Bloomberg Business of Sports – Episode Summary

Date: February 13, 2026
Episode Theme:
A deep dive into the huge financial shift prediction markets brought to Super Bowl Sunday and a look at the modern NBA business model, focusing on the Charlotte Hornets’ evolution under new leadership. The episode also features a discussion on institutional investment in Minor League Baseball.
Hosts: Michael Barr, Vanessa Perdomo
Guests: Denitza Sakova (Bloomberg News, Cross Asset Reporter), Shelly Cayet-Weston (President of Business Operations, Charlotte Hornets), Mike Carney (CEO, On Deck Partners)

1. Prediction Markets & Sports Betting at the Super Bowl

[02:30–14:22]

Key Insights & Discussion

• Super Bowl Betting Records Shattered

  • This year, prediction markets (like Kalshi and Polymarket) saw record trading volumes tied to the Super Bowl.
  • Over $1.2 billion in trades and bets were processed just on game day, a 12% jump week-over-week, with an estimated $5 billion in total wagers leading up to the event.
    • Denitza Sakova: “A great day for them... a record for Kalshi was around $870 million and this is 60% higher than the busiest day.” [03:32]
  • The increase in activity was attributed to the novelty of prediction markets and expanded offerings, including not only game outcomes but entertainment props (performers, halftime events), and combo bets.
    • Sakova: “It was about Cardi B. It was about Bad Bunny, Lady Gaga. So there was a lot of buzz that was beyond traditional bets.” [04:05]

• Growth and User Trends in Prediction Markets

  • Kalshi app downloads surged, reaching #2 in the App Store on Super Bowl Sunday, significantly outpacing established sportsbooks like DraftKings.
    • Sakova: “Kalshi was number two in overall the App Store... much, much higher than DraftKings and FanDuel.” [06:18]
  • A large portion of new users are younger (especially 18–21 age group), as prediction market platforms typically accept users 18+, not 21+ like traditional sportsbooks.
    • Sakova: “In most of them you have to be above 18... that’s a pretty big audience.” [09:27]

• How Prediction Markets Differ from Sportsbooks

  • They claim to have “no house,” with peer-to-peer trading and market makers (sometimes major Wall St. firms) setting liquidity and prices.
  • Some bets are easier to price; others (like “did Cardi B perform?”) are fraught with ambiguity, leading to disputes akin to regulatory “gray areas.”
    • Sakova: “The drama on prediction market was all about performance... Prediction markets is actually settling. Figuring out what’s a yes and what’s a no, and how much additional drama it causes.” [10:07]
  • This flexibility creates both opportunity and risk (insider information, ambiguous results, and regulatory confusion).
    • Sakova: “You’re going to financialize everything, you’re going to bet on everything... opens a whole Pandora box.” [12:18]
    • Michael Barr: “How can you not know somebody’s going to be singing there—someone’s already placed a bet?” [13:44]

Notable Quotes

• On the extent of the trading boom:
  • “This is a 12% increase from the previous week. Pretty, pretty strong estimates.” — Denitza Sakova [03:40]
• On resolving ambiguous bets:
  • “No one probably imagined that such a thing will cause so much drama, but clearly just shows you how hard it is actually settling.” — Denitza Sakova [11:25]

2. Charlotte Hornets: Business, Culture, and Growth

[16:49–29:12]

Key Insights & Discussion

• Momentum on and off the Court
  • The Hornets’ rookie, Con Knouple (“Beast Knipple”), highlighted as a promising force selected fourth overall in the 2025 NBA draft, set an early tone for a young and energetic team culture.
    • Shelly Cayet Weston: “His energy, his commitment, his dedication... he was still playing because he’s so committed.” [18:04]
• Building a Culture of Winning
  • New ownership (Rick Snull, Gay Plotkin) focused on setting a premier culture. Their hires (GM Jeff Peterson, Coach Charles Lee) embody a vision prioritizing excellence, resilience, and camaraderie.
    • Shelly Cayet Weston: “They’re passionate about winning... we have one vision which is... to be a premier franchise.” [22:07]
• Market and Community Connection
  • The Hornets are rooted in a region with a rich basketball legacy and rapidly growing population (157 new residents/day), requiring strategies to engage both legacy fans and newcomers.
    • Shelly Cayet Weston: “We have a market that understands civic engagement... we’re also in a top-ranked state for business.” [23:38]
• Women in Sports Leadership
  • Shelly’s own Division 1 basketball background is discussed as crucial to her leadership style—tenacity, teamwork, navigating adversity, and a drive for opportunity.
    • Shelly Cayet Weston: “All of those skill sets came from basketball... leading the organization, it’s all about team.” [25:31]
• Facility Upgrades and Business Growth
  • The Hornets are investing in a new, state-of-the-art practice facility opening next year, a key pillar for talent retention, community integration, and business partnerships.
    • Shelly Cayet Weston: “If we do that right, we’re going to get partners that align... and then the valuation comes.” [27:15]
  • Unlike some franchises, ownership’s number one focus is not valuation—but cultivating a sustainable, winning culture on and off the court.

Notable Quotes

• On franchise foundations:
  • “It was really that early team camaraderie that started... we certainly saw a glimpse of that in summer league.” — Shelly Cayet Weston [19:02]
• On market challenges/opportunity:
  • “It’s a growth market... legacy fans but a lot of transplants. It’s literally about connecting.” — Shelly Cayet Weston [23:38]

3. Institutional Investment in Minor League Baseball

[32:10–43:34]

Key Insights & Discussion

• On Deck Partners & the Minor League Model
  • Mike Carney discusses On Deck Partners’ rationale for acquiring the Montgomery Biscuits (AA, Tampa Bay Rays) and Visalia Rawhide (A, Arizona Diamondbacks), emphasizing deep ties to small and mid-sized communities.
    • Mike Carney: “We see a lot of value in these teams that are in these... markets that really have rich, rich history.” [32:55]
• Why Private Equity Is Entering the Space
  • Minor league teams usually run by “mom and pop” local owners; new capital enhances facilities, brings professional management, and helps scale local operations.
  • Institutional investors are betting on the ongoing health and growth of “Tier 2 and Tier 3” markets and the central role of the ballpark as a community hub.
    • Carney: “You have to believe that America is going to continue to thrive not just in the biggest metropolises...” [40:13]
• Business Case for Minor Leagues
  • Family-friendly, affordable entertainment is the unique selling point—a contrast to skyrocketing ticket prices elsewhere.
    • Carney: “We are going to maintain that history... family friendly, affordable, fun for kids.” [38:41]
  • Partnerships with local employers, military bases, and universities are crucial to building attendance and relevance.
• Industry Trends
  • Competition/adaptation is increasing as firms like KKR and Arctos buy into sports assets. A “rising tide lifts all ships” approach—institutional investment expected to benefit all clubs.
    • Carney: “The more parties... make this better, this is a rising tide lifts all ships kind of scenario.” [42:34]

Notable Quotes

• On value creation:
  • “Investing in these hyper local markets, it can be very fragmented. We have the ability now... to scale that well.” — Mike Carney [35:08]
• On business focus:
  • “We’re going to have a relentless focus on the fan... kid’s play zone for kids, cold beer for the adults.” — Mike Carney [38:41]

Memorable Moments & Highlights

• Gambling’s Entertainment Expansion:
  • Betting is increasingly about “the show, not just the score”—with contract disputes over subjective categories (Cardi B, Lady Gaga appearances) adding drama, fun, and complexity. [10:07–13:38]
• Basketball as a Leadership School:
  • Shelly Cayet Weston’s story embodies how sports prepares women (and men) for top executive roles. [25:05–26:46]
• Economic Optimism in Secondary Cities:
  • Investment in minor league baseball signals big-money faith that growth won’t be limited to America’s largest cities, but will extend to regional centers. [40:13]

Timestamps by Section

• Prediction Markets & Super Bowl Betting: 02:30 – 14:22
• Charlotte Hornets Franchise & Business: 16:49 – 29:12
• Minor League Baseball & Institutional Investment: 32:10 – 43:34

This summary covers all major topics and stories, with speaker quotes and highlights, omitting advertisements and non-content sections.