May 9, 2025 • 38 mins
Join hosts Michael Barr, Scarlet Fu and Vanessa Perdomo for a look at some of the latest headlines and stories in the business of sports.
Kim Bhasin, Bloomberg News reporter covering athletes and celebrities, details plans from youth sports property and events manager Unrivaled Sports to raise $120 million in a funding round led by the venture arm of retailer Dick’s Sporting Goods Inc.
Then, Shawn Quill, the Sports Industry Leader at KPMG US, examines the rise of institutional capital in both professional and college sports, the business case for it, as well as how these investments are changing the consumer and fan experience.
Plus, Kohler Chair and CEO David Kohler details his family-owned company's involvement in the PGA WORKS Collegiate Championship, formerly known as the National Minority College Championship. Kohler, the maker of household fixtures and furniture, owns Whistling Straits golf course in Wisconsin, where the tournament is being held.
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Episode Transcript
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Speaker 1 (00:00):
This is the business of sports.
Speaker 2 (00:02):
The business of sports can be intimidating for hard for
a start to break into.
Speaker 3 (00:06):
We really appreciate when our owners are actually there, you know,
with us through the journey.
Speaker 4 (00:11):
Teams ours especially have been very intentional to diversify at
all levels.
Speaker 5 (00:15):
Of the company.
Speaker 6 (00:15):
I think we're in bolding years for the NFL and
college football.
Speaker 2 (00:18):
Our demographic reach has continued to explode.
Speaker 4 (00:22):
This is going to be really unlocking the streaming platform
for sports fans.
Speaker 7 (00:26):
Sports evaluations arising. We'll see when they peak.
Speaker 3 (00:29):
You don't have to be the best in your sport
to make a whole ton of money.
Speaker 1 (00:35):
Bloomberg Business of Sports from Bloomberg Radio Bordo.
Speaker 7 (00:39):
This is the Bloomberg Business of Sports where we explore
the big money issues in the world of sports. I'm
Michael Barr, along with Scarlett fu and Vanessa Pridomo Damian Sasaur.
We'll be back next week. Coming up on the show,
we talk golf and the PGA Works Collegiate Championship with
Cola Share and CEO David Kohler. The Kohler family owns
Whistling's Straits in Wisconsin, host of that tournament. We'll talk
(01:03):
with him about his family and companies. Long relationship with golf.
Speaker 5 (01:07):
We've been really good partners with the Page of America
for decades.
Speaker 7 (01:12):
All that and more is on the way on the
Bloomberg Business of Sports. But first, Unrivaled Sports, which runs
a bunch of youth sports venues and events, is raising
one hundred and twenty million dollars in a funding round
led by Dick's Sporting Goods. Here to talk to us
about Unrivaled's latest plans is Bloomberg News senior reporter covering
(01:33):
celebrities and athletes, Kim Bessin. Kim, Welcome back to the
Bloomberg Business of Sports. Always always happy. Another great article.
You mentioned that Dick Sporting is leading on one hundred
and twenty million dollar funding ground for Unrivaled. Tell us
about that.
Speaker 3 (01:50):
Yeah, So, Unrivaled Sports is a youth sports company. They
own a bunch of venues and do all these tournaments
programming for kids, and Dick Sporting Goods has been pretty
active in this space. They haven't done events themselves, but
they do have a company called Game Changer, which they
bought back in twenty sixteen. It's a streaming service. It
(02:10):
started as like a scoreboard. You can watch your kids
scores lives as they're playing on some field somewhere. But
but now it's a whole streaming service where you can
watch them play their games.
Speaker 8 (02:20):
Wow.
Speaker 7 (02:20):
I never knew that that's a great idea, that you
have a scoreboard for you kids. I'm sorry, Scarlett, but
it's a great idea. Man.
Speaker 4 (02:28):
It's all about how youth sports is becoming much more
professionalized than it ever was. It was kind of a
grab bag before of like parents volunteering their time, and
now it's becoming something that.
Speaker 9 (02:38):
Rivals college sports.
Speaker 4 (02:39):
Something that is really streamlined and easy for people to use.
The user experience is high. Kim tell us a little
bit more about unrivaled because it's got some hefty pe
titans behind it.
Speaker 7 (02:51):
It does.
Speaker 6 (02:51):
So.
Speaker 3 (02:51):
Josh Harris and David Blitzer founded this thing last year
and they hired Andy Campion, a former Nike and Disney's executive,
to run it. And the big takeaway there is that
this is national. This is not just a little thing
where they buy a couple properties. They operate in thirty
(03:12):
states now and have grown from starting with baseball and softball,
flag football is now a big a big focus for them,
they started to work in lacrosse and basketball. Seems like
it's going to be another big expansion point for them,
just a natural expansion from where they're coming from.
Speaker 8 (03:31):
And obviously, Josh Harrison and David Blitz are no many
many people in the world of sports.
Speaker 3 (03:38):
They know everybody in the world of sports themselves.
Speaker 8 (03:40):
They know everyone in the world sports themselves. They're massive
in this industry. So tell us about this strategic strategy
behind bringing in Dicks in this way, because they obviously
beyond just reason and capital.
Speaker 3 (03:51):
Yeah, Dix has like eight hundred and fifty stores across
the country, but they also have this thing called House
of Sport. Have you heard of that?
Speaker 7 (03:59):
Yeah?
Speaker 9 (03:59):
Oh my god, it's a venue for birthday parties.
Speaker 7 (04:01):
I've gone.
Speaker 9 (04:01):
There are so many.
Speaker 6 (04:03):
Yeah.
Speaker 3 (04:03):
House of Sports so they have all the lates. Yeah,
you do community events in there, you have all the
kids in and basically have a have a sports related party, right,
organized and organized, Yes, an organized gym class. And when
you when you pair that up with with what what
unrivaled offers like this, it just makes a lot of sense.
Speaker 7 (04:23):
Right, Wow, Well I didn't know, I don't know what anything,
But can you do they do weddings nothing.
Speaker 6 (04:30):
I mean, we can.
Speaker 7 (04:37):
Now Dick's Sporting Goods. They are also going to have
a big influence on the company's board of directors.
Speaker 3 (04:44):
Right yeah, And and that's how they're going to explore
partnership opportunities between uh these these two companies. Right So,
uh Dix has been again really active in this space,
and they want they want to be think about how
much business goes through youth sports into dick Sporting is
where you buy all your soccer balls and your baseball
bats and and and anything you could possibly need for
(05:07):
your kids to play sports. They're going to be there
and they're gonna be involved and and in a lot
of ways, it's like that's as important as the flashiy
of parts of their business, like you know, running shoes and.
Speaker 7 (05:18):
Nikes and things.
Speaker 8 (05:18):
Is the idea of them to be at these events
that Unrivaled is hosting.
Speaker 3 (05:22):
They haven't really they haven't revealed anything about how they're
going to work this out, and I think that's something
they are still figuring out how to how to approach.
Speaker 8 (05:31):
They should have pop up stores because I don't know
how many tournaments I used to go to and forget
my cleats I had to have a separate pair of
cleats and each on site. I'd have to go to
a store somewhere else and find someone because I didn't.
I forgot them in my bag all the time.
Speaker 4 (05:45):
That makes a lot of sense, actually, So, Kim, you
talked with Andy Campion, uh, the CEO. Is there any
sense that this is a company unrivaled that will at
some point go public?
Speaker 3 (05:56):
Yeah, it's really really early on. Right, they've only been
around for one year and I believe it's They host
about one point four million visitors a year, fifteen properties
so far. Looking to expand again, they're going to spend
this some of this one hundred and twenty million dollars
they just raised on more properties, more leagues, and more
(06:16):
they own like Cooperstown All Star Village, which is a
family resort plus a baseball tournament for the kids where.
Speaker 4 (06:23):
They wrote about it Bloomberg Business Week, fantastic article on
the way story about call back to a previous Business
of Sports podcast episode.
Speaker 3 (06:33):
Yeah, I really dug deep into this about private equity
getting involved in youth sports and again like professionalizing this essentially, right,
it's becoming more corporate than ever.
Speaker 7 (06:44):
Now. They're talking about also getting into an opportunity New
England Flag Football.
Speaker 3 (06:50):
New England Flag Football, and they're rebranding it as Unrivaled Flag.
Flag football is one of these areas in youth sports
that everyone is paying attention to, you know, ni Bey
under Armour. The NFL says that they're they're prioritizing this
and trying to develop that so that they have more
grassroots interaction with the sport in a way that's less
(07:11):
less dangerous for kids. Right, so flag football big focus
and Unrivaled thinks it's going to be their next big thing.
Speaker 8 (07:19):
I mean, everyone wants to be their next big thing
right leading up to the Olympics. Is the idea is
Unrivaled flags starting this year and leading up to the
Olympics or when is that getting off?
Speaker 3 (07:29):
It's it's just been rebranded, right, so it's been operating
this whole time as as New England Flag Football, but
they'll still be going and I mean flag football. Anyone
here played flag football?
Speaker 9 (07:42):
Yes, that makes sense. That also tracks Vanessa, Yep, that
was amazing.
Speaker 6 (07:47):
You were I was.
Speaker 8 (07:48):
I mean I almost didn't go to a position, but
I was a receiver and I also did play both ways,
but I was a mainly receiver, and I remember going
I almost skipped an entire colleg showcase one time to
play in the games. There's only once a year when
I played in high school, and I wish, I wish
I had this opportunity that the girls have now right,
because it's beat for girls right now right, it's a
(08:10):
big focus.
Speaker 3 (08:10):
Yeah, and we were like a slot receiver. You're just
mosson people in I just mos people.
Speaker 8 (08:14):
As cossome people as I was getting the OBJ catches. Actually,
I would say more.
Speaker 4 (08:18):
You guys are using terminology that Michael barn and I
are just shaking our heads up. Wait, Kim, I want
to ask you about another story you wrote recently about
PepsiCo and how it now has a chief sports officer.
Oh yeah, what does that chief sports officer do?
Speaker 3 (08:34):
Yeah, Brett O'Brien was named chief sports officer at PepsiCo.
And that when I say PepsiCo, I mean the whole thing,
right that that's fred Ola and Gatorade and Pepsi itself, Storry,
all the stuff they own, and they've reorganized that their
marketing arm into one big marketing thing. So previously you'd
be like the Gatorade guy and you do all the
(08:55):
Gatorade marketing for in sports, but now they're they've put
it all into one diviate and are separating it by sports,
so those experts will be the NFL person and the
basketball one and so on, and that allows them to
really focus in on individual sports with these big, like
anthemic campaigns. And the most recent one was the Gatorade
(09:18):
campaign with Kendrick Lamar. His first one of these types
of giant ad campaigns with a sports related brand, and
they used all the stops on that one.
Speaker 7 (09:30):
Right.
Speaker 3 (09:30):
The athlete endorser list was you know, Caitlin Clark, it
was everybody.
Speaker 7 (09:35):
I mean, there's a lot to this with this PepsiCo thing,
because I'm gonna get a little more into this because
i mean they're looking more into I guess rebranding is
the best way I want to describe it, because, like
you said, it used to be individual products. Now it's
the whole complete picture.
Speaker 5 (09:54):
Yeah.
Speaker 3 (09:54):
And if you're looking at it from Freedo Lay's standpoint, right,
you have all these properties Cheetos and Darda and everything. Uh,
and if you sign a deal like they have with
the World Cup. Right, So fred de Lay is a
sponsor of the World Cup next year, and they'll be
running a bunch of programming around that. You want to
get all these different brands involved, and by centralizing it,
(10:16):
it gives you a better You're put in the mindset
where you're everyone's working toward one goal.
Speaker 8 (10:21):
And so we're going to see a messy hot cheeto
from this is what I'm assuming.
Speaker 3 (10:25):
Oh oh, will they be shaped.
Speaker 8 (10:27):
Like well Lebron and Jason Tatum and all these stars
have their own flavors of chips.
Speaker 3 (10:35):
They Yeah, that that is true, but I'm thinking the
messy shape would really would would really hit it here
that that chars are shaped. The World Cup right sold
for like a million, It was crazy.
Speaker 4 (10:45):
I feel like this is kind of it opens the
door to other consumer packaged food companies to do something similar.
Coca Cola perhaps might look into a chief sports officer
as well, because it makes sense from that point of view.
Speaker 3 (10:57):
Yeah, I think it does. And when you think about
how involved these giant brands are with sports now, I
mean sports sponsors, The sponsorship deals are just growing and
growing and growing. More endorsements athletes earlier in their in
their in their careers and their lives they're getting signed
h it's it's essential. It's become an essential part to
(11:17):
the advertising ecosystem.
Speaker 7 (11:19):
I what happens too when you get like you're going
to see it And that was a great question that
you that you've brought up scarlet because you put Coca
cola and pepsi together. You're going to see all this
going on here, here's going for the World Cup, here's
going for the Super Bowl. This is this is going
to continue on and like old man bar has got
to remember, you know, just like they used to advertise
(11:42):
Gillette in the nineteen seventy two Super Bowl, that's all
gonna change. This is going to be the wave of
the future.
Speaker 3 (11:48):
Hey, let's still around. Yeah, They're they're doing is if
you look at the I think the best way to
look at it is the is like the sneak the
sneaker wars that have been going on forever, right, Nike, Adidas,
all the Puma, all the all the teams around the world.
They're just hopscotch and from from place to place, trying
to try to win over leagues, trying to win over teams,
trying to win over athletes, and uh, you know what
(12:10):
Nike signed what the German soccer national team as that
is that is quite something. It gets, it gets you
get all of them.
Speaker 7 (12:18):
Our thanks to Kim Bessin for joining us. He covers
celebrities and athletes for Bloomberg News. Up next, we go
behind the scenes at KPMG's sports business for my colleagues,
Scarlett Foo and Vanessa Bernomo. I'm Michael Barr. You're listening
to the Bloomberg Business of Sports from Bloomberg Radio around
the world.
Speaker 1 (12:39):
This is Bloomberg Business of Sports from Bloomberg Radio.
Speaker 7 (12:44):
This is the Bloomberg Business of Sports where we explore
the big money issues in the world of sports. I'm
Michael Barr, along with Scarlett Foo and Vanessa Bernomo. Damian
Sasaur will be back next week. KPMG US has a
sports division that focuses on helping leagues, franchise and venues
run their businesses. Joining us now is Sean Quill. He's
(13:05):
KPMG Sports industry leader and also heads up the sports
sponsorship strategy. He is here now to take us through
how his firm is looking at the current sports landscape,
the rise of private equity and more. Shawn, Welcome to
the Bloomberg Business of Sports.
Speaker 6 (13:23):
Great thanks for having me.
Speaker 7 (13:24):
Well, let's talk about KPMG US and the firm that
you are behind. Tell us about this firm.
Speaker 2 (13:33):
Yeah, KPMG is one of the big four accounting firms
here in the US and globally. Here in the US,
we have thirty six thousand people and are in every
major city, and I have the privilege of serving as
their national sports industry leader. So I look after our
sports practice, which serves the league's teams, facilities, does sports
deals and things like that. So it's a great place
(13:55):
to be a part of.
Speaker 4 (13:57):
So let me ask you. Sean at KPMG Group helped
advise on Bill Chishom's six point one billion dollar purchase
of the Celtics.
Speaker 9 (14:04):
Back in March.
Speaker 4 (14:06):
What surprised a lot of people is how the team
was even up for sale, given the Celtics had just
won the NBA Championship, and then it happened fairly quickly.
I'm curious what your firm did in the process and
what surprised you most about this process.
Speaker 2 (14:20):
Yeah, it was a really interesting deal to be a
part of, and it was a privilege to advise mister
chism on it. We provided financial due diligence and tax
advice on the deal to mister chism In in his purchase.
And yeah, it is interesting that the Celtics were up.
I think that a number of owners are considering investment
(14:42):
more so than they have in the past.
Speaker 6 (14:44):
You know.
Speaker 2 (14:44):
The influction of private equity, of rising valuations, of the
need for capital are all driving interest in either investors,
both from a minority interest, but also in this case
of controlling you know, sale and the Celtics certain are
one of the premier franchises within the NBA, have such
an amazing legacy and again are in the playoffs this year,
(15:08):
and so it is one of those scarce amazing assets.
So we were fortunate to be part of it.
Speaker 8 (15:15):
Sean, what do you think it is about the current
landscape of sports of ownership that is making more owners,
you know, get more interest from investors, be more open
to private equity and that sort of thing.
Speaker 2 (15:30):
Yeah, I mean for the owners, there's a lot of
benefits you know, from private equity and other investors, and
so a number of owners that we're working with. We
advise more than fifty of the sports franchises around the US,
across the five major men's sports, and you know, they're
looking for liquidity. In some cases there's changes to family
ownership structures. People that are looking to no longer be involved.
(15:54):
They're looking for investment capital. I think the number one
trend right now in sports is around facility renovation or
new builds, so stadiums and arenas coming online and significant
cost of investing in those new facilities. So, you know,
private equity in particular offers a lot in that space
in terms of not just the capital, but the business
acumen to come alongside of it, and it does create
(16:17):
a marketplace for valuations. You know, all of this additional support.
You know, there's it's a it's a fixed asset pool.
In terms of professional sports. There's only so many assets.
They're not increasing. It's not like a housing market. Nobody's
building more franchises. There's a few potential in the future
as we have expansion, but you know, it's a fixed
asset pool, and as the valuations rise, it gets harder
(16:38):
and harder to purchase those assets. You know, there's rules
in terms of how much the principal owner has to
put up, and so few and fewer people can afford that,
and so you know, I think that that makes makes
it really interesting when they come across the market. But
you know, from owners seeing those valuations rise, I think
some of them are looking to cash out. I think
there's changes in family dynamics and other cases and door
(17:00):
dreams of doing other things and better to build a
new facility with someone else's money than their own.
Speaker 7 (17:05):
As a sports guy, this is the only time I
can say, especially in the NBA Playoffs with the Knicks
and the Celtics, that both teams are playing at the garden.
I can say that and now will not be wrong
either way, and which has to be a big shot
in the arm, especially from this big acquisition of the Celtics,
(17:29):
and you know, the team has just been super duper successful.
Speaker 6 (17:33):
Yeah, I mean, what an exciting series.
Speaker 2 (17:34):
There's a bunch of them going on right now and
they're they're thrilling to watch, and it was great to
I mean, for me, we have a relationship with Stephen Curry,
so it's great to see the Warriors clinching Game seven
and move.
Speaker 6 (17:44):
On to the next round.
Speaker 2 (17:45):
And that's great for basketball. And you know, you're right,
it's an exciting time for the NBA NHL playoffs of
course going on at the same time, I mean with
the NBA, I think, you know, we've seen the belief
in the reliability of the business andlast year's media rights
deal record deal for the NBA seventy six billion dollars.
It was one hundred and sixty percent per season increase
(18:07):
in metia rights. So you think about how significant that is,
and that is obviously something like that drives the valuation
of the Celtics. Interestingly enough, though, when the Celtics deal
for the six point one billion valuation, it doesn't even
include TD Garden to your garden reference. You know, the
Celtics don't own the Garden. So that is actually to
me especially interesting that I think we're going to continue
(18:30):
to see soaring valuations in sports. You know, even though
the Celtics are one of the top franchises, doesn't include
the building, doesn't have their own media network. You know,
there's a lot of aspects to it that drive those valuations,
and certainly those are part of it. So, yeah, an
exciting time right now in basketball and in hockey.
Speaker 4 (18:49):
Yeah, I'm glad you mentioned how that deal did not
include the facilities. It just speaks the brand value of
something like the Celtics. You had mentioned sean that it's
better to build someone else's money than your own as
a reason for teams and franchises to take on institutional investors.
If you look at the New York Giants, the Maara
and Tish families are looking to sell some of their
(19:11):
steak in the New York Giants, They're looking to spread
that steak around to two to three wealthy individuals and
families as.
Speaker 9 (19:17):
Opposed to private equity.
Speaker 4 (19:20):
What is the argument for team owners wanting to keep
pe out of the team.
Speaker 2 (19:24):
For now, That's a great question. I think that it's
going to depend on each each ownership group and their
personal preferences. I do think that private equity is attractive
to a lot of owners. It not only brings the capital,
but it also brings the business acumen that I mentioned.
You know, private equity is accustomed to running and operating businesses,
(19:44):
making them more efficient, realizing the value of data and analytics,
and sports is primed to have that kind of inflection
of business acumen, you know, in particular data and analytics,
like in terms of new facilities and new stadiums, and
just in terms of the loyal fan base. You're only
at the tip of the Iceberg. In the industry in
terms of leveraging data, there is so much potential. We
(20:07):
know so little about the typical fan, about why they come,
when they come, what they consume while they're there, what
would bring them back, how you get them to come
more frequently, And I think most franchises are not leveraging
that data. Well, the infrastructure in terms of the technology
is available, but it's not yet there, or it's not integrated,
or they're not pulling the insights out of that data.
(20:28):
And so, you know, in my mind, private equity really
offers a lot of value to that mix. But yeah,
in the case of certain owners, you know, some that
have owned the team for a long time, they're not
looking to, you know, have that much of a change
in terms of the way that things are governed or
structured or run. It may just be bringing in that capital,
(20:49):
It may just be bringing in others that could add
to their ownership group in a positive way. And I
saw one of the rumored individuals we also have a
relationship with, so I won't comment on it, but obviously
adds to the further brand and the legacy of the franchise.
And so there's other reasons to bring in investors. And
you know, I think we are seeing more and more
(21:09):
of a trend of former athletes and celebrities getting interested
and involved in sports.
Speaker 8 (21:14):
You know, we love to see athletes get involved in ownership,
and I think it adds a lot to them, to
their capital, like you said, and to the brand as
a whole, like we potentially will see with Eli Manning
and the Giants one day maybe. But as we talk
about the facilities, you know, I want to get a
little bit more into that and why. I mean you said,
we don't know a lot about the fans that are coming,
(21:34):
what brings them back, and things like that. But then
we see places like Capital One Arena where the Washington
Wizards and Washington Capitals play, and they added a whole
new immersive art exhibit to the arena, which is not
necessarily a sports thing, but it is something to add
to the arena. Tell us about why something like that
adds to the facility, Why maybe it brings in Does
(21:55):
it bring in new fans?
Speaker 6 (21:56):
You know?
Speaker 8 (21:57):
Why do it?
Speaker 6 (21:57):
Sure? Well? Monumental sports and ertainment.
Speaker 2 (22:00):
So the Capitals, the Wizards, the Mystics, so in the
heart of our nation's capital, in rushing DC is actually
a client of KPMG's we're advising them on their fan experience.
They're embarking on a billion dollar project to basically rebuild
that arena in the heart of the city and adding
a lot to it in terms of mixed use, real
estate and technology.
Speaker 6 (22:20):
And your question is a really interesting one.
Speaker 2 (22:22):
I think if you think about the fact that most
of these owners own their own buildings, it's it's sort
of a kin to having a vacation house and not
using it much. You know, they they only have the
lights on mostly in the evenings around games. You know,
in the case of Monumental Sports and Capitol One Arena,
they've got at least two teams. They've got an NBA
NHL team from the men's they now are putting more
(22:42):
of the Mystics games in that arena given the surge
of popularity of the WNBA, and so they're able to
fill that building. But if you're not using the building,
you're not generating revenue. It's you know, it's just sitting there, unused, unutilized,
and so they are looking for all sorts of creative
ways to keep the doors open more frequently. You know,
a few years ago they were the first arena put
(23:03):
in an in arena sports book with Caesars that keeps
the doors open, you know, twenty four to seven three
in our sixty five days a year. KPMG actually put
in a new business suite inside of the arena about
two years ago. We actually use it as an office
where we meet with our clients during game days or
non game days, but off of game day hours. So
(23:24):
we'll go in there, have a client meeting with our
clients and then maybe transition and watch a hockey game
or a basketball game inside the arena. So for the
arena and for the owners, it means new revenue. It
means using the building more frequently. And that's the game,
right They want concerts other non sporting events in the
arena as much as possible, and they want it to
(23:44):
be a center point in the community as well, you know,
to bring people together and have a place where everybody
meets there and is part of the experience there.
Speaker 7 (23:53):
I know we're running short on time, but I have
two letters A I which of your poker player stands
for all all in if you have pocket ass. But
it's the old school, but we're not. Artificial intelligence is
here to stay, it's not going to go anywhere. And
how does that incorporate into your business model when you
(24:17):
are doing sports deals?
Speaker 6 (24:20):
Absolutely well.
Speaker 2 (24:21):
I mean whether we're auditing a team, or providing tax
compliance or advising on the fan experience, AI is a
critical part of all of it. You know, we leverage
that within our own systems and processes for how we
serve our clients in those first few areas like audit
and tax and you know, from a consulting standpoint, what
we're doing monumental sports as a continued example, in the
fan experience, AI is central to that. I mean that
(24:42):
is how you derive the insights from the technology. If
you think about like say friction list concessions, how you
come into the arena, or how you buy merchandise or
buy food and beverage. It's not just for efficiency. It's
not just for convenience, but the arena owners or the
technology is able to drive into it's from your behavior
from seeing that and AI helps make that more efficient.
(25:04):
We're only starting to crack the code in in terms
of how to leverage that in sports, and you know,
there's a lot of great tools that are emerging and
are available where you can then take those insights and
then change the way that you design your fan experience
to better leverage those insights.
Speaker 7 (25:18):
Our thanks to KPMG US's sports industry leader at Sean
quill Up. Next, we turn to golf and the Kohler
family's long history with the sport with my colleague Scarlettfoo
and Vanessa Perdomo. I'm Michael Barr. You're listening to the
Bloomberg Business of Sports from Bloomberg Radio around the world.
Speaker 1 (25:41):
This is Bloomberg Business of Sports from Bloomberg Radio.
Speaker 7 (25:46):
Thanks for joining us on the Bloomberg Business of Sports.
We explore the big money issues in the world of sports.
I'm Michael Barr, along with Scarlet Foo and Vanessa Perdomo.
Damian sas Hour is off this week. PGA of America
Hell the the PGA Works Collegiate Championship presented by Chase
and Cohler. Then you was Whistling Straits, which is owned
(26:07):
by the Cohler family, which has a long standing relationship
with golf. Here to talk to us about the Cohler families,
golf ties, the tournament and its future is coler chair
and CEO David Kohler. David, Welcome to the Bloomberg Business
of Sports. By the way, I just bought a sink
from you guys, the Shameless plug.
Speaker 10 (26:29):
We appreciate it. Thank you so much, Scarlett. I'm delighted
to be here.
Speaker 7 (26:34):
Thank you, Sarah. You just present it the PGA Works
Collegiate Championship, which is nice, and that's for the first time.
Tell us about that.
Speaker 10 (26:45):
Well, it's such a great honor. It's such a great event.
Speaker 5 (26:48):
If you look at the thirty eight year history of
this event and what it means to the game of
golf in terms of growing the game of golf, it's
done so much over the years, and I think, as
you know, the pg of America and the PGA of
America's Foundation, the PGA Reach Foundation, really anchor this and
(27:11):
run this, and then we are very honored to be
a sponsor and partner. We signed a six year agreement
for this, so we sponsored over six years and then
we host the event twice.
Speaker 10 (27:24):
And there's one.
Speaker 5 (27:25):
Hundred and eighty participants and they're coming from schools across
the country, predominantly HBCUs, but there's some contestants from non
HBCU schools and these are incredible student athletes. I mean,
just to play at this level of golf is one thing,
but they're also great students. They're ambitious about their future career.
Speaker 10 (27:49):
That could be in the game of golf.
Speaker 6 (27:50):
It could be a.
Speaker 5 (27:51):
Professional golfer, it could be in the golf industry, or
it could be in other professions.
Speaker 10 (27:57):
And this is really a gateway for those students.
Speaker 5 (28:00):
To compete at a high level and also work on
the next steps of their career progression. So we couldn't
be more honored to participate in this.
Speaker 4 (28:11):
And your passionate ambassador for this program as well this event.
Can you tell us a little bit, David, about how
Kohler got involved in this event.
Speaker 9 (28:20):
What was the history of it.
Speaker 5 (28:22):
Yeah, you know, we've been really good partners with the
PG of America for decades and that was started by
my father in the PG.
Speaker 10 (28:31):
Of America long ago.
Speaker 5 (28:33):
We've hosted three PGA Championships here at Whistling Straits and
then just recently the twenty twenty one Ryder Cup, which
many would call one of the greatest Rider Cups in
the history of golf. So our relationship with the PG
of America goes.
Speaker 10 (28:49):
Back a long time.
Speaker 5 (28:51):
And then we've also been very involved with PGA Reach
their Foundation, and my wife Nina is actually the incoming
chair of the PGA Reach Foundation and she's been a
trustee on that foundation.
Speaker 10 (29:05):
So we've been involved.
Speaker 5 (29:06):
With the philanthropic arm of the PGA of America as
well as the pg of America.
Speaker 10 (29:12):
Over the years. So this was just a natural extension as.
Speaker 5 (29:17):
We look forward and really want to get more intentional
on helping to grow the game of golf and helping youth.
This was a great step and we'll be doing more
with amateur championships in the future and events like that.
Speaker 4 (29:33):
You know.
Speaker 8 (29:33):
I think it's you know, as we're talking about the
partnership you guys have and growing the game and things
like that. Cooler will also provide a grant to the
PGA works the HBCU Golf towards the HBCU Golf Scholarship Endowment.
Tell us about having growing the game in that way
and providing a more diverse opportunity for other people in
(29:54):
an naro space.
Speaker 5 (29:56):
Yeah, and I think you know, all of us know that,
you know, golf is not an inherently diverse sport, right,
even though some of the greatest you know, players in
history have been diverse, but inherently just given access to
the game, it's been more difficult to have a high
diversity sport.
Speaker 10 (30:17):
So I think the PG of America is very interested
in that.
Speaker 5 (30:21):
You know, as all of us you know who love
the game of golf because of how much it does
for individuals and growth and how much it can add
value to society more broadly. So there's a definite interest there.
And if you look at HBCUs in general, you know,
they account for about three percent of universities in the
(30:41):
United States, but twenty percent of the black population of
African Americans graduate from HBCUs, So they they provide an
incredible resource to the United States and to the world.
And making sure that you know, they have a championship level,
(31:03):
a competition that some of the bigger schools you know
might have and bigger golf programs might have, we think
is an important part of this, you know, growing the
game and making sure that you know, those minority serving
institutions have you know, a grand championship if you will,
(31:25):
and access to sponsors and other companies, and you know
of the profile that you know some of the bigger
schools would have, and so you know, this has been
nothing short of that. I mean, we've been very proud
to host it and and create an event experience here
that's you know, just as good as a.
Speaker 10 (31:48):
Major championship, if you will.
Speaker 5 (31:50):
Obviously it's not going to have the number of spectators
and sponsors, but in terms of the hospitality, the way
the players are treated playing on you know, one of
the greatest courses in history that all the greatest players
have walked and played. You know, this is a real
championship experience for these student athletes.
Speaker 7 (32:11):
I want people to understand PGA of America. You guys
have over thirty thousand members, both men and women, and
they are golf pros and even more important, as you
talk about growing the game, they work at over ten
thousand golf facilities worldwide. Can you tell us more about that.
Speaker 5 (32:28):
Yeah, it's so important, and that's really what the pg
of America does. I mean, it's an organization in service
of and supported by these thirty thousand PGA professionals that
work across private clubs and public courses and municipal courses,
you know, all over the country and world. And yeah,
(32:51):
it's really important. And I think their support of diversity
and what this means has been foundational for the success
of this because if not for them wanting to do this,
and they're seeing that importance of growing the game, you know,
in real time, because they're they're there on the front
(33:14):
lines in all of these clubs and courses working with
you know, younger players, growing players, and they're seeing how
the game is diversifying and how it's growing and and
the importance of this because not only for professional athletes,
but also the golf industry is a big industries, so
(33:34):
we want to see many of these kids, these student
athletes also find careers in the golf industry, whether it's
in golf course management superintendents or running clubs, in general management,
or being a PGA professional.
Speaker 4 (33:49):
Yeah, talk about that part a little bit here, because
before the pandemic, it felt like golf was, you know, going,
I don't want to say on his way out, but
this idea that it wasn't attracting the numbers it needed
to in terms of young people, in terms of a
more diverse population. But the pandemic changed all of that
because people needed to find a way to stay active
(34:09):
and be outside and be socially distant, and golf provided
that opportunity. So I'm curious to hear more about the
golf adjacent industries that exist in the prospects for growth there.
Speaker 6 (34:23):
Yeah.
Speaker 5 (34:23):
You know, COVID was one of the best things that
ever happened at golf. The numbers really exploded, and the
best thing you know about that is it's continued on
the growth trajectory. So I think that rebirth of the
game and people getting back into the game, younger people
getting into the game, that trend is continued. And our
(34:45):
courses here in color Wisconsin have continued to have record
years after the Ryder Cup in twenty twenty one because
of this trend. And you know, the other thing has
been off course golf, meaning all the video golf, the
top golf, and the and the studios opening up around
(35:09):
the country and clubs that are bringing golf and access
to urban areas. You know, joining a golf club is expensive.
The wait lists in all the top urban markets today
could be three years, five years. So younger people, younger
families in their twenties and thirties, you know, they don't
have access necessarily to these clubs, but they can join
(35:33):
one of these new emerging clubs like Uptown Golf for
some of these that are merging where you can have
a membership and go in and play video golf and
there's a bar, restaurant, there's there's workplaces if you want
to work there and then you know, work on your game,
you know, play around, and so I think that is
really helping to grow the game too. Is that growth
(35:55):
in video golf and off course golf here in the
United States? You know, a trend that you know, you've
seen in Korea and other markets for many years, but
now it's it's really having more of a place here.
Speaker 6 (36:07):
In the US too.
Speaker 4 (36:08):
I'm so glad you mentioned that video golf and off
of course golf being where young people find an interest
develop an interest in the sport itself.
Speaker 9 (36:16):
I'm curious. TGL of course just had its first season
and it's been, you know, definitely.
Speaker 4 (36:23):
Gotten a lot of attention and it has a lot
of professional players with some big owners behind them. How
do you see that developing the next generation of golfers,
the kinds that will eventually be playing in the PWCC.
Speaker 10 (36:40):
Yeah, you know, I think the trends.
Speaker 5 (36:42):
I think the trends, it's right on trend, and it's
creating a different way to watch you know it's coming
on in the in the evenings, you know, so you
can you can watch it more in prime time and
in a you know, in a bite sized trunk versus
having it, you know, commit an afternoon watch, you know,
a whole tournament. So I think that's good, you know,
(37:05):
So it's it's an interesting new product.
Speaker 10 (37:08):
I think it's still in early days.
Speaker 5 (37:10):
I think they've got to continue to work with the
product to continue to make it more exciting, maybe a
little more smack, a little more you know, interest and
and wow, because you know, professional players today are just that,
you know, they're They're not actors and actresses.
Speaker 10 (37:26):
They're professional focused players.
Speaker 5 (37:29):
And uh so I think you know, mixing it up
maybe with Kevin Harten in there here and there to
commentate it some other.
Speaker 10 (37:36):
Things that, you know, to spice it up as is
probably what they need.
Speaker 5 (37:39):
But you know, the competition itself is you know, these
are top players and they're you know, they're playing to
win against each other. So I think they they have
it there, but we just need to continue to spice.
Speaker 6 (37:50):
Up the theater.
Speaker 9 (37:51):
I'm all for bringing Kevin Horror and Snookra.
Speaker 7 (37:58):
Good our thanks to Cohler Chair and the CEO David
Kohler for joining us, and thank you for my colleague
Scarlett fu and Vanessa Perdomo. I'm Michael Barr. I don't
forget to subscribe to the Bloomberg Business of Sports podcast.
Find that on Apple, Spotify and all your favorite podcast platforms.
Tune in again next week for the latest on the
(38:19):
stories moving big old money in the world of sports.
You're listening to The Bloomberg Business of Sports Bloomberg Radio
around the world.
This is the business of sports.
Speaker 2 (00:02):
The business of sports can be intimidating for hard for
a start to break into.
Speaker 3 (00:06):
We really appreciate when our owners are actually there, you know,
with us through the journey.
Speaker 4 (00:11):
Teams ours especially have been very intentional to diversify at
all levels.
Speaker 5 (00:15):
Of the company.
Speaker 6 (00:15):
I think we're in bolding years for the NFL and
college football.
Speaker 2 (00:18):
Our demographic reach has continued to explode.
Speaker 4 (00:22):
This is going to be really unlocking the streaming platform
for sports fans.
Speaker 7 (00:26):
Sports evaluations arising. We'll see when they peak.
Speaker 3 (00:29):
You don't have to be the best in your sport
to make a whole ton of money.
Speaker 1 (00:35):
Bloomberg Business of Sports from Bloomberg Radio Bordo.
Speaker 7 (00:39):
This is the Bloomberg Business of Sports where we explore
the big money issues in the world of sports. I'm
Michael Barr, along with Scarlett fu and Vanessa Pridomo Damian Sasaur.
We'll be back next week. Coming up on the show,
we talk golf and the PGA Works Collegiate Championship with
Cola Share and CEO David Kohler. The Kohler family owns
Whistling's Straits in Wisconsin, host of that tournament. We'll talk
(01:03):
with him about his family and companies. Long relationship with golf.
Speaker 5 (01:07):
We've been really good partners with the Page of America
for decades.
Speaker 7 (01:12):
All that and more is on the way on the
Bloomberg Business of Sports. But first, Unrivaled Sports, which runs
a bunch of youth sports venues and events, is raising
one hundred and twenty million dollars in a funding round
led by Dick's Sporting Goods. Here to talk to us
about Unrivaled's latest plans is Bloomberg News senior reporter covering
(01:33):
celebrities and athletes, Kim Bessin. Kim, Welcome back to the
Bloomberg Business of Sports. Always always happy. Another great article.
You mentioned that Dick Sporting is leading on one hundred
and twenty million dollar funding ground for Unrivaled. Tell us
about that.
Speaker 3 (01:50):
Yeah, So, Unrivaled Sports is a youth sports company. They
own a bunch of venues and do all these tournaments
programming for kids, and Dick Sporting Goods has been pretty
active in this space. They haven't done events themselves, but
they do have a company called Game Changer, which they
bought back in twenty sixteen. It's a streaming service. It
(02:10):
started as like a scoreboard. You can watch your kids
scores lives as they're playing on some field somewhere. But
but now it's a whole streaming service where you can
watch them play their games.
Speaker 8 (02:20):
Wow.
Speaker 7 (02:20):
I never knew that that's a great idea, that you
have a scoreboard for you kids. I'm sorry, Scarlett, but
it's a great idea. Man.
Speaker 4 (02:28):
It's all about how youth sports is becoming much more
professionalized than it ever was. It was kind of a
grab bag before of like parents volunteering their time, and
now it's becoming something that.
Speaker 9 (02:38):
Rivals college sports.
Speaker 4 (02:39):
Something that is really streamlined and easy for people to use.
The user experience is high. Kim tell us a little
bit more about unrivaled because it's got some hefty pe
titans behind it.
Speaker 7 (02:51):
It does.
Speaker 6 (02:51):
So.
Speaker 3 (02:51):
Josh Harris and David Blitzer founded this thing last year
and they hired Andy Campion, a former Nike and Disney's executive,
to run it. And the big takeaway there is that
this is national. This is not just a little thing
where they buy a couple properties. They operate in thirty
(03:12):
states now and have grown from starting with baseball and softball,
flag football is now a big a big focus for them,
they started to work in lacrosse and basketball. Seems like
it's going to be another big expansion point for them,
just a natural expansion from where they're coming from.
Speaker 8 (03:31):
And obviously, Josh Harrison and David Blitz are no many
many people in the world of sports.
Speaker 3 (03:38):
They know everybody in the world of sports themselves.
Speaker 8 (03:40):
They know everyone in the world sports themselves. They're massive
in this industry. So tell us about this strategic strategy
behind bringing in Dicks in this way, because they obviously
beyond just reason and capital.
Speaker 3 (03:51):
Yeah, Dix has like eight hundred and fifty stores across
the country, but they also have this thing called House
of Sport. Have you heard of that?
Speaker 7 (03:59):
Yeah?
Speaker 9 (03:59):
Oh my god, it's a venue for birthday parties.
Speaker 7 (04:01):
I've gone.
Speaker 9 (04:01):
There are so many.
Speaker 6 (04:03):
Yeah.
Speaker 3 (04:03):
House of Sports so they have all the lates. Yeah,
you do community events in there, you have all the
kids in and basically have a have a sports related party, right,
organized and organized, Yes, an organized gym class. And when
you when you pair that up with with what what
unrivaled offers like this, it just makes a lot of sense.
Speaker 7 (04:23):
Right, Wow, Well I didn't know, I don't know what anything,
But can you do they do weddings nothing.
Speaker 6 (04:30):
I mean, we can.
Speaker 7 (04:37):
Now Dick's Sporting Goods. They are also going to have
a big influence on the company's board of directors.
Speaker 3 (04:44):
Right yeah, And and that's how they're going to explore
partnership opportunities between uh these these two companies. Right So,
uh Dix has been again really active in this space,
and they want they want to be think about how
much business goes through youth sports into dick Sporting is
where you buy all your soccer balls and your baseball
bats and and and anything you could possibly need for
(05:07):
your kids to play sports. They're going to be there
and they're gonna be involved and and in a lot
of ways, it's like that's as important as the flashiy
of parts of their business, like you know, running shoes and.
Speaker 7 (05:18):
Nikes and things.
Speaker 8 (05:18):
Is the idea of them to be at these events
that Unrivaled is hosting.
Speaker 3 (05:22):
They haven't really they haven't revealed anything about how they're
going to work this out, and I think that's something
they are still figuring out how to how to approach.
Speaker 8 (05:31):
They should have pop up stores because I don't know
how many tournaments I used to go to and forget
my cleats I had to have a separate pair of
cleats and each on site. I'd have to go to
a store somewhere else and find someone because I didn't.
I forgot them in my bag all the time.
Speaker 4 (05:45):
That makes a lot of sense, actually, So, Kim, you
talked with Andy Campion, uh, the CEO. Is there any
sense that this is a company unrivaled that will at
some point go public?
Speaker 3 (05:56):
Yeah, it's really really early on. Right, they've only been
around for one year and I believe it's They host
about one point four million visitors a year, fifteen properties
so far. Looking to expand again, they're going to spend
this some of this one hundred and twenty million dollars
they just raised on more properties, more leagues, and more
(06:16):
they own like Cooperstown All Star Village, which is a
family resort plus a baseball tournament for the kids where.
Speaker 4 (06:23):
They wrote about it Bloomberg Business Week, fantastic article on
the way story about call back to a previous Business
of Sports podcast episode.
Speaker 3 (06:33):
Yeah, I really dug deep into this about private equity
getting involved in youth sports and again like professionalizing this essentially, right,
it's becoming more corporate than ever.
Speaker 7 (06:44):
Now. They're talking about also getting into an opportunity New
England Flag Football.
Speaker 3 (06:50):
New England Flag Football, and they're rebranding it as Unrivaled Flag.
Flag football is one of these areas in youth sports
that everyone is paying attention to, you know, ni Bey
under Armour. The NFL says that they're they're prioritizing this
and trying to develop that so that they have more
grassroots interaction with the sport in a way that's less
(07:11):
less dangerous for kids. Right, so flag football big focus
and Unrivaled thinks it's going to be their next big thing.
Speaker 8 (07:19):
I mean, everyone wants to be their next big thing
right leading up to the Olympics. Is the idea is
Unrivaled flags starting this year and leading up to the
Olympics or when is that getting off?
Speaker 3 (07:29):
It's it's just been rebranded, right, so it's been operating
this whole time as as New England Flag Football, but
they'll still be going and I mean flag football. Anyone
here played flag football?
Speaker 9 (07:42):
Yes, that makes sense. That also tracks Vanessa, Yep, that
was amazing.
Speaker 6 (07:47):
You were I was.
Speaker 8 (07:48):
I mean I almost didn't go to a position, but
I was a receiver and I also did play both ways,
but I was a mainly receiver, and I remember going
I almost skipped an entire colleg showcase one time to
play in the games. There's only once a year when
I played in high school, and I wish, I wish
I had this opportunity that the girls have now right,
because it's beat for girls right now right, it's a
(08:10):
big focus.
Speaker 3 (08:10):
Yeah, and we were like a slot receiver. You're just
mosson people in I just mos people.
Speaker 8 (08:14):
As cossome people as I was getting the OBJ catches. Actually,
I would say more.
Speaker 4 (08:18):
You guys are using terminology that Michael barn and I
are just shaking our heads up. Wait, Kim, I want
to ask you about another story you wrote recently about
PepsiCo and how it now has a chief sports officer.
Oh yeah, what does that chief sports officer do?
Speaker 3 (08:34):
Yeah, Brett O'Brien was named chief sports officer at PepsiCo.
And that when I say PepsiCo, I mean the whole thing,
right that that's fred Ola and Gatorade and Pepsi itself, Storry,
all the stuff they own, and they've reorganized that their
marketing arm into one big marketing thing. So previously you'd
be like the Gatorade guy and you do all the
(08:55):
Gatorade marketing for in sports, but now they're they've put
it all into one diviate and are separating it by sports,
so those experts will be the NFL person and the
basketball one and so on, and that allows them to
really focus in on individual sports with these big, like
anthemic campaigns. And the most recent one was the Gatorade
(09:18):
campaign with Kendrick Lamar. His first one of these types
of giant ad campaigns with a sports related brand, and
they used all the stops on that one.
Speaker 7 (09:30):
Right.
Speaker 3 (09:30):
The athlete endorser list was you know, Caitlin Clark, it
was everybody.
Speaker 7 (09:35):
I mean, there's a lot to this with this PepsiCo thing,
because I'm gonna get a little more into this because
i mean they're looking more into I guess rebranding is
the best way I want to describe it, because, like
you said, it used to be individual products. Now it's
the whole complete picture.
Speaker 5 (09:54):
Yeah.
Speaker 3 (09:54):
And if you're looking at it from Freedo Lay's standpoint, right,
you have all these properties Cheetos and Darda and everything. Uh,
and if you sign a deal like they have with
the World Cup. Right, So fred de Lay is a
sponsor of the World Cup next year, and they'll be
running a bunch of programming around that. You want to
get all these different brands involved, and by centralizing it,
(10:16):
it gives you a better You're put in the mindset
where you're everyone's working toward one goal.
Speaker 8 (10:21):
And so we're going to see a messy hot cheeto
from this is what I'm assuming.
Speaker 3 (10:25):
Oh oh, will they be shaped.
Speaker 8 (10:27):
Like well Lebron and Jason Tatum and all these stars
have their own flavors of chips.
Speaker 3 (10:35):
They Yeah, that that is true, but I'm thinking the
messy shape would really would would really hit it here
that that chars are shaped. The World Cup right sold
for like a million, It was crazy.
Speaker 4 (10:45):
I feel like this is kind of it opens the
door to other consumer packaged food companies to do something similar.
Coca Cola perhaps might look into a chief sports officer
as well, because it makes sense from that point of view.
Speaker 3 (10:57):
Yeah, I think it does. And when you think about
how involved these giant brands are with sports now, I
mean sports sponsors, The sponsorship deals are just growing and
growing and growing. More endorsements athletes earlier in their in
their in their careers and their lives they're getting signed
h it's it's essential. It's become an essential part to
(11:17):
the advertising ecosystem.
Speaker 7 (11:19):
I what happens too when you get like you're going
to see it And that was a great question that
you that you've brought up scarlet because you put Coca
cola and pepsi together. You're going to see all this
going on here, here's going for the World Cup, here's
going for the Super Bowl. This is this is going
to continue on and like old man bar has got
to remember, you know, just like they used to advertise
(11:42):
Gillette in the nineteen seventy two Super Bowl, that's all
gonna change. This is going to be the wave of
the future.
Speaker 3 (11:48):
Hey, let's still around. Yeah, They're they're doing is if
you look at the I think the best way to
look at it is the is like the sneak the
sneaker wars that have been going on forever, right, Nike, Adidas,
all the Puma, all the all the teams around the world.
They're just hopscotch and from from place to place, trying
to try to win over leagues, trying to win over teams,
trying to win over athletes, and uh, you know what
(12:10):
Nike signed what the German soccer national team as that
is that is quite something. It gets, it gets you
get all of them.
Speaker 7 (12:18):
Our thanks to Kim Bessin for joining us. He covers
celebrities and athletes for Bloomberg News. Up next, we go
behind the scenes at KPMG's sports business for my colleagues,
Scarlett Foo and Vanessa Bernomo. I'm Michael Barr. You're listening
to the Bloomberg Business of Sports from Bloomberg Radio around
the world.
Speaker 1 (12:39):
This is Bloomberg Business of Sports from Bloomberg Radio.
Speaker 7 (12:44):
This is the Bloomberg Business of Sports where we explore
the big money issues in the world of sports. I'm
Michael Barr, along with Scarlett Foo and Vanessa Bernomo. Damian
Sasaur will be back next week. KPMG US has a
sports division that focuses on helping leagues, franchise and venues
run their businesses. Joining us now is Sean Quill. He's
(13:05):
KPMG Sports industry leader and also heads up the sports
sponsorship strategy. He is here now to take us through
how his firm is looking at the current sports landscape,
the rise of private equity and more. Shawn, Welcome to
the Bloomberg Business of Sports.
Speaker 6 (13:23):
Great thanks for having me.
Speaker 7 (13:24):
Well, let's talk about KPMG US and the firm that
you are behind. Tell us about this firm.
Speaker 2 (13:33):
Yeah, KPMG is one of the big four accounting firms
here in the US and globally. Here in the US,
we have thirty six thousand people and are in every
major city, and I have the privilege of serving as
their national sports industry leader. So I look after our
sports practice, which serves the league's teams, facilities, does sports
deals and things like that. So it's a great place
(13:55):
to be a part of.
Speaker 4 (13:57):
So let me ask you. Sean at KPMG Group helped
advise on Bill Chishom's six point one billion dollar purchase
of the Celtics.
Speaker 9 (14:04):
Back in March.
Speaker 4 (14:06):
What surprised a lot of people is how the team
was even up for sale, given the Celtics had just
won the NBA Championship, and then it happened fairly quickly.
I'm curious what your firm did in the process and
what surprised you most about this process.
Speaker 2 (14:20):
Yeah, it was a really interesting deal to be a
part of, and it was a privilege to advise mister
chism on it. We provided financial due diligence and tax
advice on the deal to mister chism In in his purchase.
And yeah, it is interesting that the Celtics were up.
I think that a number of owners are considering investment
(14:42):
more so than they have in the past.
Speaker 6 (14:44):
You know.
Speaker 2 (14:44):
The influction of private equity, of rising valuations, of the
need for capital are all driving interest in either investors,
both from a minority interest, but also in this case
of controlling you know, sale and the Celtics certain are
one of the premier franchises within the NBA, have such
an amazing legacy and again are in the playoffs this year,
(15:08):
and so it is one of those scarce amazing assets.
So we were fortunate to be part of it.
Speaker 8 (15:15):
Sean, what do you think it is about the current
landscape of sports of ownership that is making more owners,
you know, get more interest from investors, be more open
to private equity and that sort of thing.
Speaker 2 (15:30):
Yeah, I mean for the owners, there's a lot of
benefits you know, from private equity and other investors, and
so a number of owners that we're working with. We
advise more than fifty of the sports franchises around the US,
across the five major men's sports, and you know, they're
looking for liquidity. In some cases there's changes to family
ownership structures. People that are looking to no longer be involved.
(15:54):
They're looking for investment capital. I think the number one
trend right now in sports is around facility renovation or
new builds, so stadiums and arenas coming online and significant
cost of investing in those new facilities. So, you know,
private equity in particular offers a lot in that space
in terms of not just the capital, but the business
acumen to come alongside of it, and it does create
(16:17):
a marketplace for valuations. You know, all of this additional support.
You know, there's it's a it's a fixed asset pool.
In terms of professional sports. There's only so many assets.
They're not increasing. It's not like a housing market. Nobody's
building more franchises. There's a few potential in the future
as we have expansion, but you know, it's a fixed
asset pool, and as the valuations rise, it gets harder
(16:38):
and harder to purchase those assets. You know, there's rules
in terms of how much the principal owner has to
put up, and so few and fewer people can afford that,
and so you know, I think that that makes makes
it really interesting when they come across the market. But
you know, from owners seeing those valuations rise, I think
some of them are looking to cash out. I think
there's changes in family dynamics and other cases and door
(17:00):
dreams of doing other things and better to build a
new facility with someone else's money than their own.
Speaker 7 (17:05):
As a sports guy, this is the only time I
can say, especially in the NBA Playoffs with the Knicks
and the Celtics, that both teams are playing at the garden.
I can say that and now will not be wrong
either way, and which has to be a big shot
in the arm, especially from this big acquisition of the Celtics,
(17:29):
and you know, the team has just been super duper successful.
Speaker 6 (17:33):
Yeah, I mean, what an exciting series.
Speaker 2 (17:34):
There's a bunch of them going on right now and
they're they're thrilling to watch, and it was great to
I mean, for me, we have a relationship with Stephen Curry,
so it's great to see the Warriors clinching Game seven
and move.
Speaker 6 (17:44):
On to the next round.
Speaker 2 (17:45):
And that's great for basketball. And you know, you're right,
it's an exciting time for the NBA NHL playoffs of
course going on at the same time, I mean with
the NBA, I think, you know, we've seen the belief
in the reliability of the business andlast year's media rights
deal record deal for the NBA seventy six billion dollars.
It was one hundred and sixty percent per season increase
(18:07):
in metia rights. So you think about how significant that is,
and that is obviously something like that drives the valuation
of the Celtics. Interestingly enough, though, when the Celtics deal
for the six point one billion valuation, it doesn't even
include TD Garden to your garden reference. You know, the
Celtics don't own the Garden. So that is actually to
me especially interesting that I think we're going to continue
(18:30):
to see soaring valuations in sports. You know, even though
the Celtics are one of the top franchises, doesn't include
the building, doesn't have their own media network. You know,
there's a lot of aspects to it that drive those valuations,
and certainly those are part of it. So, yeah, an
exciting time right now in basketball and in hockey.
Speaker 4 (18:49):
Yeah, I'm glad you mentioned how that deal did not
include the facilities. It just speaks the brand value of
something like the Celtics. You had mentioned sean that it's
better to build someone else's money than your own as
a reason for teams and franchises to take on institutional investors.
If you look at the New York Giants, the Maara
and Tish families are looking to sell some of their
(19:11):
steak in the New York Giants, They're looking to spread
that steak around to two to three wealthy individuals and
families as.
Speaker 9 (19:17):
Opposed to private equity.
Speaker 4 (19:20):
What is the argument for team owners wanting to keep
pe out of the team.
Speaker 2 (19:24):
For now, That's a great question. I think that it's
going to depend on each each ownership group and their
personal preferences. I do think that private equity is attractive
to a lot of owners. It not only brings the capital,
but it also brings the business acumen that I mentioned.
You know, private equity is accustomed to running and operating businesses,
(19:44):
making them more efficient, realizing the value of data and analytics,
and sports is primed to have that kind of inflection
of business acumen, you know, in particular data and analytics,
like in terms of new facilities and new stadiums, and
just in terms of the loyal fan base. You're only
at the tip of the Iceberg. In the industry in
terms of leveraging data, there is so much potential. We
(20:07):
know so little about the typical fan, about why they come,
when they come, what they consume while they're there, what
would bring them back, how you get them to come
more frequently, And I think most franchises are not leveraging
that data. Well, the infrastructure in terms of the technology
is available, but it's not yet there, or it's not integrated,
or they're not pulling the insights out of that data.
(20:28):
And so, you know, in my mind, private equity really
offers a lot of value to that mix. But yeah,
in the case of certain owners, you know, some that
have owned the team for a long time, they're not
looking to, you know, have that much of a change
in terms of the way that things are governed or
structured or run. It may just be bringing in that capital,
(20:49):
It may just be bringing in others that could add
to their ownership group in a positive way. And I
saw one of the rumored individuals we also have a
relationship with, so I won't comment on it, but obviously
adds to the further brand and the legacy of the franchise.
And so there's other reasons to bring in investors. And
you know, I think we are seeing more and more
(21:09):
of a trend of former athletes and celebrities getting interested
and involved in sports.
Speaker 8 (21:14):
You know, we love to see athletes get involved in ownership,
and I think it adds a lot to them, to
their capital, like you said, and to the brand as
a whole, like we potentially will see with Eli Manning
and the Giants one day maybe. But as we talk
about the facilities, you know, I want to get a
little bit more into that and why. I mean you said,
we don't know a lot about the fans that are coming,
(21:34):
what brings them back, and things like that. But then
we see places like Capital One Arena where the Washington
Wizards and Washington Capitals play, and they added a whole
new immersive art exhibit to the arena, which is not
necessarily a sports thing, but it is something to add
to the arena. Tell us about why something like that
adds to the facility, Why maybe it brings in Does
(21:55):
it bring in new fans?
Speaker 6 (21:56):
You know?
Speaker 8 (21:57):
Why do it?
Speaker 6 (21:57):
Sure? Well? Monumental sports and ertainment.
Speaker 2 (22:00):
So the Capitals, the Wizards, the Mystics, so in the
heart of our nation's capital, in rushing DC is actually
a client of KPMG's we're advising them on their fan experience.
They're embarking on a billion dollar project to basically rebuild
that arena in the heart of the city and adding
a lot to it in terms of mixed use, real
estate and technology.
Speaker 6 (22:20):
And your question is a really interesting one.
Speaker 2 (22:22):
I think if you think about the fact that most
of these owners own their own buildings, it's it's sort
of a kin to having a vacation house and not
using it much. You know, they they only have the
lights on mostly in the evenings around games. You know,
in the case of Monumental Sports and Capitol One Arena,
they've got at least two teams. They've got an NBA
NHL team from the men's they now are putting more
(22:42):
of the Mystics games in that arena given the surge
of popularity of the WNBA, and so they're able to
fill that building. But if you're not using the building,
you're not generating revenue. It's you know, it's just sitting there, unused, unutilized,
and so they are looking for all sorts of creative
ways to keep the doors open more frequently. You know,
a few years ago they were the first arena put
(23:03):
in an in arena sports book with Caesars that keeps
the doors open, you know, twenty four to seven three
in our sixty five days a year. KPMG actually put
in a new business suite inside of the arena about
two years ago. We actually use it as an office
where we meet with our clients during game days or
non game days, but off of game day hours. So
(23:24):
we'll go in there, have a client meeting with our
clients and then maybe transition and watch a hockey game
or a basketball game inside the arena. So for the
arena and for the owners, it means new revenue. It
means using the building more frequently. And that's the game,
right They want concerts other non sporting events in the
arena as much as possible, and they want it to
(23:44):
be a center point in the community as well, you know,
to bring people together and have a place where everybody
meets there and is part of the experience there.
Speaker 7 (23:53):
I know we're running short on time, but I have
two letters A I which of your poker player stands
for all all in if you have pocket ass. But
it's the old school, but we're not. Artificial intelligence is
here to stay, it's not going to go anywhere. And
how does that incorporate into your business model when you
(24:17):
are doing sports deals?
Speaker 6 (24:20):
Absolutely well.
Speaker 2 (24:21):
I mean whether we're auditing a team, or providing tax
compliance or advising on the fan experience, AI is a
critical part of all of it. You know, we leverage
that within our own systems and processes for how we
serve our clients in those first few areas like audit
and tax and you know, from a consulting standpoint, what
we're doing monumental sports as a continued example, in the
fan experience, AI is central to that. I mean that
(24:42):
is how you derive the insights from the technology. If
you think about like say friction list concessions, how you
come into the arena, or how you buy merchandise or
buy food and beverage. It's not just for efficiency. It's
not just for convenience, but the arena owners or the
technology is able to drive into it's from your behavior
from seeing that and AI helps make that more efficient.
(25:04):
We're only starting to crack the code in in terms
of how to leverage that in sports, and you know,
there's a lot of great tools that are emerging and
are available where you can then take those insights and
then change the way that you design your fan experience
to better leverage those insights.
Speaker 7 (25:18):
Our thanks to KPMG US's sports industry leader at Sean
quill Up. Next, we turn to golf and the Kohler
family's long history with the sport with my colleague Scarlettfoo
and Vanessa Perdomo. I'm Michael Barr. You're listening to the
Bloomberg Business of Sports from Bloomberg Radio around the world.
Speaker 1 (25:41):
This is Bloomberg Business of Sports from Bloomberg Radio.
Speaker 7 (25:46):
Thanks for joining us on the Bloomberg Business of Sports.
We explore the big money issues in the world of sports.
I'm Michael Barr, along with Scarlet Foo and Vanessa Perdomo.
Damian sas Hour is off this week. PGA of America
Hell the the PGA Works Collegiate Championship presented by Chase
and Cohler. Then you was Whistling Straits, which is owned
(26:07):
by the Cohler family, which has a long standing relationship
with golf. Here to talk to us about the Cohler families,
golf ties, the tournament and its future is coler chair
and CEO David Kohler. David, Welcome to the Bloomberg Business
of Sports. By the way, I just bought a sink
from you guys, the Shameless plug.
Speaker 10 (26:29):
We appreciate it. Thank you so much, Scarlett. I'm delighted
to be here.
Speaker 7 (26:34):
Thank you, Sarah. You just present it the PGA Works
Collegiate Championship, which is nice, and that's for the first time.
Tell us about that.
Speaker 10 (26:45):
Well, it's such a great honor. It's such a great event.
Speaker 5 (26:48):
If you look at the thirty eight year history of
this event and what it means to the game of
golf in terms of growing the game of golf, it's
done so much over the years, and I think, as
you know, the pg of America and the PGA of
America's Foundation, the PGA Reach Foundation, really anchor this and
(27:11):
run this, and then we are very honored to be
a sponsor and partner. We signed a six year agreement
for this, so we sponsored over six years and then
we host the event twice.
Speaker 10 (27:24):
And there's one.
Speaker 5 (27:25):
Hundred and eighty participants and they're coming from schools across
the country, predominantly HBCUs, but there's some contestants from non
HBCU schools and these are incredible student athletes. I mean,
just to play at this level of golf is one thing,
but they're also great students. They're ambitious about their future career.
Speaker 10 (27:49):
That could be in the game of golf.
Speaker 6 (27:50):
It could be a.
Speaker 5 (27:51):
Professional golfer, it could be in the golf industry, or
it could be in other professions.
Speaker 10 (27:57):
And this is really a gateway for those students.
Speaker 5 (28:00):
To compete at a high level and also work on
the next steps of their career progression. So we couldn't
be more honored to participate in this.
Speaker 4 (28:11):
And your passionate ambassador for this program as well this event.
Can you tell us a little bit, David, about how
Kohler got involved in this event.
Speaker 9 (28:20):
What was the history of it.
Speaker 5 (28:22):
Yeah, you know, we've been really good partners with the
PG of America for decades and that was started by
my father in the PG.
Speaker 10 (28:31):
Of America long ago.
Speaker 5 (28:33):
We've hosted three PGA Championships here at Whistling Straits and
then just recently the twenty twenty one Ryder Cup, which
many would call one of the greatest Rider Cups in
the history of golf. So our relationship with the PG
of America goes.
Speaker 10 (28:49):
Back a long time.
Speaker 5 (28:51):
And then we've also been very involved with PGA Reach
their Foundation, and my wife Nina is actually the incoming
chair of the PGA Reach Foundation and she's been a
trustee on that foundation.
Speaker 10 (29:05):
So we've been involved.
Speaker 5 (29:06):
With the philanthropic arm of the PGA of America as
well as the pg of America.
Speaker 10 (29:12):
Over the years. So this was just a natural extension as.
Speaker 5 (29:17):
We look forward and really want to get more intentional
on helping to grow the game of golf and helping youth.
This was a great step and we'll be doing more
with amateur championships in the future and events like that.
Speaker 4 (29:33):
You know.
Speaker 8 (29:33):
I think it's you know, as we're talking about the
partnership you guys have and growing the game and things
like that. Cooler will also provide a grant to the
PGA works the HBCU Golf towards the HBCU Golf Scholarship Endowment.
Tell us about having growing the game in that way
and providing a more diverse opportunity for other people in
(29:54):
an naro space.
Speaker 5 (29:56):
Yeah, and I think you know, all of us know that,
you know, golf is not an inherently diverse sport, right,
even though some of the greatest you know, players in
history have been diverse, but inherently just given access to
the game, it's been more difficult to have a high
diversity sport.
Speaker 10 (30:17):
So I think the PG of America is very interested
in that.
Speaker 5 (30:21):
You know, as all of us you know who love
the game of golf because of how much it does
for individuals and growth and how much it can add
value to society more broadly. So there's a definite interest there.
And if you look at HBCUs in general, you know,
they account for about three percent of universities in the
(30:41):
United States, but twenty percent of the black population of
African Americans graduate from HBCUs, So they they provide an
incredible resource to the United States and to the world.
And making sure that you know, they have a championship level,
(31:03):
a competition that some of the bigger schools you know
might have and bigger golf programs might have, we think
is an important part of this, you know, growing the
game and making sure that you know, those minority serving
institutions have you know, a grand championship if you will,
(31:25):
and access to sponsors and other companies, and you know
of the profile that you know some of the bigger
schools would have, and so you know, this has been
nothing short of that. I mean, we've been very proud
to host it and and create an event experience here
that's you know, just as good as a.
Speaker 10 (31:48):
Major championship, if you will.
Speaker 5 (31:50):
Obviously it's not going to have the number of spectators
and sponsors, but in terms of the hospitality, the way
the players are treated playing on you know, one of
the greatest courses in history that all the greatest players
have walked and played. You know, this is a real
championship experience for these student athletes.
Speaker 7 (32:11):
I want people to understand PGA of America. You guys
have over thirty thousand members, both men and women, and
they are golf pros and even more important, as you
talk about growing the game, they work at over ten
thousand golf facilities worldwide. Can you tell us more about that.
Speaker 5 (32:28):
Yeah, it's so important, and that's really what the pg
of America does. I mean, it's an organization in service
of and supported by these thirty thousand PGA professionals that
work across private clubs and public courses and municipal courses,
you know, all over the country and world. And yeah,
(32:51):
it's really important. And I think their support of diversity
and what this means has been foundational for the success
of this because if not for them wanting to do this,
and they're seeing that importance of growing the game, you know,
in real time, because they're they're there on the front
(33:14):
lines in all of these clubs and courses working with
you know, younger players, growing players, and they're seeing how
the game is diversifying and how it's growing and and
the importance of this because not only for professional athletes,
but also the golf industry is a big industries, so
(33:34):
we want to see many of these kids, these student
athletes also find careers in the golf industry, whether it's
in golf course management superintendents or running clubs, in general management,
or being a PGA professional.
Speaker 4 (33:49):
Yeah, talk about that part a little bit here, because
before the pandemic, it felt like golf was, you know, going,
I don't want to say on his way out, but
this idea that it wasn't attracting the numbers it needed
to in terms of young people, in terms of a
more diverse population. But the pandemic changed all of that
because people needed to find a way to stay active
(34:09):
and be outside and be socially distant, and golf provided
that opportunity. So I'm curious to hear more about the
golf adjacent industries that exist in the prospects for growth there.
Speaker 6 (34:23):
Yeah.
Speaker 5 (34:23):
You know, COVID was one of the best things that
ever happened at golf. The numbers really exploded, and the
best thing you know about that is it's continued on
the growth trajectory. So I think that rebirth of the
game and people getting back into the game, younger people
getting into the game, that trend is continued. And our
(34:45):
courses here in color Wisconsin have continued to have record
years after the Ryder Cup in twenty twenty one because
of this trend. And you know, the other thing has
been off course golf, meaning all the video golf, the
top golf, and the and the studios opening up around
(35:09):
the country and clubs that are bringing golf and access
to urban areas. You know, joining a golf club is expensive.
The wait lists in all the top urban markets today
could be three years, five years. So younger people, younger
families in their twenties and thirties, you know, they don't
have access necessarily to these clubs, but they can join
(35:33):
one of these new emerging clubs like Uptown Golf for
some of these that are merging where you can have
a membership and go in and play video golf and
there's a bar, restaurant, there's there's workplaces if you want
to work there and then you know, work on your game,
you know, play around, and so I think that is
really helping to grow the game too. Is that growth
(35:55):
in video golf and off course golf here in the
United States? You know, a trend that you know, you've
seen in Korea and other markets for many years, but
now it's it's really having more of a place here.
Speaker 6 (36:07):
In the US too.
Speaker 4 (36:08):
I'm so glad you mentioned that video golf and off
of course golf being where young people find an interest
develop an interest in the sport itself.
Speaker 9 (36:16):
I'm curious. TGL of course just had its first season
and it's been, you know, definitely.
Speaker 4 (36:23):
Gotten a lot of attention and it has a lot
of professional players with some big owners behind them. How
do you see that developing the next generation of golfers,
the kinds that will eventually be playing in the PWCC.
Speaker 10 (36:40):
Yeah, you know, I think the trends.
Speaker 5 (36:42):
I think the trends, it's right on trend, and it's
creating a different way to watch you know it's coming
on in the in the evenings, you know, so you
can you can watch it more in prime time and
in a you know, in a bite sized trunk versus
having it, you know, commit an afternoon watch, you know,
a whole tournament. So I think that's good, you know,
(37:05):
So it's it's an interesting new product.
Speaker 10 (37:08):
I think it's still in early days.
Speaker 5 (37:10):
I think they've got to continue to work with the
product to continue to make it more exciting, maybe a
little more smack, a little more you know, interest and
and wow, because you know, professional players today are just that,
you know, they're They're not actors and actresses.
Speaker 10 (37:26):
They're professional focused players.
Speaker 5 (37:29):
And uh so I think you know, mixing it up
maybe with Kevin Harten in there here and there to
commentate it some other.
Speaker 10 (37:36):
Things that, you know, to spice it up as is
probably what they need.
Speaker 5 (37:39):
But you know, the competition itself is you know, these
are top players and they're you know, they're playing to
win against each other. So I think they they have
it there, but we just need to continue to spice.
Speaker 6 (37:50):
Up the theater.
Speaker 9 (37:51):
I'm all for bringing Kevin Horror and Snookra.
Speaker 7 (37:58):
Good our thanks to Cohler Chair and the CEO David
Kohler for joining us, and thank you for my colleague
Scarlett fu and Vanessa Perdomo. I'm Michael Barr. I don't
forget to subscribe to the Bloomberg Business of Sports podcast.
Find that on Apple, Spotify and all your favorite podcast platforms.
Tune in again next week for the latest on the
(38:19):
stories moving big old money in the world of sports.
You're listening to The Bloomberg Business of Sports Bloomberg Radio
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