Super Bowl Gives Prediction Bets Record Trading Day; Charlotte Hornets' Shelly Cayette-Weston

Summary

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)

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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]

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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

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

Transcript

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This is the Bloomberg Business of Sports where we explore the big money issues in the world of sports. I'm Michael Barr.

[Vanessa Perdomo]

And I'm Vanessa Perdemo.

[Michael Barr]

Damian Sassauer is out this week. Coming up on the show, we speak with the president of Business Operations for the Charlotte Hornets, Shelly Cayet Weston.

[Vanessa Perdomo]

Plus, we'll talk about the business of minor league baseball.

[Michael Barr]

That is straight ahead on the Bloomberg Business of Sports. But first, let's look at some of the top stories of the week. Beginning of course with the Super bowl and that will do it. Seattle reigns above them all in the NFL.

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The Seahawks, super bowl champions for the second time.

[Michael Barr]

Super Bowl Sunday is one of the busiest days of the year. I'm excited about talking about the super bowl for sports betting. But this year, prediction markets stole the show.

[Vanessa Perdomo]

To talk more about prediction market trading on the big game, we welcome Bloomberg News cross asset reporter Denitza Sakova.

[Michael Barr]

Denitza, welcome to the Bloomberg business of sports.

[Denitza Sakova]

Hi there. Thanks for having me.

[Michael Barr]

In the immortal words of Vince Lombardi, everybody just bet, bet, bet, just bet the gambling stocks super bowl prediction bets record $1.2 billion on trading day. Tell us more about that.

[Denitza Sakova]

Yeah, the numbers are staggering. Kalshi itself said that they registered over 1 billion in trades related to the Super Bowl. This is of course over the season. But when it comes to the big game and the day, we got some interesting number from bank of America. They look at the volume, both poly market and KI and they say for Sunday got 1.2 billion. Really, really high number. Another, another number from Piper Sandler that we got is for the week we got about 5 billion of wagers for both Poly Market and KI to get KI together. This is a 12% increase from the previous week. Pretty, pretty strong estimates. Of course we saw, saw a lot of hype about prediction markets going into this. I think some of the projections were quite bullish. A lot of people were saying, oh, this will be like 10 times our busiest day, which is not the case. It was a very strong day. Obviously a record for Karshi was around 870 million and this is 60% higher than the busiest day, which obviously there is there, there. No one can argue this was a, a great day for them. But perhaps, you know, maybe some of them had even more bullish targets for that. But nevertheless, there were many different markets. It wasn't about the game, it was about the performance. It was about Cardi B. It was about Bad Bunny, Lady Gaga. So there was a lot of buzz that was beyond the traditional bets we were expecting.

[Vanessa Perdomo]

The interesting thing about this and these numbers are how they, they've skyrocketed, right? So last year was the first time that Kalshi was even allowed to or they operated on the super bowl, right?

[Denitza Sakova]

Yeah, for sure. And the last year's numbers pretty much look like peanuts now. It was just like less than 200 million. Now, obviously numbers, I mean, there were some comparisons and people were like, oh, it's up to 3,000%. But I think it's really hard to compare because last year it was, it was a small thing. It was at the beginning people weren't really using their apps. A few interesting trends we're seeing, for example combos parallels. Those bets are were really high on super bowl day. I was looking at the Kalshi number about, about once 160 million were in combos volume, about 18 of the Sunday volume. So that's a pretty interesting trend to watch. Obviously when it comes to app downloads, this is something we've been talking about. We know all the sports books, obviously they have been around for quite some times. They have millions and millions of active users. But when it comes to acquiring new users, the competition has been heating up and Kali has been doing very well in terms of app downloads. On the day, bank of America is saying that Kalshi was number two in overall the App Store. They're also giving a shout out to DraftKings which, which was actually number five. But even going into super bowl the January downloads downloads number for Kashi were pretty strong. We saw around 3 million which is much, much higher than what we saw for DraftKings and Fangio is it was about 600,000. So definitely a lot of new users were going to those apps and it was a really strong season and they were betting on sports, they were betting on entertainment and they were placing those combo bets. It was really a combination of all the new buzzy things that prediction market does.

[Michael Barr]

Denizia, this is something new. When I'm used to betting on a game, I'm used to like Benny the Bookie or maybe I'll go to DraftKings and this, that, whatever. And now with Kalsheet this is like the prediction market. It's a totally different atmosphere.

[Denitza Sakova]

Yeah, it's a different. There is no house. That's what they say. That of course is kind of a level. There are a lot of issues with that. Of course prediction markets comes with market makers and when you think of market makers, you have to think of all those big Wall street names that are handling the plumbing for stocks and bonds. And you know we've been talking about Jane street, we've been talking about Jump, we've been talking about especially Susquehanna in is a Kashi prediction is a Kashi market make. So there definitely is that activity. Of course the whole concept in prediction market there is a rivalry, there is a lot of criticism against sports books that you know they're against the average player. When prediction market we get this peer to peer experience, I trade and you trade on the other side and is a more fair game of Course we're yet to see because there are many different analysis of how much the average lose, average user loses and etc. Etc. But what we heard about the game, for example is Jordan Bender from Citizens said the pricing on prediction market was a little bit better on the day of the game. Of course it really depends. There's not. His analysis has shown pretty different numbers over time. But when it comes to the game itself, we're definitely so some better prices from prediction markets compared to bookies.

[Vanessa Perdomo]

I think the interesting thing to me is the boom. Just because people are like this is new, I want to try it out. Or is it because of all the different things they offer because people are allowed to bet on the halftime show or trade on those things too?

[Denitza Sakova]

I think it's a combination. I feel as though with Sportsbook obviously you have a more limited audience in the first place that obviously prediction markets is in more states. You have layer on that that prediction markets can be accessed by people under 21 which were sportsbooks.

[Vanessa Perdomo]

That is another thing that's very odd to me.

[Denitza Sakova]

A really big audience. Yeah.

[Vanessa Perdomo]

So there's no age limit at all on product markets.

[Denitza Sakova]

No, I think in most of them you have to be above 18. But you know, in. In between 18 and 21 that's a pretty big audience of people who are probably quite excited about sports.

[Co-host/Commentator]

Right.

[Denitza Sakova]

So that's definitely help him.

[Michael Barr]

And that's another thing that people can bet on through Kalshee and they did trying to predict who are going to be the guests during the halftime performance for Bad Bunny. In case people didn't know, remember that wedding sequence that you saw that was for real. You know, you saw them smack, drool, give a good kiss and then they separated. And here's Lady Gaga and I'm sure, I'm wondering if people bet on that and many other performers.

[Denitza Sakova]

Yeah, I mean that was where all the controversy was. There wasn't too much drama when it comes to the outcome of the game and the bets about it. But actually the drama on prediction market was all about performance. For example, Cardi B caused a lot of drama because she was present and there was a bet on who is going to perform on the super bowl. And she was was lip syncing, she was dancing. So we saw two different outcomes. We had pretty much the same bet on Kalshi, pretty much the same bay on Polymarket. What happened is that Kashi stepped in to resolve the contract and they pretty much resolved it at where it stands. So it was like $0.76 for yes and like 20 something for no. Polymarket took a totally different approach based on their rules. It counted that this was a yes and she did perform. But the way prediction mark Kit works is that after this is resolved, you can get disputed. So it's been disputed twice. So it was a complicated bit that no one probably imagined that such a thing will cause so much drama, but clearly just shows you how hard our prediction markets is actually settling. Figuring out what's, what is a yes and what is a no and how much additional layers of drama it causes after a bed is done.

[Mike Carney]

Right.

[Vanessa Perdomo]

As we were talking about that just then, it kind, it kind of almost changed my mind. I feel like maybe she didn't perform. Like, I guess if you're, if we're talking about performance, but I personally predicted that two people would perform and then five people would like kind of just show up. So I feel like it is different. But on that is the reason, like we're looking at the controversy there and all of that. Like I'm, I'm wondering because sports bets don't have that problem like, like with prediction markets they have this, this problem that they need to figure out. Is that why they're so much riskier? Like how do you regulate that stuff? I guess is what I'm really trying to figure out. How do you regulate what's on prediction markets? And that's why sports betting. Is it safer, would you say?

[Denitza Sakova]

No, that's a great point. Because sports betting is something that's been around for a while. If you'd like, there are like more limited number of topics and things you bet. Like the whole concept of prediction market is like, oh, you're going to financialize everything, you're going to bet on everything. You're going to bet on music, you're going to bet on. Jesus Christ return. You can bet on pretty much everything. And that opens a whole Pandora box of like, oh, but how do you define what's a yes? How do you define what's a no? If it's something as abstract, how do you even define it will happen if someone manipulates it? What if it's a mention mark market? And I'm aware, I'm the Coinbase CEO and I'm on an earnings call and I just start reading all the words on the mention markets, which has happened. It has happened. Yeah, it's a complete mess. Obviously this is harder to do on Sportsbook. There is a whole insider trading issue with prediction markets that they have been fighting with and it's kind of really hard to figure out Even if I'm like a performer or I oversee like I randomly see Bad Bunnies rehearsal and I know so much about performance and I. The money. But then it's not necessarily insider information. I just pass by. So am I an insider? What if I make money? It's just like a. Pretty much the wild, wild west of just like all this foundation contracts.

[Vanessa Perdomo]

It's the thing I just can't understand about it. It's someone who's working in the stadium. Yeah. They don't know Bad Bunny.

[Michael Barr]

They.

[Vanessa Perdomo]

They didn't talk to him about his performance, but they saw all the rehearsals and they could have put up all the money.

[Michael Barr]

Yeah, that's a very good point because I mean, unless Lady Gaga was, you know, know, in a big barrel and she's just wheeled out there at the last minute, how can you not know somebody's going to be seeing that? Someone's already place a bet? I mean, you can't. You. It's. There they are. I don't see how you can avoid it.

[Denitza Sakova]

And are those people insiders? Did they sign an NDA, not to mention it? Are they allowed to bet in? I mean, how do you even deal with that? How do you prepare? Like, do you sign NDAs for every single bet on the market? Right, Koshi? It's. It's a gray, gray area.

[Vanessa Perdomo]

Our thanks to Bloomberg News cross asset reporter Denita Sokoba.

[Michael Barr]

Up next, we turn to basketball and speak with president of business operations for the NBA Charlotte Hornets for Vanessa Podomo. I'm Michael Barr. You are listening to the Bloomberg Business of Sports Bloomberg Radio around the world.

[Denitza Sakova]

This sports spotlight is brought to you.

[Shelly Cayet Weston]

By Capital One Venture X Card, founding partner of iHeart Women's Sports. Did you know that 1998 was the first year that the Olympics featured a.

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This is 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.

[Vanessa Perdomo]

And I'm Vanessa Perdomo.

[Michael Barr]

We turn now to the NBA now that we're at the unofficial halfway point in the season, the NBA All Star Break.

[Vanessa Perdomo]

All Star Weekend festivities are going on in la, but we wanted to head to Charlotte to check in on a franchise that's got a young core and has been playing pretty well. The Charlotte Hornets.

[Michael Barr]

Yes, they have. Joining us now is Shelly Caillette Weston. She is the president of Business operations for Hornets Sports and Entertainment Group, the owners of the Charlotte Hornets and operators of the Spectrum Center. Shalei, welcome to the Bloomberg Business of Sports.

[Shelly Cayet Weston]

Thank you for having me.

[Michael Barr]

You know, I have to bring this up because you have someone who's going to be in the All Star Game and this young man, Con Knouple, AKA.

[Shelly Cayet Weston]

Beast Knipple's already made a pair.

[Michael Barr]

He's got three.

[Mike Carney]

Oh my goodness.

[Michael Barr]

The con man. This young man, he was first round fourth overall in the 2025 draft. And I see why you picked this guy.

[Shelly Cayet Weston]

Absolutely. Khan has been amazing and he has been amazing on and off the court. I have to tell you, you know, his energy, his commitment, his dedication. A lot of people don't realize, you know, he actually played when he was at Summer league. When we won the championship. That was, you know, this winning and this momentum started really in the summer, during summer league and he was playing with stitches in his head. He got ahead, but. And he was still playing because he's so committed, so dedicated. He's been a great energy and a great teammate. I think the team loves him. He's really all about team, which is so important to us. So it's been great having him.

[Vanessa Perdomo]

That's, you know, one of the things we definitely wanted to get into winning the, the summer league and you know, having that momentum going into the season and having the strong rookie class and having Khan come in from your seat, you know, as president of business operations, how, you know, how much do you apply that strategy when you're looking at how to bring up this rookie class and you know, how does that apply for you?

[Shelly Cayet Weston]

Yeah, look, I think it's been great in our organization. I think for any organization, like when you think about rookies, I think about in a business, the intern class. The intern class is so important. Some of your future leaders are in that intern class. They bring new ideas, they bring new energy, they challenge the norms, they make you better as an organization. And I think it's no different for our rookie class. You know, I give a lot of credit to Jeff Peterson and what he and his team has brought in. And, you know, we've got Khan and Ryan and Liam and Sian and these guys bring such a strong collegiate background of team camaraderie and toughness and just a resilience that has really helped and added value to our young corps. So they've really, really gelled well. Very early. I think it was great to hear. Even in the off season, right after, you know, the draft, our veterans were actually going to their practices, which is the norm in the NBA. Right. But it was really that early team camaraderie that started and we certainly saw a glimpse of that in summer league as we were on the journey to winning that championship.

[Michael Barr]

I like the energy that the Hornets have. At one point you had a nine game winning streak. Now this is a really bad time for me to say that I'm a native Detroiter. I won't say what happened in the game. Y' all, look it up. That's it. That's all I'm going to say. What I am saying is you guys have the energy. I think you guys have a shot to make the playoffs.

[Shelly Cayet Weston]

Look, I love to hear that and I will say, and it didn't come out of my mouth, but I have heard that from a lot of people actually very early on. And look, I think what you're seeing the nine game win streak was such great momentum. But this really started over two years ago with new ownership with Rick Snull and Gay Plotkin having a very clear vision of being a premier NBA and entertainment franchise, of setting the foundation that we're going to bring in talent and we're going to build a winning culture. And I think what you're seeing over that nine game win streak, which included by the way, a 20 point comeback against New Orleans, it was one of our longest win streaks in two decades. With our organization, you're just seeing the outcome of a lot of work that Charles Lee, who's our head coach, he comes from winning organizations, he comes from having won two championships, you know, with the Celtics and the Bucks. He comes understanding what winning culture means and you see him really infusing that into the team very early and it's all behind the scenes. And again, it's great that now our fans can see that come to life and what, what came out to be again a nine game win streak. And it's just momentum. We're looking to do this for the long term, not just a one time momentum phase. And so we're really excited about what's to come in the future.

[Vanessa Perdomo]

Shelly, I want to talk a little bit more about that and about the new ownership. Like you said, they came in just a couple of years ago and then you came in right after that. Tell us about those early conversations that you had with them. That you knew that this would be a good place for you and you believed in what they were trying to build.

[Shelly Cayet Weston]

Absolutely. It's. You know, when I, my first conversations with Rick and Gabe, I felt their passion and it's hard. I'm excited for everybody to get to know them. Actually more people are going to get to know Rick and Gabriel. He's in the celebrity game in All Star. But they are passionate about basketball. They're passionate about basketball, they're passionate about winning. They both are obviously very successful. And I gotta say this, they're just good human beings, but they're really driven by a winning culture. And so they've assembled a team with Jeff Peterson. He was their first hire. Jeff comes with again, great background, great success in his career. My first conversation when I talked to even Jeff, I knew right away that he had a same alignment and commitment to excellence and just being the best and that we were going to be able to build this together. And then his first hire was Jeff Charles Lee again, who came with a great background and just the energy. So we in the Front office are aligned so well and just we have one vision which is again, starts from Rick and Gabe, which is to be a premier franchise. And we are just committed to that. And we're committed to that for the long haul.

[Vanessa Perdomo]

When you're looking at the market a little bit more, can you tell us about that? Obviously you were with the Cavs for a long time and being in the Cleveland market and now going into to Charlotte, how do you, you know, what's your strategy around these. These a bit of it. Smaller markets. But like you said, obviously Charlotte and Carolina have this really deep basketball culture. So. So what's the strategy around those markets and expanding it?

[Shelly Cayet Weston]

Yeah, no, it's a great question because look, it's a growth market. And so what we know right now is we have legacy fans. Actually, Charlotte had the NBA record for over nine straight years early when it started in its infancy, back in the 80s when it was an expansion team. People love Dell Curry, Mugsy Bolgs, and by the way, they're still all on staff recognizing and going to retire Dell's jersey March 19th. So we know we have a market that is connected to sport, but we also have a market that has 157 people daily moving here. So that means there's a lot of transplants that may have other connections to other teams. So for us, what we think from a strategic standpoint, it's literally about connecting. We want to create a sense of pride, create a product that people can be proud of. But also we have, I think, a market that understands civic engagement and civic commitment and how important that is. And so we just think we're also, by the way, North Carolina was ranked number one by CNBC as a state to do business two years in a row. So there's a lot of momentum on the business side here also. So we just think we're an exciting opportunity in a market of growth and we're happy to play a part of that and be a part of that, the continued growth.

[Michael Barr]

I love Muggsy. I did. I remember when he came in the league. I'm like, yeah.

[Vanessa Perdomo]

I also want to note though, before Shelly, you had mentioned you came from a basketball background. And we have to let people know you, you played Division 1 basketball, right?

[Denitza Sakova]

This, this is.

[Vanessa Perdomo]

This wasn't a. Oh, you know, I, you know, I came from the sport a little bit. You know, you were really into it. And that just proves the whole, you know, theory that women, executive, women in sports and across business actually played at high level of sports. It's a Very high statistic on that actually. Shelley, can you tell us more about how like being an athlete and being in the game and all of that, you know, influences your leadership style?

[Shelly Cayet Weston]

Vanessa, you are so accurate with that. People ask all the time about my skill set and everything that I learned. I attribute all of it literally outside of my parents, my mom and dad, horse, the rest has really been basketball. I have learned so many skill sets in the business side from basketball. Tenacity, toughness, how to deal with change, adversity. You know, I didn't have the best. I actually had a great high school career. I was challenged in my collegiate career. I played for a short period overseas near Prague, got cut, had to come back and figure out life. So I'm tested. But I also think it made me stronger. And so now I actually take opportunities, opportunity like coming here to this market. You know, the team has been, not been the most winningest team over the its past few decades. And so I saw the opportunity and that excites me. So I think basketball actually helped to create that in me, which is about drive and by the way, team, it's all about team. So certainly understanding that leading the organization, it's all about team. All of those skill sets came from basketball. And I have two young girls that are three and six and one is just starting in basketball and she's, I can see, see her learning those skill sets very early. So we believe in the power of sport and the importance of sport, especially even women in sports.

[Vanessa Perdomo]

And lastly here, you know, Shelly, as we close up, obviously, you know, big, big new arenas or the shiny new thing, you know, across all sports really. And it's really helping drive valuations. And now in the NBA we see valuations skyrocketing. I mean across all sports, but really in the NBA we see two teams with over $10 billion valuations. Is that something that you think about at all when you're thinking about growth of revenue and all of those things that you have to think about? Are you thinking at all of, you know, growing your valuation?

[Shelly Cayet Weston]

You know, we don't lead that. The great thing I love about Rick and Gabe is it's not about just money here. They're doing it because they want to win and have a winning team and culture on and off the court that the fans can be proud of. Absolutely want to be responsible in our business efforts. One example of that is Rick and Gabe invested in a brand new practice facility. We have a Novant health practice facility that we're building. It should be finished next spring. Right behind the Spectrum Center. And what that is is about our vision to be a world, to have world class facilities, right. So we want a place that we can actually retain top talent in the NBA and attract new talent and have a place that's top class. And you think about throughout the industry that has all the best. Again, when you think about facilities and resources, we're also going to have orthopedic center in there that's open to the public and our 300 employees will be housed in this facility because Rick and Gabe thought it was important to, to nurture collaboration. So when you talk about valuation, I think it's important to understand investing in the facility is it starts there, right. And if we do that right, we're going to get partners that align. We've had great long term strategic partners. We just announced Judy Health, which is a great tech company that provides transparent benefits to fans, to customers and fans. We just added Honeywell, which is amazing and building automation and they're going to help our players, fans and employees become better, even truist. That's really a part of our practice facility and connecting with our fans. These are long term strategic partners. All of those investments and partnerships help long term, right. As you think about how our organization's valued. And then we have great core partners that are already here like bank of America, that's headquartered right here in Charlotte and really committed to community. So all of these things are important. And when you invest on the front end, I think ultimately the valuation comes. But it has to start with the right reason and we're doing it to create a winning culture and for our fans.

[Vanessa Perdomo]

Our thanks to Shelly Cayet Weston. She's president of Business operations for Hornet Sports and Entertainment Group.

[Michael Barr]

Up next, we turn to the world of Minor League Baseball. That is straight ahead on the Bloomberg Business of Sports. I'm Michael Barr with Vanessa Nomo. You are listening to Bloomberg Business of Sports from Bloomberg Radio around the world.

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[Shelly Cayet Weston]

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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. I'm not talking that small quarter nickel dime stuff Big money issues in the world of sports. I'm Michael Barr and I'm we're in the dead of winter. Brrr. But spring is right around the corner and with that it is a new baseball season.

[Vanessa Perdomo]

That's right, Michael, and a few weeks back, you, me and Damian got a chance to speak with Mike Carney. He's CEO of On Deck Partners, about his firm's recent purchase of two minor league baseball clubs.

[Michael Barr]

Carney's On Deck Partners is a relatively new entity owned by none other than Mark Lasry's private equity firm, Avenue Capital Group Group.

[Vanessa Perdomo]

Let's listen into our conversation with Mike Carney on his company's latest acquisitions in the business of minor league baseball.

[Mike Carney]

We're super excited to formally launch the brand. It's been a long time that we've been developing it together with the Avenue team. And together with our announcement of our first two acquisitions and the announcement of our brand, we really couldn't be more thrilled to have two really, really great teams to kick this off, Visalia and Montgomery. I get asked the question a lot, why those two? It really comes down to the fact that we see a lot of value in these teams that are in these small to mid sized markets that really have rich, rich history. Rich history. Both with the teams as well as just the markets themselves. Visalia and Montgomery really are very different markets and we can talk more about that. But the tradition and the richness and what baseball means to these communities is really what drew us to them. And the initial reactions from fans, from the community, from the municipality has all just been really overwhelmingly positive, which has been really great for us to hear from the mayors, the city councils and the business owners on down. It's just been, it's been really tremendous. And so look, we're just getting started. So we're going to be back out there over the next couple weeks, one in Montgomery and one in Visalia to keep building the momentum and we're really excited about it.

[Michael Barr]

And Vanessa, I should add that the Montgomery Biscuit, Alabama based, I love that name, they are the double A affiliate of the Tampa Bay Rays and the California base Rawhide, the Sally of Rawhide. They are the single A affiliate of the Arizona Diamondbacks.

[Vanessa Perdomo]

Right, Exactly. So he mentioned. Exactly your point there, Mike. You mentioned it. It's these community aspects of it which is really interesting. And then obviously it's the talent pool for big league teams. Those are the things that we're looking at. But when you're looking at it from institutional capital and why you're investing in these places, what is the business case to buy these minor league teams?

[Mike Carney]

Yeah, look, there's been a lot of capital that's been coming in to sports and minor league baseball hasn't seen as much of the investment historically because these are very interesting and unique businesses. Every community is very unique. A lot of the investments that come into sports may be in new leagues, they may be in kind of niche sports. In this case you have a sport that's been around for 150 years. You've got the minor leagues themselves. Have been around for 100 plus years. Visalia, they've had their team for 80 years. Montgomery's had theirs for 20 years. These are really long standing businesses that just really haven't had the ability to scale. They've really been very hyper local businesses. And what institutional capital can really do, especially in these smaller mid sized markets, is build capability. Whereas the mom and pops that have run this for decades, they don't have the ability to scale in that way. Because Visalia Montgomery aren't going to be drawing national crowds, they're drawing hyper local crowds. And so investing in these hyper local markets, it can be very fragmented. We have the ability now to be able to scale that well.

[Co-host/Commentator]

Mike, you know, when I was looking up the Fisalio Rawhide and you know, I was looking at a team who's played their games at Valley Strong ballpark, the same ballpark since its inception in 1946. But what's interesting here is they've had actually what, nine names, right? Because it reflects that they've had nine parent affiliated major league baseball. So I didn't realize in single A that happens a lot, right? Like where, you know, one year the single A affiliate for the Colorado Rockies, the next year you're the Diamondbacks. I mean, does that happen very often? And, and you know, I mean, for me, I mean what I kind of read into is it really does make Visalia, you know, an interesting place because they must be really tied to their local team regardless of where these players are going and where they're gonna play in their major careers. Or am I wrong to misread? Am I misreading that?

[Mike Carney]

You're totally right. And you know, in today's day and age, you know, the parent club is looking for really top tier facilities and they're gonna be going to markets that have top tier facilities that have. They want to have full ballparks also. And this is what institutional capital, and our group in particular can do is be able to make sure that the stadium is full, cheering on the team, that there's an amazing weight room and training facility and we've built great relationships with the player development teams at the parents. This is going to be really, really important going forward because as you've seen, sports just keeps getting more and more competitive and these now become really competitive differentiators for the parents.

[Michael Barr]

We're talking with Mike Kearney, the chief executive officer for On Deck Partners. If you have not been to a minor league baseball game, go. Because you will have one heck of a time. I remember going to See several of them. And I love the little contest where you got the little car that's running around and he's got the sunroof open and then you got to throw something in the car to go try to win a prize. I failed miserably. I hit some poor man in the head.

[Vanessa Perdomo]

You hit someone in the head, Michael?

[Michael Barr]

It slipped. But my point is minor league baseball, I can see it as we continue on and budgets for families continue on. That's really the way to go. If you want to take the entire family out.

[Mike Carney]

It is, I mean, any professional sporting event you go to with a family of four, you need to be prepared to spend hundreds of dollars. And one thing that, that you know, for on deck partners that, that is going to be absolutely critical for our strategy is, is we're going to have a relentless focus on the fan. And what does that mean? That means that we are going to maintain that history, that minor league baseball that has been core to minor League Baseball for 100 plus years, which is family friendly, affordable, fun for kids. You know, summertime weather, kids are out of school, there's a kids play zone for kids to go play in. You know, there's, there's cold beer for the adults. You know, we're going to make sure that this is that, that brand, that that brand remains. And Michael, by the way, since we've been talking about the biscuits, we do have a biscuit toss in Montgomery. So, you know, you want a nice fresh biscuit?

[Co-host/Commentator]

Well, you know what, I just want, I want to go there about Montgomery and I want to like kind of look at the difference. Like Visalia, you know, you think Sierra out of mountains, what like 150 call 200,000 people in that area, you know, probably, but Montgomery is much bigger. Montgomery, I mean, the Metropolitan is like 400,000 plus.

[Mike Carney]

That's right.

[Co-host/Commentator]

They have universities there, they have, I think an air force base there. You know, so, so, you know, tapping into that community. Tell us how you, how on deck kind of seizes on that opportunity. How do you see that opportunity? I mean, are you working with a lot of those largest employers in the region, making them aware? Are you working with, for example, the regional airports to make sure that, you know, for people who want to fly in maybe and see a game they can do. I mean, again, like, how do you, how do you build attendance? How do you improve the valuation of the club?

[Mike Carney]

Yeah, it's a great question. Maybe I'll start top down. I think to really believe in minor league baseball, you have to believe in the future of these tier 2 and tier 3 markets, you have to believe that America is going to continue to thrive not just in the biggest metropolises, but they're going to continue to thrive in these smaller markets. As population grows in these smaller markets, they need to have entertainment. For a lot of the markets you're going to see us invest in, they're going to be the markets where the ballpark really is that central entertainment hub, not something where you have all different kinds of entertainment options. Where the community really relies on these ballparks. I think where sometimes the mom and pops or the former owners have struggled is that these communities rely on grassroots marketing. Grassroots marketing is inherently hard to do. Yeah, it's hard to do because it's fragmented. You know, how do you reach out, you know, with a, with an individual, one to one touch, you know, with the local community, it's hard to do. And we're going to be able to focus on that because we're going to be able to develop that centrally and then be able to have the local customized approach. We're going to really focus on that. I think you hit on a really good point about Montgomery. You know, I still live full time in Washington D.C. i was with the Washington Nationals for a long time. And the military is central to that community. There is a direct flight from Washington D.C. to Montgomery, Alabama. Why is that? Because the military is so critical in both Montgomery and D.C. and you're going to see us really reach out in new ways to the military community. A lot of the things that we did at the Washington Nationals I think will apply locally. By the way, Visalia also has a big military community. Military and baseball goes hand in hand as American traditions. And so you'll continue to see us lean into that.

[Vanessa Perdomo]

Ted Williams, my dad played in the military. Baseball. Baseball in the military, Yeah. I love hearing his stories. Playing in like Korea and Japan and all these like fun stuff and it's like, were you there to fight?

[Announcer]

You're playing baseball.

[Denitza Sakova]

It's interesting.

[Co-host/Commentator]

You know, Mike, last question for you. I'm sure you're aware KKR is said to have bought Arctos, which is another competing very large sports related private equity firm. Everyone knows who they are. What does this mean for the asset class? What does this mean for you all? I mean, are you looking at that with baited interest? I mean like what do you see this as being something that is going to potentially happen again and again and again? Do you see where I'm going here?

[Mike Carney]

Yeah, I'm excited for. I know the guys at Arctos and I'm excited for them. Anytime there is really professional institutional capital coming into Minor League Baseball, I see it as a good thing. We partner hand in hand with Major League Baseball. Major League Baseball is all in on what we're doing here. The more parties that are coming in to make this better, this is a rising tide lifts all ships kind of scenario and we all know each other and everybody who's coming in has the same interest in mind to be able to drive greater value for these local clubs. I think our approaches are all very different and that's good because we can have a different dialogue with Minor League Baseball owners and there's going to be different approaches and we support that. But ultimately, congrats to those guys on the big news and we're thrilled for them.

[Michael Barr]

Mike Carney, Chief Executive Officer, On Deck Partners thank you sir. You are now an old friend of the Bloomberg business of sports. Thanks for coming.

[Mike Carney]

Thank you guys so much for having me.

[Michael Barr]

Our thanks to On Deck Partners CEO Mike Kearney for speaking with us. What happens to the time that does it for this week's episode of the Bloomberg Business of Sports.

[Vanessa Perdomo]

Thanks for joining us. Tune in again next week for the latest on the stories moving big money in the world of sports. And don't forget to subscribe to our podcast. Find it on Apple, Spotify, the Bloomberg Business app and all your favorite podcast platforms. And if you tune in this week, you'll hear a special bonus conversation I had with WWE Pro and social media celebrity Logan Paul about his involvement in the world of collectibles.

[Michael Barr]

Plus, subscribe to the Bloomberg Business of Sports newsletter so you can stay up to date with all of Bloomberg's top reporting in the world of sports. For Vanessa Bernomo, I'm Michael Barr. You are listening to the Bloomberg Business of Sports from Bloomberg Radio around the world. So have you heard the story about the prescription plan? With savings automatically built in, it's where a family of any size can feel confident the cost of their medication won't hold them back. Go to CMK Co Stories to learn how CBS Caremark helps members save just by being members. That's CMK Co Stories. These days it seems like AI agents are just about everywhere you turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, OKTA helps you get identity rights by securing your AI agents identities, giving you a single layer of control, a single standard of trust.

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