Kohler CEO David Kohler on Family's Golf Ties; Unrivaled $120 Million Funding Round

Summary

Bloomberg Business of Sports – Episode Summary

Episode Title: Kohler CEO David Kohler on Family's Golf Ties; Unrivaled $120 Million Funding Round
Date: May 9, 2025
Hosts: Michael Barr, Scarlet Fu, Vanessa Perdomo
Featured Guests: Kim Bhasin (Bloomberg News), Sean Quill (KPMG), David Kohler (Kohler CEO)

Overview

This episode dives into the major movements in the business of sports, focusing on the professionalization and investment happening across youth sports, the strategic role of private equity and facility development in major sports franchises, and culminates with an in-depth conversation with David Kohler about the Kohler family’s enduring golf legacy, involvement in the PGA Works Collegiate Championship, and efforts to broaden golf’s reach and diversity.

---

Key Segments & Insights

1. Unrivaled Sports’ $120 Million Funding Round Led by Dick’s Sporting Goods

[02:06–13:45]

Main Discussion Points

• Unrivaled’s Model & Expansion:

  • Youth sports company operating venues, events, and leagues in 30 states.
  • Initially focused on baseball and softball, now expanding into flag football, lacrosse, and basketball.
  • Founders: Josh Harris and David Blitzer; CEO: Andy Campion (ex-Nike, Disney).
  • 1.4 million annual visitors; plans to acquire more properties and launch additional leagues.

• Dick’s Sporting Goods Strategy:

  • Dick’s leads the new $120 million funding round.
  • Sees deep synergy with Unrivaled’s youth sports footprint.
  • Operates “House of Sport” stores, venues for events and community engagement.
  • Potential board influence will allow integration of the retail and youth sports experience.

• Private Equity’s Role:

  • PE titans are fueling the trend of corporatizing youth sports, taking what used to be volunteer-run organizations into a streamlined, data-driven, asset-focused business.

• Flag Football:

  • Big expansion focus for Unrivaled (recently acquired and rebranded New England Flag Football).
  • Major brands (Nike, Under Armour, NFL) see flag football as an accessible, less-dangerous growth sport, especially for girls.
  • The sport's momentum is building ahead of its inclusion in the Olympics.

Notable Quotes

• “Unrivaled Sports is a youth sports company. They own venues, tournaments, programming for kids... This is national. Operate in 30 states now and have grown from baseball, softball, now football, lacrosse, basketball...”
  — Kim Bhasin [04:18]

• “Dick’s has like 850 stores...but also ‘House of Sport’... You do community event in there. Have all the kids in... it just makes a lot of sense.”
  — Kim Bhasin [05:18]

• “I used to go to tournaments and forget my cleats. They should have pop-up stores!”
  — Vanessa Perdomo [06:58]

Memorable Moment

• Vanessa’s personal story about almost skipping a college showcase to play high school flag football, and her wish for today’s expanded opportunities:
  “I wish I had this opportunity the girls have now. Right? Because it’s made for girls right now. Big focus.”
  — Vanessa Perdomo [09:15]

---

2. PepsiCo’s New Chief Sports Officer & The Expansion of Brand Sports Strategy

[09:45–13:45]

Main Discussion Points

• Centralized Brand Activation:

  • New Chief Sports Officer at PepsiCo (Brett O’Brien) will oversee an integrated sports marketing division across all brands (Gatorade, Frito-Lay, etc.).
  • Marketing is now organized by sport (NFL, basketball, etc.), enabling deeper, sport-specific campaigns and endorsements.
  • Notable campaigns include Gatorade x Kendrick Lamar and athlete endorsements (Caitlin Clark).

• Industry Implications:

  • PepsiCo’s change could push rivals like Coca-Cola to follow with their own centralized sports officers.
  • The role of sports sponsorship as a pillar in consumer package goods marketing is growing rapidly.

Notable Quotes

• “They’ve put it all into one division...separating by sport...focus in on individual sports with big anthemic campaigns.”
  — Kim Bhasin [10:01]

• “The sponsorship deals are just growing and growing... It’s essential, it’s become an essential part to the advertising ecosystem.”
  — Kim Bhasin [12:24]

• “We’re going to see a Messi Hot Cheeto from this, is what I am assuming.”
  — Vanessa Perdomo [11:48]

---

3. Private Equity and Sports Franchise Valuations with Sean Quill (KPMG US)

[15:13–27:47]

Main Discussion Points

• Sports Finance Landscape:

  • KPMG US has a major sports division, advising on deals like the Boston Celtics’ $6.1 billion sale.
  • Driver for team sales: rising valuations, need for investment, family legacy changes.

• Private Equity’s Increasing Presence:

  • PE provides capital, business acumen, modern data analytics.
  • Teams are limited (fixed asset pool); big capital needs for new facilities fueling PE interest.
  • Some legacy owners prefer selling to individuals/families over PE to retain control.

• Facilities & Fan Experience:

  • Renovations, new arenas, and non-game day uses (e.g., immersive art, business suites, sportsbooks) are critical to revenue and community engagement.
  • Owners seek ways to make venues profitable year-round, not just on game days.

• Artificial Intelligence in Sports:

  • AI is key for both internal processes (audit, tax) and evolving fan engagement (personalizing the experience, data-driven insights, frictionless transactions).

Notable Quotes

• “The number one trend right now is around facility renovation or new builds...being able to afford that is harder and harder. Private equity offers a lot in that space.”
  — Sean Quill [17:59]

• “It’s a fixed asset pool...it’s not like housing. Nobody’s building more franchises.”
  — Sean Quill [17:59]

• “Data and analytics...there is so much potential. We know so little about the typical fan...most franchises aren’t leveraging that data.”
  — Sean Quill [21:54]

Memorable Moment

• On why teams diversify their venues:
  “If you think about the fact that most of these owners own their own buildings, it’s like having a vacation house and not using it much...You want concerts, other non-sporting events, to keep it a community hub.”
  — Sean Quill [24:26]

---

4. Golf, Diversity, and the PGA Works Collegiate Championship with David Kohler (Kohler CEO)

[28:45–40:55]

Main Discussion Points

• Kohler’s Partnership with PGA:

  • Multi-decade relationship with the PGA of America; host of three PGA Championships and the 2021 Ryder Cup at Whistling Straits.
  • Sponsored a six-year partnership to host the PGA Works Collegiate Championship, a collegiate tournament predominantly for HBCUs.

• Promoting Diversity in Golf:

  • Kohler provides grants toward the HBCU Golf Scholarship Endowment.
  • Effort is about offering high-level competitive opportunities and exposure for student-athletes from underrepresented groups.
  • Kohler family deeply involved, with David’s wife Nina incoming chair of the PGA Reach Foundation.

• Golf Industry’s Post-Pandemic Growth & New Venues:

  • The pandemic fueled a renaissance in golf, attracting new, younger, and more diverse players.
  • Off-course and virtual golf experiences (Topgolf, clubhouses with simulators) are democratizing access and lowering barriers for younger generations.
  • Video golf and primetime entertainment formats like TGL are becoming entry points for new fans.

• Future of Golf Events:

  • The importance of providing a “major championship” experience for all participants, nurturing the next generation for both playing and industry roles.
  • Suggestions to further enliven new entertainment formats in golf by bringing in celebrities (“Kevin Hart and Snoop Dogg” as commentators).

Notable Quotes

• “If you look at the 38-year history of this [PGA Works] event...what it means to the game of golf in terms of growing the game...it’s done so much over the years.”
  — David Kohler [29:43]

• “Golf is not an inherently diverse sport...if you look at HBCUs, they’re 3% of U.S. universities but graduate 20% of Black Americans. Making sure they have a championship level competition is an important part of growing the game.”
  — David Kohler [32:55]

• “Covid was one of the best things that ever happened to golf. The numbers really exploded. And the best thing is it’s continued on the growth trajectory.”
  — David Kohler [37:21]

Memorable Moment

• “Mixing it up, maybe with a Kevin Hart in there, here and there to commentate...we just need to continue to spice up the theater.”
  — David Kohler [40:49]

---

Timestamps for Key Segments

• [02:06] – Start of Unrivaled Sports/Dick's Funding round
• [05:45] – Discussion about retail and youth sports synergy
• [09:45] – PepsiCo’s Chief Sports Officer segment
• [15:13] – KPMG’s Sean Quill on private equity and sports franchise valuations
• [24:26] – Venue utilization and fan experiences
• [26:49] – Role of artificial intelligence in sports business
• [28:45] – David Kohler interview: Golf, diversity, and industry growth

---

Tone & Language

The episode is conversational, insightful, and pragmatic. Hosts and guests bring a balance of industry expertise and real-world anecdotes, maintaining an energetic yet approachable tone.

---

Final Takeaway

This episode provides a comprehensive look at how big business is reshaping both the grassroots and professional ends of sports. It explores the marriage of capital and community in youth sports, rising sophistication in franchise management, the ongoing search for fan engagement and venue optimization, and ends with a testament to how legacy and inclusivity can fuel a sport’s future. Whether you’re an investor, a parent, or a golf fan, there’s insight here on how the business side is decisively guiding the next chapters of the sports world.

Transcript

[Michael Barr]

The FIFA World Cup 26 is coming to North America. Get closer to where business meets the beautiful game with a hospitality package featuring premium seats and entertainment. Get closer to wins on and off the pitch. Register interest@hospitality dota.com interest when you own.

[Scarlet Fu]

Your own business, you own every decision. Now own the card that rewards you for it. Chase Sapphire, Reserved for Business is a painful card that elevates your travel experience and offers premium benefits that can take your business to the next level. Sapphire, Reserved for business, offers 8x points on all purchases through Chase Travel, 3x points on social media and search engine advertising, airport lounge access, and more. With over $2,500 in annual value, it's the card that gives back all you put in. Learn [e-mail] ReserveBusiness Chase for Business make more of what's yours Accounts subject to credit approval restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank, NA member FDIC how can you free your team from time consuming office tasks? Amazon Business empowers leaders to not only streamline purchasing, but better support their teams. Smart business buying tools enable buyers to find and purchase items fast so they can focus on strategy and growth. It's time to free up your teams and focus on your future. Learn more about the technology, insights and Support [e-mail] this is the Business of.

[Sean Quill]

Sports the business of sports can be.

[Kim Basine]

Intimidating or hard for a starter to break in. We really appreciate when our owners are.

[Sean Quill]

Actually there, you know, with us through the journey.

[Scarlet Fu]

Teams, ours especially, have been very intentional to diversify at all levels of the company.

[David Kohler]

I think we're in the golden years.

[Scarlet Fu]

For the NFL and college football.

[David Kohler]

Our demographic reach has continued to expand.

[Scarlet Fu]

This is going to be really unlocking the streaming platform for sports fans.

[Michael Barr]

Sports valuations are rising. We'll see when they peak.

[Kim Basine]

You don't have to be the best in your sport to make a whole ton of money.

[Scarlet Fu]

Bloomberg Business of Sports From Bloomberg Radio.

[Michael Barr]

This is the Bloomberg Business of Sports where we explore the big money issues in the world of sports. I'm Michael Barr along with Scarlet Fu and Vanessa Perdomo. Damian Sassauer will be back next week. Coming up on the show, we talk golf and the PGA Works Collegiate Championship with Kohler Chair and CEO David Kohler. The Kohler family owns Whistling Straits in Wisconsin, host of that tournament. We'll talk with him about his family and company's long relationship with golf.

[David Kohler]

We've been really good partners with the PG of America for decades.

[Michael Barr]

All that and more is on the way on the Bloomberg business of sports. But first, Unrivaled Sports, which runs a bunch of youth sports venues and events, is raising $120 million in a funding round led by Dick's Sporting Goods. Here to talk to us about Unrivaled's latest plans is Bloomberg News senior reporter covering celebrities and athletes, Kim Basine. Kim, welcome back to the Bloomberg Business of Sports.

[Kim Basine]

Always, always happy to be here.

[Michael Barr]

Another great article. You mentioned that Dick's Sporting is leading a $120 million funding round for Unrivaled. Tell us about that.

[Kim Basine]

Yeah. So Unrivaled Sports is a youth sports company. They own a bunch of venues and do all these tournaments, programming for kids. And Dick's Sporting Goods has been pretty active in this space. They haven't done events themselves, but they do have a game changer, which they bought back in 2016. It's a streaming service. It started as like a scoreboard. You can watch your kids scores live as they're playing on some field somewhere. But now it's a whole streaming service where you can watch them play their games.

[Michael Barr]

Wow. I never knew that's a great idea that you have a scoreboard for your kids. I'm sorry, Scarlett, but it's a great idea, man.

[Scarlet Fu]

It's all about how youth sports is becoming much more professionalized than it ever was. It was kind of a grab bag before of parents volunteering their time, and now it's becoming something that rivals college sports, something that is really streamlined and easy for people to use. The user experience is high. Kim, tell us a little bit more about Unrivaled because it's got some hefty PE Titans behind it.

[Kim Basine]

It does. So Josh Harris and David Blitzer founded this thing last year and they hired Andy Campion, a former Nike and Disney executive, to run it. And the big takeaway there is that this is national. This is not just a little thing where they buy a couple properties. They operate in 30 states now and have grown from starting with baseball and softball. Flag football is now a big, a big focus for them. They started to work in lacrosse and basketball. Seems like it's going to be another big expansion point for them. Just a natural expansion from where they're coming from.

[Vanessa Perdomo]

And obviously Josh Harrison, David Blitzer are no know many, many people in the world of sports themselves.

[Kim Basine]

They do. They know everybody in the world of sports themselves.

[Vanessa Perdomo]

They know everyone in the world of sports themselves. They're, they're massive in this industry. So tell us about the strategic strategy behind bringing in Dick's in this way. Because they obviously beyond just raising the capital.

[Kim Basine]

Yeah. Dick's has like 850 stores across the country. But they also have this thing called House of Sport. Have you heard of that? Yeah.

[Scarlet Fu]

Oh my God. It's a venue for birthday parties. I've gone there so many times.

[Kim Basine]

Yeah, House of Sport. So they have all the, it's like. Yeah, you do community event in there. You have all the kids in and basically have a sports related party. Right?

[Scarlet Fu]

An organized gym class.

[Kim Basine]

Yes, an organized gym class. And when you pair that up with what unrivaled offers, it just makes a lot of sense.

[Michael Barr]

Right. Wow. Well, I didn't know. I don't know anything. But can they do weddings? Nothing.

[Kim Basine]

Anyway, I mean.

[Scarlet Fu]

If you pay them.

[Kim Basine]

I'm sure they'll let you do.

[Scarlet Fu]

We can look into that, Michael.

[Michael Barr]

Now Dick's Sporting Goods, they are also going to have a big influence on the company's board of directors. Correct?

[Kim Basine]

Yeah. And that's how they're going to explore partnership opportunities between these two companies. Right. So Dick's has been again, really active in this space and they want to be. Think about how much business goes through youth sports into Dick's Sporting Goods, where you buy all your soccer balls and your baseball bats and anything you could possibly need for your kids to play sports. They're going to be there and they're going to be involved. And in a lot of ways it's like that's as important as the, the flashier parts of their business like you know, running shoes and, and Nikes and.

[Vanessa Perdomo]

Things like that is the idea of them to be at these events that Unrivaled is hosting.

[Kim Basine]

They haven't really, they haven't revealed anything about what, how they're going to work this out. And I think that's something they are still figuring out how to, how to approach.

[Vanessa Perdomo]

They should have pop up stores because I don't know how many tournaments I used to go to and forget my cleats. I had to have a separate pair of cleats and each.

[Kim Basine]

You gotta buy cleats on site.

[Vanessa Perdomo]

I'd have to go to a store somewhere else and find someone because I didn't. I forgot them in my bag all the time.

[Scarlet Fu]

That makes a lot of sense actually. So Kim, you talked with Andy Campion, the CEO. Is there any sense that this is a company unrivaled that will at some point go public?

[Kim Basine]

Yeah, it's really, really early on. Right. They've only been around for one year and I believe it's. They host about 1.4 million visitors a year, 15 properties so far, looking to expand again. They're going to spend this, some of this $120 million they just raised on more properties, more leagues and more they own. Like Cooperstown All Star Village, which is a family resort, plus a baseball tournament for the kids where they.

[Scarlet Fu]

Yeah. Ira Budway wrote about it in Bloomberg Businessweek. Fantastic article, by the way. Wonderful story about callback to a previous Business of Sports podcast episode.

[Kim Basine]

Yeah. Ira really dug deep into this about private equity getting involved in youth sports and again, professionalizing this essentially.

[Michael Barr]

Right.

[Kim Basine]

It's becoming more corporate than ever now.

[Michael Barr]

They're talking about also getting into an opportunity. New England flag football.

[Kim Basine]

New England flag football. And they're rebranding it as unrivaled flag. Flag football is one of these areas in youth sports that everyone is paying attention to. You know, Nike, Under Armour, the NFL is. Says that they're. They're prioritizing this and trying to develop that so that they have more grassroots interaction with the sport in a way that's less, less dangerous for. For kids. Right. So flag football, big focus and unrivaled, thinks it's going to be their next big thing.

[Vanessa Perdomo]

I mean, everyone wants it to be their next big thing. Right. Leading up to the Olympics is the idea is unrivaled flag starting this year and leading up to the Olympics or when is that getting off?

[Kim Basine]

Yeah, it's. It's just been rebranded. Right. So it's been operating this whole time as, as flag football.

[Tom Keene]

But.

[Kim Basine]

But they're, but they'll still be going. And I mean, flag football. Anyone here play flag football?

[Scarlet Fu]

That makes sense. That also tracks. Vanessa.

[Vanessa Perdomo]

Yep. That was amazing.

[Kim Basine]

You were.

[Vanessa Perdomo]

I was. I mean, I almost didn't go to what position, Vanessa? I was a receiver and I also did play both ways, but I was mainly receiver. And I remember going. I almost skipped an entire college showcase one time to play the game causes only once a year when I played in high school. And I wish, I wish I had this opportunity that the girls have now. Right. Because it's made for girls right now. Right. It's a big focus.

[Kim Basine]

Yeah. And were you like a slot receiver or you were just mossing people in the.

[Vanessa Perdomo]

I was just mossing people. I was just mossing people. I was getting the obj catches. Actually, I would say more you guys.

[Scarlet Fu]

Are using terminology that Michael Barr and I are just shaking our heads at. Wait, Kim, I want to ask you about another story you wrote recently about PepsiCo and how it now has a chief sportsman officer. Oh, yeah. What does that chief sports officer do. Yeah.

[Kim Basine]

Brett O' Brien was named chief sports officer at PepsiCo. When I say PepsiCo, I mean the whole thing, right. That, that's Lay's and Frito Lay and Gatorade and Pepsi itself, Starry. All the stuff they own. And they've reorganized that their marketing arm into one big marketing thing. So previously you'd be like the Gatorade guy and you do all the Gatorade marketing in sports. But now they're. They've put it all into one division and are separating it by sport. So those experts, the NFL person and the basketball one and so on. And that allows them to really focus in on individual sports with these big anthemic campaigns. And the most recent one was the Gatorade campaign with Kendrick Lamar, his first one of these types of giant ad campaigns with a sports related brand. And they used all the stops on that one. Right. The athlete endorser list was Caitlin Clark. It was everybody.

[Michael Barr]

I mean there's a lot to this with this PepsiCo thing because I'm gonna get a little more into this because I mean, they're looking more into, I guess rebranding is the best way I want to describe it because like you said, used to be individual products. Now it's the whole complete picture.

[Kim Basine]

Yeah. And if you look at it from Frito lay's standpoint, right. You have all these properties, Cheetos and Doritos and everything. And if you sign a deal like they have with the World cup. Right. So Frito Lay is a sponsor of the World cup next year and they'll be running a bunch of programming around that. You want to get all these different brands involved. And by centralizing it, it gives you a better. You're putting the mindset where you're. Everyone's working toward one goal.

[Vanessa Perdomo]

And so we're going to see a messy hot Cheeto from this is what I am assuming.

[Kim Basine]

Oh, oh, man. Like, will they be shaped like Messi?

[Vanessa Perdomo]

Well, LeBron and Jason Tatum and all of these stars have their own flavors of chips.

[David Kohler]

They.

[Kim Basine]

Yeah, that. That is true. But I'm thinking the messy shape would really.

[Vanessa Perdomo]

That would sell.

[Kim Basine]

Would really hit it here.

[Scarlet Fu]

That.

[Kim Basine]

That Charizard shape just in time for World Cup.

[Scarlet Fu]

Right.

[Kim Basine]

Sold for like a million. It was crazy.

[Scarlet Fu]

I feel like this is kind of. It opens the door to other consumer packaged food companies to do something similar. Coca Cola perhaps might look into a chief sports officer as well. Because it makes sense from that point of view.

[Kim Basine]

Yeah, I think it does. And when you think about how involved These giant brands are with sports now. I mean, the sponsorship deals are just growing and growing and growing. More endorsements, athletes earlier in their careers and their lives are getting signed. It's essential, it's become an essential part to the advertising ecosystem.

[Michael Barr]

What happens too when you get, you're gonna see it. And that was a great question that you brought up, Scarlett, because when you put Coca Cola and Pepsi together, you're going to see all this going on. Here's going for the World cup, here's going for the Super Bowl. This is going to continue on. And like old man Barr has got to remember, just like they used to advertise gillette in the 1972 Super bowl, that's all going to change. This is going to be the wave of the future.

[Kim Basine]

Hey, Gillette's still around. They're doing, if you look at the, I think the best way to look at it is like the, the sneaker wars that have been going on forever, right? Nike, Adidas, all the Puma, all the, all the teams around the world, they're just hopscotching from place to place trying to win over leagues, trying to win over teams, trying to win over athletes. And you know, Nike signed what the German soccer national team. That is, that is quite something. It gets, it gets, you get all up in there.

[Michael Barr]

Our thanks to Kim Basine for joining us. He covers celebrities and athletes for Blue. Up next, we go behind the scenes at KPMG Sports Business for my colleagues Scarlet Fu and Vanessa Bernomo. I'm Michael Barr. You're listening to the Bloomberg Business of Sports from Bloomberg Radio around the world. The FIFA World Cup 26 is coming to North America next summer. It's the ultimate celebration of sports and culture and an opportunity to elevate your company. Get closer to where business meets the beautiful game with a premium hospitality package. Build partnerships in the best seats and suites. Achieve goals over world class food and beverage. Get closer to wins on and off the pitch. Register [e-mail] Interest Join Bloomberg in Houston.

[Sean Quill]

Or via livestream on November 4th for the Future Finding the Opportunities. This 2025 event series will examine how companies are invest investing in their businesses to create efficiencies, innovating their products and services and improving the customer experience. This series is Presented by Invesco. Q. Q. Q. [e-mail] FutureInvestorHouston that's Bloomberglive.com FutureInvestorHouston this is.

[Scarlet Fu]

Bloomberg Business of Sports from Bloomberg Radio.

[Michael Barr]

This is the Bloomberg business of sports where we explore the business of sports money issues in the world of sports. I'm Michael Maher along with Scarlet Fu and Vanessa Bernomo. Damien Sassauer will be back next week. KPMG US has a sports division that focuses on helping leagues, franchises and venues run their businesses. Joining us now is Sean Quill. He's KPMG sports industry leader and also heads up the sports sponsorship strategy. He is here now to take us through how his firm is is looking at the current sports landscape, the rise of private equity and more. Sean, welcome to the Bloomberg Business of sports.

[Sean Quill]

Great, thanks for having me.

[Michael Barr]

Well, let's talk about KPMG US and the firm that you are behind. Tell us about this firm.

[Sean Quill]

Yeah, KPMG is one of the big four accounting firms here in the US and globally. Here in the US we have 36,000 people and are in every major city. And I have the privilege of serving as their national sports industry leader. So I look after our sports practice which serves the leagues teams facilities, does sports deals and things like that. So it's a great place to be a part of.

[Scarlet Fu]

So let me ask you Sean, at KPMG, your group helped advise on Bill Chisholm's $6.1 billion purchase of the Celtics back in March. What surprised a lot of people is how the team was even up for sale given the Celtics had just won the NBA championship. And then it happened fairly quick. I'm curious what your firm did in the process and what surprised you most about this process?

[Sean Quill]

Yeah, it was a really interesting deal to be a part of and it was a privilege to advise Mr. Kissm on it. We provided financial due diligence and tax advice on the deal to Mr. Kissm in his purchase. And yeah, it is interesting that the Celtics were up. I think that a number of owners are considering investment more so than they have in the past. You know, the inflection of private equity, of rising valuations, the need for capital are all driving interest in either investors, both from a minority interest but also in this case a controlling sale. And the Celtics certainly are one of the premier franchises within the NBA, have such an amazing legacy and again are in the playoffs this year. And so it is one of those scarce, amazing assets. So we were fortunate to be part of it.

[Vanessa Perdomo]

Sean, what do you think it is about the current landscape of sports of ownership that is making more owners get more interest from investors, be more open to private equity and that sort of thing?

[Sean Quill]

Yeah, I mean for the owners there's a lot of benefits from private equity and other investors and so a number of owners that we're working with, we advise more than 50 of the sports franchises around the US across the five major men's sports. And, you know, they're looking for liquidity. In some cases, there's changes to family ownership structures, people that are looking to no longer be involved. They're looking for investment capital. I think the number one trend right now in sports is around facility renovation or new builds, so stadiums and arenas coming online and significant cost of investing in those new facilities. So private equity in particular offers a lot in that space in terms of not just the capital, but the business acumen to come alongside of it. And it does create a marketplace for valuations. All of this additional support. It's a fixed asset pool in terms of professional sports. There's only so many assets they're not increasing. It's not like a housing market. Nobody's building more franchises. There's a few potential in the future as we have expansion, but it's a fixed asset pool. And as the valuations rise, it gets harder and harder to purchase those assets. You know, there's rules in terms of how much the principal owner has to put up, and so fewer and fewer people can afford that. And so, you know, I think that that makes it really interesting when they come across the market. But, you know, from owners seeing those valuations rise, I think some of them are looking to cash out. I think there's changes in family dynamics in other cases and. Or dreams of doing other things. And better to build a new facility with someone else's money than their own.

[Michael Barr]

As a sports guy, this is the only time I can say, especially in the NBA playoffs with the Knicks and the Celtics, that both teams are playing at the Garden. I can say that, and I will not be wrong either way. And which. Which has to be a big shot in the arm, especially from this big acquisition of the Celtics. And, you know, the team has just been super duper successful.

[Sean Quill]

Yeah. I mean, what an exciting series. There's a bunch of them going on right now, and they're thrilling to watch. And it was great to. I mean, for me, we have a relationship with Stephen Curry. So it's great to see the warriors clinch in game seven and move on to the next round. And that's great for basketball. And, you know, you're right. It's an exciting time for the NBA NHL playoffs, of course, going on at the same time. I mean, with the NBA, I think, you know, we've seen the belief in the reliability of the business in last year's. Media rights deal, a record deal for the NBA, $76 billion. It was 160% per season increase in meteorites. So you think about how significant that is. And that is obviously something like that drives the valuation of the Celtics. Interestingly enough, though, in the Celtics deal for the 6.1 billion valuation, it doesn't even include TD Garden to your garden reference. You know, the Celtics don't own the garden. So that is actually, to me, especially interesting that I think we're going to continue to see soaring valuations in sports. You know, even though the Celtics are one of the top franchises, doesn't include the building, doesn't have their own media network, you know, there's a lot of aspects to it that drive those valuations and certainly those are part of it. So, yeah, an exciting time right now in basketball and in hockey.

[Scarlet Fu]

Yeah, I'm glad you mentioned how that deal did not include the facilities. It just speaks to the brand value of something like the Celtics. You had mentioned, Sean, that it's better to build with someone else's money than your own as a reason for teams and franchises to take on institutional investors. If you look at the New York Giants, the Mara and Tisch families are looking to sell some of their stake in the New York Giants. They were looking to spread that stake around to two to three wealthy individuals and families. As opposed to private equity. What is the argument for team owners wanting to keep PE out of the team for now?

[Sean Quill]

Hmm, that's a great question. I think that it's going to depend on each ownership group and their personal preferences. I do think that private equity is attractive to a lot of owners. It not only brings the capital, but it also brings the business acumen that I mentioned. You know, private equity is accustomed to running and operating businesses, making them more efficient, realizing the value of data and analytics. And sports is primed to have that kind of inflection of business acumen. In particular data and analytics. In terms of new facilities and new stadiums, and just in terms of the loyal fan base, you're only at the tip of the iceberg in the industry in terms of leveraging data. There is so much potential. We know so little about the typical fan, about why they come, when they come, what they consume while they're there, what would bring them back, how you get them to come more frequently. And I think most franchises are not leveraging that data. Well, the infrastructure in terms of the technology is available, but it's not yet there or it's not integrated or they're not pulling the insights out of that data. And so in my mind, private equity really offers a lot of value to that mix. But yeah, in the case of certain owners, some that have owned the team for a long time, they're not looking to, you know, have that much of a change in terms of the way that things are governed or structured or run. It may just be bringing in that capital. It may just be bringing in others that could add to their ownership group in a positive way. And I saw one of the rumored individuals we also have a relationship with, so I won't comment on it, but obviously adds to the further brand and the legacy of the franchise. And so there's other reasons to bring in investors. And you know, I think we are seeing more and more of a trend of former athletes and celebrities getting interested and involved in sports.

[Vanessa Perdomo]

You know, we love to see athletes get involved in ownership and I think it adds a lot to, to them, to their capital, like you said, and to the brand as a whole. Like we potentially will see with Eli Manning and the Giants one day maybe. But as we talk about the facilities, you know, I want to get a little bit more into that and why, I mean, you said we don't know a lot about the fans that are coming, what brings them back and things like that. But then we see places like Capital One arena, where the Washington Wizards and Washington Capitals play, and they added a whole new immersive art exhibit to the arena, which is not necessarily a sports thing, but it is something to add to the arena. Tell us about why something like that adds to the facility. Why? Maybe it brings in. Does it bring in new fans? You know, why do it?

[Sean Quill]

Sure. Well, Monumental Sports and Entertainment. So the Capitals, the Wizards, the Mystics. So in the heart of our nation's Capital in Washington D.C. is actually a client of KPMG's. We're advising them on their fan experience. They're embarking on a billion dollar project to basically rebuild that arena in the heart of the city and adding a lot to it in terms of mixed use, real estate and technology. And your question is a really interesting one. I think if you think about the fact that most of these owners own their own buildings, it's sort of akin to having a vacation house and not using it much. They only have the lights on mostly in the evenings around games. You know, in the case of Monumental Sports and Capital One arena, they've got at least two teams. They've got an NBA, NHL team from the men's. They now are putting more of the Mystics games in that arena, given the surge of popularity of the wnba. And so they're able to fill that building. But if you're not using the building, you're not generating revenue. It's, you know, it's just sitting there unused, unutilized. And so they are looking for all sorts of creative ways to keep the doors open more frequently. You know, a few years ago, they were the first arena put in an arena sportsbook with Caesars that keeps the doors open, you know, 24, 7, 365 days a year. KPMG actually put in a new business suite inside of the arena about two years ago. We actually use it as an office where we meet with our clients during game days or non game days, but off of game day hours. So we'll go in there, have a client meeting with our clients and then maybe transition and watch a hockey game or a basketball game inside the arena. So for the arena and for the owners, it means new revenue. It means using the building more frequently. And that's the game. Right. They want concerts, other non sporting events in the arena as much as possible. And they want it to be a center point in the community as well. You know, to bring people together and have a place where everybody meets there and is part of the experience there.

[Michael Barr]

I know we're running short on time, but I have two letters, AI, which if you're a poker player, stands for all in, if you have pocket aces. But that's old school. That's the old school. But we're not. Artificial intelligence is here to stay. It's not going to go anywhere. And how does that incorporate into your business model when you are doing sports deals?

[Sean Quill]

Absolutely. Well, I mean, whether we're auditing a team or providing tax compliance or advising on the fan experience, AI is a critical part of all. You know, we leverage that within our own systems and processes for how we serve our clients in those first two areas like audit and tax. And you know, from a consulting standpoint, what we're doing at Monumental Sports as a continued example, in the fan experience, AI is central to that. I mean, that is how you derive the insights from the technology. If you think about like say frictionless concessions, how you come into the arena, or how you buy merchandise or buy food and beverage, it's not just for efficiency, it's not just for convenience. But the arena owners or the technology is able to drive insights from your behavior from seeing that. And AI helps make that more efficient. We're only starting to crack the code in terms of how to leverage that in sports. And there's a lot of great tools that are emerging and are available where you can then take those insights and then change the way that you design your fan experience to better leverage those insights.

[Michael Barr]

Our thanks to KPMG US's sports industry leader, Sean Quill. Up next, we turn to golf and the Kohler family's long history with the sport. With my colleagues Scarlet Fu and Vanessa Perdomo, I'm Michael Barr. You're listening to the Bloomberg Business of Sports from Bloomberg Radio. Around the world.

[Akshat Rathi]

There are two kinds of people in the world. People who think about climate change and people who are doing something about it. On the Zero podcast we talk to both kinds of people. People you've heard of, like Bill Gates.

[Sean Quill]

I'm looking at what the world has to do to get to zero, not using climate as a moral crusade.

[Akshat Rathi]

And the creative minds you haven't heard of yet. It is serious stuff, but never doom and gloom. I am Akshat Rati. Listen to Zero every Thursday from Bloomberg podcasts on Apple, Spotify or anywhere else you get your podcast.

[Scarlet Fu]

This is Bloomberg Business of Sports from Bloomberg Radio.

[Michael Barr]

Thanks for joining us on the Bloomberg Business of Sports where we explore the big money issues in the world of sports. I'm Michael Barr along with Scarlet Fu and Vanessa Bernomo. Damien Sassour is off. This week, PGA of America held the PGA Works Collegiate Championship presented by Chase and Kohler. The venue was Whistling Straits, which is owned by the Kohler family, which has a long standing relationship with golf. Here to talk to us about the Kohler family's golf ties, the tournament and its future is Kohler chair and CEO David Kohler. David, welcome to the Bloomberg Business of Sports. By the way, I just bought a sink from you guys, the shameless plug.

[David Kohler]

Hey, we appreciate it. Thank you so much, Michael and Scarlett, I'm delighted to be here.

[Michael Barr]

Thank you, sir. You just presented the PGA Works Collegiate Championship, which is nice and that's for the first time. Tell us about that.

[David Kohler]

Yeah, well, it's, it's such a great honor. It's such a great event. If you look at the 38 year history of this event and what it means to the game of golf in terms of growing the game of golf. It's done so much over the years and I think as you know, the PGA of America and the PGA of America's foundation, the PGA Reach foundation, really anchor this and, and run and then we are very honored to be a sponsor and partner. We signed a six year agreement for this so we sponsored over six years and Then we host the event twice, and there's 180 participants. And they're coming from schools across the country, predominantly HBCUs, but there's some contestants from non HBCU schools. And these are incredible student athletes. I mean, just to play at this level of golf is one thing, but they're also great students. They're ambitious about their future career. That could be in the game of golf. It could be a professional golfer, it could be in the golf industry, or it could be in other professions. And this is really a gateway for those students to compete at a high level and also work on the next steps of their career progression. So we couldn't be more honored to participate in this.

[Scarlet Fu]

And you're a passionate ambassador for this program as well, this event. Can you tell us a little bit, David, about how Kohler got involved in this event? What was the history of it?

[David Kohler]

Yeah, you know, we've been really good partners with the PGA of America, you know, for decades. And that was started by my father and the PGA of America long ago. We've hosted three PGA Championships here at Whistling Straits and then Just recently, the 2021 Ryder cup, which many would call one of the greatest Ryder Cups in the history of golf. So our relationship with the PGA of America goes back a long time. And then we've also been very involved with PGA Reach, their foundation. And my wife Nina is actually the incoming chair of the PGA Reach foundation, and she's been a trustee on that foundation. So we've been involved with the philanthropic arm of the P. PG of America as well as the PGA of America over the years. So this was just a natural extension as we look forward and really want to get more intentional on helping to grow the game of golf and helping youth. This was a great step. And we'll be doing more with amateur championships in the future and events like that.

[Vanessa Perdomo]

You know, I think it's, you know, as we're talking about the partnership you guys have and. And growing the game and things like that. Kohler will also provide a grant to the PGA Works the HBCU Golf towards the HBCU Golf Scholarship Endowment. Tell us about having growing the game in that way and providing a more diverse opportunity for other people in a narrow space.

[David Kohler]

Yeah, and I think, you know, all of us know that, you know, golf is not an inherently diverse sport. Right. Even though some of the greatest players in history have been diverse, but inherently just given access to the game, it's been more difficult to have a high diversity sport. So I think the PG of America is very interested in that, you know, as all of us, you know, who love the game of golf because of how much it does for individuals and growth and how much it can add value to society more broadly. So there's a definite interest there. And if you look at HBCUs in general, they account for about 3% of universities in the United States, but 20% of the black population are African Americans graduate from HBCUs. So they provide an incredible resource to the United States and to the world. And making sure that they have a championship level competition that some of the bigger schools might have and bigger golf programs might have, we think is an important part of this, you know, growing the game and making sure that, you know, those minority serving institutions have, you know, a grand championship, if you will, and access to sponsors and other companies and, you know, of the profile that, you know, so the bigger schools would have. And so, you know, this has been nothing short of that. I mean, we've been very proud to host it and create an event experience here that's, you know, just as good as a major championship, if you will. Obviously it's not going to have the number of spectators and sponsors, but in terms of the hospitality, the way the players are treated playing on one of the greatest courses in history, that all the greatest players have walked and played, this is a real championship experience for these student athletes.

[Michael Barr]

I want people to understand. PGA of America, you guys have over 30,000 members, both men and women, and they are golf pros. And even more important, as you talk about growing the game and they work at over 10,000 golf facilities worldwide. Can you tell us more about that?

[David Kohler]

Yeah, it's so important. And that's really what the PGA of America does. I mean, it's an organization in service of and supported by these 30,000 PGA professionals that work across private clubs and public courses and municipal courses all over the country. And yeah, it's really important. And I think their support of diversity and what this means has been foundational for the success of this. Because if not for them wanting to do this, and they're seeing that importance of growing the game in real time because they're there on the front lines in all of these clubs and courses, working with, you know, younger players, growing players, and they're seeing how the game is diversifying and how it's growing and the importance of this because not only for professional athletes, but also the golf industry is a big industry. So we want to see many of these kids, these student athletes also find careers in the golf industry, whether it's in golf course management superintendents or running clubs, in general management or being a PGA professional.

[Scarlet Fu]

Yeah, talk about that part a little bit here, because before the pandemic, it felt like golf was, you know, going, I don't want to say on its way out, but this idea that it wasn't attracting the numbers it needed to in terms of young people, in terms of a more diverse population. But the pandemic changed all of that because people needed to find a way to stay active and be outside and be socially distant. And golf provided that opportunity. So I'm curious to hear more about the gulf adjacent industries that exist and the prospects for growth there.

[David Kohler]

Yeah, you know, Covid was one of the best things that ever happened to golf. The numbers really exploded. And the best thing about that is it's continued on the growth trajectory. So I think that rebirth of the game and people getting back into the game, younger people getting into the game, that trend has continued. And our courses here in Kohler, Wisconsin have continued to have record years after the Ryder cup in 2021 because of this trend. And the other thing has been off course golf, meaning all the video golf, the top golf and the studios opening up around the country and clubs that are bringing golf and access to urban areas. You know, joining a golf club is expensive. The wait lists in all the top urban markets today could be three years, five years. So younger people, younger families in their 20s and 30s, you know, they don't have access necessarily to these clubs, but they can join one of these new emerging clubs like Uptown Golf or some of these that are emerging where you can have a membership and go in and play video golf. And there's a bar, restaurant, there's workplaces if you want to work there and then work on your game, play around. I think that is really helping to grow the game too. Is that growth in video golf and off course golf here in the United States, a trend that you've seen in Korea and other markets for many years, but now it's really having more of a place here in the US too.

[Scarlet Fu]

I'm so glad you mentioned that. Video golf and of course, golf being where young people find an interest, develop an interest in the sport itself. I'm curious. Tgl, of course, just had its first season and it's been, you know, definitely gotten a lot of attention. It has a lot of professional players with some big owners behind them. How do you see that developing the next generation of golfers, the kinds that will eventually be playing in the pwcc?

[David Kohler]

Yeah, you know, I think the trends, I think the trends, it's right on trend and it's creating a different way to watch. You know, it's coming on in the, in the evenings, you know, so you can, you can watch it more in prime time in a, in a, you know, in a bite sized chunk versus having to, you know, commit an afternoon to watch, you know, a whole tournament. So I think that's good. You know, so it's, it's an interesting new product. I think it's still in early days. I think they've got to continue to work with the product to continue to make it more exciting, maybe a little more smack, a little more, you know, interest and, and wow. Because, you know, professional players today are just that, you know, they're, they're not actors and actresses, they're professional, focused players. And so I think, you know, mixing it up maybe with a Kevin Hart in there, here and there to commentate some other things, you know, to spice it up is probably what they need. But you know, the competition itself is, you know, these are top players and they're, you know, they're playing to win against each other. So I think they, they have it there. But we just need to continue to spice up the theater.

[Vanessa Perdomo]

I'm all for bringing Kevin Hara and Snoop Dogg together like how they did for the Olympics.

[Scarlet Fu]

Totally agree.

[Michael Barr]

All right, listen up and listen good. Our thanks to Kohler chair and the CEO David Kohler for joining us. And thank you for my colleagues Scarlet Fu and Vanessa Perdomo. I'm Michael Barr. Don't forget to subscribe to the Bloomberg Business of Sports podcast. Find that on Apple, Spotify and all your favorite podcast platforms. Tune in again next week for the latest on the stories moving big old money in the world of sports. You're listening to the Bloomberg Business of Sports, Bloomberg Radio around the world.

[Tom Keene]

This is Tom Keene inviting you to join me for the Bloomberg Surveillance podcast. It's about making you smarter. Each and every business day, we bring you a recap of what happened overnight in Europe and Asia. The day's economic data and complete coverage of the US Market open. We cover stocks, bonds, commodities, currencies, even crypto. All the information you need to excel. Bloomberg Surveillance also brings you the analysis behind the headlines. We do that with lengthy conversations with our expert guests. The smartest names in economics, finance, investment and international relations. We do all this live each and every weekday, then bring you the best analysis in our daily podcast search for Bloomberg surveillance on YouTube, Apple, Spotify, or anywhere else you listen on the East Coast. Listen at lunch and on the west coast when you wake up. That's the Bloomberg Surveillance Podcast with me, Tom Keene, along with Paul Sweeney and Lisa Mateo. Subscribe today wherever you get your podcasts.