opportunity as franchises to pursue that, 0:07:05.240 --> 0:07:07.240 Clark has said publicly, and I know in dealing with 0:07:07.240 --> 0:07:09.320 the siblings and the family members, so that's not something 0:07:09.360 --> 0:07:12.120 we're pursuing it in the present time, but it's good 0:07:12.160 --> 0:07:13.600 to have the option out there. And we've seen the 0:07:13.600 --> 0:07:16.200 other teams that take advantage of this opportunity, and. 0:07:16.160 --> 0:07:17.600 So what have you learned from that? Mark? 0:07:17.640 --> 0:07:20.720 I mean, we have seen a number of your counterparts 0:07:20.800 --> 0:07:22.840 with one of your art rivals, the Buffalo Bills, so 0:07:22.880 --> 0:07:24.120 you beat to get to this game. 0:07:24.880 --> 0:07:27.280 You know, they took advantage of selling a stake. 0:07:27.400 --> 0:07:29.880 They may use it most likely to build a new 0:07:29.920 --> 0:07:33.880 stadium or to upgrade their facilities. What are the learnings 0:07:33.920 --> 0:07:36.440 that you take even if you're not going to partake 0:07:36.480 --> 0:07:37.120 of it right now. 0:07:37.680 --> 0:07:40.240 Well, first and foremost learnings of seeing them go through 0:07:40.280 --> 0:07:43.360 the process and seeing just what it takes and how 0:07:43.360 --> 0:07:46.040 to maximize that process. The second thing I think that 0:07:46.040 --> 0:07:48.960 this gives you it is true valuations, the ability for 0:07:49.120 --> 0:07:51.960 you know, the firms that have the ability to capitalize 0:07:51.960 --> 0:07:55.200 on the private equity piece are true evaluators of value. 0:07:55.480 --> 0:07:57.760 You know, they have to return to their shareholders. So 0:07:57.760 --> 0:08:00.600 they're investing in these teams and pieces of the teams 0:08:00.880 --> 0:08:04.080 in a very structured and a very critical way of 0:08:04.120 --> 0:08:06.280 exactly what the value is so they can see you return. 0:08:06.720 --> 0:08:08.960 I think just the first few that have done have 0:08:09.040 --> 0:08:12.200 been really positive signs for the NFL and for the 0:08:12.200 --> 0:08:14.280 individual franchise that have taken advantage of that. 0:08:14.520 --> 0:08:16.320 All Right, So you went exactly where I wanted you 0:08:16.360 --> 0:08:18.000 to go, Mark, which is valuations. 0:08:18.280 --> 0:08:19.920 You worked on the league side. You work for a 0:08:19.920 --> 0:08:22.480 little team called the Philadelphia. 0:08:21.880 --> 0:08:25.720 Eagles for a few years before you got to your 0:08:25.760 --> 0:08:28.840 current home in Kansas City. You look at these valuations 0:08:28.880 --> 0:08:30.880 since you were a guy coming up in this league. 0:08:30.920 --> 0:08:32.320 I mean, is it mind blowing to you? 0:08:33.280 --> 0:08:36.120 Yeah, it's mind blowing on the NFL side, But I 0:08:36.160 --> 0:08:38.320 know the NFL side so well that I can sit 0:08:38.400 --> 0:08:41.000 here and tell you that the valuations are solid and 0:08:41.040 --> 0:08:42.679 you look at the growth of this game and look 0:08:42.679 --> 0:08:45.599 at the opportunities that are in our future. I'm a 0:08:45.679 --> 0:08:48.040 big believer obviously in the National Football League and the 0:08:48.080 --> 0:08:50.920 power of the NFL. I think it sort of spreads 0:08:50.960 --> 0:08:53.360 across sports though, when you look at the valuations of 0:08:53.440 --> 0:08:58.480 NWSL and NBA, Major League Baseball MLS across the field 0:08:58.520 --> 0:09:01.440 as well as you know, properties like the premier lacross league. 0:09:02.120 --> 0:09:04.640 The ability to sort of look at these as true 0:09:05.200 --> 0:09:09.320 investment opportunities and see the growth that sports provides, you know, 0:09:09.360 --> 0:09:13.040 there's no better appointment viewing and frankly from a rating standpoint, 0:09:13.040 --> 0:09:15.640 no better viewing than the National Football League. Well, how 0:09:15.640 --> 0:09:17.560 do other sports match up against them? And then how 0:09:17.559 --> 0:09:19.760 do they continue to grow that mark? 0:09:19.800 --> 0:09:21.520 Before we let you go, I did want to get 0:09:21.559 --> 0:09:24.240 your thoughts on one thing. Roger Goodell, the commissioner of 0:09:24.280 --> 0:09:26.960 the NFL, with the backing of team owners, is standing 0:09:27.040 --> 0:09:30.600 by the NFL's diversity initiatives even as we've seen some 0:09:31.000 --> 0:09:34.319 moves on the federal side. Otherwise, as a head of 0:09:34.360 --> 0:09:38.439 a high profile organization, what are you hearing from your employees, 0:09:38.480 --> 0:09:40.839 from your customers, from your partners on this front. 0:09:41.559 --> 0:09:44.400 Yeah, I think as administrations change, you're going to have change. 0:09:45.240 --> 0:09:46.560 We're very proud of our policies. 0:09:46.600 --> 0:09:50.280 We're very proud of what we've implemented at the Kansas 0:09:50.280 --> 0:09:53.520 City Chiefs. It's something that we take very seriously. I 0:09:53.559 --> 0:09:57.040 was asked this question multiple times today and I think, 0:09:57.080 --> 0:09:59.640 you know, i'd point to even our most recent higher 0:10:00.240 --> 0:10:03.559 people talk about and know about the Rooney Rule and 0:10:03.640 --> 0:10:05.640 all that it's done and the process behind that. I 0:10:05.679 --> 0:10:08.240 think not everyone is aware of, you know, the impact 0:10:08.280 --> 0:10:10.920 it has across the entire business. So we just had 0:10:10.960 --> 0:10:13.679 a very significant hire on our communications team, and we 0:10:13.720 --> 0:10:17.280 went through a very inclusive and diverse slate of candidates. 0:10:17.600 --> 0:10:19.280 We wanted to see all the talent that was out 0:10:19.320 --> 0:10:20.600 there before we made our decision. 0:10:20.720 --> 0:10:22.800 So we're proud of our policies. 0:10:22.320 --> 0:10:25.360 And we continue to sort of lean on those to 0:10:25.480 --> 0:10:29.079 have the best possible employee base in the National Football League. 0:10:29.200 --> 0:10:31.719 All Right, Mark Donovan, a pleasure speaking with you. Good 0:10:31.800 --> 0:10:35.120 luck to you, President of the Kansas City Chiefs, Mark Donovan, 0:10:35.600 --> 0:10:37.600 I love, love, love the fact that you brought up 0:10:37.640 --> 0:10:39.760 he was at the Eagles for about six seasons before 0:10:39.760 --> 0:10:40.800 he moved to Kansas City. 0:10:40.840 --> 0:10:43.000 So maybe, you know, whatever happens, he'll be okay. 0:10:44.320 --> 0:10:46.959 Maybe, but I think he's pretty diehard Chiefs at this way. 0:10:47.000 --> 0:10:49.040 I mean, it is amazing though to think about the 0:10:49.440 --> 0:10:52.280 you know, you know, part of business is the personnel, right, 0:10:52.400 --> 0:10:55.040 and so this is a guy who ran the business side. 0:10:55.160 --> 0:10:57.400 Let's not forget the guy who's running the on field 0:10:57.480 --> 0:11:00.560 side for the Kansas City Chiefs. Yes, Andy Reid once 0:11:00.640 --> 0:11:02.040 coached the Philadelphia Eagles. 0:11:02.040 --> 0:11:04.800 I mean this is a really tight knit league. 0:11:04.920 --> 0:11:07.520 I mean it's part of what is driving exactly what 0:11:07.559 --> 0:11:10.040 Mark was talking about. There, These massive valuations. These are 0:11:10.200 --> 0:11:12.200 very smart business people. You and I talk about this 0:11:12.320 --> 0:11:15.200 all the time. This is a juggernaut. It is a 0:11:15.280 --> 0:11:19.400 global juggernaut. Amazing to me how much he really leaned 0:11:19.440 --> 0:11:22.320 into the international side and absolutely rest of their being there. 0:11:22.360 --> 0:11:24.320 Right anytime you go abroad you look at how many 0:11:24.360 --> 0:11:27.199 people are wearing say Kansas City hats or Kansas City jerseys. 0:11:27.280 --> 0:11:28.400 I mean, that's a big part of it. 0:11:28.400 --> 0:11:30.760 They've got to monetize off of that, you know, tap 0:11:30.800 --> 0:11:33.600 into that all right, Coming up, the potential for an 0:11:33.640 --> 0:11:35.480 expanded NFL season. 0:11:36.280 --> 0:11:39.680 If we continue to focus on the safety, I think 0:11:40.160 --> 0:11:41.559 eighteen is a potential. 0:11:42.640 --> 0:11:44.160 We're going to get the flip side of that with 0:11:44.280 --> 0:11:47.720 Lloyd Howell, Junior, head of the NFL Players Association, this 0:11:47.880 --> 0:11:49.000 is the clothes on Bloomberg. 0:12:00.760 --> 0:12:04.199 If we continue to focus on the safety, I think 0:12:04.640 --> 0:12:07.600 eighteen is a potential. And as you know, we would 0:12:07.600 --> 0:12:10.240 take a preseason game away, so we would keep within 0:12:10.280 --> 0:12:13.800 that twenty game framework. We actually started fourteen and six preseasons, 0:12:13.840 --> 0:12:17.400 we went to sixteen and four and now seventeen and three, 0:12:17.440 --> 0:12:20.120 so eighteen and two is a logical step, but we 0:12:20.160 --> 0:12:21.560 would only do that with the players. 0:12:22.960 --> 0:12:25.480 That was Roger Goodell, the NFL Commissioner, talking with David 0:12:25.559 --> 0:12:28.720 Rubinstein on the potential for an expanded season, but the 0:12:28.840 --> 0:12:32.319 NFL Players Association is pushing back, the head of the association, 0:12:32.559 --> 0:12:35.480 Lloyd Howell Junior, saying no one wants to play an 0:12:35.480 --> 0:12:36.360 eighteenth game. 0:12:36.679 --> 0:12:38.840 I'm pleased now to say we're joined by the man himself, 0:12:38.960 --> 0:12:39.840 Lloyd Howell Junior. 0:12:39.960 --> 0:12:41.840 Lloyd, it's good to speak with you, and I know 0:12:41.880 --> 0:12:44.040 that you just heard the clip we played there. Your 0:12:44.160 --> 0:12:47.920 members oppose eighteen games, yet you heard Roger Goodell speaking 0:12:47.960 --> 0:12:49.960 about it as if it were a formality. 0:12:50.120 --> 0:12:51.000 Why do you think that is? 0:12:52.360 --> 0:12:57.240 Oh, I think our membership completely appreciates what the opportunity 0:12:57.280 --> 0:13:02.520 would be for the economics in the current all revenue split. 0:13:03.679 --> 0:13:06.880 On paper, the academics would say, yeah, just keep adding 0:13:07.440 --> 0:13:11.760 additional games. But where I believe Roger and I do 0:13:11.880 --> 0:13:16.840 agree is the science has to support the health and 0:13:16.920 --> 0:13:20.000 welfare of the players instead of just adding more games 0:13:20.040 --> 0:13:23.400 for financial reasons. And that is still a big question mark. 0:13:24.559 --> 0:13:27.400 We need to know more about recovery. We need to 0:13:27.480 --> 0:13:31.480 know what's the proper amount of time nutritional issues for 0:13:31.640 --> 0:13:35.560 recovery as opposed to just adding another game. The other 0:13:35.840 --> 0:13:39.679 dynamic is what's the complexion of the eighteen potential eighteen 0:13:39.760 --> 0:13:43.000 game season. I think the league has had a lot 0:13:43.040 --> 0:13:46.680 of commentary about wanting to do more international games. My 0:13:46.760 --> 0:13:50.679 previous life traveling around the world, not being a professional 0:13:50.720 --> 0:13:54.000 football player, it takes a moment to recover. It can 0:13:54.080 --> 0:13:57.440 be depending how far away you go, even longer. So 0:13:58.240 --> 0:14:00.760 it's not just the length of the season, it's also well, 0:14:00.760 --> 0:14:03.800 how many games would be overseas and how far away, 0:14:04.760 --> 0:14:07.480 what's the recovery time, what's the structure of the league 0:14:07.480 --> 0:14:11.319 looks like, and then ultimately what are the finances that 0:14:11.520 --> 0:14:12.840 would benefit our membership. 0:14:13.040 --> 0:14:16.360 So the NFL has announced games in Ireland in Australia 0:14:16.600 --> 0:14:20.160 so far. What has been the player's single biggest concern 0:14:20.280 --> 0:14:24.440 about international travel? What have you gathered from them? 0:14:24.720 --> 0:14:27.800 It comes in different dimensions. There's the sort of logistics 0:14:27.800 --> 0:14:30.920 of business travel, like size of plane, you know, how 0:14:31.000 --> 0:14:33.560 large are the seats, where are we staying once we 0:14:33.720 --> 0:14:37.040 get to the location? How close so far away is 0:14:37.080 --> 0:14:40.560 it from the venue? You know, those are sort of 0:14:40.600 --> 0:14:44.280 what I would describe business travel issues. But then I 0:14:44.320 --> 0:14:47.280 think more importantly it's what's the recovery time? Do I 0:14:47.320 --> 0:14:50.920 have a bye week after going overseas or am I 0:14:50.960 --> 0:14:54.280 expected to play you know, the next Sunday or Thursday. 0:14:54.360 --> 0:14:57.560 So there are lots of different dynamics that hang off 0:14:57.600 --> 0:15:00.840 of just playing overseas, and the least of which how 0:15:00.880 --> 0:15:03.640 many different time zones and you know, what's that going 0:15:03.720 --> 0:15:06.920 to look like when I when I returned to home. 0:15:07.320 --> 0:15:12.760 So in one sense, there are logistics of travel. Another sense, 0:15:12.800 --> 0:15:16.360 it's recovery. Another sense it's you know, how do you 0:15:16.440 --> 0:15:21.760 include the players as a part of any potential expansions 0:15:21.800 --> 0:15:24.400 The league has an objective around. 0:15:24.760 --> 0:15:26.960 Lloyd, I wanted to talk about a different aspect of 0:15:27.000 --> 0:15:31.440 the economics of the NFL. You know, we've had so 0:15:31.600 --> 0:15:35.640 much talk about new money coming in institutional capital. We 0:15:35.720 --> 0:15:38.040 just talked about that with Mark Donovan over at the 0:15:38.080 --> 0:15:40.880 Kansas City Chiefs. You worked at Goldman Sachs, you worked 0:15:40.920 --> 0:15:45.360 at Buzzell, and you understand this analysis as well as 0:15:45.400 --> 0:15:49.720 anyone the shared economics of this league. What's the best 0:15:49.760 --> 0:15:53.800 way for the players to continue to be partners and 0:15:53.960 --> 0:15:57.960 economic partners? Does that entail being equity partners? 0:15:58.920 --> 0:15:59.400 It could? 0:15:59.840 --> 0:16:03.040 I think there are more homework needs to be done, 0:16:04.320 --> 0:16:09.680 I think, rightfully, So there's sensitivity around would this investment 0:16:10.520 --> 0:16:14.480 create any sort of conflicts of interest or would it 0:16:14.520 --> 0:16:18.080 go through an into mediary where you have an arm's 0:16:18.160 --> 0:16:21.000 length arrangement where you know that their capital can be 0:16:21.000 --> 0:16:24.120 put to use and the integrity of the game isn't 0:16:24.120 --> 0:16:27.600 compromised in any kind of way. So there are details 0:16:27.600 --> 0:16:31.680 that need to be worked out. But with the abundance 0:16:31.720 --> 0:16:35.200 of capital, given the attractiveness of the investment. On your 0:16:35.280 --> 0:16:39.920 last interview you highlighted, you know, franchise valuations, the valuation 0:16:40.040 --> 0:16:43.600 of the Shield, it's doing very well, and as a 0:16:43.640 --> 0:16:48.080 part of that, why not have your workforce participate in 0:16:48.120 --> 0:16:51.960 that accretion. And I think it makes all the sense 0:16:52.560 --> 0:16:55.800 in the world for that to be permissible. But the 0:16:55.840 --> 0:16:57.640 details of it have to be worked out. 0:16:58.080 --> 0:17:00.680 So is there a world where you and that sort 0:17:00.680 --> 0:17:05.280 of an FLPA sponsored fund that then you know, willing 0:17:05.440 --> 0:17:10.480 players or enthusiastic players could invest into, and then essentially 0:17:10.520 --> 0:17:13.360 a private equity fund that invest on behalf of the players. 0:17:14.000 --> 0:17:14.359 For sure. 0:17:14.400 --> 0:17:18.040 I mean there are probably several obvious schemes where that 0:17:18.840 --> 0:17:22.200 could work. Certainly, our membership has more of an equity 0:17:22.280 --> 0:17:27.320 mindset than ever. Maybe that's due to the introduction of nil. 0:17:27.480 --> 0:17:29.560 Maybe that's how they're coming into the league. It's a 0:17:29.600 --> 0:17:33.800 little bit different than in previous generations. So they themselves 0:17:33.880 --> 0:17:38.000 appreciate what private equity means, they appreciate what investment means, 0:17:38.840 --> 0:17:42.600 and they would like the opportunity to participate in that 0:17:42.680 --> 0:17:45.760 accretion of the game they love and the teams they 0:17:45.840 --> 0:17:46.280 played for. 0:17:46.760 --> 0:17:48.600 I mean, getting equity you would go a long way. 0:17:48.640 --> 0:17:51.760 But we go back to the idea that to really 0:17:51.800 --> 0:17:55.719 meet the demand eighteen games a season, more international games overseas, 0:17:55.760 --> 0:17:57.359 all that takes a physical toll. 0:17:58.119 --> 0:17:59.399 I'm curious whether. 0:18:01.080 --> 0:18:05.000 I'm curious whether there's an idea that you know, maybe 0:18:05.560 --> 0:18:09.560 the players need to concede on roster's being expanded. Should 0:18:09.640 --> 0:18:12.040 each team have more players than what they have right 0:18:12.080 --> 0:18:15.719 now so that the player's physical health can be spared. 0:18:16.600 --> 0:18:21.320 Yeah, I mean you're certainly raising dimensions that once you know, 0:18:21.359 --> 0:18:23.480 we open up the CBA and we get into it 0:18:24.200 --> 0:18:27.160 would need to be put on the table. So when 0:18:27.200 --> 0:18:29.200 I said, hey, I haven't talked to a player who 0:18:29.600 --> 0:18:31.520 you know, wants to play an eighteenth game, that's in 0:18:31.560 --> 0:18:34.359 the absence of all these other dimensions that need to 0:18:34.400 --> 0:18:38.879 be addressed. You know, recovery economics, you know, their health 0:18:38.920 --> 0:18:42.199 and wellness and we're just not there. So it's just 0:18:42.520 --> 0:18:44.720 a human reaction that if I say, hey, do you 0:18:44.720 --> 0:18:47.080 want to do more with no change, and they'll go like. 0:18:47.080 --> 0:18:47.840 No, I don't want to do that. 0:18:48.320 --> 0:18:51.320 And so here we are to all the dimensions you 0:18:51.640 --> 0:18:54.200 you put out there that would need to be addressed, 0:18:54.560 --> 0:18:57.040 and that's just not a snap of the fingers, and 0:18:57.359 --> 0:19:01.400 we get to agreement. Yeah, get to agreement, just depending 0:19:01.400 --> 0:19:03.760 on how those other dimensions get adjudicated. 0:19:04.440 --> 0:19:06.880 All right, good stuff, Lloyd, really appreciate your joining us today. 0:19:06.880 --> 0:19:09.000 Thank you so much for the thoughtful responses. Lloyd Howell 0:19:09.080 --> 0:19:13.760 Junior is head of the NFL Players Association. Really important 0:19:13.800 --> 0:19:15.919 questions that need to be asked, and certainly you know 0:19:15.960 --> 0:19:18.240 he has a difficult job of trying to get everyone 0:19:18.280 --> 0:19:18.960 non consensus. 0:19:19.000 --> 0:19:21.320 Well, and what a fascinating moment for these players, right, 0:19:21.359 --> 0:19:23.840 I mean, the world has really come to them in 0:19:23.880 --> 0:19:24.440 a lot of ways. 0:19:24.480 --> 0:19:25.639 They have a fascinating model. 0:19:25.680 --> 0:19:29.040 I think in the NBA, where the players really have 0:19:29.280 --> 0:19:32.040 I would argue a stronger voice in really how the 0:19:32.119 --> 0:19:34.600