NHL Commissioner Gary Bettman on Hockey's Growth, An Early Look at the Olympics - Episode Artwork
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NHL Commissioner Gary Bettman on Hockey's Growth, An Early Look at the Olympics

In this episode of Bloomberg Business of Sports, NHL Commissioner Gary Bettman discusses the growth of hockey and shares insights on the upcoming Olympics. He emphasizes the importance of engaging fan...

NHL Commissioner Gary Bettman on Hockey's Growth, An Early Look at the Olympics
NHL Commissioner Gary Bettman on Hockey's Growth, An Early Look at the Olympics
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spk_0 The FIFA World Cup 26 is coming to North America.
spk_0 Get closer to where business meets the beautiful game
spk_0 with a hospitality package featuring premium seats and entertainment.
spk_0 Get closer to wins on and off the pitch.
spk_0 Register interest at hospitality.fifa.com slash interest.
spk_0 Hi, I'm Stephen Carroll.
spk_0 And I'm Caroline Hepke here to introduce you to a podcast
spk_0 that brings you the news you need to start your day in just 15 minutes.
spk_0 It's called Bloomberg Daybreak Europe Edition,
spk_0 covering all the top stories across Europe and around the world.
spk_0 Each week day morning, we're up early to bring you the latest news by 7 a.m.
spk_0 We've got everything you need to know from geopolitics and global events
spk_0 to economics and what's moving markets.
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spk_0 This is the business of sports.
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spk_0 Bloomberg Business of Sports from Bloomberg Radio.
spk_0 This is the Bloomberg Business of Sports
spk_0 who we explore the big money issues in the world of sports.
spk_0 I'm Michael Barr, along with my colleagues, Damian Sassauer and Vanessa Pradoomo.
spk_0 Coming up on the show,
spk_0 we'll hear from NHL Commissioner Gary Beckman
spk_0 as we get ready for another season of hockey.
spk_0 You look for big events, for big stories,
spk_0 and you use every platform imaginable,
spk_0 whether it's linear streaming platform, social media,
spk_0 and no different than what we did in February with the Four Nations tournament.
spk_0 I mean, we created something that even if you weren't a hockey fan,
spk_0 even if you weren't a sports fan,
spk_0 you felt compelled to tune in because it was so topical
spk_0 and so intriguing people wanted to know more.
spk_0 That been spoke on stage,
spk_0 alongside monumental sports and entertainment founder Ted Leone says
spk_0 in a panel moderated by our own Scarlett Foo recently
spk_0 at Bloomberg Power Players New York.
spk_0 All that is on the way on the Bloomberg Business of Sports.
spk_0 But first, the next winter Olympics are right around the corner
spk_0 and preparations are well underway for the next summer Olympics
spk_0 that hit Los Angeles in 2028.
spk_0 To give us an update on all things Olympics,
spk_0 we welcome back Sarah Herschlein,
spk_0 she's Chief Executive Officer of the US Olympic and Paralympic Committee.
spk_0 Sarah, welcome back to the Bloomberg Business of Sports.
spk_0 I am so glad that you have joined us
spk_0 and I want to talk about some of the things that you're doing
spk_0 with the US Olympic and Paralympic Committee.
spk_0 Where do you see it now for the upcoming games?
spk_0 Where do you see the committee heading in this race?
spk_0 Well, as you know, in February,
spk_0 we will take a delegation of Team USA to Italy,
spk_0 anchored in Milan,
spk_0 but with a strong presence up in Cortina,
spk_0 Lavinio,
spk_0 so we'll be spread across the Italian Alps
spk_0 with what I will say is one of the strongest winter Team USA teams
spk_0 we've seen in quite some time.
spk_0 So we're optimistic and excited.
spk_0 My goodness, spread across the Italian Alps.
spk_0 It doesn't sound too bad, doesn't Michael.
spk_0 No, I think we can tag along.
spk_0 Yeah, I think so.
spk_0 You need someone to carry the luggage just told me.
spk_0 Yeah, so in this time in the next few months,
spk_0 what are you, you know,
spk_0 what's your biggest, you know,
spk_0 things that you have to worry about
spk_0 and that you have to strategize for for Team USA to be ready
spk_0 for those games in February?
spk_0 Well, a few pretty, pretty important things.
spk_0 Number one, we've got to make sure all the athletes qualify.
spk_0 So there is a quite a series of, you know,
spk_0 as we like to say, making Team USA,
spk_0 you got to make the Olympic and Paralympic Team first.
spk_0 So a lot of qualification events,
spk_0 those will actually start here very soon across all of the winter sports.
spk_0 And then there will be some team selections.
spk_0 As you can imagine,
spk_0 something like our Isaki teams,
spk_0 those coaches and captains will go through a process
spk_0 of selecting the individual athletes
spk_0 who will represent us on those teams.
spk_0 So you got to qualify first.
spk_0 Our organization spending a lot of time
spk_0 making sure we have all of the logistics in place
spk_0 so that when we get on the ground,
spk_0 these athletes have all of the support resources
spk_0 that they're accustomed to in their training environments.
spk_0 And, you know,
spk_0 that's everything from nutrition to recovery equipment
spk_0 to sports medicine support,
spk_0 making sure that they can be in an environment
spk_0 that's going to allow them to reach their,
spk_0 their highest potential at exactly the right moment.
spk_0 And the, you know, the core,
spk_0 the secret, if you will,
spk_0 that's not such a secret is we always say,
spk_0 if we get Team USA to the start line healthy,
spk_0 we like our chances.
spk_0 Yes.
spk_0 So, you know, Sarah, for me,
spk_0 the question I have is,
spk_0 what are you doing?
spk_0 2025 is an off year,
spk_0 you know,
spk_0 but there's so much preparation
spk_0 that goes hand in hand with getting the venues ready,
spk_0 getting actually the athletes ready.
spk_0 You know, where are you most focused right this minute?
spk_0 It's, you know, the year after a summer games
spk_0 and right before winter games is naturally
spk_0 a bit of a transition year for us.
spk_0 So, you're right.
spk_0 It's a combination of some long term planning.
spk_0 Obviously, the short term planning
spk_0 and work that goes into preparations for the winter games.
spk_0 But it's also an opportunity for us to make sure
spk_0 that we're focused on,
spk_0 you know, what's on the long horizon?
spk_0 And are we set up properly to drive a good, strong,
spk_0 healthy sport culture for many years to come?
spk_0 So, we do work on what we call quadrennial planning,
spk_0 a four-year long-range plan looking out ahead,
spk_0 obviously for us.
spk_0 We're in the unique situation of having the LA28 games
spk_0 in our next four-year cycle.
spk_0 So, it is getting the people,
spk_0 getting the resources in place, human and financial,
spk_0 to be ready.
spk_0 In late July of the committee,
spk_0 they updated its policies on transgender athletes.
spk_0 Can you tell us more about what the committee decided?
spk_0 You know, a real,
spk_0 and this has been, as you guys well know,
spk_0 a really robust discussion, I would say,
spk_0 across global sport,
spk_0 across this country,
spk_0 but also with our peers around the world.
spk_0 And I think there's a very strong commitment
spk_0 in many places, many countries,
spk_0 many hallways in the United States,
spk_0 a very strong commitment to protecting women's sports
spk_0 in particular,
spk_0 and a real focus on ensuring that the games we've made
spk_0 in the U.S., in particular,
spk_0 continue to provide fair opportunities,
spk_0 safe opportunities for women to compete in sport.
spk_0 And that's really exactly what this is about.
spk_0 And that obviously comes off of the back of President Trump's
spk_0 declaration, right, of keeping women's sports
spk_0 and protecting women's sports, is that right?
spk_0 That's right.
spk_0 The administration and the president in particular
spk_0 have been, you know, really vocal on this topic.
spk_0 And it's an area where we see tremendous support
spk_0 from the public at large.
spk_0 People understand fairness in sport
spk_0 and safety in sport above all else.
spk_0 Athletes will tell us,
spk_0 it's the single most important two issues to them.
spk_0 And so we feel a real obligation
spk_0 to make sure we're listening
spk_0 and paying attention to what is it going to take
spk_0 to provide both a safe environment,
spk_0 but also, you know, fairness
spk_0 that everyone feels like they arrive
spk_0 on the field to play with a level playing field.
spk_0 Sarah, talk to me about ski mountaineering.
spk_0 It's a new sport in 2026.
spk_0 What other new sports are coming to the Olympics
spk_0 in the Nazi distant future?
spk_0 Well, that's the one in 2026 on the winter side.
spk_0 And it will be, you know, we do,
spk_0 there are people in the United States
spk_0 who are ski mountaineer athletes.
spk_0 And so we will hope to have a team there competing.
spk_0 But not something that's been, you know,
spk_0 mainstream and really popular.
spk_0 So I think the US will find it fun.
spk_0 It's quite an endurance sport
spk_0 and we tend to like the endurance sports, you know.
spk_0 I you could almost liken it to long distance running
spk_0 or cycling, but but the combination of some endurance
spk_0 and some speed.
spk_0 So it'll be fun to watch.
spk_0 When we get to Los Angeles on the summer side,
spk_0 we know we'll see squash.
spk_0 We'll see flag football and I'll call out in particular there.
spk_0 That one will be fun for both men and women.
spk_0 We'll see baseball softball come back.
spk_0 We'll see lacrosse come to the games for the first time.
spk_0 So and we'll see, I think I mentioned squash
spk_0 and we'll see cricket for the first time.
spk_0 So some some very popular global sports
spk_0 back in the games in Los Angeles.
spk_0 Obviously we saw a huge research
spk_0 and just felt like a big research in 2024.
spk_0 The Paris games just being so, so successful.
spk_0 And then now kind of not to take a step back,
spk_0 but what's going on with college athletics
spk_0 and given the NCAA House settlement
spk_0 that now was passed that looks to potentially
spk_0 have some some adverse effects on Olympic style sports.
spk_0 Are you would all worried about that
spk_0 given that a lot of T. M. USA is made up of college athletes
spk_0 or athletes that train at colleges?
spk_0 We have been very vocal for some time years now
spk_0 in the halls of Congress and among our peers
spk_0 in the collegiate space advocating
spk_0 for the preservation of broad-based sport opportunities
spk_0 on our campuses.
spk_0 The US is the envy of the world.
spk_0 We are the greatest sporting nation in the world.
spk_0 And a huge component of that is the education-based sports system
spk_0 that we have always enjoyed.
spk_0 And so to see that sports system threatened
spk_0 and changing in elementary middle school high schools
spk_0 as it has and to now see that broad-based sport offering
spk_0 threatened at the collegiate level
spk_0 is absolutely concerning to us.
spk_0 And so yes, we are very focused on it.
spk_0 We are we're advocating, we're lobbying
spk_0 and we're sitting at every table that we can
spk_0 to be part of the conversation around creating solutions.
spk_0 Further to that, how does name image likeness affect you?
spk_0 How does it affect Olympic athletes?
spk_0 Do you see there be incentives for them to move away
spk_0 from amateur sports from the Olympics?
spk_0 Or is I mean, what are you doing to compete with all that?
spk_0 I think the important thing is we have to separate
spk_0 true name image likeness from the pay to play environment.
spk_0 And that unfortunately hasn't happened effectively
spk_0 in the collegiate environment.
spk_0 We are and have been huge advocates for athletes
spk_0 to capitalize on their name image and likeness
spk_0 to generate income.
spk_0 We've been supporters of that at the Olympic and Paralympic
spk_0 level. We're supporters of that at the collegiate level.
spk_0 And there are athletes who've been wildly successful
spk_0 in becoming marketing geniuses in their own right
spk_0 and capitalizing on their on their name image and likeness
spk_0 to drive real income.
spk_0 And that's good and positive and should be encouraged.
spk_0 But the distinction between that and what has become
spk_0 recruiting endorsements is a very different thing.
spk_0 And that's where the struggles and challenge
spk_0 in collegiate athletics is navigating
spk_0 how you properly ensure athletes have the ability to earn
spk_0 in an appropriate and fair way.
spk_0 We have the same sort of principles and premises.
spk_0 We would love for Team USA athletes to have significantly
spk_0 greater income than they do.
spk_0 We're working really hard to improve upon that.
spk_0 In fact, this year was a huge milestone for us.
spk_0 You guys know a big part of our revenue and our funding
spk_0 comes from the American public through philanthropy.
spk_0 We had our first $100 million donation
spk_0 by an incredibly generous gentleman in his family
spk_0 named Ross Stevens who created the Stevens Awards.
spk_0 And that is income directly to athletes.
spk_0 It's $100,000 grant and $100,000 life insurance
spk_0 for athletes who make Team USA and the winter games in 26
spk_0 will be the first group of athletes who receive that benefit.
spk_0 So a lot of us are working on the right ways
spk_0 to ensure athletes have earning.
spk_0 The key is to make sure that we do it in ways
spk_0 that's going to incent the right behaviors.
spk_0 Sarah Herschelan, Chief Executive Officer
spk_0 of the US Olympic and Paralympic Committee.
spk_0 We are so grateful that you came to join us and talk
spk_0 with Bloomberg's Business of Sports.
spk_0 We really do appreciate it.
spk_0 It's always a pleasure to be with you guys.
spk_0 Thank you.
spk_0 Up next, we turn to Sports Tech
spk_0 and a firm investing in the people and products
spk_0 that will power the future of sports.
spk_0 From colleagues Vanessa Pradoomo and Damien Zasauer,
spk_0 I'm Michael Barr.
spk_0 You are listening to the Bloomberg Business of Sports
spk_0 Bloomberg Radio Around World.
spk_0 The FIFA World Cup 26 is coming to North America
spk_0 next summer.
spk_0 It's the ultimate celebration of sports and culture
spk_0 and an opportunity to elevate your company.
spk_0 Get closer to where business meets the beautiful game
spk_0 with a premium hospitality package.
spk_0 Build partnerships in the best seats and sweets.
spk_0 Achieve goals over world-class food and beverage.
spk_0 Get closer to wins on and off the pitch.
spk_0 Register interest at hospitality.fifa.com.
spk_0 Slash interest.
spk_0 Hello, I'm Caroline Heppker,
spk_0 introducing you to the new stock movers report from Bloomberg.
spk_0 There are so many big names and equities to keep track of
spk_0 and our stock movers report is the best way to find out
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spk_0 This is the Bloomberg Business of Sports,
spk_0 where we explore the big money issues in the world of sports.
spk_0 I'm Michael Barr, along with my colleagues Damien Sassauer
spk_0 and Vanessa Pradamo.
spk_0 Now for a look at the sports tech world.
spk_0 76 Capital is a sports tech venture capital company
spk_0 that focuses on the people and products that are building the data
spk_0 analytics and technology that will power the future of sports.
spk_0 Joining us now is Wayne Kimmel.
spk_0 He's managing partner at 76 Capital.
spk_0 Wayne, welcome to the Bloomberg Business of Sports.
spk_0 Thanks for having me.
spk_0 This is really exciting to be here.
spk_0 I'm excited because you know me.
spk_0 I hate this.
spk_0 Yes, I bet.
spk_0 Yes, I do.
spk_0 And I'm not good at it.
spk_0 But I bet.
spk_0 Have we hit a point now where the market has saturated
spk_0 with online betting?
spk_0 Not yet.
spk_0 I mean, I really don't think we've hit a point yet.
spk_0 We certainly have where draft kings and fan dole
spk_0 have taken the lead with betting today.
spk_0 But at the same time, you've got
spk_0 BetmgM, fanatics, nipping at their heels.
spk_0 You've got also at the same time the prediction markets.
spk_0 And that's a whole nother can of worms,
spk_0 which really now has betting legal in 50 different states.
spk_0 Now, not just the 38, 39, 40, whatever it is,
spk_0 the regulated states.
spk_0 Now, it's everywhere.
spk_0 So it's really, really interesting to see
spk_0 what's going to happen next.
spk_0 But for us, look, it's all about making sure
spk_0 that betting is safe and fun.
spk_0 And we're just making sure that there's true integrity.
spk_0 There's real compliance with everything that's going on
spk_0 across that.
spk_0 And that's where one of our companies, I-360,
spk_0 I-C360, is right in the middle of all that.
spk_0 Which is really important, obviously.
spk_0 And when we're talking about security and all that,
spk_0 and it's particularly struggling right now
spk_0 in the prediction markets, I would say, right?
spk_0 It's a little bit less regulated there.
spk_0 There's those things there that aren't really regulated
spk_0 as much.
spk_0 So how do you figure that when it comes to the entire betting process?
spk_0 Well, look, I think in general, what we really want to make sure
spk_0 is that there's true integrity, and there's really no anomalies
spk_0 across the whole space.
spk_0 And that's what our team at I-C360 really works on
spk_0 to make sure.
spk_0 And just making sure that people are doing the right thing.
spk_0 I mean, I think that's the key to everything.
spk_0 If everything's on the up and up, we can't let professional
spk_0 sports turn into a scripted something like wrestling.
spk_0 Like, it can't be that.
spk_0 We need to be able to be in a position where we know
spk_0 that what's going on on the field is really what's happening.
spk_0 And that's the most important thing for us.
spk_0 Wayne, you're the managing partner of 76 Capital.
spk_0 And the reason Michael Barham, we started asking about sports betting
spk_0 is because that's really been your focus for the better part
spk_0 of the last few years.
spk_0 And you know, 76, you invest in all sorts of different companies
spk_0 of all different shapes and sizes.
spk_0 And I just have to ask you, you know, that world of sports
spk_0 as an asset class.
spk_0 You know, talk to us about exit strategies.
spk_0 Because it's really easy to invest in a good idea.
spk_0 And it's really, really difficult to crystallize that in terms
spk_0 of returns for you and your partners.
spk_0 So talk to us a little bit about your approach,
spk_0 how you work with these companies,
spk_0 how you get them cash flow positive,
spk_0 and how you get them into cruising altitude.
spk_0 Yeah, I think what's really important is to make sure
spk_0 that these companies are truly ready to go and sort of moving forward
spk_0 and working with our companies so that they then can be one
spk_0 of those companies that we can sell, like we did with Vyson
spk_0 selling them to DraftKings or, you know, selling a company
spk_0 to Fubo TV or the Pylon Camps, you see an NFL field
spk_0 that was sold to Cosm and then Cosm raised $250 million
spk_0 to open up more of their venues.
spk_0 So for us, it's really all about getting behind amazing entrepreneurs
spk_0 who are truly doing something innovative.
spk_0 And then, and most times, the stuff that we invest in are companies
spk_0 that are involved that have hardcore technology, data and analytics.
spk_0 And we really help those companies and help build those companies
spk_0 and make sure that they have relationships with the teams,
spk_0 the leagues, the sports betting regulators, the sportsbooks themselves,
spk_0 and also, you know, just think about, you know, it could be at any,
spk_0 is any part of the overall landscape from professional sports
spk_0 where they work in or college sports or it could be even on the
spk_0 youth side of things.
spk_0 There's so much to do out there right now, but for us,
spk_0 it's really all about making sure that we get behind amazing companies,
spk_0 we get them moving and then they start to really execute
spk_0 and do what they need to do.
spk_0 Well, when you made an interesting point there,
spk_0 I mean, all of those exits were selling to a private, right?
spk_0 Or, you know, to a larger company.
spk_0 It wasn't a public listing, so to speak.
spk_0 It wasn't an IPO, you know, the traditional way that a lot of, you know,
spk_0 private equity investors tried to, you know, to cash in.
spk_0 But, you know, talk to me about, you know, the depth of that market, you know,
spk_0 and an operator like you who's been in the business since, you know,
spk_0 I mean, the late 90s, you know, those relationships and how important they are.
spk_0 I mean, you have your athlete and residence program at 76.
spk_0 Talk to us a little bit about how you work with your investors,
spk_0 your constituents, and you kind of get to that point where you have
spk_0 those relationships that you can even take a good idea or a well functioning opportunity
spk_0 and bring it to somebody's attention.
spk_0 Well, I think one of the big things that we do at 76 Capital
spk_0 is really work closely with our companies and help them with their marketing,
spk_0 with their branding.
spk_0 So they actually get out there into the market so that they are a brand name
spk_0 when it comes to the NFL or the NBA or any of those leagues.
spk_0 At the same time, we sometimes will use the help of an athlete
spk_0 who can help us maybe, you know, market the company a little bit to get them,
spk_0 get them out there a little bit.
spk_0 So that's something that we'll certainly do.
spk_0 But I think the key for everything is really that these companies have the best technology
spk_0 that they have to be able to work really closely with incredible media companies like ESPN.
spk_0 I mean, as an example, you know, one of our companies is literally powering
spk_0 the personalization and customization of the ESPN app that's out there today.
spk_0 We're super excited about that.
spk_0 And that's something that, you know, you won't know the name of the business.
spk_0 It's not really that important, but it's when you see your fantasy and you see your bets
spk_0 and you see everything that's personalized to you,
spk_0 that's coming through the tech side of things.
spk_0 I want to talk about you were an investor in Veson when the whole thing started.
spk_0 I don't think people understand how much of an impact Veson made on the market
spk_0 because it used to have to go to the racetrack.
spk_0 Some guy is selling a tip, you know, a piece of eight and a half by 11 paper
spk_0 that's all typed in.
spk_0 Now you can listen to Veson.
spk_0 And if you want to do your homework on a bet, you can.
spk_0 Talk to us about that about the impact of Veson.
spk_0 Well, Veson was an unbelievable investment for us.
spk_0 I mean, getting the opportunity to work with the legendary Brent Musberger,
spk_0 his nephew Brian Bill 80.
spk_0 These guys were just incredible and they were always thinking about everything, you know, 10 steps forward.
spk_0 So it was the idea of why shouldn't there be a network that lets you hear everything that's happening across the bet sports betting markets,
spk_0 just like here at Bloomberg, where you get to learn everything that's happening on the financial markets.
spk_0 And then not only have it be able to listen to it, but also broadcast it like you guys do right from the floor of the exchange,
spk_0 which at the time our first studio was in the South Point in Las Vegas, the only 24 hour sports betting book that was open at the time.
spk_0 It was amazing to be there and be in the middle of all that and have the glass studio in there and really built that out.
spk_0 But now they're at circa and just in many other places.
spk_0 I mean, they're continuing to really build that.
spk_0 We sold that company to Draftkings.
spk_0 Now it's private again.
spk_0 They have it back.
spk_0 But it's one of those things where it was all about those entrepreneurs, their ideas going out and getting really great hosts,
spk_0 to really make sure you have authentic voices.
spk_0 That was one of the most important things, right?
spk_0 You hadn't really know what minus 110 means, not negative.
spk_0 That is a learning curve for sure.
spk_0 And I just hit my first big bet actually this week really pumped about it.
spk_0 It had $400 bet it was awesome.
spk_0 Well, well, well, well, well, no, no, you don't have to be so nervous.
spk_0 I had $400 bet this weekend, Michael, be jealous.
spk_0 It was amazing.
spk_0 So my nails for my bachelor party can be free.
spk_0 So one of the things you were talking about there and you were talking about Vison and you were talking about like the pile on cam and things like that,
spk_0 those are more forward facing like for consumer businesses, right?
spk_0 And then you have other things that you invest in on the analytic side, the baseball and basketball,
spk_0 shot tracker, those things that really help the sport in itself.
spk_0 When you're looking at what to invest in in the space, which are you really looking at?
spk_0 More, what is, what would you say is more for your interest or has a bigger impact on the sport?
spk_0 Yeah, the big thing for us is really, you know, whether it's on the field, off the field, for the consumer, you know, for the business,
spk_0 it's really just making sure that there's the core of everything is all around tech data and analytics.
spk_0 So, you know, you mentioned shot tracker and diamond kinetics on the baseball side.
spk_0 I mean, like shot tracker on the basketball side of things, really being able to use that information, use that data to enable you to be a better player.
spk_0 And that could be at the youth level, that could be at the college level, all the way up to the pro side of things.
spk_0 So, I think like the whole thing for us is just making sure that you have really the best of the best tech.
spk_0 And that's what, that's a big part of what we look for.
spk_0 Wayne, we were kidding offline here about the phenomenal valuations that specifically the NFL,
spk_0 but all professional sports teams are now fetching in the open market, you know, some of these transactions.
spk_0 I mean, I'll just give our audience, you know, I think the Dallas Cowboy, which were the most valuable franchise heading into this year per Sportico,
spk_0 a 10.3 billion. It's now estimated to be 14.5 billion, right?
spk_0 Same 1.2 billion in revenue per year, you know, but my question for you as we were talking about it offline is,
spk_0 what do these team owners need to do to justify those valuations?
spk_0 I mean, is it IP? Is it a technology? I mean, what can they do to realize any where near what the market values are going for now?
spk_0 I think one of the big things for us, certainly, and it's certainly the theme of everything that we do at 76 Capital is the idea, you look at every other industry and every other company that has gone from where they are today or where they were in the past and how they've continued to grow,
spk_0 that's what needs to happen here in sports and what they use and what they do is many cases is that's where they use the tech side of things.
spk_0 And so for us to be able to bring in ways for you to now monetize your fan base even more through the use of technology.
spk_0 So that could even be, you know, one of our companies, as an example, is boomerang is actually, and boomerang is a lost technology company that enables lost and found, you know, easily to find something.
spk_0 So if you lose something at Madison Square Garden at a nix game this year, you can easily get it back through using boomerang.
spk_0 Same thing, Fenway Park, same thing at many NFL stadiums, many other NFL arenas around the country.
spk_0 But those are the types of things to, if you use technology to enable your team to get better on the field for you to be able to monetize your fans.
spk_0 And that's where we believe the values of these enterprises which today are, some people say are high, but we believe they can go even higher because we're just getting going with that.
spk_0 Because what also the thing is is that if you start to think about the types of people also that are now owning these teams, they have done this in other industries.
spk_0 This isn't the first go round for some of these masters of the universe, we'll call them right now owning a lot of these teams.
spk_0 They've done this before, they've actually gone in and bought companies and then taken those companies to the next level and then sold them.
spk_0 And that's what's going to happen. And we really believe that the reason for these valuations that continue to rise is because of the tech.
spk_0 Our thanks to Wayne Kimmel for joining us. He's managing partner at 76 capital, a firm that invests in the sports tech space.
spk_0 Up next, we look ahead to the new NHL season with NHL Commissioner Gary Bettman and monumental sports and entertainment founder Ted Leonses, Corbiness of Pradovo and Damien Sassel.
spk_0 I'm Michael Barr. Stick around. There's more straight ahead on the Bloomberg Business of Sports from Bloomberg Radio Around World.
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spk_0 This is Bloomberg Business of Sports from Bloomberg Radio.
spk_0 Thanks for joining us on the Bloomberg Business of Sports where we explore the big money issues in the world of sports.
spk_0 Michael Barr, the NHL kicks off its regular season this week. Recently, NHL Commissioner Gary Batman was at Bloomberg World Headquarters in New York for our annual Power Players event.
spk_0 He spoke on stage alongside monumental sports founder, chairman, managing partner and CEO Ted Leoneses in a panel moderated by our own Scarlett Foo.
spk_0 Let's take a listen to a portion of their conversation.
spk_0 Ted, you've built monumental sports, which includes the caps and NHL team, the Washington Wizards NBA team, the Mystics WNBA team around this idea of increasing fandom.
spk_0 So I'm curious what does that look like from the C-suite where you sit and what does that look like to the average fan? How does it end up looking like for them?
spk_0 We're spending most of our time now trying to capitalize on we captured a new generation of fan.
spk_0 You know, that's going to affect if you will 20 years, all these young kids. We have the most active, one of the most active in North America, Yutaki.
spk_0 And you have to follow where the young people are because that's who your fan base is going to be.
spk_0 And we have to fully make the pivot from linear analog to digital. We've been global from day one.
spk_0 And you know, we're in Washington DC and the most popular athlete in the history of the community is Alex Ovechkin or Russian.
spk_0 And so we spend all of our time trying to figure out how can we build a platform, be a really, really important business in this 10 million household community.
spk_0 Obviously, the linear part of that cable plant has shrunk. We bought our cable company, our RSN from Comcast and NBC.
spk_0 And now we're able to make it a IP distribution network for us and across promotion arm.
spk_0 And we put all of our games there. We, you know, gotten renewals, but not only from the cable side, but now we can work with the YouTube's and the,
spk_0 and the Amazon's. And we think we have to become a just embedded in the lives of 10 million people from Richmond, Virginia, all the way to Delaware.
spk_0 So it looks very seamless from the fans perspective because it's where it should be, wherever they turn, there you are.
spk_0 Gary, in keeping with this idea of Alex Ovechkin, his quest to surpass WinGreski as the all-time score.
spk_0 Obviously, that was a big thing, but it's not a regular thing. You can't count on something like that happening every season.
spk_0 So how do you build on the momentum that was generated and continue to activate fans?
spk_0 Well, that's a great question, but I want to add one thing, which is the best indication of what a visionary Ted is.
spk_0 He has created his own ecosystem, and they have content 24, 7, 365 days a year that they create because he's aggregated all of the assets,
spk_0 whether it's teams in a variety of sports, the arena, or his own streaming platform. That's what makes it all work.
spk_0 And he has always been fan-facing, consumer-facing, from the day you first bought the franchise, which was what, 26, 27 years ago.
spk_0 I was in the second hall of the club, I bought the team and...
spk_0 He was a fan first.
spk_0 So what Ovechkin did is really what sports is about. It captures the imagination.
spk_0 It gives people a chance to focus on things that are superhuman.
spk_0 Alex broke a record that nobody thought was possible to break, and it's a testament to him, his physical prowess, his skill, his endurance, his ability to not get injured,
spk_0 and the support that he got from his organization in terms of the players they surrounded him with, and everything they've done off the ice.
spk_0 So what do you do is you look for big events, for big stories, and you use every platform imaginable, whether it's linear streaming platform, social media,
spk_0 and no different than what we did in February with the Four Nations tournament.
spk_0 I mean, we created something that even if you weren't a hockey fan, even if you weren't a sports fan, you felt compelled to tune in, because it was so topical and so intriguing, people wanted to know more.
spk_0 Your partnerships matter, as the CEO of a $300 billion company has said, put it, partnerships like TikTok on the Capital as a Wage Erase, roblox to create a metaverse experience, so that idea of teaming up with brands that matter to a younger audience that perhaps isn't trained to watch TV the same way we are.
spk_0 There are two parts to answering that question.
spk_0 One is the authenticity and the game itself, and the good news for us, and I know we like to talk about other sports, but when it comes to pace of play, there's more action.
spk_0 You can't be on your phone if you're watching.
spk_0 You'll miss something.
spk_0 You'll miss something because it happens fast and furious, so the amount of action, the amount of length of a game works very well for us, and it's compelling for younger people.
spk_0 The second thing is you've got to reach your fans, and you would be fans on their terms now, particularly now.
spk_0 You've got to give them, as everybody says, what they want, when they want it, how they want it.
spk_0 It didn't get a lot of attention, but when the old deal in Canada with Rogers, 12 years ago, included a streaming component.
spk_0 It was really the first national sports league deal to do that, and our deal, most recent deal with ESPN, and we have Amazon in Canada, we've always looked to see how can we use technology, not to change the game, but to take essential elements of the game and make them more fan or consumer friendly, so that we can bring people inside the game.
spk_0 That's where, because the game is so fast, using technology, puck and player tracking does a couple of things for us.
spk_0 One, we're creating millions of data points a minute, and that's enabled fans to get inside the game and understand the better if they didn't grow up at hockey fans.
spk_0 And using the metaverse, we actually use the puck and player tracking to use animated versions of our game so that young people can get attracted to watching it using their favorite cartoon characters.
spk_0 And we're rematcheting the game, especially on a global basis, where the largest investor, chairman of Team Liquid, Team Liquid is the number one esports in North America.
spk_0 We just came in second place in Saudi Arabia, $30 million in prize money that was awarded there.
spk_0 And we play in 11 different platforms, and you'll read, it's a winter, nuclear winter for esports.
spk_0 That's like saying, the web, this was bad in the mid-90s, the web blew up. Don't make any investments in web companies.
spk_0 I think 25 years ago, the company I helped to create AOL, we had a $200 billion market cap, Microsoft had a $400 billion market cap.
spk_0 It's 25 years later, AOL doesn't exist, Microsoft has a $4 trillion market cap.
spk_0 And they've had to reinvent themselves, they're now an AI and cloud computing company.
spk_0 So Team Liquid, we play in 11 different platforms, and the people in Saudi Arabia, which are building a whole city and infrastructure for tourism, for their young people around esports.
spk_0 They said, what other sport can we reinvent and make competitive? And we said, chess.
spk_0 Chess? Chess? Okay, no.
spk_0 As an esport?
spk_0 So we launch, and we sign Magnus Carlson, the world's most famous number one chess player, and he won the World Championship a couple of weeks ago.
spk_0 And it's boom now with young kids. Young kids go, chess is cool. It's analytic, it's algorithmically oriented. You can train online, you can do multi-user games.
spk_0 So it's a really interesting loop, if you well, you can use technology to reinvigorate, you know, what looked like an older sport.
spk_0 That's what I think we've done in the NHL. When I first came in 26 years ago, I said, this looks like a video game to me.
spk_0 I mean, you've got the glass, the players are out there, they're working as hard as they can, but for 30 second shifts, Alex probably stays out a little longer than he should.
spk_0 But the speed, the music, it was a video game come to life. They said, we have to connect that speed, the sounds, and you know, like I got rid of the organ.
spk_0 I can't tell you how many older fans hated me. I said, but can you go with the times?
spk_0 Yeah, we kids want it, don't they want different music, they don't want organ music. So just paying attention to the younger audience.
spk_0 And it's amazing how fast time goes, Gary, how long have you been commissioner?
spk_0 32 years. 32 years. He's the most tenured commissioner. Not ten years, he's got 32 years.
spk_0 You're the longest serving commissioner in North American sports. I was we talked about 32 years. What kind of succession planning is taking place once you decide to move on?
spk_0 The answer is I have a very strong bench. I have great executives who work with me, particularly at the C-suite level. I have a deputy commissioner who has been with me for 26 years, build daily, who is terrific.
spk_0 And if I got hit by a bus walking out of here today, he could step in. But it was funny. I've said to my executive committee, nothing I'm getting ready to retire, but I said at some point we need to focus on this because I'm more they've ever, most of them have ever known.
spk_0 I mean, there are three legacy families in Boston, Detroit, and Chicago, original six clubs. And then there's Ted and everybody news come in since I've been commissioner. And when you get identified with something as much as I have been, succession becomes an issue.
spk_0 I'm just a little bit more of a newbie because I question the style and presence and branding, but I'm also cognitive of the fact that at some point there needs to be a more youthful person pitching the brand.
spk_0 That's a portion of a conversation with NHL Commissioner Gary Betman and Ted Leones's founder and CEO of monumental sports and entertainment live from Bloomberg power players New York recently.
spk_0 Our very own Scarlett Foo moderated that panel. And that does it for this edition of the Bloomberg Business of Sports for my colleagues, Damien Sassower and Vanessa Pradomo. I'm Michael Barr. Thank you for joining us.
spk_0 Tune in again next week for the latest on the stories moving big old money in the world of sports. You're listening to the Bloomberg Business of Sports from Bloomberg Radio Around the World.
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