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- [00:01]
IBM Executive
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- [00:33]
Steve Pablo
Bloomberg Audio Studios Podcasts, Radio news.
- [00:38]
Podcast Host 1
Let's turn to sports. World cup fever erupting across the country. More than 50 million people tuning in for the US match against Belgium, making it the most watched football game in the country's history. It comes as valuations for sports teams surged to new records. The world's top clubs more than doubling in value in the last four years, with private equity and media deals injecting massive amounts of capital. Steve Pablo, senior advisory partner at Bain Capital and co owner of Atalanta Football Club, joins us now for more. Steve, welcome to the program, my good friend. It's good to see you. How do we translate this fantastic interest in a four year World cup cycle into a bigger, stickier interest in club football being played around the world all season every year?
- [01:21]
Steve Pablo
You're seeing that already with the World cup. But I think fundamentally what's going to have to happen for soccer in the USA to be a top five, you know, dominant sport is the, the economic structure is going to have to change. Right now the payments for players in UK Italy are probably, you know, five to six times what they make in the United States. So the best talent really is centering on the Premier League, Syria and the leagues in Europe. So, so unless you change the economic structure, you're always going to have lesser players in the United States.
- [01:57]
Podcast Host 1
And Steve, one thing I found as well at the youth level, and it was a surprise to me coming to this country more than a decade ago, is that for the rest of the world, this is a very accessible, almost working class sport. You don't need money to play football in the rest of the world. What I've found here increasingly, Steve, is that this has become a rich kids sport. Steve, what can we do about that at the ground level for youth football in this country, in America?
- [02:22]
Steve Pablo
Well, I think we have to look at the whole ground, ground level, grassroots system as you know, you know, Europe, it's very easily get, get trained. These clubs can, can have boys, we believe an Academy of 452 Boys in the Milan area in Bergamo. And, and it's a cost very Cost free and everybody can play. So we have to look at the United States system and say, you know, how, how do we, how do we kind of get away from it just being a rich person sport where you can get the training and get training
- [02:53]
Podcast Host 1
across the country at the same time. Steve these conversations often, often descend what can the US Learn from the rest of the world? I do think the global sport can learn something from the US The Seattle Seahawks and evaluation of that franchise, I think speaks to that. Selling for close to $10 billion for a franchise that outside of this country, hate to say it, hardly anyone will know what that team does, let alone where it plays. If you say the Seahawks to anyone in, say, Italy, Steve, they don't know what that team does, and yet they have a valuation at a multiple of a football club out of Europe that the whole world recognizes. What can Europe and the rest of the world learn from the way sports is run in these countries to make sure that we get full valuations and the kind of franchise values that we see across this country? Steve?
- [03:45]
Steve Pablo
Well, first of all, a big advantage in the USA sports is there's no relegation. So relegation, which is, has always been happening in English football and the rest of Europe, really gives you more risks as a club, number one. Number two, the economic structures of the USA sports are better with cost controls. There's a hard cap in the NFL. NFL is kind of the, I would say, most profitable and best run league out there with a hard cap so that the clubs can generate revenues. So really getting a system over in Europe where there is more financial fair play, cost control, and maybe playing around with the relegation rules could make the values go a lot higher.
- [04:31]
Podcast Host 2
Steve, for a lot of Americans, this has been the first introduction to FIFA, really firsthand. Do you think they've done a good job with the World cup stateside?
- [04:41]
Steve Pablo
Well, you know, if you look at record revenues, I think they're creating the World cup has created 13 billion over the cycle, 10 billion right now. And, and so far the games have had more interest, I think, than any other games in the history of the sport. So I think it's hard to be critical. Obviously there were some issues with pricing and crowds, but so far it's gone very well. It's going very well for America. I know up in Boston, they're now in love with Scotland. I think we ran out of beer in the whole city, which I never thought could happen, but it's been an amazing experience for everybody.
- [05:14]
Podcast Host 2
Yes. If you can get a hold of tickets to Jonathan's point earlier how expensive soccer is in general in the United States to breach that entry. But I'm talking more about some of the controversies with FIFA. Do you think that's maybe put some Americans off of soccer?
- [05:30]
Steve Pablo
I haven't seen that. I mean, people really are in love with the game. And it certainly the controversy makes people talk about it even more. And everybody's really focused on, you know, who's going to win this incredible a trophy, being the best country and best soccer team in the world.
- [05:47]
Podcast Host 1
Steve, have you got any tickets to the final?
- [05:50]
Steve Pablo
I am going. I'm going to the semifinal in Atlanta tomorrow and then leaving from there and actually going to Milan to introduce coach Sari at Atalanta, then coming back for the final. Very exciting week.
- [06:02]
Podcast Host 1
Very, very cool. Always envious of your life, Steve. Always envious on you.
- [06:06]
Podcast Host 2
Yeah, I'm Steve. Who are you rooting for? Who do you want to win?
- [06:10]
Steve Pablo
Well, I was rooting for Belgium since we have Charles de Catalaire scored two goals, three goals in the competition. He plays for Atalanta. But I think I'd like to see England win Great Britain. They haven't won in such a long time. And I love watching Harry Kane. He's kind of magician out there.
- [06:26]
Podcast Host 1
Stephen, I just say congrats to CDK as well because his growth at your club far better than anything we did with him at AC Milan. And I'll leave that there. Steve, it's good to see you. Best of luck for the new season. Thank you.
- [06:37]
Steve Pablo
Great to be here.
- [06:38]
Podcast Host 1
Steve. How you could there of Bain Capital,
- [06:41]
Tony Yale
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