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Speaker 1: Hello, I'm Scott So, I'm Evan Novie Williams, and I'm

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Speaker 1: Michael Barr. And this is the Bloomberg Business of Sports

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Speaker 1: podcast Where we weren't you know we were? But we

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Speaker 1: don't need synchronicity. But Evan barely participates anymore. He's too

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Speaker 1: good for them. We're going to explore the big money

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Speaker 1: issues in the world of sports. Lots to talk about.

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Speaker 1: Let's start. Where do we want to start? Do you

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Speaker 1: want to start with? After everything we did pre tape?

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Speaker 1: You say, where do we start? I'm yelling certain things

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Speaker 1: and where we started. Let's start with Steph Curry. Yes,

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Speaker 1: we're gonna start with stuff, so let me explain the situation.

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Speaker 1: Go ahead. Golden State Warrior star Steph Curry. He is

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Speaker 1: scouting out new investments off the court. The NBA star's

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Speaker 1: latest bet is Canadian travel startup snap Travel, which helps

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Speaker 1: users make hotel bookings through messenger platforms like What'sapp in

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Speaker 1: terms of snap travel and where they are in conversational

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Speaker 1: commerce and uh finding ways to meet the consumer where

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Speaker 1: they are in terms of you know, again, being disruptive

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Speaker 1: in that industry. I said a lot about the company,

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Speaker 1: about the leadership and definitely excited to be a part

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Speaker 1: of the team. Is it just me Bar Does it

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Speaker 1: sound like he just got off a twenty nine hour

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Speaker 1: flight from someone travel that man to see this is

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Speaker 1: where you know the rich are going to stay rich

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Speaker 1: because this is a good investment. I think you think,

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Speaker 1: I think you've delved into the specific I'm that I'm

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Speaker 1: investing in this. By the way, Curry and tell Stra Ventures,

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Speaker 1: the investment arm of Australian telcom giant Telstra Corporation. They

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Speaker 1: were among the group that invested just a little thirteen

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Speaker 1: million dollars in the company pocket Change. Pocket Change. I

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Speaker 1: mean he's an investor in Palm, pinterest. He launched slice.

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Speaker 1: You know it helps athletes with their social Yeah, this

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Speaker 1: is the new thing. You know, we said it before.

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Speaker 1: Athletes in the past wanted to be rock stars. Now

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Speaker 1: they want to be venture capitalist tech investors. That's the

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Speaker 1: cool thing. That's everybody wants their equity. They want to

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Speaker 1: get into the ground floor. They want to be seed funders.

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Speaker 1: And maybe if you sell later on for you know,

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Speaker 1: a big company buys you up, you make more off

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Speaker 1: the court than you did on the court. All a

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Speaker 1: Blaze Pizza and Mr Lebron James. Yeah, his company sc

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Speaker 1: thirty making eight to twelve investments a year um just

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Speaker 1: gives you a sense of of how he's approaching this. Right.

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Speaker 1: He doesn't. I don't think he thinks every investment he's

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Speaker 1: making is a is a slam dunk um capital. It's

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Speaker 1: not a slam and he's probably not buying huge steaks

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Speaker 1: in these companies. And obviously you see from the company side,

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Speaker 1: getting Steph Curry involved is a huge benefit when it

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Speaker 1: allows you spy. Getting Steph Curry to spot as a

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Speaker 1: sponsor of your company, he's much more expensive than just

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Speaker 1: getting him to invest a little bit and you get

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Speaker 1: the same kind of attention. Absolutely. Let's not forget Stefan

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Speaker 1: andre Igodala were the two athletes who were co sponsors

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Speaker 1: of the Bloomberg Venture Capital Tech Summit. You know two

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Speaker 1: years ago the annoy you were one. Igodala was back

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Speaker 1: last year, as with Kevin Durant. So they're in Silicon Valley.

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Speaker 1: They're taking advantage of their proximity to the capital. Why not.

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Speaker 1: I mean this, this makes perfect sense. It's the new

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Speaker 1: breed of athlete. Uh no longer just content to say,

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Speaker 1: oh I signed X million and I'm set. That's it,

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Speaker 1: Like I don't have to do anything else. These guys

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Speaker 1: are forging a path that will last far beyond their

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Speaker 1: playing years. And you know what it reminds speaking of that,

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Speaker 1: And it was a reminder. Steph Curry is thirty. Now, people,

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Speaker 1: come on, that's that's young far. You're ready for this,

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Speaker 1: somebody said, a young person said to nov the underscore

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Speaker 1: Williams the other day, Oh you look good for thirty.

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Speaker 1: Oh my god. He did not take it well. He

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Speaker 1: did not take that well. Yeah, yeah, is a high

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Speaker 1: school student. I think you meant that as a compliment,

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Speaker 1: but I did not take it that way. When we

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Speaker 1: when we put this, when this show is simulcast, we're

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Speaker 1: gonna have a nice close up of the crow's feet

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Speaker 1: from Mr NOVI wis I write him all the time.

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Speaker 1: Right now. Look, he's got that look part you can

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Speaker 1: see from where you're sitting, and ain't good. Ain't good?

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Speaker 1: All of a sudden, this guy's gonna start moisturizing. What

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Speaker 1: do you want for the holidays? Moisture? You seeing that

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Speaker 1: cream where it takes the stuff away from the eyes

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Speaker 1: and the crow's feet. And my wife has not a

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Speaker 1: sponsored my wife has nine thousand bottles of cook in

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Speaker 1: the bathroom cabinet. Yes, yes, uh, and this is your story.

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Speaker 1: By the way, sports betting gets a new meaning as

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Speaker 1: startups invests in athletes. It's new with a twist, not new. Um.

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Speaker 1: Peter Gordon used to work at the NBA. Uh. He

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Speaker 1: was the liaison between the league and the broadcast partners.

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Speaker 1: He's teaming up with a quant from Bank Loomi, Israel's

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Speaker 1: largest bank. And they think they have a secret sauce.

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Speaker 1: Here's the just to it. They will try to identify

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Speaker 1: professional athletes after their rookie seasons, so they want at

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Speaker 1: least to see that professional body of work for one year.

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Speaker 1: And the guys who don't exactly jump out of superstars.

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Speaker 1: And the examples they're giving are Drew Holiday now with

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Speaker 1: New Orleans and Steven Adams Oklahoma City. Like you look

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Speaker 1: at their their first year body of works like three

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Speaker 1: points four rebounds. That's not a megastar, right, But they

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Speaker 1: think they're quantitative data analytics, machine learning and know how

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Speaker 1: they will be able to identify who these superstars are

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Speaker 1: going to be. They will approach these players and say,

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Speaker 1: will give you X millions of dollars. It's gonna change

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Speaker 1: for each person in exchange for a future percentage of

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Speaker 1: your revenue. So if some guy doesn't work out, hey,

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Speaker 1: you get the two three million bucks. It's all yours.

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Speaker 1: You don't have to repay it for whatever reason, to

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Speaker 1: get hurt, you don't want to whatever, you don't want

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Speaker 1: to play, something happens, you don't earn that money, you

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Speaker 1: don't repay it. But if you become a Steven Adams

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Speaker 1: and you sign a hundred million dollar extension goes to

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Speaker 1: Home Court Capital. Now that's that is interesting. So it's

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Speaker 1: the initial part, like you said, is that you're good

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Speaker 1: to go, but any extension goes to your future earnings. Yeah,

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Speaker 1: so if you, if you, if you exceed your peer

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Speaker 1: group and you are rewarded with a fat contract, you

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Speaker 1: will in perpetuity be paying a portion of your income

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Speaker 1: to Home Court Capital for in exchange for that upfront

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Speaker 1: money you know at the start could be to three

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Speaker 1: million dollars. There's no set amount. It depends on the league,

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Speaker 1: the position. But these guys think they can identify which

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Speaker 1: players will become stars, and this is the kind of

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Speaker 1: thing that that does happen. I think behind the scenes

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Speaker 1: fairly often in some sports. You know, neymar I think

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Speaker 1: fairly famously when he was very young, signed over a

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Speaker 1: lot of his his marketing rights UM in perpetuity. You

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Speaker 1: see it in golfer golfers often poker stars get staked

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Speaker 1: a lot. You know that you're essentially asking this athlete

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Speaker 1: um for you know, to either or not bet on

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Speaker 1: himself or you know, you're offering some upfront security, right,

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Speaker 1: some some some insurance that you know if things don't

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Speaker 1: work out, you know you've got You've got a little

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Speaker 1: bit of a quote. Home Court would tell you the

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Speaker 1: biggest advantages here are you at early on you have

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Speaker 1: the capital you can invest in any way you want.

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Speaker 1: It'll help you don't have to borrow money. This is

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Speaker 1: not alone. You do not have to go out and

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Speaker 1: borrow money, put yourself in debt and then repay it.

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Speaker 1: Those are the those are the big pros from home

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Speaker 1: Court's perspective. Yeah, and it's it's a similar from an

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Speaker 1: athlete perspective. It's it's a similar offer essentially that that

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Speaker 1: fan Tex and a few of these other security groups

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Speaker 1: were doing a couple of years ago. You know, the

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Speaker 1: home Court is not turning this into something that fans

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Speaker 1: can invest. It will be extreme, but yes, it's an

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Speaker 1: upfront you know, a couple of million dollar investment for

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Speaker 1: you know, future rights. And it's gonna I mean, I

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Speaker 1: would imagine, I know they've thought of this, and you

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Speaker 1: may have asked him about it, Scott. It's always gonna,

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Speaker 1: you know, create these weird little changes of incentive, right,

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Speaker 1: where as an athlete less incentivized to do X and

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Speaker 1: Y if you know the contract they're getting on the

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Speaker 1: seckend isn't all going into their pocket, it's going partially

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Speaker 1: to someone else. You know what a high schooler is right.

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Speaker 1: You don't look bad for thirty at all. Thank you, Mike.

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Speaker 1: I appreciate that. As when she looks at Microw's feet,

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Speaker 1: she goes, March March, March, March. That's what I'm starting

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Speaker 1: in March, March. You know what my life says? She said,

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Speaker 1: you might want to think about just for men. She

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Speaker 1: said that, and I said, well, who am I fooling?

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Speaker 1: It's like, you know, I like your color. I like

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Speaker 1: keep it just gray. It's just like everybody knows you

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Speaker 1: are distinguished, sound distinguished, you look distinguished. You just do

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Speaker 1: not act distinguished. That's okay, I'm extinguished. Uh, this is

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Speaker 1: what I love this one. Finally, Seattle, you're about to

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Speaker 1: get a winter team that you haven't had in a

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Speaker 1: long time. Yeah. Thirty second NHL franchise, No Surprise, voted

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Speaker 1: this week the Board of Governors unanimously to award it

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Speaker 1: to Seattle siy million dollar expansion for a hundred and

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Speaker 1: fifty more than than what the Vegas Golden Nights paid

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Speaker 1: just two years ago. Um. Yeah, I think they're they're

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Speaker 1: fans up in again, well just periodically. While you're talking,

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Speaker 1: I'm gonna go fans fans up in Quebec. Are are

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Speaker 1: a little upset. Um, but you know the there's been

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Speaker 1: a push for a long time to getting arena up

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Speaker 1: in Seattle. They're not getting a new one, they're essentially

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Speaker 1: building a new one through the old arena. It's the

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Speaker 1: old roof is said that. Come on, it makes total

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Speaker 1: sense for the NHL. You know that they're they're moving

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Speaker 1: back to a city that is um market growing. Yeah,

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Speaker 1: it's growing in in in both it's it's business connections obviously,

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Speaker 1: Amazon Soft, etcetera. Going up thirty three thousand. I think

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Speaker 1: I think they're on the wait list already. Um, you know,

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Speaker 1: the NHL has suddenly become the league where they where

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Speaker 1: they're going to cities that other leagues are trying to

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Speaker 1: get to, and they're beating them there. Right. They beat

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Speaker 1: the NFL to to Las Vegas there. I assume at

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Speaker 1: some point in the NBA franchise is going to come

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Speaker 1: back to Seattle. He's beating them there. Batman took a

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Speaker 1: lot of heat for some of the Sun Belt whatever,

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Speaker 1: but like a lot of those markets did work out

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Speaker 1: and now you're gonna have Phoenix moving to the Central Division.

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Speaker 1: This makes sense on every level. Now equal number of

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Speaker 1: teams in the conferences. Good for the NHL and I

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Speaker 1: really can't wait to see what happens on the NHL

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Speaker 1: media deal next. Evan. We all know the value of

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Speaker 1: this content. They have a lot of games, there's a

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Speaker 1: lot of shoulder programming. They left the ESPN and the

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Speaker 1: promotion that comes with for NBC. NBC has treated it

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Speaker 1: like a market property on NBCs N and of course

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Speaker 1: on the mothership itself. It's gonna be in demand. I'm

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Speaker 1: very interested to see the number because the Canadian TV

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Speaker 1: Allen Rogers, but then you're gonna put on top of that,

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Speaker 1: and now a new US deal in the multibillion dollars.

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Speaker 1: You're looking at some serious cash and it's coming at

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Speaker 1: a good time, I think, for certainly for hockey fans

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Speaker 1: and also people who might be coming to the game now.

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Speaker 1: You know, there's a lot of young stars. They're very exciting.

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Speaker 1: The game itself, I think is opening up a bit.

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Speaker 1: I think it might be more accessible to casual fans

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Speaker 1: now than maybe it was when when speed and and

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Speaker 1: and stick handling wasn't you know, fully uh fully at

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Speaker 1: an emphasis. Um, yeah, I agree with you. I think

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Speaker 1: they're and they're in a unique position that the viewership

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Speaker 1: numbers obviously are not as big as some of the

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Speaker 1: other other big leagues, but you're right it doesn't have

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Speaker 1: to be. And this new fractured media market. They're already

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Speaker 1: on ESPN Plus once every every every night. You know,

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Speaker 1: they have a Yahoo deal I believe for Game of

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Speaker 1: the Week. Um, they're doing some interesting stuff and they'll

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Speaker 1: be you know, there's gonna be a big day. I

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Speaker 1: just out the players. I mean, I mean that drum

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Speaker 1: is is already being I mean be a lockout on

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Speaker 1: the way. It's funny you mentioned that that I feel

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Speaker 1: like that drum is beating now in every sport a

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Speaker 1: time the other day spending to unprofitable. You're seeing over

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Speaker 1: three years before, three or four years before that deal

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Speaker 1: is up, already talking about it um major League Baseball,

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Speaker 1: which seemed like it was it was labor free for

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Speaker 1: so long. You know, there's huge fighting last year, and

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Speaker 1: I'm interested to see what this offseason brings. The question is,

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Speaker 1: can you get enough owners and all of these sports,

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Speaker 1: And this is the easiest way to look at it.

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Speaker 1: Can you get enough owners across all these sports when

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Speaker 1: it's their turn who are unhappy enough or are not

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Speaker 1: making money to get the votes required to shut down

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Speaker 1: a season. And my bet right now is no. There

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Speaker 1: are too many powerful owners, big market owners across the

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Speaker 1: landscape of sports that are doing very well and it

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Speaker 1: just does not make sense for them to shut down

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Speaker 1: a season. I mean, the opposite is also true, right

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Speaker 1: there are enough players out there who are willing to

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Speaker 1: go without a paycheck for long enough. The expansion fee

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Speaker 1: that's a lot of and that's up from two years

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Speaker 1: ago when the Las Vegas Golden Knights paid just five

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Speaker 1: d million dollars. Why why, why was there such a

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Speaker 1: big job because it worked out well and it's more valuable.

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Speaker 1: They just worked out well, and David Bonderman can afford it,

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Speaker 1: and he wants that team, and that you want it,

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Speaker 1: you gotta pay the goal. And we've seen MLS expansion

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Speaker 1: fees go from Toronto years ago and now it's at

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Speaker 1: fifty something like that. Um, yeah, worth noting on that

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Speaker 1: expansion fee. The Vegas doesn't share in that, which I

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Speaker 1: was a little surprised by. You're always phased in. Yeah,

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Speaker 1: that's being split by thirty teams, not the thirty one

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Speaker 1: teams uh in the league right now. It doesn't get

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Speaker 1: shared by players obviously, So this is this is a

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Speaker 1: check that goes right into owner's pockets. He's part of.

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Speaker 1: Start to think about what the team's name will be.

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Speaker 1: They haven't named it yet. The Totems. They haven't named

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Speaker 1: it yet, totem. The totem seems like the likely answer.

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Speaker 1: I'm like, pugat Pirates is my is my goal because

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Speaker 1: then you're taking out the city name Hashtaga pirates toly

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Speaker 1: could have I guess totems. Let's take a poll. Yes, no, no, sorry,

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Speaker 1: let me stomp on that cricket. This is the Bloomberg

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Speaker 1: Business of Sports podcast on Michael Barr along with Scott

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Speaker 1: sas Nick and Evan wi Williams. We are here each

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Speaker 1: and every Monday, Wednesday and Thursday exploring the world of

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Speaker 1: money in sports. Join us again at the end of

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Speaker 1: the week when we speak with XFL Commissioner Oliver Luck.

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Speaker 1: You're listening to Bloomberg Business of Sports on Bloomberg Radio

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Speaker 1: around the world and online wherever you get your podcast.

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Speaker 1: I'm gonna go in it' say. But I mean, we

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Speaker 1: should have said. All of our shows are really good.

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Speaker 1: We love our show. But Oliver Luck was excellent. Yes, yes,

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Speaker 1: Oliver Luck was excellent. So if you're curious about the

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Speaker 1: future of football, yeah, Oliver Luck and the XFL IS

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Speaker 1: is a podcast you should listen to wherever, so tune in.

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Speaker 1: By the way, I'm gonna give I'm gonna give the

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Speaker 1: out again. That's what the whole purpose of what I

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Speaker 1: just said. I'm gonna give it again. You're listening to

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Speaker 1: Bloomberg Business of Sports on Bloomberg Radio around the world.