July 4, 2025 • 38 mins
Join hosts Michael Barr and Vanessa Perdomo for a look at some of the latest headlines and stories in the business of sports.
Bloomberg News senior reporter Kim Bhasin joins to do a check in on the sneaker industry. He discusses his reporting on New Balance relaunching its basketball business with new NBA top draft selection Cooper Flagg as a big part of its efforts, plus how Nike's latest upbeat forecast suggests that CEO Elliott Hill's plans for the brand might be starting to work.
Then, Bloomberg US sports business reporter Randall Williams joins to discuss the WNBA's plans to add three teams in Cleveland, Detroit and Philadelphia with a record expansion fee.
Plus, a special conversation with Klutch Sports founder and CEO Rich Paul about his latest project with Masterclass.
See omnystudio.com/listener for privacy information.
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Episode Transcript
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Speaker 1 (00:00):
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Bloomberg Business of Sports from Bloomberg Radio.
Speaker 5 (00:40):
This is the Bloomberg Business of Sports. We explore the
big money issues in the world of sports. Michael Barr,
along with Vanessa Perdomo Damian Sasaur is off this week.
Up next on the show, we are All In on Basketball.
We talk with super agent Rich Paul. We'll talk with
him about his latest Prime masterclass.
Speaker 6 (01:02):
You know, most kids dream of getting to the NBA.
Speaker 3 (01:05):
Most kids don't dream of getting to the NBA and
then being successful in the NBA and having a consistent
work happening in the NBA and understanding how to be
a professional and everything I do while being in the NBA.
Speaker 5 (01:18):
And the WNBA announced it's adding teams soon. We'll talk
through the league's growth on the way as well. And
that is all on the way on Bloomberg Business of Sports.
But first, with all this talk on the hardwood, we're
going to start in the sneaker world, where we've gotten
a lot of headlines lately. Nike delivered an upbeat forecast lately,
(01:41):
which could suggest the CEO, Elliott Hill's plans could be working,
and NBA top draft choice Cooper Flag is planning to
rock new balanced sneakers, which could be a major boost
for that company. To take us through all of this
and more, we welcome Bloomberg new senior reporter Kim Beissine. Hello,
(02:03):
old friend of the show. It's Kim Beissene. How you doing, man?
What I'm so happy to be here? Of course, Man,
we got Nesse here and you're here. Man, I'm just
I'm tickled.
Speaker 1 (02:17):
It's a great summer day. So what I'm saying, Yeah,
we got.
Speaker 5 (02:21):
A lot to talk about we got Cooper flag number one,
which was you know, pretty dagone obvious. But you know
he has turned this already into like, you know, a
lot of ambitions and he can make a lot of
coin out of this. Kim Oh, yeah.
Speaker 4 (02:38):
So, uh, before he got drafted, before he like right
after he declared that he was going to Duke a
while back, he got signed to a shoe endorsement deal, right,
And it wasn't Nike, it wasn't Jordan, it wasn't Adidas.
(02:59):
It was New Balance out of Boston, Massachusetts.
Speaker 7 (03:03):
So do you know any like reasons behind what was
the thrill for him to choose New Balance?
Speaker 1 (03:09):
What was it is it?
Speaker 7 (03:11):
Did they offer him sort of a Michael Jordan Nike deal?
Speaker 1 (03:15):
You make us cool vibe.
Speaker 4 (03:18):
I don't think it's particularly special in terms of how
it can be compared to the rest of the deals
out there, right, But what I think what seemed to
attract Cooper to New Balance was a couple of things. One,
it's like it's like his hometown ish brand, right he
used to he grew up near a New Balance factory
(03:39):
in Maine. New Balance that has been involved in New England,
the sports of all kinds over the over the decades
and decades. Right, And there's something I've talked to other
athletes about, not Cooper in particular, about about being at
Nike or like one of the one of the big companies,
and that is you sometimes get lost in it. Right,
you're their tenth biggest star or something. At New Balance,
(04:02):
He's gonna be their face of men's basketball, and it's
they have. They have Kawhi Leonard as well, but obviously
he's nearing the end of his career. Cooper will be
their face going forward, assuming he pans out in the
way that everyone hopes he will, Right.
Speaker 5 (04:17):
Yeah, that's that's the thing when you are the new
kid on the block and you are I don't want
to use the phrase startup because that's wrong about New Balance.
Speaker 7 (04:26):
But.
Speaker 5 (04:27):
Yeah, is just a tiny bit. But compared to Nike
or Adidas, Hey, you know they can you can have
a guy carve out his own way with your shoe
brand to make it identifiable. And New Balance is closely held.
Speaker 4 (04:45):
Right, They're they're trying to become the third largest athletic
war company in the world behind Nike and Adidas. The
problem is there's Puma standing in their way here, and
Puma has been working on their basketball division also, so
they have LaMelo ball shoe does quite well. So New
Balance it requires that strong basketball business to get there, right.
(05:09):
Basketball is such an important market for sneakers now, not
just on court, but that halo effect to get people
to buy your shoes, the lifestyle shoes and everything else
that you wear on the street.
Speaker 7 (05:20):
But that's the interesting thing I think there because I
feel like when we've talked about it before, and you
kind of told me just when we were talking about
sneakerheads in general, that sneakerheads have like slowed on like
Jordan's and things like that in the past year or two,
and that New Balance is pretty popular with like the
young kids.
Speaker 5 (05:38):
It is.
Speaker 4 (05:38):
Yeah, a bunch of like collabs over the past year
a few years have really really hit. Like they've gotten
a lot, a lot cooler frankly in the last like
three four five years. It's been really fascinating to see.
And now you can leverage all of that to get
yourself into sports and then use it the other way
around too, Like if they can attract these big, big
athletes to compete on court in their shoes, like that's
(06:02):
a that's a big deal. And it's a big deal
because they're infringing on like someone's turf, right, this is right,
this is Nike's spot. They dominate this industry. Yeah, I
want to I want to take us into like the
past here, like just to show exactly how much Nike
has dominated this and how lucky New Balance got and
(06:25):
I guess their skilled negotiators, right, how lucky and how
well they pulled this off. Like if you go back,
every number one overall draft pick, wemby Paolo Kaid aunt
or not aunt Aunt is Adidas, Sorry, Zion Deander Aiden's
went to Puma, and then the old the old Philly
(06:45):
guys Markel Fultz and Ben Simmons also got signed by
Nike right before the draft. So like it's been every
single year, it's just they they they dominate. But here
we have here, we have New Balance.
Speaker 7 (06:57):
But I think that's it's an interesting thing when you
think of those people who are still on top, when
you think of those last like ten years and Adidas.
I mean, he's trying to make it cool, right, I
mean he's doing a really job, but like Nike is Nike,
and they can they can really use his platform to
build still but.
Speaker 4 (07:18):
Yeah, Nike is Nike and they're waiting for Caitlin Clark
and Clark right now.
Speaker 7 (07:22):
We have to talk about one of the other things
I want to talk about really quick. As we're talking
about New Balance. In your story, you also said that
they kind of said they're still going to push to
do more in the NIL space, but pointed out that
Cooper Flag wasn't allowed to wear New Balances in college.
Speaker 1 (07:37):
Because of their Nikes.
Speaker 7 (07:38):
Yeah, because of their relationship with Duke's relationship, right, So
why even get into the space if they can't wear
shoes and games.
Speaker 4 (07:45):
Yeah, It's it's tough in college, right. College is it's
its own beast where where brands can sign deals with
with entire universities and everyone's required to wear those shoes.
So maybe we'll see New Balance get into or of that.
Speaker 8 (08:01):
Are their contracts up for big school that there's always
contracts up, so if they're really looking around that there
should be some opportunities available to them.
Speaker 4 (08:12):
But yeah, Cooper wore Nike's the whole that's throughout that
whole March Madness run Nike's Nike. There's some drama during
that h Bounce is paying him money there's drama during
that too, because he did he had like a game
winner and Nike posted something on Twitter's that said powered by.
Speaker 7 (08:29):
The swoosh and does that actually get into.
Speaker 5 (08:34):
S Speaking of Nike, Uh, they have said that you
know what, but done losing money. We've hit the bottom.
This is we are going to make money from this
point forward. Be positive, Kim, be positive. Yeah. Uh.
Speaker 4 (08:52):
They they did say that it's it's they've declared the bottom. Right,
They're saying that this last quarter is going to be
their worst and it's all it's all going up from here.
And investors bought it right when they said that chair
has jumped like fifteen percent. It was the biggest jump
(09:12):
since twenty twenty two in a single day. Like there's
enthusiasm now for Nike's turnaround effort because it's been such
a difficult past year, year and a half. There were layoffs,
sales have been something this whole time. They've lost traction
in the places where like they really shouldn't have in
places where they it's hard to get it back, like
(09:35):
the running industry. As they pulled back from shelf space
and all these different retailers and then everyone else swooped
in and was like, Okay, you want to sell us cool.
That sounds that sounds like a great deal. But Nike's
reversing most of those decisions and really refocusing on sports
and performance products and things like that.
Speaker 5 (09:54):
Yeah, Butessa, the Nike sounds like my kid when he
broke my favorite glass. Dad. The stakes were made, don't
get me.
Speaker 7 (10:01):
Wrong, But I try to glow back to and everything's fine.
Speaker 5 (10:07):
Now.
Speaker 7 (10:08):
So are those you know, those strategies. Is it going
to be propelled when I mean Kaitlyn Clark, Like, is
she going to be propelling this next quarter of growth
for Nike? I mean, she just dropped her version of
the Kobe's right, they're not even her own signature shoes,
and they still sold.
Speaker 4 (10:23):
Out, and they still immediately they're not even her own.
They use the Wemby had one of these, for example,
when after he came in the league. It was just
one one color way of someone else's shoe that you
are that's branded after you. But this is really it's
a good sign for the eventual release of Caitlyn and
Clark's signature shoes, and that's going to be one of
(10:44):
the most important shoe releases in my opinion, for Nike
in years, many many years. This this is going to
be such a such a big deal for them and
they need to get it right. It's one of the
most important things they're going to do in twenty twenty five.
Speaker 5 (11:00):
And yeah, with the w n b A really making
their footprints forgive the pun. Yeah, they're gonna that was okay,
that was good, that was accident. That was pretty good.
But they're gonna need a Caitlin Clark and they're gonna
need some other w NBA players as well.
Speaker 4 (11:15):
And it's been working so far that the ww A
stars with shoes right. Uh, the Sabrina too is like
the second most worn basketball shoe in the NBA on court,
which is a huge deal. And then Asia Wilson's shoes
have have sold out as well since you released them
earlier this year. So here here comes here comes Caitlyn.
Speaker 1 (11:37):
And then therefore page.
Speaker 4 (11:39):
Right, Therefore they have also bike. He's also signed Paige.
They have not announced anything around her yet. We will,
We'll just have.
Speaker 7 (11:48):
To write, well, they have to get through Kaitlyn Clark first.
Obviously they're not going to downplay that at all. But yeah,
in terms of looking forward to the future, it seems
like it'd be bright if you're releasing Caitlin and then
Page like a year or so after.
Speaker 4 (12:01):
Oh yeah, it's it's it's quite a lineup and we've
yet to see anyone else like try to match that
vigor in the WNBA thus far.
Speaker 5 (12:11):
Our thanks to Kim Bessin for joining us.
Speaker 6 (12:13):
Up.
Speaker 5 (12:13):
Next, we stick with basketball and turn to the w
NBA and the new teams it's planning to add. For
Vanessa Pronomo, Michael Barr, you're listening to the Bloomberg Business
of Sports from Bloomberg Radio around the world. This is
(12:44):
Bloomberg Business of Sports from Bloomberg Radio. This is the
Bloomberg Business of Sports. We explore the big money issues
in the world of sports. Michael Barr, along with Vanessa
Pernomo Damian sas Hour is off this week. The w
NBA justin it's adding three new teams in Cleveland, Detroit
and Philadelphia with a massive expansion fee. Here to talk
(13:08):
to us about the league's growth and more about the
new teams is Bloomberg US sports business reporter and friend
of the show Randall Williams. Randall, Welcome to the Bloomberg
Business of Sports.
Speaker 2 (13:21):
Thank you, for having me as always.
Speaker 5 (13:23):
I am a big story that I think about the WNBA.
They're going to expand to eighteen teams now. That means
three more teams will be at it. That's Cleveland, Detroit
and Philadelphia by the year twenty thirty. That's a great
impact for the league.
Speaker 2 (13:42):
Yeah, I think so. I think it shows as something
that we've already known in a sense, is that, you know, basketball,
at women's basketball in particular, is continuing to grow. This
is something that Commissioner Kathy Engelbert had set her sights on.
Speaker 5 (13:55):
I believe she.
Speaker 2 (13:55):
Wanted sixteen teams by twenty twenty eight. She'll have thirty
by twenty thirty. So that's I mean, not thirty eighteen
by twenty thirty. So that's a good sign. I think
it's healthy for the league.
Speaker 7 (14:06):
Oh my god, could you imagine if it was thirty
all right? I mean, that would be some growth for sure.
It's interesting though, that these three teams were all are
all going to be added to existing NBA franchises with
ownership groups. Talk to us about that and why you
know that makes sense for the league and why you
(14:28):
think they chose those particular ownership groups.
Speaker 2 (14:31):
Yeah, I think from here on out, it's going to
be very difficult for any new WNBA franchise that isn't
connected to to an NBA franchise to get up and
running or to win one of these highly competitive bidding
processes because of the fact that, like when you have
an NBA owner in place and they have an arena
and they have all this other stuff set up, all
(14:53):
they essentially have to do is build a practice facility
and be a good owner and you know, put some
promotion behind the team, make people excited about it, and
it's up and running. That's not the exact same say
let's say Kansas City or Nashville vert for example, which
don't have the exact same things. I'm sure they have
arenas downtown. But for the WNBA, if you're looking at
(15:14):
it from their point of view, you want experience. You
don't want someone to come in and have to learn
the ropes and go through learning learning curve. You want
someone who's experienced with this, and that's what we've seen.
The last three teams, of course, as you said, are
connected to NBA franchises. I believe the last three before
that were too, so no surprise there. But if you
(15:34):
want the team in Kansas City or Nashville. It's going
to be tough.
Speaker 7 (15:37):
Portland is separate though. I mean they have an NBA team, right,
but their ownership group is not.
Speaker 1 (15:44):
Exactly Portland Traiblizard's ownership group.
Speaker 5 (15:47):
Now, I'm going to clarify this with Everybody is entitled
to their opinion, and I think you all know where
I'm going with this. Indiana Guard Sophie Cunningham has concerns
about the new locations for the three teams, Cleveland, Detroit,
and Philadelphia. She said, I don't know how excited people
(16:10):
are to be going to Detroit or to the other
Ohio city. She made a mistake and said Cincinnati. It's Cleveland.
She spoke during practice. She said, you want to listen
to your players, adding where are they going to get
excited to play and draw fans? Now, everybody knows that
(16:30):
I am a native Detroitter and love the city of Detroit.
And of course, the city of Detroit responded, noting on
social media that it has had a previous WNBA team.
The shock and according to what the city was saying,
is that it attracted a lot of fan enthusiasm. Now
there's a debate about that until they moved to Tulsa
(16:54):
in twenty ten.
Speaker 1 (16:57):
I mean, you took it really personal.
Speaker 5 (16:58):
Michael, Well, yeah, because it's like, come on, I understand
what you're saying. You're trying to grow the league. Yeah
you don't. You know, you're worried about it going too fast,
but at the same time too, it's like, and you
said it, Randall, Detroit has had the experience from nineteen
(17:20):
ninety eight to like two thousand and nine, the Shock
played in Detroit. Randall, it just yeah.
Speaker 2 (17:24):
I think that her comments were definitely disrespectful to the franchises.
But what I hear from WNBA players who were speaking
about expansion yesterday and not just her, is that they
want to be heard by the league, and in this
particular instance, I do think that she was a little
out of line. I think that what she should have
said is that I want the players to be involved
(17:46):
in the process. And if that's what you want, I
think that's perfectly fine, because you know, the WNBA and
the players, the Women's the WBPA are in the middle
of a CBA negot she and so often. I mean,
if you listen to what the players are saying and
how they're negotiating like they are really stepping up to
the plate and saying like we understand the business, we
(18:09):
know the business, we want to be a part of
the business. And Commissioner Engelberg had said previously as it
pertained to meteorites that you would welcome having a player
representative at the table and in the latest media negotiations
that didn't happen, and obviously an expansion, which it shouldn't.
On the expansion front, I'm not sure that any players
(18:29):
have ever been involved on for any league, NFL, NBA,
MLB in bringing a team to a city. Obviously you
can rally, but I just think the players want to
be involved a little bit more in the league's business
as it's growing.
Speaker 7 (18:42):
Do you think that other players in the league feel
similarly about the growth being too fast?
Speaker 5 (18:50):
Yes.
Speaker 2 (18:50):
I made some calls yesterday and there were a number
of players who were not fond of this announcement. I
had someone tell me, a player tell me that it
doesn't feel like the league is as focused on the
CBA negotiations as they are on expansion, and I think, like, listen,
when I talk with the WNBA, they're not going to
(19:12):
negotiate in the public that's been their stance since the
CBA window opened up. I'm sure that'll be their stance
in three months from now or four months from now. However,
the players, there are some players who are like, great,
the league's growing, but it's in twenty thirty and these
roster spots that will be added, there's going to be
a portion of the league that's out of it, that's
out of the league by then, there's going to be
(19:32):
new players, and really the players want to make sure
that the incoming players are not inheriting issues that they
dealt with. So in five years time, Kaylyn Clark will
be in her seventh season. I'm sure that whoever is
the rookie in five years doesn't want to be dealing
with some of the things that the current rookies are
dealing with now.
Speaker 5 (19:51):
And again, I want to add too, everybody's entitled their opinion,
and she is a very good Cunningham is a very
good w NBA player, And I want to go back
to what you were saying about the players having more input.
I think that is what she was trying to get at.
Speaker 2 (20:11):
Yeah, I think I just think that she she didn't
name any other cities, like if she would have named
some destination cities. Okay, Like now you have your putting
your flag in the ground and saying, like the people.
Let's say she said Salt Lake City for example. Now
you may get the owners of the Utah Jazz who
who may say like, hey, you know, she's right, I
(20:32):
want to bid for a team.
Speaker 5 (20:33):
But that didn't happen.
Speaker 2 (20:34):
She didn't say like, oh, Kansas City or Houston or wherever.
Speaker 5 (20:38):
She just said not.
Speaker 2 (20:40):
These three cities. And that's not I don't think that's
the right mindset you want to have. I think that
there was a better way to say it than she
just could have been a little bit more respectful to
the cities, the owners.
Speaker 5 (20:49):
And the league.
Speaker 7 (20:50):
Right she's she's having her moment right now, and she's
she's speaking her mind. You know, she's she's off her
Caitlyn Clark you know, friendship, having that moment spotline. She's
she's speaking her mind, which we want the players people
speak their mind. Raynald, I'm curious for this deal. You know,
we talked previously about how the Connecticut Sun are putting
(21:14):
or put up for sale and they might, you know,
look to move the team, but that doesn't impact these
three teams. Right, one of these new teams isn't going
to absorb the Connecticut Sun, is that right?
Speaker 2 (21:29):
Yeah, that's that's not gonna happen. The Sun are still
up for sale. They you know, they could go to
anybody who's interested, and I think the expectation depending on
who's going to be buying and what their plans are.
There have been a lot of rumors about will the
Sun stay in Connecticut, will they move? There's been rumors
about people wanting to bring a w NBA team to Boston.
(21:52):
Obviously Boston isn't far from Connecticut. But you have a
new owner in the Boston Celtics and Bill Chisholm. He's
not connected or he would not be connected in all
likelihood to the WNBA franchise, and it just gets complicated
with that city in particular. But I think with the
right owner and you know, the right situation, the Sun
will be perfectly fine. I just think you have to
find the right buyer.
Speaker 5 (22:14):
Ed. I also want to talk about the fee, because
each team is paying two hundred and fifty million dollars
each to become a part of the WNBA. According to
the word that's out there on the street, it was
back in twenty twenty three about what fifty million dollars
(22:36):
and now it's two hundred and fifty million dollars. My goodness,
Now that's a lot of money for the league. Quite yeah,
it is, it is.
Speaker 2 (22:45):
They drove that up in large part because people are
watching heavily. I think that another part of this is
media deals and there's just an increased number of eyes.
The WNBA was growing before Caitlin Clark got here, but
she earned what was like a rising wave into a
title wave. Now eventually that title wave will reach the
shore and they'll have to figure out what life looks
(23:07):
like and what the league looks like without her. But
you know that could be fifteen years down down the line.
And in regards to this valuation that we're seeing, it's
rising in large part because media deals and there's there's
an increase of interest in the league. And so with
that in mind, you're gonna have people who want to
get in at this lower price. Obviously fifty million a
(23:27):
couple of years ago, two hundred and fifty million now,
but the Valkyries, who are a year one, Sportco had
them at five hundred million. I believe is the most
valuable team in the WNBA. So you get a right
the right owner, the right ownership group, and someone who
really wants to put a lot of dollars into this
thing and invest in a winning team. You can make
this a profitable business in due time, so long as
(23:48):
the league continues to you know, get the media deals
right and negotiate a healthy CBA.
Speaker 1 (23:53):
Yeah.
Speaker 7 (23:54):
I think that five hundred million dollar number was even
surprising for me to see because we just saw, you know,
the size sell off a piece of the Liberty that
was about a four hundred, four hundred fifty million dollar
valuation right for that piece of the New York Liberty,
who are the current WNBA champions, And this is a
brand new team coming on five hundred million dollars and
(24:16):
they're the most valuable team in the league. That was
a little surprising to me, But I think, like to
your point, it shows that it's it's because of everything
new and the specific owners and all that. So that
being said, I mean, we're really close to that billion
dollar the first billion dollar franchise.
Speaker 5 (24:32):
Definitely.
Speaker 2 (24:33):
I think it'll be a raise between the Valkyries and
the Liberty. The Valkyries in particular have They've just done
a magnificent job on all all facets of the business side,
on the court, with the coaching staff and of course
the Liberty or the Liberty. They're based in New York.
They're the reigning champion, they're a title contender this year,
and I think that they're setting the precedent for teams
(24:56):
who are coming behind them if you want to be
in the business of one women's basketball. And this is
why I also think that the WNBA is choosing to
select bidders who are connected to NBA franchises just because
they have the experience. And when you look at those
two franchises, it's Joe Lacob and the Golden State Warriors,
it's Joe Sai in the Brooklyn Nets, and they run
(25:19):
a class organizations and you would want that in women's
basketball as well.
Speaker 5 (25:23):
Anda Williams, thank you man for joining us, budd We
appreciate it, but man up. Next, we talk with super
agent Rich Paul about his latest project, Masterclass. You're listening
to the Bloomberg Business of Sports Bloomberg Radio around the world.
Speaker 1 (25:43):
This is Bloomberg Business of Sports from Bloomberg Radio.
Speaker 5 (25:48):
Thanks for joining us on the Bloomberg Business of Sports.
We explore the big money issues in the world of sports.
Michael Barr, along with Vanessa Perdomo Damian Sasaur is off
this week. Our next g doesn't need an introduction. He's
clutched sports founder and CEO and sports super agent Rich Paul.
He is here now to take us through some of
(26:10):
his latest projects. Rich, Welcome back to the Bloomberg Business
of Sports.
Speaker 6 (26:15):
Thanks for having me master Class.
Speaker 5 (26:18):
I love this thing because if you looked at my life,
I need lessons that are in master Class. In fact,
everybody can use the lessons in master Class. Can you
tell us about that?
Speaker 6 (26:32):
Yeah, you know.
Speaker 3 (26:33):
Masterclass is something that you know, obviously from a brand perspective,
is at the highest level as it pertains to finding
out what's behind the walls of business and operations and
things of that nature. And when I was asked to
(26:54):
do it, you know, from my perspective, there's never been
somebody in sports representation that were asked to do it.
And I wanted to make sure that I found a
balance and not just talking about what happens in the
business of sports, because everyone isn't in that business. But
given people what I would say would be a very
(27:18):
relatable and understandable perspective on how to evolve, how to
grow a business, how to evolve within the internal infrastructure
at your job, and even you know, just the basic
(27:39):
simple things in life. And so I really enjoyed masterclass.
They had an unbelievable staff and team. We really pushed
the details of it was something that we wanted to
make sure we did not ignore, and I had a
lot of fun doing it.
Speaker 7 (27:57):
That's something I want to get more into, because, like
you mentioned, not everyone's in that business and sports. You know,
you're using these examples of negotiating these huge million dollar
contracts in the NBA, but you use the language so
that it can pertain to, you know, across industries and
things like that. Did you find that at all hard
(28:18):
or challenging to use those lessons across everything or do
you really think these lessons of business just really apply
to all industries?
Speaker 5 (28:26):
Yeah?
Speaker 3 (28:27):
No, you know, the difficulty in it was again just
making sure that I'm able to connect with ten people
instead of two, you know, and out of those ten people,
how many of them are at the same level, how
many of them are in the same position from a
(28:48):
job perspective, how many of them are educated at the
same level or understanding of what's in front of them,
and so that was the hard part. But I think
once you got past that, yes, it definitely all connects.
Perspective is just so important, and I try to talk
about this with all the young people that I encounter
and older older people that I encounter as well, because
(29:13):
the timing of gaining a perspective actually is the beginning
of your growth. And whether that's in business, whether that's
in life, it's so important. You tend to find out
what things have value and what things don't. You tend
to have a better understanding of how your day should flow.
(29:35):
I remember a friend of mine, her son was working
at Target, and he was a little not He wasn't
a little upset about it. He just was like, it's
a job, you know. He was like, I got a job,
And I was explaining to him that no, it's not
(29:57):
just a job. You know why you're there, the position
you're in. Now, try to gain a perspective on what
the next position is and whatever that next position is.
Speaker 6 (30:08):
Cultivated relationship.
Speaker 3 (30:09):
Take that person out to lunch or when you guys
are on your lunch break, have the conversation of what
they actually do, and then eventually you're going to evolve
there and then you take the next step once you
get there, and eventually you start to understand, okay, who
is the regional manager of all the stores and regionally
(30:29):
and then what happens in the corporate office and things
like that. You have to have a vision of where
you're at, but also where you have the ability to go,
and then how do I navigate to get there? And
so oftentimes people stop at you know pretty much where
their feet is, and you know, you have to have
that vision to be able to take the next steps.
Speaker 5 (30:51):
If I sound excited because these lessons that you're giving
are lessons about life, I am. I mean, there's one
out of the nine main lessons of your class, there's
number one and it just blam it just it's right
off the page. Preparation when before you walk in that's
(31:12):
for young people and older people. Can you explain that.
Speaker 3 (31:16):
Going into a locker room, an NBA locker room, what
does that entail?
Speaker 6 (31:22):
Going into training camp? What does that entail?
Speaker 3 (31:25):
When you talk about preparation, our summers are what that
preparation looks like. And we try to get people to
understand your talent is going to take you.
Speaker 6 (31:35):
But so far, how do I You know, most kids
dream of getting to the NBA.
Speaker 3 (31:41):
Most kids don't dream of getting to the NBA and
then being successful in the NBA and having a consistent
work happening in the NBA and understanding how to be
a professional and everything I do while being in the NBA.
You know, there's so many different levels. You know, it's
like the three Little pigs. If you're building that how
and when you win? The winning aspect before you walk
(32:07):
in the room is exactly that gaining a perspective on Okay,
what and who am I? I'm an NBA basketball player?
What does that entail? That tells me to be early,
That it tells me to leave late, That it tells
me to be engaged, That it tells me to be appreciative,
That it tells me to have a routine. That it
(32:28):
tells me to be a great teammate. That you know,
there's I can go through twenty different things. And this
is before you even get to the gym. Having this
understanding of this, well, guess what the hard part of
it all is? Well, these kids have been number one
talked wrong. To begin with, none of them have been
(32:51):
taught how to play. I can't say none. Very few
has been taught how to play the game the right way.
Some fall in to playing the game the right way
by circumstance, meaning I was not considered the best player
on my team, so therefore I didn't have the ball
in my hands. So because of that, I had to
learn how to play without the ball. But really, once
(33:14):
I got to college and to the NBA, me playing
without the ball actually helps me because that's my role.
But that didn't happen because you didn't want the ball.
That happened because you wasn't good enough at that time
to play with the ball. And that's just God for you, right.
But for those that grew up playing with the ball
(33:35):
all the time and then have to start playing without
the ball, that's a culture shock. So now you're like, well,
that guy was ranked number one in his class and
now he's not even in the NBA. It's because he's
been playing the wrong way this whole time, and everybody
around him was looking to benefit. Everybody around him wasn't
(33:55):
identifying how he would be positioned in the NBA, and
was buying more into the stardom and the celebrity and
the notoriety and what they can get from it, and
so therefore they're helping you fail without even seeing it.
Speaker 7 (34:11):
Wow, what are those lessons that you've learned throughout you know,
your career and through your different deals that you've done
that have taught you those similar lessons of moving without
the ball?
Speaker 6 (34:24):
Yeah, I mean you have to understand.
Speaker 3 (34:25):
I learned the most just being a part of the
team and really barely hanging on. You know, I was
the last person to our circle. I did not have
a role. People didn't necessarily look at me as someone
of value, but that didn't matter to me because I
knew my value within.
Speaker 6 (34:46):
I just needed an opportunity. And so I try to
get people.
Speaker 3 (34:50):
To understand you don't necessarily start at one hundred miles
an hour, nor should you want to, because in that case,
then you have to really understand how to control that will.
And if I'm going that fast without the experience, I'm
never going to understand how to control that will, and eventually,
(35:11):
you know what happens there. I started to really pick
up on my surroundings, the ecosystem around me, the different people,
the different decision makers, those that I thought was trending
towards being a decision maker. One of the best things
I ever did as a young person, without even ever
knowing I was going to be in a representation business,
(35:32):
was cultivated relationships with those that wasn't in a decision
making position then, but with the understanding that they were
trending towards being in a decision making position later.
Speaker 6 (35:46):
And you know what, it happened.
Speaker 3 (35:48):
Everybody from a Chris Grant to a Massaiah Jeri to
a West Willcox, even a guy like Brian Colangelo who
was a GM for a while, and you know Dad
was on the routine, just to name a few. In
my business, those guys I always spoke to, you know,
(36:12):
I remember speaking to the person that parked the cars,
and speaking to all the security every.
Speaker 6 (36:17):
Time I came in, and the ushers that take you
to your seat.
Speaker 3 (36:21):
And despite who I was or connected to, I never
looked to treat those people any different than I would
want to be treated myself.
Speaker 6 (36:30):
Now.
Speaker 3 (36:30):
Sometimes you know, you may have a little run in
or whatever, but even if that was the case, I
always went back to that person and said, you know what,
I apologize, I take responsibility.
Speaker 6 (36:42):
You were just doing your job.
Speaker 3 (36:44):
And so again that's just having an understanding and gaining perspective.
But those four names, those guys I named, those guys
became decision makers at four basketball organizations when I and
I'm a very young person now in the business and
I was able to lean on them. They would pick
up my phone call and get insight on several different
(37:10):
things that were that were or subjects at that at
that time, and then to go a step further and
do multiple deals with a lot of those guys. So
so you know, when you think about it again, I
embraced not being in that pole position to start the race.
Speaker 6 (37:30):
And that's fine, Rich Paul.
Speaker 5 (37:33):
This is one of those conversations where we need three beers,
a bowl of pretzels, and another hour because man, I
am so engrossed in this and we've just run out
of time, and I apologize, but my goodness, Rich Paul,
thank you sir.
Speaker 6 (37:48):
For Eduk Bloomberg.
Speaker 3 (37:50):
Guys are always great to me, and you know I
always enjoy these.
Speaker 1 (37:55):
Well, come back so we can talk about the rest
of the class.
Speaker 5 (37:58):
Yeah, because I need some more life lessons. Please come back.
Speaker 6 (38:02):
Okay, thank you guys.
Speaker 5 (38:03):
Thank you, sir, Our thanks to Rich Paul for joining us.
He is founder and CEO of Clutch Sports, and thank
you for joining us for Vanessa Perdomo. I'm Michael Barr.
Tune in again next week for the latest on the
stories moving big money in the world of sports. And
make sure you subscribe to our podcast so you never
miss an episode. Subscribe on Apple, Spotify and all your
(38:27):
favorite podcast platforms. You're listening to Bloomberg Business of Sports
from Bloomberg Radio around the world.
This is the Business of Sports.
Speaker 2 (00:02):
Sports are the greatest unscripted show owner.
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The next generation of players who really grew up with
tech and believe in tech.
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Your face is your ticket, your face is your wallet,
Your face is your access to a club.
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These are such iconic and important buildings for businesses. For fans,
COVID was one of the best things that ever happened
to go. The NFL is a bulletproof business.
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Racing is unique because there is absolutely no reason why
we can't compete with the guys.
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I'm well, it's pro kickleball. Real, are people really going
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If you're playing moneyball with a huge bag of money,
you're going to be really, really good.
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Bloomberg Business of Sports from Bloomberg Radio.
Speaker 5 (00:40):
This is the Bloomberg Business of Sports. We explore the
big money issues in the world of sports. Michael Barr,
along with Vanessa Perdomo Damian Sasaur is off this week.
Up next on the show, we are All In on Basketball.
We talk with super agent Rich Paul. We'll talk with
him about his latest Prime masterclass.
Speaker 6 (01:02):
You know, most kids dream of getting to the NBA.
Speaker 3 (01:05):
Most kids don't dream of getting to the NBA and
then being successful in the NBA and having a consistent
work happening in the NBA and understanding how to be
a professional and everything I do while being in the NBA.
Speaker 5 (01:18):
And the WNBA announced it's adding teams soon. We'll talk
through the league's growth on the way as well. And
that is all on the way on Bloomberg Business of Sports.
But first, with all this talk on the hardwood, we're
going to start in the sneaker world, where we've gotten
a lot of headlines lately. Nike delivered an upbeat forecast lately,
(01:41):
which could suggest the CEO, Elliott Hill's plans could be working,
and NBA top draft choice Cooper Flag is planning to
rock new balanced sneakers, which could be a major boost
for that company. To take us through all of this
and more, we welcome Bloomberg new senior reporter Kim Beissine. Hello,
(02:03):
old friend of the show. It's Kim Beissene. How you doing, man?
What I'm so happy to be here? Of course, Man,
we got Nesse here and you're here. Man, I'm just
I'm tickled.
Speaker 1 (02:17):
It's a great summer day. So what I'm saying, Yeah,
we got.
Speaker 5 (02:21):
A lot to talk about we got Cooper flag number one,
which was you know, pretty dagone obvious. But you know
he has turned this already into like, you know, a
lot of ambitions and he can make a lot of
coin out of this. Kim Oh, yeah.
Speaker 4 (02:38):
So, uh, before he got drafted, before he like right
after he declared that he was going to Duke a
while back, he got signed to a shoe endorsement deal, right,
And it wasn't Nike, it wasn't Jordan, it wasn't Adidas.
(02:59):
It was New Balance out of Boston, Massachusetts.
Speaker 7 (03:03):
So do you know any like reasons behind what was
the thrill for him to choose New Balance?
Speaker 1 (03:09):
What was it is it?
Speaker 7 (03:11):
Did they offer him sort of a Michael Jordan Nike deal?
Speaker 1 (03:15):
You make us cool vibe.
Speaker 4 (03:18):
I don't think it's particularly special in terms of how
it can be compared to the rest of the deals
out there, right, But what I think what seemed to
attract Cooper to New Balance was a couple of things. One,
it's like it's like his hometown ish brand, right he
used to he grew up near a New Balance factory
(03:39):
in Maine. New Balance that has been involved in New England,
the sports of all kinds over the over the decades
and decades. Right, And there's something I've talked to other
athletes about, not Cooper in particular, about about being at
Nike or like one of the one of the big companies,
and that is you sometimes get lost in it. Right,
you're their tenth biggest star or something. At New Balance,
(04:02):
He's gonna be their face of men's basketball, and it's
they have. They have Kawhi Leonard as well, but obviously
he's nearing the end of his career. Cooper will be
their face going forward, assuming he pans out in the
way that everyone hopes he will, Right.
Speaker 5 (04:17):
Yeah, that's that's the thing when you are the new
kid on the block and you are I don't want
to use the phrase startup because that's wrong about New Balance.
Speaker 7 (04:26):
But.
Speaker 5 (04:27):
Yeah, is just a tiny bit. But compared to Nike
or Adidas, Hey, you know they can you can have
a guy carve out his own way with your shoe
brand to make it identifiable. And New Balance is closely held.
Speaker 4 (04:45):
Right, They're they're trying to become the third largest athletic
war company in the world behind Nike and Adidas. The
problem is there's Puma standing in their way here, and
Puma has been working on their basketball division also, so
they have LaMelo ball shoe does quite well. So New
Balance it requires that strong basketball business to get there, right.
(05:09):
Basketball is such an important market for sneakers now, not
just on court, but that halo effect to get people
to buy your shoes, the lifestyle shoes and everything else
that you wear on the street.
Speaker 7 (05:20):
But that's the interesting thing I think there because I
feel like when we've talked about it before, and you
kind of told me just when we were talking about
sneakerheads in general, that sneakerheads have like slowed on like
Jordan's and things like that in the past year or two,
and that New Balance is pretty popular with like the
young kids.
Speaker 5 (05:38):
It is.
Speaker 4 (05:38):
Yeah, a bunch of like collabs over the past year
a few years have really really hit. Like they've gotten
a lot, a lot cooler frankly in the last like
three four five years. It's been really fascinating to see.
And now you can leverage all of that to get
yourself into sports and then use it the other way
around too, Like if they can attract these big, big
athletes to compete on court in their shoes, like that's
(06:02):
a that's a big deal. And it's a big deal
because they're infringing on like someone's turf, right, this is right,
this is Nike's spot. They dominate this industry. Yeah, I
want to I want to take us into like the
past here, like just to show exactly how much Nike
has dominated this and how lucky New Balance got and
(06:25):
I guess their skilled negotiators, right, how lucky and how
well they pulled this off. Like if you go back,
every number one overall draft pick, wemby Paolo Kaid aunt
or not aunt Aunt is Adidas, Sorry, Zion Deander Aiden's
went to Puma, and then the old the old Philly
(06:45):
guys Markel Fultz and Ben Simmons also got signed by
Nike right before the draft. So like it's been every
single year, it's just they they they dominate. But here
we have here, we have New Balance.
Speaker 7 (06:57):
But I think that's it's an interesting thing when you
think of those people who are still on top, when
you think of those last like ten years and Adidas.
I mean, he's trying to make it cool, right, I
mean he's doing a really job, but like Nike is Nike,
and they can they can really use his platform to
build still but.
Speaker 4 (07:18):
Yeah, Nike is Nike and they're waiting for Caitlin Clark
and Clark right now.
Speaker 7 (07:22):
We have to talk about one of the other things
I want to talk about really quick. As we're talking
about New Balance. In your story, you also said that
they kind of said they're still going to push to
do more in the NIL space, but pointed out that
Cooper Flag wasn't allowed to wear New Balances in college.
Speaker 1 (07:37):
Because of their Nikes.
Speaker 7 (07:38):
Yeah, because of their relationship with Duke's relationship, right, So
why even get into the space if they can't wear
shoes and games.
Speaker 4 (07:45):
Yeah, It's it's tough in college, right. College is it's
its own beast where where brands can sign deals with
with entire universities and everyone's required to wear those shoes.
So maybe we'll see New Balance get into or of that.
Speaker 8 (08:01):
Are their contracts up for big school that there's always
contracts up, so if they're really looking around that there
should be some opportunities available to them.
Speaker 4 (08:12):
But yeah, Cooper wore Nike's the whole that's throughout that
whole March Madness run Nike's Nike. There's some drama during
that h Bounce is paying him money there's drama during
that too, because he did he had like a game
winner and Nike posted something on Twitter's that said powered by.
Speaker 7 (08:29):
The swoosh and does that actually get into.
Speaker 5 (08:34):
S Speaking of Nike, Uh, they have said that you
know what, but done losing money. We've hit the bottom.
This is we are going to make money from this
point forward. Be positive, Kim, be positive. Yeah. Uh.
Speaker 4 (08:52):
They they did say that it's it's they've declared the bottom. Right,
They're saying that this last quarter is going to be
their worst and it's all it's all going up from here.
And investors bought it right when they said that chair
has jumped like fifteen percent. It was the biggest jump
(09:12):
since twenty twenty two in a single day. Like there's
enthusiasm now for Nike's turnaround effort because it's been such
a difficult past year, year and a half. There were layoffs,
sales have been something this whole time. They've lost traction
in the places where like they really shouldn't have in
places where they it's hard to get it back, like
(09:35):
the running industry. As they pulled back from shelf space
and all these different retailers and then everyone else swooped
in and was like, Okay, you want to sell us cool.
That sounds that sounds like a great deal. But Nike's
reversing most of those decisions and really refocusing on sports
and performance products and things like that.
Speaker 5 (09:54):
Yeah, Butessa, the Nike sounds like my kid when he
broke my favorite glass. Dad. The stakes were made, don't
get me.
Speaker 7 (10:01):
Wrong, But I try to glow back to and everything's fine.
Speaker 5 (10:07):
Now.
Speaker 7 (10:08):
So are those you know, those strategies. Is it going
to be propelled when I mean Kaitlyn Clark, Like, is
she going to be propelling this next quarter of growth
for Nike? I mean, she just dropped her version of
the Kobe's right, they're not even her own signature shoes,
and they still sold.
Speaker 4 (10:23):
Out, and they still immediately they're not even her own.
They use the Wemby had one of these, for example,
when after he came in the league. It was just
one one color way of someone else's shoe that you
are that's branded after you. But this is really it's
a good sign for the eventual release of Caitlyn and
Clark's signature shoes, and that's going to be one of
(10:44):
the most important shoe releases in my opinion, for Nike
in years, many many years. This this is going to
be such a such a big deal for them and
they need to get it right. It's one of the
most important things they're going to do in twenty twenty five.
Speaker 5 (11:00):
And yeah, with the w n b A really making
their footprints forgive the pun. Yeah, they're gonna that was okay,
that was good, that was accident. That was pretty good.
But they're gonna need a Caitlin Clark and they're gonna
need some other w NBA players as well.
Speaker 4 (11:15):
And it's been working so far that the ww A
stars with shoes right. Uh, the Sabrina too is like
the second most worn basketball shoe in the NBA on court,
which is a huge deal. And then Asia Wilson's shoes
have have sold out as well since you released them
earlier this year. So here here comes here comes Caitlyn.
Speaker 1 (11:37):
And then therefore page.
Speaker 4 (11:39):
Right, Therefore they have also bike. He's also signed Paige.
They have not announced anything around her yet. We will,
We'll just have.
Speaker 7 (11:48):
To write, well, they have to get through Kaitlyn Clark first.
Obviously they're not going to downplay that at all. But yeah,
in terms of looking forward to the future, it seems
like it'd be bright if you're releasing Caitlin and then
Page like a year or so after.
Speaker 4 (12:01):
Oh yeah, it's it's it's quite a lineup and we've
yet to see anyone else like try to match that
vigor in the WNBA thus far.
Speaker 5 (12:11):
Our thanks to Kim Bessin for joining us.
Speaker 6 (12:13):
Up.
Speaker 5 (12:13):
Next, we stick with basketball and turn to the w
NBA and the new teams it's planning to add. For
Vanessa Pronomo, Michael Barr, you're listening to the Bloomberg Business
of Sports from Bloomberg Radio around the world. This is
(12:44):
Bloomberg Business of Sports from Bloomberg Radio. This is the
Bloomberg Business of Sports. We explore the big money issues
in the world of sports. Michael Barr, along with Vanessa
Pernomo Damian sas Hour is off this week. The w
NBA justin it's adding three new teams in Cleveland, Detroit
and Philadelphia with a massive expansion fee. Here to talk
(13:08):
to us about the league's growth and more about the
new teams is Bloomberg US sports business reporter and friend
of the show Randall Williams. Randall, Welcome to the Bloomberg
Business of Sports.
Speaker 2 (13:21):
Thank you, for having me as always.
Speaker 5 (13:23):
I am a big story that I think about the WNBA.
They're going to expand to eighteen teams now. That means
three more teams will be at it. That's Cleveland, Detroit
and Philadelphia by the year twenty thirty. That's a great
impact for the league.
Speaker 2 (13:42):
Yeah, I think so. I think it shows as something
that we've already known in a sense, is that, you know, basketball,
at women's basketball in particular, is continuing to grow. This
is something that Commissioner Kathy Engelbert had set her sights on.
Speaker 5 (13:55):
I believe she.
Speaker 2 (13:55):
Wanted sixteen teams by twenty twenty eight. She'll have thirty
by twenty thirty. So that's I mean, not thirty eighteen
by twenty thirty. So that's a good sign. I think
it's healthy for the league.
Speaker 7 (14:06):
Oh my god, could you imagine if it was thirty
all right? I mean, that would be some growth for sure.
It's interesting though, that these three teams were all are
all going to be added to existing NBA franchises with
ownership groups. Talk to us about that and why you
know that makes sense for the league and why you
(14:28):
think they chose those particular ownership groups.
Speaker 2 (14:31):
Yeah, I think from here on out, it's going to
be very difficult for any new WNBA franchise that isn't
connected to to an NBA franchise to get up and
running or to win one of these highly competitive bidding
processes because of the fact that, like when you have
an NBA owner in place and they have an arena
and they have all this other stuff set up, all
(14:53):
they essentially have to do is build a practice facility
and be a good owner and you know, put some
promotion behind the team, make people excited about it, and
it's up and running. That's not the exact same say
let's say Kansas City or Nashville vert for example, which
don't have the exact same things. I'm sure they have
arenas downtown. But for the WNBA, if you're looking at
(15:14):
it from their point of view, you want experience. You
don't want someone to come in and have to learn
the ropes and go through learning learning curve. You want
someone who's experienced with this, and that's what we've seen.
The last three teams, of course, as you said, are
connected to NBA franchises. I believe the last three before
that were too, so no surprise there. But if you
(15:34):
want the team in Kansas City or Nashville. It's going
to be tough.
Speaker 7 (15:37):
Portland is separate though. I mean they have an NBA team, right,
but their ownership group is not.
Speaker 1 (15:44):
Exactly Portland Traiblizard's ownership group.
Speaker 5 (15:47):
Now, I'm going to clarify this with Everybody is entitled
to their opinion, and I think you all know where
I'm going with this. Indiana Guard Sophie Cunningham has concerns
about the new locations for the three teams, Cleveland, Detroit,
and Philadelphia. She said, I don't know how excited people
(16:10):
are to be going to Detroit or to the other
Ohio city. She made a mistake and said Cincinnati. It's Cleveland.
She spoke during practice. She said, you want to listen
to your players, adding where are they going to get
excited to play and draw fans? Now, everybody knows that
(16:30):
I am a native Detroitter and love the city of Detroit.
And of course, the city of Detroit responded, noting on
social media that it has had a previous WNBA team.
The shock and according to what the city was saying,
is that it attracted a lot of fan enthusiasm. Now
there's a debate about that until they moved to Tulsa
(16:54):
in twenty ten.
Speaker 1 (16:57):
I mean, you took it really personal.
Speaker 5 (16:58):
Michael, Well, yeah, because it's like, come on, I understand
what you're saying. You're trying to grow the league. Yeah
you don't. You know, you're worried about it going too fast,
but at the same time too, it's like, and you
said it, Randall, Detroit has had the experience from nineteen
(17:20):
ninety eight to like two thousand and nine, the Shock
played in Detroit. Randall, it just yeah.
Speaker 2 (17:24):
I think that her comments were definitely disrespectful to the franchises.
But what I hear from WNBA players who were speaking
about expansion yesterday and not just her, is that they
want to be heard by the league, and in this
particular instance, I do think that she was a little
out of line. I think that what she should have
said is that I want the players to be involved
(17:46):
in the process. And if that's what you want, I
think that's perfectly fine, because you know, the WNBA and
the players, the Women's the WBPA are in the middle
of a CBA negot she and so often. I mean,
if you listen to what the players are saying and
how they're negotiating like they are really stepping up to
the plate and saying like we understand the business, we
(18:09):
know the business, we want to be a part of
the business. And Commissioner Engelberg had said previously as it
pertained to meteorites that you would welcome having a player
representative at the table and in the latest media negotiations
that didn't happen, and obviously an expansion, which it shouldn't.
On the expansion front, I'm not sure that any players
(18:29):
have ever been involved on for any league, NFL, NBA,
MLB in bringing a team to a city. Obviously you
can rally, but I just think the players want to
be involved a little bit more in the league's business
as it's growing.
Speaker 7 (18:42):
Do you think that other players in the league feel
similarly about the growth being too fast?
Speaker 5 (18:50):
Yes.
Speaker 2 (18:50):
I made some calls yesterday and there were a number
of players who were not fond of this announcement. I
had someone tell me, a player tell me that it
doesn't feel like the league is as focused on the
CBA negotiations as they are on expansion, and I think, like, listen,
when I talk with the WNBA, they're not going to
(19:12):
negotiate in the public that's been their stance since the
CBA window opened up. I'm sure that'll be their stance
in three months from now or four months from now. However,
the players, there are some players who are like, great,
the league's growing, but it's in twenty thirty and these
roster spots that will be added, there's going to be
a portion of the league that's out of it, that's
out of the league by then, there's going to be
(19:32):
new players, and really the players want to make sure
that the incoming players are not inheriting issues that they
dealt with. So in five years time, Kaylyn Clark will
be in her seventh season. I'm sure that whoever is
the rookie in five years doesn't want to be dealing
with some of the things that the current rookies are
dealing with now.
Speaker 5 (19:51):
And again, I want to add too, everybody's entitled their opinion,
and she is a very good Cunningham is a very
good w NBA player, And I want to go back
to what you were saying about the players having more input.
I think that is what she was trying to get at.
Speaker 2 (20:11):
Yeah, I think I just think that she she didn't
name any other cities, like if she would have named
some destination cities. Okay, Like now you have your putting
your flag in the ground and saying, like the people.
Let's say she said Salt Lake City for example. Now
you may get the owners of the Utah Jazz who
who may say like, hey, you know, she's right, I
(20:32):
want to bid for a team.
Speaker 5 (20:33):
But that didn't happen.
Speaker 2 (20:34):
She didn't say like, oh, Kansas City or Houston or wherever.
Speaker 5 (20:38):
She just said not.
Speaker 2 (20:40):
These three cities. And that's not I don't think that's
the right mindset you want to have. I think that
there was a better way to say it than she
just could have been a little bit more respectful to
the cities, the owners.
Speaker 5 (20:49):
And the league.
Speaker 7 (20:50):
Right she's she's having her moment right now, and she's
she's speaking her mind. You know, she's she's off her
Caitlyn Clark you know, friendship, having that moment spotline. She's
she's speaking her mind, which we want the players people
speak their mind. Raynald, I'm curious for this deal. You know,
we talked previously about how the Connecticut Sun are putting
(21:14):
or put up for sale and they might, you know,
look to move the team, but that doesn't impact these
three teams. Right, one of these new teams isn't going
to absorb the Connecticut Sun, is that right?
Speaker 2 (21:29):
Yeah, that's that's not gonna happen. The Sun are still
up for sale. They you know, they could go to
anybody who's interested, and I think the expectation depending on
who's going to be buying and what their plans are.
There have been a lot of rumors about will the
Sun stay in Connecticut, will they move? There's been rumors
about people wanting to bring a w NBA team to Boston.
(21:52):
Obviously Boston isn't far from Connecticut. But you have a
new owner in the Boston Celtics and Bill Chisholm. He's
not connected or he would not be connected in all
likelihood to the WNBA franchise, and it just gets complicated
with that city in particular. But I think with the
right owner and you know, the right situation, the Sun
will be perfectly fine. I just think you have to
find the right buyer.
Speaker 5 (22:14):
Ed. I also want to talk about the fee, because
each team is paying two hundred and fifty million dollars
each to become a part of the WNBA. According to
the word that's out there on the street, it was
back in twenty twenty three about what fifty million dollars
(22:36):
and now it's two hundred and fifty million dollars. My goodness,
Now that's a lot of money for the league. Quite yeah,
it is, it is.
Speaker 2 (22:45):
They drove that up in large part because people are
watching heavily. I think that another part of this is
media deals and there's just an increased number of eyes.
The WNBA was growing before Caitlin Clark got here, but
she earned what was like a rising wave into a
title wave. Now eventually that title wave will reach the
shore and they'll have to figure out what life looks
(23:07):
like and what the league looks like without her. But
you know that could be fifteen years down down the line.
And in regards to this valuation that we're seeing, it's
rising in large part because media deals and there's there's
an increase of interest in the league. And so with
that in mind, you're gonna have people who want to
get in at this lower price. Obviously fifty million a
(23:27):
couple of years ago, two hundred and fifty million now,
but the Valkyries, who are a year one, Sportco had
them at five hundred million. I believe is the most
valuable team in the WNBA. So you get a right
the right owner, the right ownership group, and someone who
really wants to put a lot of dollars into this
thing and invest in a winning team. You can make
this a profitable business in due time, so long as
(23:48):
the league continues to you know, get the media deals
right and negotiate a healthy CBA.
Speaker 1 (23:53):
Yeah.
Speaker 7 (23:54):
I think that five hundred million dollar number was even
surprising for me to see because we just saw, you know,
the size sell off a piece of the Liberty that
was about a four hundred, four hundred fifty million dollar
valuation right for that piece of the New York Liberty,
who are the current WNBA champions, And this is a
brand new team coming on five hundred million dollars and
(24:16):
they're the most valuable team in the league. That was
a little surprising to me, But I think, like to
your point, it shows that it's it's because of everything
new and the specific owners and all that. So that
being said, I mean, we're really close to that billion
dollar the first billion dollar franchise.
Speaker 5 (24:32):
Definitely.
Speaker 2 (24:33):
I think it'll be a raise between the Valkyries and
the Liberty. The Valkyries in particular have They've just done
a magnificent job on all all facets of the business side,
on the court, with the coaching staff and of course
the Liberty or the Liberty. They're based in New York.
They're the reigning champion, they're a title contender this year,
and I think that they're setting the precedent for teams
(24:56):
who are coming behind them if you want to be
in the business of one women's basketball. And this is
why I also think that the WNBA is choosing to
select bidders who are connected to NBA franchises just because
they have the experience. And when you look at those
two franchises, it's Joe Lacob and the Golden State Warriors,
it's Joe Sai in the Brooklyn Nets, and they run
(25:19):
a class organizations and you would want that in women's
basketball as well.
Speaker 5 (25:23):
Anda Williams, thank you man for joining us, budd We
appreciate it, but man up. Next, we talk with super
agent Rich Paul about his latest project, Masterclass. You're listening
to the Bloomberg Business of Sports Bloomberg Radio around the world.
Speaker 1 (25:43):
This is Bloomberg Business of Sports from Bloomberg Radio.
Speaker 5 (25:48):
Thanks for joining us on the Bloomberg Business of Sports.
We explore the big money issues in the world of sports.
Michael Barr, along with Vanessa Perdomo Damian Sasaur is off
this week. Our next g doesn't need an introduction. He's
clutched sports founder and CEO and sports super agent Rich Paul.
He is here now to take us through some of
(26:10):
his latest projects. Rich, Welcome back to the Bloomberg Business
of Sports.
Speaker 6 (26:15):
Thanks for having me master Class.
Speaker 5 (26:18):
I love this thing because if you looked at my life,
I need lessons that are in master Class. In fact,
everybody can use the lessons in master Class. Can you
tell us about that?
Speaker 6 (26:32):
Yeah, you know.
Speaker 3 (26:33):
Masterclass is something that you know, obviously from a brand perspective,
is at the highest level as it pertains to finding
out what's behind the walls of business and operations and
things of that nature. And when I was asked to
(26:54):
do it, you know, from my perspective, there's never been
somebody in sports representation that were asked to do it.
And I wanted to make sure that I found a
balance and not just talking about what happens in the
business of sports, because everyone isn't in that business. But
given people what I would say would be a very
(27:18):
relatable and understandable perspective on how to evolve, how to
grow a business, how to evolve within the internal infrastructure
at your job, and even you know, just the basic
(27:39):
simple things in life. And so I really enjoyed masterclass.
They had an unbelievable staff and team. We really pushed
the details of it was something that we wanted to
make sure we did not ignore, and I had a
lot of fun doing it.
Speaker 7 (27:57):
That's something I want to get more into, because, like
you mentioned, not everyone's in that business and sports. You know,
you're using these examples of negotiating these huge million dollar
contracts in the NBA, but you use the language so
that it can pertain to, you know, across industries and
things like that. Did you find that at all hard
(28:18):
or challenging to use those lessons across everything or do
you really think these lessons of business just really apply
to all industries?
Speaker 5 (28:26):
Yeah?
Speaker 3 (28:27):
No, you know, the difficulty in it was again just
making sure that I'm able to connect with ten people
instead of two, you know, and out of those ten people,
how many of them are at the same level, how
many of them are in the same position from a
(28:48):
job perspective, how many of them are educated at the
same level or understanding of what's in front of them,
and so that was the hard part. But I think
once you got past that, yes, it definitely all connects.
Perspective is just so important, and I try to talk
about this with all the young people that I encounter
and older older people that I encounter as well, because
(29:13):
the timing of gaining a perspective actually is the beginning
of your growth. And whether that's in business, whether that's
in life, it's so important. You tend to find out
what things have value and what things don't. You tend
to have a better understanding of how your day should flow.
(29:35):
I remember a friend of mine, her son was working
at Target, and he was a little not He wasn't
a little upset about it. He just was like, it's
a job, you know. He was like, I got a job,
And I was explaining to him that no, it's not
(29:57):
just a job. You know why you're there, the position
you're in. Now, try to gain a perspective on what
the next position is and whatever that next position is.
Speaker 6 (30:08):
Cultivated relationship.
Speaker 3 (30:09):
Take that person out to lunch or when you guys
are on your lunch break, have the conversation of what
they actually do, and then eventually you're going to evolve
there and then you take the next step once you
get there, and eventually you start to understand, okay, who
is the regional manager of all the stores and regionally
(30:29):
and then what happens in the corporate office and things
like that. You have to have a vision of where
you're at, but also where you have the ability to go,
and then how do I navigate to get there? And
so oftentimes people stop at you know pretty much where
their feet is, and you know, you have to have
that vision to be able to take the next steps.
Speaker 5 (30:51):
If I sound excited because these lessons that you're giving
are lessons about life, I am. I mean, there's one
out of the nine main lessons of your class, there's
number one and it just blam it just it's right
off the page. Preparation when before you walk in that's
(31:12):
for young people and older people. Can you explain that.
Speaker 3 (31:16):
Going into a locker room, an NBA locker room, what
does that entail?
Speaker 6 (31:22):
Going into training camp? What does that entail?
Speaker 3 (31:25):
When you talk about preparation, our summers are what that
preparation looks like. And we try to get people to
understand your talent is going to take you.
Speaker 6 (31:35):
But so far, how do I You know, most kids
dream of getting to the NBA.
Speaker 3 (31:41):
Most kids don't dream of getting to the NBA and
then being successful in the NBA and having a consistent
work happening in the NBA and understanding how to be
a professional and everything I do while being in the NBA.
You know, there's so many different levels. You know, it's
like the three Little pigs. If you're building that how
and when you win? The winning aspect before you walk
(32:07):
in the room is exactly that gaining a perspective on Okay,
what and who am I? I'm an NBA basketball player?
What does that entail? That tells me to be early,
That it tells me to leave late, That it tells
me to be engaged, That it tells me to be appreciative,
That it tells me to have a routine. That it
(32:28):
tells me to be a great teammate. That you know,
there's I can go through twenty different things. And this
is before you even get to the gym. Having this
understanding of this, well, guess what the hard part of
it all is? Well, these kids have been number one
talked wrong. To begin with, none of them have been
(32:51):
taught how to play. I can't say none. Very few
has been taught how to play the game the right way.
Some fall in to playing the game the right way
by circumstance, meaning I was not considered the best player
on my team, so therefore I didn't have the ball
in my hands. So because of that, I had to
learn how to play without the ball. But really, once
(33:14):
I got to college and to the NBA, me playing
without the ball actually helps me because that's my role.
But that didn't happen because you didn't want the ball.
That happened because you wasn't good enough at that time
to play with the ball. And that's just God for you, right.
But for those that grew up playing with the ball
(33:35):
all the time and then have to start playing without
the ball, that's a culture shock. So now you're like, well,
that guy was ranked number one in his class and
now he's not even in the NBA. It's because he's
been playing the wrong way this whole time, and everybody
around him was looking to benefit. Everybody around him wasn't
(33:55):
identifying how he would be positioned in the NBA, and
was buying more into the stardom and the celebrity and
the notoriety and what they can get from it, and
so therefore they're helping you fail without even seeing it.
Speaker 7 (34:11):
Wow, what are those lessons that you've learned throughout you know,
your career and through your different deals that you've done
that have taught you those similar lessons of moving without
the ball?
Speaker 6 (34:24):
Yeah, I mean you have to understand.
Speaker 3 (34:25):
I learned the most just being a part of the
team and really barely hanging on. You know, I was
the last person to our circle. I did not have
a role. People didn't necessarily look at me as someone
of value, but that didn't matter to me because I
knew my value within.
Speaker 6 (34:46):
I just needed an opportunity. And so I try to
get people.
Speaker 3 (34:50):
To understand you don't necessarily start at one hundred miles
an hour, nor should you want to, because in that case,
then you have to really understand how to control that will.
And if I'm going that fast without the experience, I'm
never going to understand how to control that will, and eventually,
(35:11):
you know what happens there. I started to really pick
up on my surroundings, the ecosystem around me, the different people,
the different decision makers, those that I thought was trending
towards being a decision maker. One of the best things
I ever did as a young person, without even ever
knowing I was going to be in a representation business,
(35:32):
was cultivated relationships with those that wasn't in a decision
making position then, but with the understanding that they were
trending towards being in a decision making position later.
Speaker 6 (35:46):
And you know what, it happened.
Speaker 3 (35:48):
Everybody from a Chris Grant to a Massaiah Jeri to
a West Willcox, even a guy like Brian Colangelo who
was a GM for a while, and you know Dad
was on the routine, just to name a few. In
my business, those guys I always spoke to, you know,
(36:12):
I remember speaking to the person that parked the cars,
and speaking to all the security every.
Speaker 6 (36:17):
Time I came in, and the ushers that take you
to your seat.
Speaker 3 (36:21):
And despite who I was or connected to, I never
looked to treat those people any different than I would
want to be treated myself.
Speaker 6 (36:30):
Now.
Speaker 3 (36:30):
Sometimes you know, you may have a little run in
or whatever, but even if that was the case, I
always went back to that person and said, you know what,
I apologize, I take responsibility.
Speaker 6 (36:42):
You were just doing your job.
Speaker 3 (36:44):
And so again that's just having an understanding and gaining perspective.
But those four names, those guys I named, those guys
became decision makers at four basketball organizations when I and
I'm a very young person now in the business and
I was able to lean on them. They would pick
up my phone call and get insight on several different
(37:10):
things that were that were or subjects at that at
that time, and then to go a step further and
do multiple deals with a lot of those guys. So
so you know, when you think about it again, I
embraced not being in that pole position to start the race.
Speaker 6 (37:30):
And that's fine, Rich Paul.
Speaker 5 (37:33):
This is one of those conversations where we need three beers,
a bowl of pretzels, and another hour because man, I
am so engrossed in this and we've just run out
of time, and I apologize, but my goodness, Rich Paul,
thank you sir.
Speaker 6 (37:48):
For Eduk Bloomberg.
Speaker 3 (37:50):
Guys are always great to me, and you know I
always enjoy these.
Speaker 1 (37:55):
Well, come back so we can talk about the rest
of the class.
Speaker 5 (37:58):
Yeah, because I need some more life lessons. Please come back.
Speaker 6 (38:02):
Okay, thank you guys.
Speaker 5 (38:03):
Thank you, sir, Our thanks to Rich Paul for joining us.
He is founder and CEO of Clutch Sports, and thank
you for joining us for Vanessa Perdomo. I'm Michael Barr.
Tune in again next week for the latest on the
stories moving big money in the world of sports. And
make sure you subscribe to our podcast so you never
miss an episode. Subscribe on Apple, Spotify and all your
(38:27):
favorite podcast platforms. You're listening to Bloomberg Business of Sports
from Bloomberg Radio around the world.
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