February 9, 2025 • 43 mins
Bloomberg's Scarlet Fu and Jason Kelly break down the Business of the Super Bowl.
They speak with:
- Mark Donovan, Kansas City Chiefs President
- Lloyd Howell Jr, Executive Director of the NFL Players Association
- Patriots Chairman and CEO Bob Kraft
- Anjali Sud, Tubi TV CEO
- Amy Howe, FanDuel President and CEO
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:07):
Time now for a special edition of the Clothes the
Business of the Super Bowl.
Speaker 3 (00:11):
We've got an all star lineup.
Speaker 2 (00:12):
We've got Kansas City Chiefs President Mark Donovan, New England
Patriots CEO Robert Kraft, Fanjuel CEO Amy how among others.
And joining me for this entire hour is Bloomberg Originals
Chief Course Wanted Jason Kelly, Host of the Deal with
Alisa Riguez and Jason Kelly. Great to have you, Hi,
It's fantastic.
Speaker 4 (00:29):
What a Friday, I know, I mean the Friday to
do this.
Speaker 2 (00:32):
Right, I'm imagining there's a lot of deal making going
on in New Orleans right now with everyone from the
sports industry gathering.
Speaker 5 (00:38):
Everyone is there. I mean everyone except us because you know,
we're working for a living. But actually they are doing deals.
I mean, this is when the big deals happen in
the sports world, because the entire sports world, as you mentioned,
sort of descends. Maybe they don't stay for the game,
but they're at the parties, they're going to the conferences,
they're doing the side meetings.
Speaker 4 (00:56):
It's amazing. We're going to check in.
Speaker 5 (00:57):
With Randa Williams, who's on the ground so much team,
there a ton to talk about it, all right.
Speaker 2 (01:01):
So mind meld there for everyone in New Orleans. In
the meantime, let's create straight to someone who's been living
the business of the Super Bowl since twenty twenty. He
is Kansas City Chiefs President Mark Donovan.
Speaker 6 (01:12):
Mark.
Speaker 2 (01:13):
Welcome to the program and congratulations on your fifth trip
to the Big Show in six years.
Speaker 6 (01:17):
Thank you. I appreciate that. Great to be with you, guys.
Speaker 2 (01:19):
So, as the organization makes a run to become the
first three Super Bowl champions, would you say you're more
or less nervous this time around?
Speaker 6 (01:29):
You know, I think experience is a great teacher.
Speaker 7 (01:31):
So we've done this enough to realize of what makes
it successful.
Speaker 6 (01:38):
We tweak things.
Speaker 7 (01:38):
Every year, but it's been a really smooth operation since
we landed on Sunday night and started practicing this week,
and it's going very very well.
Speaker 3 (01:46):
It's going very very well.
Speaker 2 (01:47):
I want to talk about the Chiefs as a brand
because it's so much more than a regional team or
even an American team at this point, right it is
a global brand that really resonates with sports fans around
the world. Talk a little bit about your organization's international
efforts and how you have a new entertainment production studio
that plays into that that really amplifies that.
Speaker 7 (02:08):
Yeah, it's a convergence of the platform that we're on
right now. I mean, we have one of the most
successful franchises in sport. We have the world converging and
consuming content like never before. And then the international program
at the NFL, launched back in twenty nineteen, gave us
and other franchises the opportunity to aggressively pursue growth internationally,
and we've been one of the more aggressive teams to
(02:29):
do that. So the convergence of all this, on top
of being in for the last five Super Bowl if
for our last six Super Bowls, and the opportunity to
constantly be out there with content is something that we've
been very excited about.
Speaker 6 (02:40):
We taken advantage of and we've seen results from.
Speaker 7 (02:43):
So Foolish Cup Studios is something we launched this past
week that give us the opportunity to create even more
ideas and then distribute that content internationally hopefully.
Speaker 5 (02:53):
All Right, So Mark, obviously a chance to create more content.
Speaker 4 (02:56):
Let's be honest, this is Bluebirk. It's a chance to
create more revenue.
Speaker 5 (03:00):
When you're this successful on the field, walk us through
what it means to the top line, the bottom line
of your team to be consistently in the big game.
Speaker 4 (03:10):
And you know, now going for your third straight win,
what does it do for your business?
Speaker 6 (03:15):
Yeah, I think that's a fair question given the audience
here today.
Speaker 7 (03:18):
I think that when you look at our business, we
are on a platform we have never been on as
a franchise before, and so we look at that as opportunity.
What can we do in this platform to take advantage
of this time to maximize the platform. So top line,
bottom line is growing brand value first and foremost, and
then everything that sort of comes off of that. And
(03:39):
we are very successful in Germany after investing in there
over the last four years. We're the number one team
from brand value in Germany. We have the most revenue
from a sponsorship base in Germany. We're looking to do
that again and again and again as many as many
times as we can. The opportunity in the platform that
I speak of is the international market. So you know,
as we grow, we now have the ability to grow
(04:02):
internationally and that's really the focus.
Speaker 5 (04:04):
And so mark part of it is growing the audience
and some of that comes from just showing the games.
Also you mentioned the additional content, but also social media
has been especially powerful for you guys. You are one
of the most followed teams out there. How do you
continue to grow that? And there are certain platforms that
are working better for you overall.
Speaker 6 (04:26):
Yeah, So it's a combination of thing.
Speaker 7 (04:28):
It's one the superstars that we have on our team
and what they've done with content with Patrick and with
Travis with his podcast, and it's sort of dovetailing with
that and then using the content that we have. We
have a program on YouTube called The Franchise, which is
an inside look at our team, where the first National
Football League team to have over a million subscribers on YouTube.
(04:50):
Where the second sports franchise in America behind the Golden
State Warriors to do that. So those are the platforms
that I'm talking about that you have to have the
content to be able to take advantage of that. So
we have a production studio in house that does the
Franchise show. Now we've launched a production studio that will
be more out of house to really look at partnerships
around that.
Speaker 2 (05:10):
So is it frustrating then with all these plans and
this incredible brand, not just in the US but globally
to not have as much certainty as you'd like over
where you're going to be playing in terms of stadium
down the road.
Speaker 6 (05:23):
Yeah, So I would take that two different ways.
Speaker 7 (05:25):
One, we want to play more games internationally when we're
given the opportunity, because we've seen the value of that
and we've seen the.
Speaker 6 (05:30):
Benefit of that.
Speaker 7 (05:31):
As it relates to our domestic situation specifically in Kansas
City with our stadium, we are pursuing two different options.
One is renovation of the iconic Arrowhead Stadium and GHA
field and then secondly investigating the opportunity to build a
world class dome stadium. Two very different paths, and we
have the advantage of having two different states that we
(05:53):
can go down those paths on. I think, as I said,
on the one hand, it's the iconic nature and how
can you make a worldwide bucket list icon of a
venue better through renovation? Versus if we build a brand news,
state of the art film stadium, we have the opportunity
to host even more events, so Super Bowls, Big Twelve Championships,
(06:15):
National championships, as well as year round concerts and event.
Speaker 6 (06:18):
So it's an exciting place to be in.
Speaker 7 (06:21):
I will tell you personally, it's a very time consuming
place because you're looking at a bunch of different options
and you're dealing with politicians on both sides of the
state line. They're both excited about the opportunity, and we
just got to figure out what's the best thing for
this franchise and for our fan base for the next generation.
Speaker 3 (06:36):
Yeah, it's doubly.
Speaker 2 (06:36):
It's pursuing lots of different paths and kind of seeing
where they take you. I wonder if you would ever
look to private equity or sell LP stakes to fund
the construction of a new stadium.
Speaker 7 (06:45):
Well, we have the expert in the building on private
equity program. Clark Hut is the chair of our organization.
He's also the chair of the finance committee at the
National Football League and he was really one of the
architects with I think, what are your next guests in
putting together other than private equity situation with the NFL,
it gives us the opportunity as franchises to pursue that,
Clark has said publicly, and I know in dealing with
(07:07):
the siblings and the family members, so that's not something
we're pursuing it in the present time, but it's good
to have the option out there. And we've seen the
other teams that take advantage of this opportunity, and.
Speaker 4 (07:16):
So what have you learned from that? Mark?
Speaker 5 (07:17):
I mean, we have seen a number of your counterparts
with one of your art rivals, the Buffalo Bills, so
you beat to get to this game.
Speaker 4 (07:24):
You know, they took advantage of selling a stake.
Speaker 5 (07:27):
They may use it most likely to build a new
stadium or to upgrade their facilities. What are the learnings
that you take even if you're not going to partake
of it right now.
Speaker 7 (07:37):
Well, first and foremost learnings of seeing them go through
the process and seeing just what it takes and how
to maximize that process. The second thing I think that
this gives you it is true valuations, the ability for
you know, the firms that have the ability to capitalize
on the private equity piece are true evaluators of value.
You know, they have to return to their shareholders. So
(07:57):
they're investing in these teams and pieces of the teams
in a very structured and a very critical way of
exactly what the value is so they can see you return.
I think just the first few that have done have
been really positive signs for the NFL and for the
individual franchise that have taken advantage of that.
Speaker 5 (08:14):
All Right, So you went exactly where I wanted you
to go, Mark, which is valuations.
Speaker 4 (08:18):
You worked on the league side. You work for a
little team called the Philadelphia.
Speaker 5 (08:21):
Eagles for a few years before you got to your
current home in Kansas City. You look at these valuations
since you were a guy coming up in this league.
Speaker 4 (08:30):
I mean, is it mind blowing to you?
Speaker 7 (08:33):
Yeah, it's mind blowing on the NFL side, But I
know the NFL side so well that I can sit
here and tell you that the valuations are solid and
you look at the growth of this game and look
at the opportunities that are in our future. I'm a
big believer obviously in the National Football League and the
power of the NFL. I think it sort of spreads
across sports though, when you look at the valuations of
(08:53):
NWSL and NBA, Major League Baseball MLS across the field
as well as you know, properties like the premier lacross league.
The ability to sort of look at these as true
investment opportunities and see the growth that sports provides, you know,
there's no better appointment viewing and frankly from a rating standpoint,
no better viewing than the National Football League. Well, how
(09:15):
do other sports match up against them? And then how
do they continue to grow that mark?
Speaker 2 (09:19):
Before we let you go, I did want to get
your thoughts on one thing. Roger Goodell, the commissioner of
the NFL, with the backing of team owners, is standing
by the NFL's diversity initiatives even as we've seen some
moves on the federal side. Otherwise, as a head of
a high profile organization, what are you hearing from your employees,
from your customers, from your partners on this front.
Speaker 7 (09:41):
Yeah, I think as administrations change, you're going to have change.
Speaker 6 (09:45):
We're very proud of our policies.
Speaker 7 (09:46):
We're very proud of what we've implemented at the Kansas
City Chiefs. It's something that we take very seriously. I
was asked this question multiple times today and I think,
you know, i'd point to even our most recent higher
people talk about and know about the Rooney Rule and
all that it's done and the process behind that. I
think not everyone is aware of, you know, the impact
(10:08):
it has across the entire business. So we just had
a very significant hire on our communications team, and we
went through a very inclusive and diverse slate of candidates.
We wanted to see all the talent that was out
there before we made our decision.
Speaker 6 (10:20):
So we're proud of our policies.
Speaker 7 (10:22):
And we continue to sort of lean on those to
have the best possible employee base in the National Football League.
Speaker 2 (10:29):
All Right, Mark Donovan, a pleasure speaking with you. Good
luck to you, President of the Kansas City Chiefs, Mark Donovan,
I love, love, love the fact that you brought up
he was at the Eagles for about six seasons before
he moved to Kansas City.
Speaker 3 (10:40):
So maybe, you know, whatever happens, he'll be okay.
Speaker 5 (10:44):
Maybe, but I think he's pretty diehard Chiefs at this way.
I mean, it is amazing though to think about the
you know, you know, part of business is the personnel, right,
and so this is a guy who ran the business side.
Let's not forget the guy who's running the on field
side for the Kansas City Chiefs. Yes, Andy Reid once
coached the Philadelphia Eagles.
Speaker 4 (11:02):
I mean this is a really tight knit league.
Speaker 5 (11:04):
I mean it's part of what is driving exactly what
Mark was talking about. There, These massive valuations. These are
very smart business people. You and I talk about this
all the time. This is a juggernaut. It is a
global juggernaut. Amazing to me how much he really leaned
into the international side and absolutely rest of their being there.
Speaker 2 (11:22):
Right anytime you go abroad you look at how many
people are wearing say Kansas City hats or Kansas City jerseys.
Speaker 3 (11:27):
I mean, that's a big part of it.
Speaker 2 (11:28):
They've got to monetize off of that, you know, tap
into that all right, Coming up, the potential for an
expanded NFL season.
Speaker 8 (11:36):
If we continue to focus on the safety, I think
eighteen is a potential.
Speaker 2 (11:42):
We're going to get the flip side of that with
Lloyd Howell, Junior, head of the NFL Players Association, this
is the clothes on Bloomberg.
Speaker 8 (12:00):
If we continue to focus on the safety, I think
eighteen is a potential. And as you know, we would
take a preseason game away, so we would keep within
that twenty game framework. We actually started fourteen and six preseasons,
we went to sixteen and four and now seventeen and three,
so eighteen and two is a logical step, but we
would only do that with the players.
Speaker 2 (12:22):
That was Roger Goodell, the NFL Commissioner, talking with David
Rubinstein on the potential for an expanded season, but the
NFL Players Association is pushing back, the head of the association,
Lloyd Howell Junior, saying no one wants to play an
eighteenth game.
Speaker 3 (12:36):
I'm pleased now to say we're joined by the man himself,
Lloyd Howell Junior.
Speaker 2 (12:39):
Lloyd, it's good to speak with you, and I know
that you just heard the clip we played there. Your
members oppose eighteen games, yet you heard Roger Goodell speaking
about it as if it were a formality.
Speaker 3 (12:50):
Why do you think that is?
Speaker 9 (12:52):
Oh, I think our membership completely appreciates what the opportunity
would be for the economics in the current all revenue split.
On paper, the academics would say, yeah, just keep adding
additional games. But where I believe Roger and I do
agree is the science has to support the health and
(13:16):
welfare of the players instead of just adding more games
for financial reasons. And that is still a big question mark.
We need to know more about recovery. We need to
know what's the proper amount of time nutritional issues for
recovery as opposed to just adding another game. The other
dynamic is what's the complexion of the eighteen potential eighteen
(13:39):
game season. I think the league has had a lot
of commentary about wanting to do more international games. My
previous life traveling around the world, not being a professional
football player, it takes a moment to recover. It can
be depending how far away you go, even longer. So
it's not just the length of the season, it's also well,
(14:00):
how many games would be overseas and how far away,
what's the recovery time, what's the structure of the league
looks like, and then ultimately what are the finances that
would benefit our membership.
Speaker 2 (14:13):
So the NFL has announced games in Ireland in Australia
so far. What has been the player's single biggest concern
about international travel? What have you gathered from them?
Speaker 9 (14:24):
It comes in different dimensions. There's the sort of logistics
of business travel, like size of plane, you know, how
large are the seats, where are we staying once we
get to the location? How close so far away is
it from the venue? You know, those are sort of
what I would describe business travel issues. But then I
think more importantly it's what's the recovery time? Do I
(14:47):
have a bye week after going overseas or am I
expected to play you know, the next Sunday or Thursday.
So there are lots of different dynamics that hang off
of just playing overseas, and the least of which how
many different time zones and you know, what's that going
to look like when I when I returned to home.
So in one sense, there are logistics of travel. Another sense,
(15:12):
it's recovery. Another sense it's you know, how do you
include the players as a part of any potential expansions
The league has an objective around.
Speaker 5 (15:24):
Lloyd, I wanted to talk about a different aspect of
the economics of the NFL. You know, we've had so
much talk about new money coming in institutional capital. We
just talked about that with Mark Donovan over at the
Kansas City Chiefs. You worked at Goldman Sachs, you worked
at Buzzell, and you understand this analysis as well as
(15:45):
anyone the shared economics of this league. What's the best
way for the players to continue to be partners and
economic partners? Does that entail being equity partners?
Speaker 4 (15:58):
It could?
Speaker 9 (15:59):
I think there are more homework needs to be done,
I think, rightfully, So there's sensitivity around would this investment
create any sort of conflicts of interest or would it
go through an into mediary where you have an arm's
length arrangement where you know that their capital can be
(16:21):
put to use and the integrity of the game isn't
compromised in any kind of way. So there are details
that need to be worked out. But with the abundance
of capital, given the attractiveness of the investment. On your
last interview you highlighted, you know, franchise valuations, the valuation
of the Shield, it's doing very well, and as a
(16:43):
part of that, why not have your workforce participate in
that accretion. And I think it makes all the sense
in the world for that to be permissible. But the
details of it have to be worked out.
Speaker 5 (16:58):
So is there a world where you and that sort
of an FLPA sponsored fund that then you know, willing
players or enthusiastic players could invest into, and then essentially
a private equity fund that invest on behalf of the players.
Speaker 4 (17:14):
For sure.
Speaker 9 (17:14):
I mean there are probably several obvious schemes where that
could work. Certainly, our membership has more of an equity
mindset than ever. Maybe that's due to the introduction of nil.
Maybe that's how they're coming into the league. It's a
little bit different than in previous generations. So they themselves
appreciate what private equity means, they appreciate what investment means,
(17:38):
and they would like the opportunity to participate in that
accretion of the game they love and the teams they
played for.
Speaker 2 (17:46):
I mean, getting equity you would go a long way.
But we go back to the idea that to really
meet the demand eighteen games a season, more international games overseas,
all that takes a physical toll.
Speaker 3 (17:58):
I'm curious whether.
Speaker 2 (18:01):
I'm curious whether there's an idea that you know, maybe
the players need to concede on roster's being expanded. Should
each team have more players than what they have right
now so that the player's physical health can be spared.
Speaker 9 (18:16):
Yeah, I mean you're certainly raising dimensions that once you know,
we open up the CBA and we get into it
would need to be put on the table. So when
I said, hey, I haven't talked to a player who
you know, wants to play an eighteenth game, that's in
the absence of all these other dimensions that need to
be addressed. You know, recovery economics, you know, their health
(18:38):
and wellness and we're just not there. So it's just
a human reaction that if I say, hey, do you
want to do more with no change, and they'll go like.
Speaker 4 (18:47):
No, I don't want to do that.
Speaker 9 (18:48):
And so here we are to all the dimensions you
you put out there that would need to be addressed,
and that's just not a snap of the fingers, and
we get to agreement. Yeah, get to agreement, just depending
on how those other dimensions get adjudicated.
Speaker 2 (19:04):
All right, good stuff, Lloyd, really appreciate your joining us today.
Thank you so much for the thoughtful responses. Lloyd Howell
Junior is head of the NFL Players Association. Really important
questions that need to be asked, and certainly you know
he has a difficult job of trying to get everyone
non consensus.
Speaker 5 (19:19):
Well, and what a fascinating moment for these players, right,
I mean, the world has really come to them in
a lot of ways.
Speaker 4 (19:24):
They have a fascinating model.
Speaker 5 (19:25):
I think in the NBA, where the players really have
I would argue a stronger voice in really how the
league is run. You know, this is a new head
of the relatively new head of the NFLPA. So interesting
it comes from a Wall Street and the consulting background. Yes,
very different from his predecessor d. Smith, and so interesting
(19:45):
to see what the voice looks like. I love the
idea of players investing in the league.
Speaker 4 (19:51):
You see it in other leagues.
Speaker 5 (19:53):
And the NFL is often the last to come, but
when they do, they come big.
Speaker 2 (19:58):
No, that's a great point, but I think they would
just as quickly want to get something like guaranteed contracts,
which are rarity in the NFL and which are basically
default in the NBA and the MLB.
Speaker 5 (20:08):
Well, and also really important to remember in the NFL,
the average career is about three and a half years,
and so the money needs to be there and be
there with a certain level of certainty you're exactly right,
and it needs to be their longer term, and so
having a longer term investment in the teams or in
the league may be that much more important the NFL.
Speaker 3 (20:25):
Absolutely to both the teams and the players themselves.
Speaker 2 (20:27):
Let's check in with our colleague, who is at the
Super Bowl, who is in New Orleans, Because much of
the country and for the world and the world for
that matter, is excited to be at the game or
watching the Big.
Speaker 3 (20:38):
Game on Sunday.
Speaker 2 (20:39):
For residents of New Orleans, though it does mean lots
of revenue streams will be flowing into the Big Easy.
Speaker 3 (20:44):
Let's check in with Randall.
Speaker 2 (20:45):
Williams, Bloomberg News US sports business reporter. He is in
the city and he joins US now with a bit
more color. We were joking around about whether bank CEOs
show up there or not. But you've been there all
week and you've seen kind of the flow and the
tide of people coming in.
Speaker 3 (20:59):
There's also a lot of security on.
Speaker 2 (21:01):
The ground as well, because you had the terrorist attack
on New Your's Eve, the reported terrorist attack or what
people are calling terrorist attack, as well as President Trump
scheduled to arrive for the Big Game as well.
Speaker 10 (21:15):
Yeah, there is more security than I've ever seen at
a Super Bowl. They have the popular streets like Bourbon
Street blocked off. There's military vehicles that I only see
in movies out on these streets. Like it's pretty incredible.
And you know, President Trump coming in town is only
going to heighten that. The NFL is already preparing for it.
It'll be really interesting. I'll probably be walking back to
my hotel after the game, all right.
Speaker 5 (21:36):
So, Randall, I have seen you at these events you
are working the rooms like nobody else out there.
Speaker 4 (21:43):
You're talking to deal maker.
Speaker 5 (21:44):
I appreciate, we know how many deals are getting done,
Like what's the chatter, what are people talking about? You've
been covering the private equity deals, Like what's top.
Speaker 4 (21:54):
Of mind for the business folks there this week?
Speaker 10 (21:57):
Well, you just talked to Lloyd and I think it
was really interesting being at Roger Goodell's press conference on Monday.
There's a lot of talk about this eighteen game season,
sixteen international games, and I ask Goodell if he would
sell an international package and he said yes. He even
mentioned Netflix by name, so to hear him say a
eighteen game, sixteen game international package. Then you go to
(22:18):
Lloyd Howe's press conference from the NFLPA and for him
to say no one wants an eighteen game season. Then
I talked to Jon Robinson and Atlanta Falcons running back
and he says, you know, I'd love to play eighteen games.
So there's a lot of thoughts around this eighteen game season.
It's not collected collective bargaining time yet, but it sounds
like it's going to be a battle, or they're going
to need to be. Roger Goodell's going to need to
(22:42):
need to do some convincing.
Speaker 2 (22:43):
He's going to need to Okay, well, we'll of course
look to your reporting to hear what happens there.
Speaker 11 (22:49):
Randall.
Speaker 2 (22:49):
Your reporting also featured the Super Bowl halftime show because
for a lot of people who aren't Football Lands fans,
that is where the action is and Rock Nation, jay
Z's company has actually made the halftime show a good
thing again, something cool, something to talk about. For a
couple of years, it was kind of like an afterthought.
People went to the bathroom during the halftime show so
they could get ready for the third quarter.
Speaker 10 (23:11):
Yeah, Rock Nation took over things and it's cultural relevance
is higher than it's ever been. Usher had the most
watched halftime show ever. Rihanna had a good halftime show.
And so when you think of the super Bowl and
the NFL really now the most grand event the super Bowl,
people are tuning in for the artists too, and the
artists see that. I think Usher had a five hundred
and fifty percent increase on Spotify. I'm sure Kendrick will
(23:34):
see a similar thing. And the artists are using these
platforms to drop music to make announcements. I think Usher
released an album, and Rihanna announced she was pregnant, So
we'll see what Kendrick does on Sunday.
Speaker 2 (23:45):
All right, good stuff, Bloomberg's Randall Williams really appreciate you
and of course we'll catch it back when you were
back in New York after the Big Game.
Speaker 10 (23:53):
Absolutely, thank you for having me.
Speaker 3 (23:54):
All right.
Speaker 2 (23:55):
One of the ways yours can tune in to watch
the Big Game is through two B, the streaming service
will be hiring the Super Bowl halftime Show and ads
live and for free. This is a major milestone for
the ad supported streaming service. Joining us now to discuss
this is Angeli sud the CEO of to B Angulie.
Speaker 3 (24:11):
Good to speak with you.
Speaker 2 (24:12):
Tell us a little bit more about how this deal
came together where you are now airing the Super Bowl
for free.
Speaker 12 (24:18):
Hi, it's Scarlett. It's great to be in New Orleans.
Speaker 13 (24:21):
We're very excited about Sunday Box is doing a special
takeover of to B on game day. Americans will be
able to tune in to the game, the pregame show,
the halftime show, the trophy ceremony, all pre live in
four K through to B. And the reason that we're
(24:41):
doing this is because we want to broaden and expand
the reach of America's biggest sporting event and a.
Speaker 12 (24:47):
Cultural moment to many more people.
Speaker 13 (24:50):
The majority of two b's userbase, we have nearly one
hundred million monthly active users, the majority or Gen Z
and millennials, and the majority aren't subscribed to cable. So
this is just a really great, unique opportunity to bring
the game to all of those folks who maybe aren't
die hard football fans, maybe are more interested in the
(25:11):
commercial and the halftime show, and so we're very excited.
We're also going to be doing an exclusive red carpet
only on to be before the game, where you'll be
able to check out the fashion and celebrity around the
game and even shop looks from your phone.
Speaker 2 (25:27):
Okay, so you are appealing to the cored nevers that
may not be die hard sports fans. I'm sure. Also
part of this is to increase your user base. You
have about ninety seven million monthly active users. What to
anticipate that to go to to rise to once you host,
once you stream the Super Bowl.
Speaker 13 (25:47):
Look, I think right now our goal is to deliver
delight and a great experience to as many Americans as
we can. But there's no questions, Scarlet, this is a
great opportunity to introduce to the value proposition to more
of America. Yes, we have nearly one hundred million monthly
active users, but there are a lot of Americans that
don't know that to B is one hundred percent free
(26:09):
and that we have the world's largest collection of premium
movies and TV series. So our goal is absolutely to
introduce more people to that offering and then ultimately to
engage them and have them be watching lots of TV
in the future.
Speaker 5 (26:24):
And so we know that the Super Bowl is I mean,
it's called the Big Game for a reason. It literally
is the most popular thing to consume to watch on TV.
You know, seems like an antiquated things to say, just
to watch. What does this tell us about your future
investment and your ongoing investment in sports? This is clearly
(26:45):
something that captures everyone's imagination, you know, from the diehard
fans to the sort of culturally interested as you alluded to.
So what's the playbook from here for to B when
it comes to sports?
Speaker 13 (27:00):
So to be is a free ad support and streaming service,
and what you'll see us do is going to be
very different from others. Where we're most interested is how
can we tell stories.
Speaker 12 (27:10):
Around where sports meets culture?
Speaker 13 (27:12):
Super Bowl being a great example of sports and culture,
but you will see us invest in a lot of
other things that sort of do that. Examples include a
talk show that we have on TV right now with
Coach Prime Deone Sanders talking more about culture and what's
happening in America. We had our highest performing, most watched
(27:33):
title on TV ever recently and it's a young adult
through romance movie about a football player that's based on
a Watpad novel and stars a TikTok influencer.
Speaker 12 (27:44):
So you'll just.
Speaker 13 (27:45):
See to be do more and more around sports meets
culture storytelling versus the premium.
Speaker 12 (27:51):
Live sports rights, just given that those are.
Speaker 13 (27:53):
Very expensive and competitive as we all know.
Speaker 5 (27:56):
And as you think about doing more in sports, are
there things that you do less of in order to
make room for sports?
Speaker 14 (28:04):
Now?
Speaker 13 (28:04):
I think you know the reality is to be an
incredible momentum. We've been growing really quickly, and we continue
to invest and do more around the types of content
that we put out there, and in general, I think
you'll see us just we'll look to do things differently.
We'll try new things. But really what's driving that is
what are our fans telling us. And again, those fans
(28:25):
tend to be cordless, they're younger, they're more diverse, and
their tastes are a little bit different, and they're evolving
at the speed of TikTok. So I think it will
just be a lot more of trying to be have
a pulse on what's culturally relevant and then trying to
deliver that through the content that we offer.
Speaker 2 (28:43):
Angelie, really appreciate your joining us. Angrelie sud is CEO
of toub, which will be streaming the Super Bowl for free,
the ad based streaming service on Sunday, and of course
toob is owned by Fox, so it makes sense that
they be partnering on this. The question is will the
infrastructure be able to handle it? Will be like Flix
in the tyson Pal match.
Speaker 5 (29:01):
Yeah, I mean this is the big question for these
streaming services is like can they handle I mean a huge,
massive event like this. I'm fascinated to see who tunes
in and then who sticks around to to be right,
I mean, what's the conversion rate where we're like, oh, yeah,
I sort of like this. I like this take on sports.
Speaker 2 (29:16):
Yeah, it's going to be my go to place now,
all right, It's not just the big game itself. One
of the biggest draws of the Super Bowl or the
television ads that air, often starring celebrities.
Speaker 3 (29:25):
Now.
Speaker 2 (29:25):
One of those ad campaigns is backed by the Foundation
to Combat Anti Semitism, with former quarterback Tom Brady and
rapper Snoop Dogg leading the charge. Their message for viewers
is pretty simple, Let's unite against hate in all its forms.
Here's part of our conversation with New England Patriots owner
Robert Kraft, who is founder of the Foundation to Combat
Anti Semitism.
Speaker 14 (29:47):
The American people are great people. We've found eighty percent
of Americans don't understand what's going on in terms of
hate building them up in this country, and it's doing
it like it's never done before in my lifetime. And
why people would hate someone because how they worship God,
(30:11):
or what their political feelings are, or what their skin
color is. You know, we all our families all came
to this country and we're able to live the dream
because of the way we accepted everything in America. And
I think there's been a growth of hate. We last
(30:34):
year at the Super Bowl, we had doctor Clarence Jones,
who wrote Martin Luther King's I Have a Dream speech,
and his basic message was that silence from people who
see inappropriate behavior is the worst enemy of Americans. And
(30:58):
we preached that message, and now we're asking people to
re evaluate why they hate. You know, we're born with
empathy and love, and hate is learned, and it's so
dysfunctional to what's great for America. You know, in twenty nineteen,
(31:19):
I started this foundation because after seeing Charlotteville in the
Tree Alive, I saw signs of what was going on
in Germany in the thirties. Yeah, and I want a
repeat of the forties.
Speaker 1 (31:34):
The two folks are featured in that ad. One Tom
Brady of course, who you have a long standing relationship with,
and Snoop Dogg of course, who has a long standing
relationship with Tom Brady. What was their reaction when you
approached them about doing this ad.
Speaker 14 (31:47):
Well, you probably wouldn't believe it, but I've had a
relationship with Snoop for thirty years and you know when
I called him, you know, he just said, hey, brother,
I'm in for preaching love. Whatever we can do to
stop this paid count me in one hundred percent and
(32:09):
that really, you know, people wouldn't think we have that
connection and have worked together and other things. And then
of course Tom Brady is one of a kind in
his field and so special and unique and one of
the greatest human beings on the planet for him to
(32:30):
be willing to speak out as well, and he liked
the idea of the two of them from different backgrounds
speaking about what was good for the American people and
all people.
Speaker 2 (32:45):
Absolutely, Robert, I'm curious how you plan to measure the
effectiveness of this ad campaign on Super Bowl Sunday and
of course during the week leading up to it and
other efforts to amplify the cause.
Speaker 3 (32:58):
You're abled obviously to track views, but beyond that, how
are you measuring the impact.
Speaker 14 (33:07):
Well, we have a very scientific way of an interview
process where it's over eight thousand people random selected from
our group and they educate us in terms of these
are people who we've had no contact with. It's done
(33:30):
very scientifically, and what we learned from that is how
we want to proceed to try to continue to educate
the American population.
Speaker 1 (33:42):
Given your background with the Patriots, I mean, there has
been a lot of talk over the years how sports
was kind of one of those you know, unilateral unifiers
in this country. You know, of course we all pick
our cities and our teams, but at the end of
the day, if you go to a stadium or you
go to a bar to watch the games, you're probably
the most diverse city you're going to see in any
(34:02):
sort of stage in your life. And I'm wondering, can
it be that again or was that never the case?
Speaker 6 (34:08):
Now?
Speaker 14 (34:09):
I really believe that sports and music other those are
the two things that bring people together from all walks
of life, all backgrounds. Those of us who have benefited
by this country have a responsibility to stand up. And
(34:29):
I've had a lot of wonderful people contribute to us
who want to be part of the effort because we're
just trying to lead and help manage a great group
of people that have this on their agenda to fight
back and push back against all this.
Speaker 2 (34:47):
Hate and our thanks again to Robert Kraft for joining us.
He's the founder of the Foundation to Combat Anti Semitism.
Of course, also the owner of the New England Patriots.
And it goes to the point that the NFL has been
pretty vocal in terms of talking about anti hate. They
had this end racism messaging in the end zone for
the last couple of years.
Speaker 3 (35:08):
This year they're changing that to choose love. They started
doing that the later rounds of the playoffs.
Speaker 4 (35:14):
Yeah, it's interesting.
Speaker 5 (35:15):
I mean, what you heard Rubber Kraft talk about there,
which I think cannot be emphasized enough, is people listen
to sports figures and entertainers probably more than anyone, and
so the recognition you know, you see Snoop Dogg and
Tom Brady, these are two of the most famous and
influential people in the world. People pay more attention to
the Kansas City Chiefs because Taylor Swift is a big fan,
(35:37):
because their boyfriend plays on the team, and you know,
you think back to twenty twenty Lebron James coming out
the way that he did around certain social issues. They
have a platform that, if they use for good, can
be extremely influential.
Speaker 2 (35:50):
And can be instantaneously effective as well. I mean, people
are going to be talking about these ads. In fact,
that's why they roll it out. We can advance to
kind of build.
Speaker 4 (35:56):
Up the interest for it totally.
Speaker 2 (35:58):
All right, Still ahead, We're going to talk about the
rising popularity of sports betting with Fanjuel's CEO. Any how,
This is the close on Bloomberg. The Super Bowl is
(36:18):
traditionally the biggest betting day in the US. Americans are
expected to place an estimated one and a half billion
dollars in legal wagers on Sunday's matchup between the Kansas
City Chiefs and the Philadelphia Eagles. I had the chance
to catch up with FanDuel's CEO anyhow, and she told
me about how her company is planning to capitalyze off
of the fifteen billion dollars sports betting industry.
Speaker 3 (36:37):
Take a listen.
Speaker 15 (36:39):
The Super Bowl is always the biggest sports betting day
of the year, and this year will be no exception
at all. From a handle perspective, it's actually pretty even
a slight edge towards the underdogs. The Philadelphia Eagles have
about fifty two percent of the handle, a bit more
skewedid when you look at the beck count. But where
the real excitement is is around the player props. Right,
(37:00):
You've got Saquon Barkley, who is the odds on favorite
for MVP, and of course you know all the usual suspects.
My home Jalen Hurts Kelsey for anytime touchdown scores. One
of the things that we have at FanDuel this year
which we're very excited about, is a new product called
Your Way, which is live in all the sports betting
markets that we compete in, and it effectively gives consumers
(37:24):
unlimited choice and control. So you know, you might go
into the fandel app and see Travis Kelcey receiving sixty
sixty yards or so, you can toggle that and it'll
reprice the market and you can.
Speaker 11 (37:35):
Parlay just about anything you want.
Speaker 15 (37:37):
So we're very excited about that for this year, which
gives you lots of different options to bet on the share.
Speaker 2 (37:43):
So basically it allows people to customize their bests. So
are there a lot of new markets created during the
course of the game that people can then bet on.
Speaker 11 (37:51):
Yeah, that's exactly right.
Speaker 15 (37:52):
So you know, you can any player prop you can customize.
You can actually increase or decrease the line and it
recalculates the odds. But there's also some great head to
head markets which are really popular. You know, the homes
to pass for more yards than herds, and then you
can parlay those and so what you're seeing is a
lot of creativity, right, You've got you know, twenty leg
(38:12):
parlay bets that consumers are going in and it's really
it is your bet, so we're very excited about it.
Speaker 2 (38:18):
This is expected to be a pretty close game, as
implied by a smaller than average point spread. I know
that there are some six hundred separate markets that people
can bet on. Can you give us a sense of
which ones are unique to FanDuel that only you offer.
Speaker 15 (38:33):
Well, there's there's specials that we offer every year. So
we've got a you know, we've got a jackpot for
five million dollars this year. We've had a special that
was popular throughout the entire NFL season, which is each
team to score a rushing and a passing touchdown in
each half. So that one's really popular. But probably the
most unique thing is this your Way product. Well, we
(38:56):
also have this year as we have brought back the
Cake of Destiny for the third year and this has
really kind of become part of the Super Bowl. So
we have Eli and Peyton Manning who are going to
compete in a live kicking competition on Sunday at three
o'clock Eastern. Consumers can go in into the Fandel app
and they can decide if Eli or Peyton is going
(39:18):
to win, and if you choose correctly, you get a
share of ten million dollars a bonus bets so that
you certainly can't find in any other sportsbook out.
Speaker 2 (39:25):
Yeah, building off the Manning Brothers franchise and brand that
they've really built up.
Speaker 3 (39:31):
The American Gaming.
Speaker 2 (39:32):
Association forecasts a record one point three nine billion dollars
in Super Bowl bets this year, which is just kind
of mind boggling. Can you give us a sense of
what FanDuel's share of that would look like?
Speaker 15 (39:43):
You know, it's hard to predict what our share of
the super Bowl is going to be. If you know,
if you look at our share over these are numbers
that we shared at our investor day. You know, we've
we've got we've had about a call it a forty
five percent share of the market. Those numbers are going
to bounce around a bit, but we have not just
sustain but really strengthen our leadership position over us if
you go all the way back to twenty eighteen when
(40:05):
the Supreme Court repealed PASPA.
Speaker 11 (40:06):
So we've had a great position.
Speaker 15 (40:08):
We've got a phenomenal product this year, and so we're
excited to see it's one of the most important days
of the year because we're also bringing a lot of
new users onto the platform and it's an important way
for us to educate consumers as well as we do
that on how to bet responsibly. So it should be
a great day. We'll see where the numbers fall out.
Speaker 9 (40:26):
Well.
Speaker 2 (40:26):
Security, we know we'll be stepped up in the city
of New Orleans following the New Year's Eve attack in
the city.
Speaker 3 (40:31):
Do you see that translating into.
Speaker 2 (40:33):
Fewer visits by people to the city and therefore an
increase in terms of mobile bets.
Speaker 15 (40:39):
You know, it's hard to I don't know the actual
visitation numbers. Just being in the city of New Orleans
right now, it's certainly bustling. I don't think it's going
to have a huge impact on the numbers. You know,
we're live in twenty four states, which is over fifty
percent of the US population, and you know, Super Bowl
is by far the most important betting day of the year.
(41:02):
But it's a it's a great way for you know,
new users who are big NFL fans but may have
never had an opportunity to bet before. It's a it's
a fun way to do it and you know, it's
a it's a very social, engaging way to make the
Super Bowl, which is already fun, even more engaging.
Speaker 2 (41:19):
And that was my conversation with Amy Howse, CEO of
Fan Duel, and Jason. It is really interesting to think
about how, like maybe five ten years ago, sports betting
was not as prominent. It was not even prominent, and
the only way you really bet on sports at the
Super Bowl was like those squares that you bought, you know,
through your office team office colleagues.
Speaker 4 (41:36):
Oh yeah, you would.
Speaker 5 (41:37):
You would show up at the super Bowl party and
like somebody's kid would be running around you like fill
in this box and give me five bucks, and you're
like okay, or you know, if you were really into it,
you'd have to literally call your bookie. I mean, it's
crazy to think about how much the public has have
raced it, but also how much the leagues themselves are
like all in all of this content that is built
(42:01):
around the lines.
Speaker 2 (42:02):
Their entire shows built around this, right, And Adam Silver
was the first sports commissioner to start talking about it
as you know, like maybe we need to think about
this in a different way.
Speaker 5 (42:11):
Yeah, it's crazy, but I mean it also speaks to
how deeply embedded sports and this game are in the culture, right.
Speaker 4 (42:19):
I mean, this is in a world where.
Speaker 5 (42:22):
We aren't always watching the same things. We're almost never
watching the same things. Everybody knows about this game.
Speaker 2 (42:28):
You can't afford not to watch this game because that's
what everyone's going to be talking about. And you don't
even have to like the game or know the players,
but you got to know about the commercials. You just
need to be able to take part in the conversation
that happens the following day.
Speaker 5 (42:40):
And you wonder why these teams are worth billions and
billions of billions of dollars in growing This is why,
because people are tuning in, those media rights are huge.
The ticket prices go up, so there's just money everywhere.
Speaker 2 (42:52):
And they can't add more teams without changing the math
of how many games they play and how many teams
make the playoffs, So it's really a very very limited supply.
Speaker 4 (43:00):
It's amazing drama and we're all going to be tuning in.
Speaker 2 (43:02):
All right, Well that does it for us. My thanks
to Jason Kelly. Of course, he is a co host
of the Deal with Alex Rodriguez and Jason Kelly this
airs what every week.
Speaker 4 (43:11):
Right, every week tune in all right, We.
Speaker 3 (43:14):
Look forward to that.
Speaker 2 (43:14):
In the meantime for more sports coverage, also listen to
the Bloomberg Business of Sports podcast every Friday, Saturday, and
Sunday on Bloomberg Radio, where we explore the big winny
issues in the world of sports, and every once in
a while we do that on the close here as well.
Have a great weekend everyone, Hope you enjoy the Super Bowl,
whether you watch it live or whether you watch it
on television ory stream it.
Speaker 3 (43:33):
This is Bloomberg
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:07):
Time now for a special edition of the Clothes the
Business of the Super Bowl.
Speaker 3 (00:11):
We've got an all star lineup.
Speaker 2 (00:12):
We've got Kansas City Chiefs President Mark Donovan, New England
Patriots CEO Robert Kraft, Fanjuel CEO Amy how among others.
And joining me for this entire hour is Bloomberg Originals
Chief Course Wanted Jason Kelly, Host of the Deal with
Alisa Riguez and Jason Kelly. Great to have you, Hi,
It's fantastic.
Speaker 4 (00:29):
What a Friday, I know, I mean the Friday to
do this.
Speaker 2 (00:32):
Right, I'm imagining there's a lot of deal making going
on in New Orleans right now with everyone from the
sports industry gathering.
Speaker 5 (00:38):
Everyone is there. I mean everyone except us because you know,
we're working for a living. But actually they are doing deals.
I mean, this is when the big deals happen in
the sports world, because the entire sports world, as you mentioned,
sort of descends. Maybe they don't stay for the game,
but they're at the parties, they're going to the conferences,
they're doing the side meetings.
Speaker 4 (00:56):
It's amazing. We're going to check in.
Speaker 5 (00:57):
With Randa Williams, who's on the ground so much team,
there a ton to talk about it, all right.
Speaker 2 (01:01):
So mind meld there for everyone in New Orleans. In
the meantime, let's create straight to someone who's been living
the business of the Super Bowl since twenty twenty. He
is Kansas City Chiefs President Mark Donovan.
Speaker 6 (01:12):
Mark.
Speaker 2 (01:13):
Welcome to the program and congratulations on your fifth trip
to the Big Show in six years.
Speaker 6 (01:17):
Thank you. I appreciate that. Great to be with you, guys.
Speaker 2 (01:19):
So, as the organization makes a run to become the
first three Super Bowl champions, would you say you're more
or less nervous this time around?
Speaker 6 (01:29):
You know, I think experience is a great teacher.
Speaker 7 (01:31):
So we've done this enough to realize of what makes
it successful.
Speaker 6 (01:38):
We tweak things.
Speaker 7 (01:38):
Every year, but it's been a really smooth operation since
we landed on Sunday night and started practicing this week,
and it's going very very well.
Speaker 3 (01:46):
It's going very very well.
Speaker 2 (01:47):
I want to talk about the Chiefs as a brand
because it's so much more than a regional team or
even an American team at this point, right it is
a global brand that really resonates with sports fans around
the world. Talk a little bit about your organization's international
efforts and how you have a new entertainment production studio
that plays into that that really amplifies that.
Speaker 7 (02:08):
Yeah, it's a convergence of the platform that we're on
right now. I mean, we have one of the most
successful franchises in sport. We have the world converging and
consuming content like never before. And then the international program
at the NFL, launched back in twenty nineteen, gave us
and other franchises the opportunity to aggressively pursue growth internationally,
and we've been one of the more aggressive teams to
(02:29):
do that. So the convergence of all this, on top
of being in for the last five Super Bowl if
for our last six Super Bowls, and the opportunity to
constantly be out there with content is something that we've
been very excited about.
Speaker 6 (02:40):
We taken advantage of and we've seen results from.
Speaker 7 (02:43):
So Foolish Cup Studios is something we launched this past
week that give us the opportunity to create even more
ideas and then distribute that content internationally hopefully.
Speaker 5 (02:53):
All Right, So Mark, obviously a chance to create more content.
Speaker 4 (02:56):
Let's be honest, this is Bluebirk. It's a chance to
create more revenue.
Speaker 5 (03:00):
When you're this successful on the field, walk us through
what it means to the top line, the bottom line
of your team to be consistently in the big game.
Speaker 4 (03:10):
And you know, now going for your third straight win,
what does it do for your business?
Speaker 6 (03:15):
Yeah, I think that's a fair question given the audience
here today.
Speaker 7 (03:18):
I think that when you look at our business, we
are on a platform we have never been on as
a franchise before, and so we look at that as opportunity.
What can we do in this platform to take advantage
of this time to maximize the platform. So top line,
bottom line is growing brand value first and foremost, and
then everything that sort of comes off of that. And
(03:39):
we are very successful in Germany after investing in there
over the last four years. We're the number one team
from brand value in Germany. We have the most revenue
from a sponsorship base in Germany. We're looking to do
that again and again and again as many as many
times as we can. The opportunity in the platform that
I speak of is the international market. So you know,
as we grow, we now have the ability to grow
(04:02):
internationally and that's really the focus.
Speaker 5 (04:04):
And so mark part of it is growing the audience
and some of that comes from just showing the games.
Also you mentioned the additional content, but also social media
has been especially powerful for you guys. You are one
of the most followed teams out there. How do you
continue to grow that? And there are certain platforms that
are working better for you overall.
Speaker 6 (04:26):
Yeah, So it's a combination of thing.
Speaker 7 (04:28):
It's one the superstars that we have on our team
and what they've done with content with Patrick and with
Travis with his podcast, and it's sort of dovetailing with
that and then using the content that we have. We
have a program on YouTube called The Franchise, which is
an inside look at our team, where the first National
Football League team to have over a million subscribers on YouTube.
(04:50):
Where the second sports franchise in America behind the Golden
State Warriors to do that. So those are the platforms
that I'm talking about that you have to have the
content to be able to take advantage of that. So
we have a production studio in house that does the
Franchise show. Now we've launched a production studio that will
be more out of house to really look at partnerships
around that.
Speaker 2 (05:10):
So is it frustrating then with all these plans and
this incredible brand, not just in the US but globally
to not have as much certainty as you'd like over
where you're going to be playing in terms of stadium
down the road.
Speaker 6 (05:23):
Yeah, So I would take that two different ways.
Speaker 7 (05:25):
One, we want to play more games internationally when we're
given the opportunity, because we've seen the value of that
and we've seen the.
Speaker 6 (05:30):
Benefit of that.
Speaker 7 (05:31):
As it relates to our domestic situation specifically in Kansas
City with our stadium, we are pursuing two different options.
One is renovation of the iconic Arrowhead Stadium and GHA
field and then secondly investigating the opportunity to build a
world class dome stadium. Two very different paths, and we
have the advantage of having two different states that we
(05:53):
can go down those paths on. I think, as I said,
on the one hand, it's the iconic nature and how
can you make a worldwide bucket list icon of a
venue better through renovation? Versus if we build a brand news,
state of the art film stadium, we have the opportunity
to host even more events, so Super Bowls, Big Twelve Championships,
(06:15):
National championships, as well as year round concerts and event.
Speaker 6 (06:18):
So it's an exciting place to be in.
Speaker 7 (06:21):
I will tell you personally, it's a very time consuming
place because you're looking at a bunch of different options
and you're dealing with politicians on both sides of the
state line. They're both excited about the opportunity, and we
just got to figure out what's the best thing for
this franchise and for our fan base for the next generation.
Speaker 3 (06:36):
Yeah, it's doubly.
Speaker 2 (06:36):
It's pursuing lots of different paths and kind of seeing
where they take you. I wonder if you would ever
look to private equity or sell LP stakes to fund
the construction of a new stadium.
Speaker 7 (06:45):
Well, we have the expert in the building on private
equity program. Clark Hut is the chair of our organization.
He's also the chair of the finance committee at the
National Football League and he was really one of the
architects with I think, what are your next guests in
putting together other than private equity situation with the NFL,
it gives us the opportunity as franchises to pursue that,
Clark has said publicly, and I know in dealing with
(07:07):
the siblings and the family members, so that's not something
we're pursuing it in the present time, but it's good
to have the option out there. And we've seen the
other teams that take advantage of this opportunity, and.
Speaker 4 (07:16):
So what have you learned from that? Mark?
Speaker 5 (07:17):
I mean, we have seen a number of your counterparts
with one of your art rivals, the Buffalo Bills, so
you beat to get to this game.
Speaker 4 (07:24):
You know, they took advantage of selling a stake.
Speaker 5 (07:27):
They may use it most likely to build a new
stadium or to upgrade their facilities. What are the learnings
that you take even if you're not going to partake
of it right now.
Speaker 7 (07:37):
Well, first and foremost learnings of seeing them go through
the process and seeing just what it takes and how
to maximize that process. The second thing I think that
this gives you it is true valuations, the ability for
you know, the firms that have the ability to capitalize
on the private equity piece are true evaluators of value.
You know, they have to return to their shareholders. So
(07:57):
they're investing in these teams and pieces of the teams
in a very structured and a very critical way of
exactly what the value is so they can see you return.
I think just the first few that have done have
been really positive signs for the NFL and for the
individual franchise that have taken advantage of that.
Speaker 5 (08:14):
All Right, So you went exactly where I wanted you
to go, Mark, which is valuations.
Speaker 4 (08:18):
You worked on the league side. You work for a
little team called the Philadelphia.
Speaker 5 (08:21):
Eagles for a few years before you got to your
current home in Kansas City. You look at these valuations
since you were a guy coming up in this league.
Speaker 4 (08:30):
I mean, is it mind blowing to you?
Speaker 7 (08:33):
Yeah, it's mind blowing on the NFL side, But I
know the NFL side so well that I can sit
here and tell you that the valuations are solid and
you look at the growth of this game and look
at the opportunities that are in our future. I'm a
big believer obviously in the National Football League and the
power of the NFL. I think it sort of spreads
across sports though, when you look at the valuations of
(08:53):
NWSL and NBA, Major League Baseball MLS across the field
as well as you know, properties like the premier lacross league.
The ability to sort of look at these as true
investment opportunities and see the growth that sports provides, you know,
there's no better appointment viewing and frankly from a rating standpoint,
no better viewing than the National Football League. Well, how
(09:15):
do other sports match up against them? And then how
do they continue to grow that mark?
Speaker 2 (09:19):
Before we let you go, I did want to get
your thoughts on one thing. Roger Goodell, the commissioner of
the NFL, with the backing of team owners, is standing
by the NFL's diversity initiatives even as we've seen some
moves on the federal side. Otherwise, as a head of
a high profile organization, what are you hearing from your employees,
from your customers, from your partners on this front.
Speaker 7 (09:41):
Yeah, I think as administrations change, you're going to have change.
Speaker 6 (09:45):
We're very proud of our policies.
Speaker 7 (09:46):
We're very proud of what we've implemented at the Kansas
City Chiefs. It's something that we take very seriously. I
was asked this question multiple times today and I think,
you know, i'd point to even our most recent higher
people talk about and know about the Rooney Rule and
all that it's done and the process behind that. I
think not everyone is aware of, you know, the impact
(10:08):
it has across the entire business. So we just had
a very significant hire on our communications team, and we
went through a very inclusive and diverse slate of candidates.
We wanted to see all the talent that was out
there before we made our decision.
Speaker 6 (10:20):
So we're proud of our policies.
Speaker 7 (10:22):
And we continue to sort of lean on those to
have the best possible employee base in the National Football League.
Speaker 2 (10:29):
All Right, Mark Donovan, a pleasure speaking with you. Good
luck to you, President of the Kansas City Chiefs, Mark Donovan,
I love, love, love the fact that you brought up
he was at the Eagles for about six seasons before
he moved to Kansas City.
Speaker 3 (10:40):
So maybe, you know, whatever happens, he'll be okay.
Speaker 5 (10:44):
Maybe, but I think he's pretty diehard Chiefs at this way.
I mean, it is amazing though to think about the
you know, you know, part of business is the personnel, right,
and so this is a guy who ran the business side.
Let's not forget the guy who's running the on field
side for the Kansas City Chiefs. Yes, Andy Reid once
coached the Philadelphia Eagles.
Speaker 4 (11:02):
I mean this is a really tight knit league.
Speaker 5 (11:04):
I mean it's part of what is driving exactly what
Mark was talking about. There, These massive valuations. These are
very smart business people. You and I talk about this
all the time. This is a juggernaut. It is a
global juggernaut. Amazing to me how much he really leaned
into the international side and absolutely rest of their being there.
Speaker 2 (11:22):
Right anytime you go abroad you look at how many
people are wearing say Kansas City hats or Kansas City jerseys.
Speaker 3 (11:27):
I mean, that's a big part of it.
Speaker 2 (11:28):
They've got to monetize off of that, you know, tap
into that all right, Coming up, the potential for an
expanded NFL season.
Speaker 8 (11:36):
If we continue to focus on the safety, I think
eighteen is a potential.
Speaker 2 (11:42):
We're going to get the flip side of that with
Lloyd Howell, Junior, head of the NFL Players Association, this
is the clothes on Bloomberg.
Speaker 8 (12:00):
If we continue to focus on the safety, I think
eighteen is a potential. And as you know, we would
take a preseason game away, so we would keep within
that twenty game framework. We actually started fourteen and six preseasons,
we went to sixteen and four and now seventeen and three,
so eighteen and two is a logical step, but we
would only do that with the players.
Speaker 2 (12:22):
That was Roger Goodell, the NFL Commissioner, talking with David
Rubinstein on the potential for an expanded season, but the
NFL Players Association is pushing back, the head of the association,
Lloyd Howell Junior, saying no one wants to play an
eighteenth game.
Speaker 3 (12:36):
I'm pleased now to say we're joined by the man himself,
Lloyd Howell Junior.
Speaker 2 (12:39):
Lloyd, it's good to speak with you, and I know
that you just heard the clip we played there. Your
members oppose eighteen games, yet you heard Roger Goodell speaking
about it as if it were a formality.
Speaker 3 (12:50):
Why do you think that is?
Speaker 9 (12:52):
Oh, I think our membership completely appreciates what the opportunity
would be for the economics in the current all revenue split.
On paper, the academics would say, yeah, just keep adding
additional games. But where I believe Roger and I do
agree is the science has to support the health and
(13:16):
welfare of the players instead of just adding more games
for financial reasons. And that is still a big question mark.
We need to know more about recovery. We need to
know what's the proper amount of time nutritional issues for
recovery as opposed to just adding another game. The other
dynamic is what's the complexion of the eighteen potential eighteen
(13:39):
game season. I think the league has had a lot
of commentary about wanting to do more international games. My
previous life traveling around the world, not being a professional
football player, it takes a moment to recover. It can
be depending how far away you go, even longer. So
it's not just the length of the season, it's also well,
(14:00):
how many games would be overseas and how far away,
what's the recovery time, what's the structure of the league
looks like, and then ultimately what are the finances that
would benefit our membership.
Speaker 2 (14:13):
So the NFL has announced games in Ireland in Australia
so far. What has been the player's single biggest concern
about international travel? What have you gathered from them?
Speaker 9 (14:24):
It comes in different dimensions. There's the sort of logistics
of business travel, like size of plane, you know, how
large are the seats, where are we staying once we
get to the location? How close so far away is
it from the venue? You know, those are sort of
what I would describe business travel issues. But then I
think more importantly it's what's the recovery time? Do I
(14:47):
have a bye week after going overseas or am I
expected to play you know, the next Sunday or Thursday.
So there are lots of different dynamics that hang off
of just playing overseas, and the least of which how
many different time zones and you know, what's that going
to look like when I when I returned to home.
So in one sense, there are logistics of travel. Another sense,
(15:12):
it's recovery. Another sense it's you know, how do you
include the players as a part of any potential expansions
The league has an objective around.
Speaker 5 (15:24):
Lloyd, I wanted to talk about a different aspect of
the economics of the NFL. You know, we've had so
much talk about new money coming in institutional capital. We
just talked about that with Mark Donovan over at the
Kansas City Chiefs. You worked at Goldman Sachs, you worked
at Buzzell, and you understand this analysis as well as
(15:45):
anyone the shared economics of this league. What's the best
way for the players to continue to be partners and
economic partners? Does that entail being equity partners?
Speaker 4 (15:58):
It could?
Speaker 9 (15:59):
I think there are more homework needs to be done,
I think, rightfully, So there's sensitivity around would this investment
create any sort of conflicts of interest or would it
go through an into mediary where you have an arm's
length arrangement where you know that their capital can be
(16:21):
put to use and the integrity of the game isn't
compromised in any kind of way. So there are details
that need to be worked out. But with the abundance
of capital, given the attractiveness of the investment. On your
last interview you highlighted, you know, franchise valuations, the valuation
of the Shield, it's doing very well, and as a
(16:43):
part of that, why not have your workforce participate in
that accretion. And I think it makes all the sense
in the world for that to be permissible. But the
details of it have to be worked out.
Speaker 5 (16:58):
So is there a world where you and that sort
of an FLPA sponsored fund that then you know, willing
players or enthusiastic players could invest into, and then essentially
a private equity fund that invest on behalf of the players.
Speaker 4 (17:14):
For sure.
Speaker 9 (17:14):
I mean there are probably several obvious schemes where that
could work. Certainly, our membership has more of an equity
mindset than ever. Maybe that's due to the introduction of nil.
Maybe that's how they're coming into the league. It's a
little bit different than in previous generations. So they themselves
appreciate what private equity means, they appreciate what investment means,
(17:38):
and they would like the opportunity to participate in that
accretion of the game they love and the teams they
played for.
Speaker 2 (17:46):
I mean, getting equity you would go a long way.
But we go back to the idea that to really
meet the demand eighteen games a season, more international games overseas,
all that takes a physical toll.
Speaker 3 (17:58):
I'm curious whether.
Speaker 2 (18:01):
I'm curious whether there's an idea that you know, maybe
the players need to concede on roster's being expanded. Should
each team have more players than what they have right
now so that the player's physical health can be spared.
Speaker 9 (18:16):
Yeah, I mean you're certainly raising dimensions that once you know,
we open up the CBA and we get into it
would need to be put on the table. So when
I said, hey, I haven't talked to a player who
you know, wants to play an eighteenth game, that's in
the absence of all these other dimensions that need to
be addressed. You know, recovery economics, you know, their health
(18:38):
and wellness and we're just not there. So it's just
a human reaction that if I say, hey, do you
want to do more with no change, and they'll go like.
Speaker 4 (18:47):
No, I don't want to do that.
Speaker 9 (18:48):
And so here we are to all the dimensions you
you put out there that would need to be addressed,
and that's just not a snap of the fingers, and
we get to agreement. Yeah, get to agreement, just depending
on how those other dimensions get adjudicated.
Speaker 2 (19:04):
All right, good stuff, Lloyd, really appreciate your joining us today.
Thank you so much for the thoughtful responses. Lloyd Howell
Junior is head of the NFL Players Association. Really important
questions that need to be asked, and certainly you know
he has a difficult job of trying to get everyone
non consensus.
Speaker 5 (19:19):
Well, and what a fascinating moment for these players, right,
I mean, the world has really come to them in
a lot of ways.
Speaker 4 (19:24):
They have a fascinating model.
Speaker 5 (19:25):
I think in the NBA, where the players really have
I would argue a stronger voice in really how the
league is run. You know, this is a new head
of the relatively new head of the NFLPA. So interesting
it comes from a Wall Street and the consulting background. Yes,
very different from his predecessor d. Smith, and so interesting
(19:45):
to see what the voice looks like. I love the
idea of players investing in the league.
Speaker 4 (19:51):
You see it in other leagues.
Speaker 5 (19:53):
And the NFL is often the last to come, but
when they do, they come big.
Speaker 2 (19:58):
No, that's a great point, but I think they would
just as quickly want to get something like guaranteed contracts,
which are rarity in the NFL and which are basically
default in the NBA and the MLB.
Speaker 5 (20:08):
Well, and also really important to remember in the NFL,
the average career is about three and a half years,
and so the money needs to be there and be
there with a certain level of certainty you're exactly right,
and it needs to be their longer term, and so
having a longer term investment in the teams or in
the league may be that much more important the NFL.
Speaker 3 (20:25):
Absolutely to both the teams and the players themselves.
Speaker 2 (20:27):
Let's check in with our colleague, who is at the
Super Bowl, who is in New Orleans, Because much of
the country and for the world and the world for
that matter, is excited to be at the game or
watching the Big.
Speaker 3 (20:38):
Game on Sunday.
Speaker 2 (20:39):
For residents of New Orleans, though it does mean lots
of revenue streams will be flowing into the Big Easy.
Speaker 3 (20:44):
Let's check in with Randall.
Speaker 2 (20:45):
Williams, Bloomberg News US sports business reporter. He is in
the city and he joins US now with a bit
more color. We were joking around about whether bank CEOs
show up there or not. But you've been there all
week and you've seen kind of the flow and the
tide of people coming in.
Speaker 3 (20:59):
There's also a lot of security on.
Speaker 2 (21:01):
The ground as well, because you had the terrorist attack
on New Your's Eve, the reported terrorist attack or what
people are calling terrorist attack, as well as President Trump
scheduled to arrive for the Big Game as well.
Speaker 10 (21:15):
Yeah, there is more security than I've ever seen at
a Super Bowl. They have the popular streets like Bourbon
Street blocked off. There's military vehicles that I only see
in movies out on these streets. Like it's pretty incredible.
And you know, President Trump coming in town is only
going to heighten that. The NFL is already preparing for it.
It'll be really interesting. I'll probably be walking back to
my hotel after the game, all right.
Speaker 5 (21:36):
So, Randall, I have seen you at these events you
are working the rooms like nobody else out there.
Speaker 4 (21:43):
You're talking to deal maker.
Speaker 5 (21:44):
I appreciate, we know how many deals are getting done,
Like what's the chatter, what are people talking about? You've
been covering the private equity deals, Like what's top.
Speaker 4 (21:54):
Of mind for the business folks there this week?
Speaker 10 (21:57):
Well, you just talked to Lloyd and I think it
was really interesting being at Roger Goodell's press conference on Monday.
There's a lot of talk about this eighteen game season,
sixteen international games, and I ask Goodell if he would
sell an international package and he said yes. He even
mentioned Netflix by name, so to hear him say a
eighteen game, sixteen game international package. Then you go to
(22:18):
Lloyd Howe's press conference from the NFLPA and for him
to say no one wants an eighteen game season. Then
I talked to Jon Robinson and Atlanta Falcons running back
and he says, you know, I'd love to play eighteen games.
So there's a lot of thoughts around this eighteen game season.
It's not collected collective bargaining time yet, but it sounds
like it's going to be a battle, or they're going
to need to be. Roger Goodell's going to need to
(22:42):
need to do some convincing.
Speaker 2 (22:43):
He's going to need to Okay, well, we'll of course
look to your reporting to hear what happens there.
Speaker 11 (22:49):
Randall.
Speaker 2 (22:49):
Your reporting also featured the Super Bowl halftime show because
for a lot of people who aren't Football Lands fans,
that is where the action is and Rock Nation, jay
Z's company has actually made the halftime show a good
thing again, something cool, something to talk about. For a
couple of years, it was kind of like an afterthought.
People went to the bathroom during the halftime show so
they could get ready for the third quarter.
Speaker 10 (23:11):
Yeah, Rock Nation took over things and it's cultural relevance
is higher than it's ever been. Usher had the most
watched halftime show ever. Rihanna had a good halftime show.
And so when you think of the super Bowl and
the NFL really now the most grand event the super Bowl,
people are tuning in for the artists too, and the
artists see that. I think Usher had a five hundred
and fifty percent increase on Spotify. I'm sure Kendrick will
(23:34):
see a similar thing. And the artists are using these
platforms to drop music to make announcements. I think Usher
released an album, and Rihanna announced she was pregnant, So
we'll see what Kendrick does on Sunday.
Speaker 2 (23:45):
All right, good stuff, Bloomberg's Randall Williams really appreciate you
and of course we'll catch it back when you were
back in New York after the Big Game.
Speaker 10 (23:53):
Absolutely, thank you for having me.
Speaker 3 (23:54):
All right.
Speaker 2 (23:55):
One of the ways yours can tune in to watch
the Big Game is through two B, the streaming service
will be hiring the Super Bowl halftime Show and ads
live and for free. This is a major milestone for
the ad supported streaming service. Joining us now to discuss
this is Angeli sud the CEO of to B Angulie.
Speaker 3 (24:11):
Good to speak with you.
Speaker 2 (24:12):
Tell us a little bit more about how this deal
came together where you are now airing the Super Bowl
for free.
Speaker 12 (24:18):
Hi, it's Scarlett. It's great to be in New Orleans.
Speaker 13 (24:21):
We're very excited about Sunday Box is doing a special
takeover of to B on game day. Americans will be
able to tune in to the game, the pregame show,
the halftime show, the trophy ceremony, all pre live in
four K through to B. And the reason that we're
(24:41):
doing this is because we want to broaden and expand
the reach of America's biggest sporting event and a.
Speaker 12 (24:47):
Cultural moment to many more people.
Speaker 13 (24:50):
The majority of two b's userbase, we have nearly one
hundred million monthly active users, the majority or Gen Z
and millennials, and the majority aren't subscribed to cable. So
this is just a really great, unique opportunity to bring
the game to all of those folks who maybe aren't
die hard football fans, maybe are more interested in the
(25:11):
commercial and the halftime show, and so we're very excited.
We're also going to be doing an exclusive red carpet
only on to be before the game, where you'll be
able to check out the fashion and celebrity around the
game and even shop looks from your phone.
Speaker 2 (25:27):
Okay, so you are appealing to the cored nevers that
may not be die hard sports fans. I'm sure. Also
part of this is to increase your user base. You
have about ninety seven million monthly active users. What to
anticipate that to go to to rise to once you host,
once you stream the Super Bowl.
Speaker 13 (25:47):
Look, I think right now our goal is to deliver
delight and a great experience to as many Americans as
we can. But there's no questions, Scarlet, this is a
great opportunity to introduce to the value proposition to more
of America. Yes, we have nearly one hundred million monthly
active users, but there are a lot of Americans that
don't know that to B is one hundred percent free
(26:09):
and that we have the world's largest collection of premium
movies and TV series. So our goal is absolutely to
introduce more people to that offering and then ultimately to
engage them and have them be watching lots of TV
in the future.
Speaker 5 (26:24):
And so we know that the Super Bowl is I mean,
it's called the Big Game for a reason. It literally
is the most popular thing to consume to watch on TV.
You know, seems like an antiquated things to say, just
to watch. What does this tell us about your future
investment and your ongoing investment in sports? This is clearly
(26:45):
something that captures everyone's imagination, you know, from the diehard
fans to the sort of culturally interested as you alluded to.
So what's the playbook from here for to B when
it comes to sports?
Speaker 13 (27:00):
So to be is a free ad support and streaming service,
and what you'll see us do is going to be
very different from others. Where we're most interested is how
can we tell stories.
Speaker 12 (27:10):
Around where sports meets culture?
Speaker 13 (27:12):
Super Bowl being a great example of sports and culture,
but you will see us invest in a lot of
other things that sort of do that. Examples include a
talk show that we have on TV right now with
Coach Prime Deone Sanders talking more about culture and what's
happening in America. We had our highest performing, most watched
(27:33):
title on TV ever recently and it's a young adult
through romance movie about a football player that's based on
a Watpad novel and stars a TikTok influencer.
Speaker 12 (27:44):
So you'll just.
Speaker 13 (27:45):
See to be do more and more around sports meets
culture storytelling versus the premium.
Speaker 12 (27:51):
Live sports rights, just given that those are.
Speaker 13 (27:53):
Very expensive and competitive as we all know.
Speaker 5 (27:56):
And as you think about doing more in sports, are
there things that you do less of in order to
make room for sports?
Speaker 14 (28:04):
Now?
Speaker 13 (28:04):
I think you know the reality is to be an
incredible momentum. We've been growing really quickly, and we continue
to invest and do more around the types of content
that we put out there, and in general, I think
you'll see us just we'll look to do things differently.
We'll try new things. But really what's driving that is
what are our fans telling us. And again, those fans
(28:25):
tend to be cordless, they're younger, they're more diverse, and
their tastes are a little bit different, and they're evolving
at the speed of TikTok. So I think it will
just be a lot more of trying to be have
a pulse on what's culturally relevant and then trying to
deliver that through the content that we offer.
Speaker 2 (28:43):
Angelie, really appreciate your joining us. Angrelie sud is CEO
of toub, which will be streaming the Super Bowl for free,
the ad based streaming service on Sunday, and of course
toob is owned by Fox, so it makes sense that
they be partnering on this. The question is will the
infrastructure be able to handle it? Will be like Flix
in the tyson Pal match.
Speaker 5 (29:01):
Yeah, I mean this is the big question for these
streaming services is like can they handle I mean a huge,
massive event like this. I'm fascinated to see who tunes
in and then who sticks around to to be right,
I mean, what's the conversion rate where we're like, oh, yeah,
I sort of like this. I like this take on sports.
Speaker 2 (29:16):
Yeah, it's going to be my go to place now,
all right, It's not just the big game itself. One
of the biggest draws of the Super Bowl or the
television ads that air, often starring celebrities.
Speaker 3 (29:25):
Now.
Speaker 2 (29:25):
One of those ad campaigns is backed by the Foundation
to Combat Anti Semitism, with former quarterback Tom Brady and
rapper Snoop Dogg leading the charge. Their message for viewers
is pretty simple, Let's unite against hate in all its forms.
Here's part of our conversation with New England Patriots owner
Robert Kraft, who is founder of the Foundation to Combat
Anti Semitism.
Speaker 14 (29:47):
The American people are great people. We've found eighty percent
of Americans don't understand what's going on in terms of
hate building them up in this country, and it's doing
it like it's never done before in my lifetime. And
why people would hate someone because how they worship God,
(30:11):
or what their political feelings are, or what their skin
color is. You know, we all our families all came
to this country and we're able to live the dream
because of the way we accepted everything in America. And
I think there's been a growth of hate. We last
(30:34):
year at the Super Bowl, we had doctor Clarence Jones,
who wrote Martin Luther King's I Have a Dream speech,
and his basic message was that silence from people who
see inappropriate behavior is the worst enemy of Americans. And
(30:58):
we preached that message, and now we're asking people to
re evaluate why they hate. You know, we're born with
empathy and love, and hate is learned, and it's so
dysfunctional to what's great for America. You know, in twenty nineteen,
(31:19):
I started this foundation because after seeing Charlotteville in the
Tree Alive, I saw signs of what was going on
in Germany in the thirties. Yeah, and I want a
repeat of the forties.
Speaker 1 (31:34):
The two folks are featured in that ad. One Tom
Brady of course, who you have a long standing relationship with,
and Snoop Dogg of course, who has a long standing
relationship with Tom Brady. What was their reaction when you
approached them about doing this ad.
Speaker 14 (31:47):
Well, you probably wouldn't believe it, but I've had a
relationship with Snoop for thirty years and you know when
I called him, you know, he just said, hey, brother,
I'm in for preaching love. Whatever we can do to
stop this paid count me in one hundred percent and
(32:09):
that really, you know, people wouldn't think we have that
connection and have worked together and other things. And then
of course Tom Brady is one of a kind in
his field and so special and unique and one of
the greatest human beings on the planet for him to
(32:30):
be willing to speak out as well, and he liked
the idea of the two of them from different backgrounds
speaking about what was good for the American people and
all people.
Speaker 2 (32:45):
Absolutely, Robert, I'm curious how you plan to measure the
effectiveness of this ad campaign on Super Bowl Sunday and
of course during the week leading up to it and
other efforts to amplify the cause.
Speaker 3 (32:58):
You're abled obviously to track views, but beyond that, how
are you measuring the impact.
Speaker 14 (33:07):
Well, we have a very scientific way of an interview
process where it's over eight thousand people random selected from
our group and they educate us in terms of these
are people who we've had no contact with. It's done
(33:30):
very scientifically, and what we learned from that is how
we want to proceed to try to continue to educate
the American population.
Speaker 1 (33:42):
Given your background with the Patriots, I mean, there has
been a lot of talk over the years how sports
was kind of one of those you know, unilateral unifiers
in this country. You know, of course we all pick
our cities and our teams, but at the end of
the day, if you go to a stadium or you
go to a bar to watch the games, you're probably
the most diverse city you're going to see in any
(34:02):
sort of stage in your life. And I'm wondering, can
it be that again or was that never the case?
Speaker 6 (34:08):
Now?
Speaker 14 (34:09):
I really believe that sports and music other those are
the two things that bring people together from all walks
of life, all backgrounds. Those of us who have benefited
by this country have a responsibility to stand up. And
(34:29):
I've had a lot of wonderful people contribute to us
who want to be part of the effort because we're
just trying to lead and help manage a great group
of people that have this on their agenda to fight
back and push back against all this.
Speaker 2 (34:47):
Hate and our thanks again to Robert Kraft for joining us.
He's the founder of the Foundation to Combat Anti Semitism.
Of course, also the owner of the New England Patriots.
And it goes to the point that the NFL has been
pretty vocal in terms of talking about anti hate. They
had this end racism messaging in the end zone for
the last couple of years.
Speaker 3 (35:08):
This year they're changing that to choose love. They started
doing that the later rounds of the playoffs.
Speaker 4 (35:14):
Yeah, it's interesting.
Speaker 5 (35:15):
I mean, what you heard Rubber Kraft talk about there,
which I think cannot be emphasized enough, is people listen
to sports figures and entertainers probably more than anyone, and
so the recognition you know, you see Snoop Dogg and
Tom Brady, these are two of the most famous and
influential people in the world. People pay more attention to
the Kansas City Chiefs because Taylor Swift is a big fan,
(35:37):
because their boyfriend plays on the team, and you know,
you think back to twenty twenty Lebron James coming out
the way that he did around certain social issues. They
have a platform that, if they use for good, can
be extremely influential.
Speaker 2 (35:50):
And can be instantaneously effective as well. I mean, people
are going to be talking about these ads. In fact,
that's why they roll it out. We can advance to
kind of build.
Speaker 4 (35:56):
Up the interest for it totally.
Speaker 2 (35:58):
All right, Still ahead, We're going to talk about the
rising popularity of sports betting with Fanjuel's CEO. Any how,
This is the close on Bloomberg. The Super Bowl is
(36:18):
traditionally the biggest betting day in the US. Americans are
expected to place an estimated one and a half billion
dollars in legal wagers on Sunday's matchup between the Kansas
City Chiefs and the Philadelphia Eagles. I had the chance
to catch up with FanDuel's CEO anyhow, and she told
me about how her company is planning to capitalyze off
of the fifteen billion dollars sports betting industry.
Speaker 3 (36:37):
Take a listen.
Speaker 15 (36:39):
The Super Bowl is always the biggest sports betting day
of the year, and this year will be no exception
at all. From a handle perspective, it's actually pretty even
a slight edge towards the underdogs. The Philadelphia Eagles have
about fifty two percent of the handle, a bit more
skewedid when you look at the beck count. But where
the real excitement is is around the player props. Right,
(37:00):
You've got Saquon Barkley, who is the odds on favorite
for MVP, and of course you know all the usual suspects.
My home Jalen Hurts Kelsey for anytime touchdown scores. One
of the things that we have at FanDuel this year
which we're very excited about, is a new product called
Your Way, which is live in all the sports betting
markets that we compete in, and it effectively gives consumers
(37:24):
unlimited choice and control. So you know, you might go
into the fandel app and see Travis Kelcey receiving sixty
sixty yards or so, you can toggle that and it'll
reprice the market and you can.
Speaker 11 (37:35):
Parlay just about anything you want.
Speaker 15 (37:37):
So we're very excited about that for this year, which
gives you lots of different options to bet on the share.
Speaker 2 (37:43):
So basically it allows people to customize their bests. So
are there a lot of new markets created during the
course of the game that people can then bet on.
Speaker 11 (37:51):
Yeah, that's exactly right.
Speaker 15 (37:52):
So you know, you can any player prop you can customize.
You can actually increase or decrease the line and it
recalculates the odds. But there's also some great head to
head markets which are really popular. You know, the homes
to pass for more yards than herds, and then you
can parlay those and so what you're seeing is a
lot of creativity, right, You've got you know, twenty leg
(38:12):
parlay bets that consumers are going in and it's really
it is your bet, so we're very excited about it.
Speaker 2 (38:18):
This is expected to be a pretty close game, as
implied by a smaller than average point spread. I know
that there are some six hundred separate markets that people
can bet on. Can you give us a sense of
which ones are unique to FanDuel that only you offer.
Speaker 15 (38:33):
Well, there's there's specials that we offer every year. So
we've got a you know, we've got a jackpot for
five million dollars this year. We've had a special that
was popular throughout the entire NFL season, which is each
team to score a rushing and a passing touchdown in
each half. So that one's really popular. But probably the
most unique thing is this your Way product. Well, we
(38:56):
also have this year as we have brought back the
Cake of Destiny for the third year and this has
really kind of become part of the Super Bowl. So
we have Eli and Peyton Manning who are going to
compete in a live kicking competition on Sunday at three
o'clock Eastern. Consumers can go in into the Fandel app
and they can decide if Eli or Peyton is going
(39:18):
to win, and if you choose correctly, you get a
share of ten million dollars a bonus bets so that
you certainly can't find in any other sportsbook out.
Speaker 2 (39:25):
Yeah, building off the Manning Brothers franchise and brand that
they've really built up.
Speaker 3 (39:31):
The American Gaming.
Speaker 2 (39:32):
Association forecasts a record one point three nine billion dollars
in Super Bowl bets this year, which is just kind
of mind boggling. Can you give us a sense of
what FanDuel's share of that would look like?
Speaker 15 (39:43):
You know, it's hard to predict what our share of
the super Bowl is going to be. If you know,
if you look at our share over these are numbers
that we shared at our investor day. You know, we've
we've got we've had about a call it a forty
five percent share of the market. Those numbers are going
to bounce around a bit, but we have not just
sustain but really strengthen our leadership position over us if
you go all the way back to twenty eighteen when
(40:05):
the Supreme Court repealed PASPA.
Speaker 11 (40:06):
So we've had a great position.
Speaker 15 (40:08):
We've got a phenomenal product this year, and so we're
excited to see it's one of the most important days
of the year because we're also bringing a lot of
new users onto the platform and it's an important way
for us to educate consumers as well as we do
that on how to bet responsibly. So it should be
a great day. We'll see where the numbers fall out.
Speaker 9 (40:26):
Well.
Speaker 2 (40:26):
Security, we know we'll be stepped up in the city
of New Orleans following the New Year's Eve attack in
the city.
Speaker 3 (40:31):
Do you see that translating into.
Speaker 2 (40:33):
Fewer visits by people to the city and therefore an
increase in terms of mobile bets.
Speaker 15 (40:39):
You know, it's hard to I don't know the actual
visitation numbers. Just being in the city of New Orleans
right now, it's certainly bustling. I don't think it's going
to have a huge impact on the numbers. You know,
we're live in twenty four states, which is over fifty
percent of the US population, and you know, Super Bowl
is by far the most important betting day of the year.
(41:02):
But it's a it's a great way for you know,
new users who are big NFL fans but may have
never had an opportunity to bet before. It's a it's
a fun way to do it and you know, it's
a it's a very social, engaging way to make the
Super Bowl, which is already fun, even more engaging.
Speaker 2 (41:19):
And that was my conversation with Amy Howse, CEO of
Fan Duel, and Jason. It is really interesting to think
about how, like maybe five ten years ago, sports betting
was not as prominent. It was not even prominent, and
the only way you really bet on sports at the
Super Bowl was like those squares that you bought, you know,
through your office team office colleagues.
Speaker 4 (41:36):
Oh yeah, you would.
Speaker 5 (41:37):
You would show up at the super Bowl party and
like somebody's kid would be running around you like fill
in this box and give me five bucks, and you're
like okay, or you know, if you were really into it,
you'd have to literally call your bookie. I mean, it's
crazy to think about how much the public has have
raced it, but also how much the leagues themselves are
like all in all of this content that is built
(42:01):
around the lines.
Speaker 2 (42:02):
Their entire shows built around this, right, And Adam Silver
was the first sports commissioner to start talking about it
as you know, like maybe we need to think about
this in a different way.
Speaker 5 (42:11):
Yeah, it's crazy, but I mean it also speaks to
how deeply embedded sports and this game are in the culture, right.
Speaker 4 (42:19):
I mean, this is in a world where.
Speaker 5 (42:22):
We aren't always watching the same things. We're almost never
watching the same things. Everybody knows about this game.
Speaker 2 (42:28):
You can't afford not to watch this game because that's
what everyone's going to be talking about. And you don't
even have to like the game or know the players,
but you got to know about the commercials. You just
need to be able to take part in the conversation
that happens the following day.
Speaker 5 (42:40):
And you wonder why these teams are worth billions and
billions of billions of dollars in growing This is why,
because people are tuning in, those media rights are huge.
The ticket prices go up, so there's just money everywhere.
Speaker 2 (42:52):
And they can't add more teams without changing the math
of how many games they play and how many teams
make the playoffs, So it's really a very very limited supply.
Speaker 4 (43:00):
It's amazing drama and we're all going to be tuning in.
Speaker 2 (43:02):
All right, Well that does it for us. My thanks
to Jason Kelly. Of course, he is a co host
of the Deal with Alex Rodriguez and Jason Kelly this
airs what every week.
Speaker 4 (43:11):
Right, every week tune in all right, We.
Speaker 3 (43:14):
Look forward to that.
Speaker 2 (43:14):
In the meantime for more sports coverage, also listen to
the Bloomberg Business of Sports podcast every Friday, Saturday, and
Sunday on Bloomberg Radio, where we explore the big winny
issues in the world of sports, and every once in
a while we do that on the close here as well.
Have a great weekend everyone, Hope you enjoy the Super Bowl,
whether you watch it live or whether you watch it
on television ory stream it.
Speaker 3 (43:33):
This is Bloomberg
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