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00:00Carolyn, Al, thank you for joining us, but before we get to you all, we're going to actually start, we
00:05mentioned the QR code, we're going to start with a question for the audience, and what will be the biggest
00:11growth driver for sports over the next five years?
00:15There's going to be some options that pop up, and we'll come back to that a little later, because I
00:20want to surprise them with what you think.
00:22But now getting to the main event, which is you all. I spent a lot of time at Arthur Ashe
00:27for the U.S. Open, it's been a lot of fun. Not too far from that, Etihad Park is being
00:32built, which is where your club, Gotham FC, is going to play. That announcement, the move from Jersey to Queens,
00:38was recent. Talk to us about what went into that.
00:42Yeah. Thank you for having me here. I'm excited to be here. So when we bought Gotham FC, the women's
00:48soccer team in New York, three years ago, our ambition was really clear. We wanted to elevate what it meant
00:54to be a women's soccer team.
00:55We wanted to raise the standards and create one of the best women's teams in the world, if not one
01:00of the best teams in the world, period. That starts with the product on the field. We've won two championships
01:05in three years.
01:06We've won international tournaments at the CONCACAF Women's Champions Cup. But you start with the winning product on the field,
01:13and then you need to create the infrastructure for the fans as well.
01:16And so we knew, so we've done some research early on. We've seen we only have a 2% awareness
01:24in the market. And so you walk down the street, the vast majority of people have no idea who Gotham
01:30FC is.
01:31Maybe many of you in the room don't know who Gotham FC is.
01:33We're power players. Everybody knows.
01:34Yes, everybody here does. All of you do.
01:36And so we need to grow our awareness. We need to get out in front of other people.
01:41And so the opportunity to bring the team into New York City, one of the best sports cities in the
01:48world, and be able to play our game, show our team on a global stage was something we couldn't walk
01:54away from.
01:54A lot of people here will be flying over the stadium when you come into LaGuardia. Of course, you pass
01:59the Mets, you pass Arthur Ashe and everything else. That'll be fun.
02:04Al, Silas, a reporter here at Bloomberg News, we broke a deal that you're involved in, which was the Yankees
02:08deal with Apollo.
02:11And then, of course, the day announcement came a little bit later. But in any news, tell us how that
02:15deal came together.
02:18I cold called them. No, I'm kidding.
02:20No, look, a friend of mine is an LP in the Yankees, and he thought it made sense for me
02:30to meet Pal and his team.
02:33And I'd love to tell you there was this elaborate, complex, you know, thing that created the transaction.
02:40But ultimately, it was a few folks sitting down, getting to know each other, I think wanting to continue to
02:49build a relationship and wanting to work together.
02:53And I think it speaks to something, frankly, that is quite different in sports.
03:00Like, my old business was a real estate business, I would say, highly transactional, right?
03:05You pay a dollar more than the next person, you win a deal, you finance a little cheaper, you win
03:12a deal.
03:12I think the way Pal thinks about the Yankees, the way, you know, Ryan and Rob think about Wrexham, like,
03:21they, it means something different to them.
03:24It's a connection in a way that I think is just different than your typical businesses and transactions.
03:30And when we, when we, when we close the deal, and I hope, I hope he doesn't mind me saying
03:34this, but, you know, Pal said, there's lots of ways to say congrats, right?
03:40And he said, you know, welcome to the family.
03:44And his CFO, Tony Bruno, who's also in the transaction, sent me a note that was about people.
03:50The people he dealt with on our team, the people he dealt with, the people he's going to continue to
03:54deal with, and how much in his multi-decade career he appreciated that.
03:58And so I, you know, it came together on a personal level.
04:03And ultimately, I think, for sports and sports investing, I think it's, it does boil down to who do these
04:11people who love their franchises, who do they want to be with, be in business with, who do they want
04:16to be at the table with, who they want to cheer with, and so on.
04:21For those of you who don't know, it was a $2.6 billion deal with a mix of debt and
04:25equity into the Yankees' global enterprises.
04:28Something that we discussed on a prep call that I really want to talk about is the role of a
04:31limited partner, which is what Apollo is going to be with the Yankees.
04:35And, of course, Carolyn, the Giants sold a minority stake to the Koch family.
04:41I believe that was last year around power players.
04:43And so you welcomed a limited partner.
04:45I'll ask you, Carolyn, what exactly, when there is a new partner coming in, and it is a person and
04:51not a firm, what exactly is that person's role typically in an organization?
04:56Yeah, so I think it's so dependent on the organization.
04:59So I led our sales process for my family, for the Giants, and for us, it was, this is a
05:05team that has been around for 100 years.
05:07We were the only other family to enter, which was over 30 years ago.
05:11And so to bring in another family is a really big deal.
05:14And so this was, for us, it was so much about values alignment and do they understand what the role
05:21that they're going to play in the organization, but really how the organization is run.
05:24Do they, this is a pretty set organization.
05:27How do they fit into it?
05:28Do they really feel like they understand the mission, they want to be a part of it, really for multiple
05:33generations?
05:33What I think I've also seen with Gotham and some of the investments that were actually minority investors in through
05:40Next3 is really where can we add value as limited partners?
05:45And so when I think about our cap table, let's say at Gotham, we've thought a lot about, while they
05:50might not have a governance role and they're clearly limited partners, that doesn't mean that they can't contribute.
05:55And so we think about every time we're adding a new partner, what role can they play in what we're,
06:00we're in the process of building something.
06:02So can they add media relationships, can they add sponsorship relationships, what is their role in the New York community
06:08and who can they bring in?
06:09So I would say a limited partner kind of at its core is obviously liquidity, you know, for families, it's
06:15the financial capital.
06:16But typically it is often, and I think in the best cases, it's really about values alignment and also what
06:23they can bring to the table as strategic partners.
06:27Al, what's your perspective?
06:28There's a lot of narratives around private equity in sports and how they want to buy and extract and sell
06:33again.
06:35How is Apollo going to be impacting the Yankees?
06:37Are you going to be making some decisions on the lineup?
06:39No, no, most definitely not.
06:41Look, I think there's a broader narrative outside of sports, just what is private equity, right?
06:47And the somewhat stereotype is you go in, you cut to the bone, and you optimize for every single dollar.
06:58That's not how you operate a sports team.
07:01And like we set up Apollo, it's almost a year now, but we set it up as a company, as
07:08a permanent capital vehicle,
07:09and not a fund so that we don't have to make decisions that I think funds tend to have to
07:18make, which is, well, it's the end of my fund life.
07:20I need to return capital, so I'm a seller.
07:22You're a long-term partner.
07:24We're a permanent partner, but if people want, right?
07:27And I think that's quite different, and I think that distinction, frankly, has served us well, right, which is where
07:38we sort of, you know,
07:39from my standpoint as an owner outside of Apollo investments, and then at Apollo, I think there's an understanding of,
07:48okay,
07:48I know what long-term thinking looks like, that's how I approach my investment personally, and I want partners who
07:55are going to approach it the same way.
07:58And so, like, our lens is we're long-term partners, has nothing to do, I don't even consider it private
08:04equity, frankly.
08:05I just think we create a company.
08:07We create a company to be a capital solutions provider to the global sports ecosystem.
08:14I will tell you that when I had some people call me after they saw $2.6 billion invested in
08:20the Yankees,
08:21and they were like, had I known that they were ready to spend this amount, I would have loved to
08:25call.
08:26What else interests you when you have a deal that large?
08:30Of course, I imagine your phone is ringing probably more than, you know, a Christmas jingle.
08:36What else is Apollo interested in?
08:40In the sport, just in terms of types of investments?
08:42I mean, look, we've, again, we're 11 months in, we've invested or committed to $13 billion of deals across the
08:52world,
08:52across sports, across leagues.
08:55And so, it goes back to what I was saying earlier, which is we just want to be a great
08:58partner.
08:58And I think we've built an organization of folks who I think leagues and owners enjoy spending time with.
09:09And, you know, what Caroline was talking about earlier about what is the role of a partner, right?
09:14We're a sort of blank slate on that, meaning if you're looking to borrow money and you just want to
09:22make interest payments and don't pay us back and send us the coupons and that's it.
09:29That's okay.
09:30The opposite side of that spectrum is we have folks on our team, myself included, that have operated clubs on
09:37four separate continents.
09:39We are seeing a lot in the sports world of, like, what people do well, what people don't do well.
09:45Apollo has got north of a trillion dollars of assets, enormous amount of companies that can be sponsors, can work.
09:53You know, we've already been doing that with some of our portfolio investments.
09:56And so, we're sort of very open-minded in that partnership mentality.
10:02It's like, you want us close by, we'll do everything for you and it doesn't cost you anything and we're
10:06just going to be there as a partner.
10:08And then if you're looking for capital and just want us to go away, that's fine too.
10:11I think there's a lot of Yankees fans who will be like, thank God, not a decision maker, at least
10:18with the lineup.
10:19None of it, yeah.
10:20Carolyn, we just got done with the World Cup.
10:23So many fans, so many cultures brought here.
10:26And, of course, the Women's World Cup will be in Brazil next year and then it will return to the
10:30U.S.
10:31And I wonder what you learned from this World Cup that you'll apply in 2027 and then eventually in 2031
10:38when the games are back here.
10:39Yeah, I'm counting down until 2031 when we can host the Women's World Cup.
10:43So, we hosted eight games at MetLife Stadium, at our stadium, including the finals, obviously.
10:50Obviously, it is a stadium that is in high use.
10:53I think we have 23 concerts this year before we even start the NFL season.
10:57But hosting something like the World Cup is different.
11:00It is, you are really representative of your region and you're really showcasing your region to the world.
11:06And so, the experience of this stadium is actually just one part of a much broader story.
11:14And so, fans are coming from around the world to experience the World Cup, but they don't, the transportation is
11:19a reflection of the stadium.
11:21The hotels, the food, every other part of the experience is actually, when they go back and they say, you
11:27know, I had an amazing time at the World Cup at MetLife, they're thinking about all of that.
11:31And so, you're kind of one, it's almost like you're more a civic, you're playing more of a civic role
11:36than just a stadium owner.
11:37And for the record, I took the New Jersey Transit several times and they treated me very well.
11:42Oh, great.
11:43It was very seamless.
11:44That's great.
11:44And now, will you say nice things about MetLife?
11:46Yeah.
11:46I mean, listen, when I walked into the stadium, outside of the media line, the media line was crazy.
11:50Yes, I did see that.
11:51But outside of that, walking into the stadium, I will never forget hearing Argentina fans just sing as loud as
11:58they were.
11:59There's nothing like it.
12:01I mean, Giants fans are crazy, Jets fans are crazy, Cowboys fans are crazy, but hearing them sing their tunes
12:07is, I'll hear that for the rest of my life.
12:10I agree.
12:10And I think it was such a represent, it was really an honor to be able to host them and
12:15to be able to have that event there.
12:16And it did, I think, if people don't, just from a soccer perspective, if you've never experienced that before, I
12:21think you don't understand.
12:23It's just a different level of fandom than anything we see in even the most rabid fan bases here.
12:27Even in, like, surround sound, you often hear, you know, the crowds cheering.
12:32But being there is completely different.
12:34And then, like, witnessing the culture of Argentina fans and Brazil fans and France and so many other countries was
12:41very, very fun.
12:42I want to talk real estate a little bit because that is at the center of sports.
12:46And when the Women's World Cup does come back here, there's an opportunity that your new stadium could be a
12:52host.
12:52And, Al, I wonder how you're thinking about real estate in sports.
12:56We're seeing stadiums and the surrounding real estate become a bigger picture in that.
13:01Tell me about how that surrounding real estate impacts the business of sports organizations, Al.
13:07Look, I think what you're seeing is owners have started to, like, institutionalize and optimize the team itself, right, and
13:18the underlying operations of the team.
13:20And I think you're now saying, okay, well, where else can we create experiences and value that ultimately nourish the
13:26benefit of the clubs and their fans?
13:28And real estate feels, again, having used to run a public REIT, like, feels like a natural sort of place
13:36to go where you can continue to build on the reason people are there, right?
13:40They're fans.
13:41They want experience.
13:42They want that connection, that community, right, that, frankly, you know, we probably all have less of today than we
13:49did a decade ago and a decade before that.
13:51And so I think that type of infrastructure is, you're going to see it, you're going to see it being
13:57more prevalent across the world where we're financing somebody right now, which I can't say who.
14:03No, no, go ahead.
14:04No, no, go ahead.
14:04Say who you're financing.
14:06I really can't.
14:09But a lot of the proceeds are going towards real estate and real estate-related infrastructure.
14:13So I think you're going to see more and more of that.
14:15Carolyn, at MetLife, there's not a lot around the stadium outside of the mall, which the mall is a short
14:20walk away.
14:20But when you're in Queens, there will be a bunch around there by the time that that happens.
14:25How do you think it's going to be different from when people – and, granted, we don't know.
14:30Let me say that first.
14:31We don't know if the Women's World Cup will be hosted at the new stadium.
14:36But how do you think it could be different if you all do play host?
14:40Well, first of all, I hope we're also hosting at MetLife because I strongly believe that a Women's World Cup
14:44should be in the same venues that the Men's World Cup was in.
14:47Yeah.
14:47However, either way, at Etihad Park, it's going to be a world-class soccer stadium.
14:51I think it's hard to imagine because that area isn't built out today.
14:55Right.
14:55But I'm imagining – I think we're all imagining it like what Barclays Center has done for downtown Brooklyn is
15:00there's going to be shops, retail, hotels, schools.
15:05And so that whole area, I think when fans come from around the world to the Women's World Cup, if
15:09there are games there or for any event, you will feel – you will really feel the global nature of
15:15Queens.
15:15I mean, Queens, they call it, you know, the global borough for a reason.
15:18And I think you will feel the entire kind of world and the diversity of it descending into Queens.
15:24And business investors often talk about a bubble bursting.
15:27And I think in sports, we talk about it all the time because valuations continue to increase.
15:32I mean, the Lakers were flipped from $10 billion to $12.5 billion not too long ago.
15:36And I wonder what is you all's perspectives on a sports bubble.
15:40Are there any threats to the industry right now?
15:44I'll take it, sure.
15:49So the answer is there's threats to any industry and business.
15:54I think the really interesting thing about sports in the world we're in today where, you know, I think everybody
16:01here probably spends a chunk of their day thinking about, like, what AI is going to do and what it's
16:05going to create
16:06and, frankly, what it's going to disrupt and disintermediate.
16:10And I think when you look at the world through that lens of, okay, this is a revolutionary technology that's
16:15going to impact all of our lives and all of our businesses,
16:20sports is the one that has, you know, I would say insulated.
16:24Yeah, it's very constant.
16:25Like, you know, we're a long ways away from, you know, robots shooting free throws, right?
16:29I hope so.
16:30Well, I think, and so I actually think what you're seeing in some of these valuations is a reflection of
16:37that, which is this sort of broad macro tailwind of, okay, look at all these industries that are being impacted.
16:43Where can I go that is not?
16:46And, frankly, even if it doesn't grow as an industry when other things fall away and media gets commoditized by
16:53AI, like, sports becomes that much more valuable.
16:55So I'm not, look, I lived through the financial crisis, ran a business through it, a public company through it.
17:01So, like, I know stuff can happen.
17:04But I think there's a real strong macro tailwind coupled with just, from a business standpoint, just unusual supply-demand
17:13dynamics, right?
17:13It's, like, pretty fixed supply and, like, there's a new billionaire mint in a day.
17:18Right.
17:18And that's your theoretical, and not to mention institutions with capital formation all the time.
17:24Yeah, yeah, that's you.
17:24So I, yeah, I think, look, any industry has risks.
17:27The economy can impact people going to events and buying bundles and buying merch and so on, sponsor spending and
17:35so on.
17:35But I think on any sort of medium long term, I feel really good about the industry as a whole.
17:41Great.
17:41We're going to go back to the poll question because we have about two minutes left, and then, Carolyn, I'll
17:46get your take on this.
17:47And, again, the question was, what will be the biggest growth driver for sports over the next five years?
17:51And I wonder what they said.
17:53It is global expansion.
17:56That's perfect timing because today the NFL is going to be playing in Australia with the Rams and the 49ers.
18:04We're seeing the NFL build out a whole lot more international games, a record nine this season.
18:09What's your take on what these people think?
18:12Yeah, that is interesting.
18:13That's not what I thought people were going to say.
18:14What did you think people were going to say?
18:16I kind of thought more the technology part.
18:18But anyway, they were all interesting.
18:20So I, but I do agree.
18:22I think global expansion is obviously for a mature mark, for a mature league like the NFL, the ability to
18:27all of a sudden be global.
18:29There's a massive opportunity there.
18:31If you think about fandom, fandom used to be, you really, you're a fan of the team in which you
18:37live because that was the only way to access that team.
18:40Right.
18:40If you grew up in New York, the only team you could access was going, couldn't even watch it on
18:44TV.
18:45You know, you could go to a Giants game in person.
18:47Then you could watch it on TV.
18:49Okay.
18:49So you could follow it from within the country.
18:51Now, all of a sudden, you can wake up in Australia.
18:54And if the game wasn't there, okay, let's say you wake up in Germany and you love Patrick Mahomes or
18:59you love Jackson Dart and you can follow the Giants.
19:02And that is your way into it.
19:04And you never have to go into the stadium.
19:05You never have to come to New York.
19:07Hopefully you do for sports tourism industry.
19:09But that's just a completely different model for sports.
19:13And so I do think for mature teams or leagues like the NFL to be able to have a fan
19:20base all over the world, there's massive runway for that.
19:2430 seconds real quick.
19:25Al, we just talked about the NFL.
19:27They have a list of approved private equity firms.
19:30Is Apollo interested?
19:31Uh, we're, look, we're, um, we're interested in any great sports property anywhere in the world, which clearly includes the
19:39NFL.
19:40Beautiful.
19:42Everyone, Carolyn Tisha Blodgett and Al Tillis, thank you so much for joining us.
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