Current Video:Beyond the Box Score|
The Sports Professor, Rick Horrow, talks about the latest sports business news and chats with Nets CEO Brett Yormark.
Automatically Generated Transcript (may not be 100% accurate)
I'm Rick Horrow and welcome to beyond the box score an inside look at that business of sports. Today special guest is CEO of the New Jersey Nets break -- mark. With the new international owner in the -- proper Roth. I'll move to Brooklyn and the Barkley said on the way your mark as one of the most unique jobs in the NBA I sat down with him at the Barkley center showed room. New York City. Should be the Chief Executive Officer -- again but you're also the CEO. It president of Brooklyn sports entertainment. And many -- give me an idea what -- it's. For you know my day starts in New Jersey -- very mindful of the -- an extra years of making sure that we create value for key stakeholders while most of New Jersey. Then sometime around noon maybe a little later I make my way through the tunnel and into New York. And I -- the Parkinson show where I truly get -- so badly. And Brooklyn is -- -- It's incredible story that I have the honor of telling every day. What to suite holders -- prospective sponsors it's going extremely well. And it's sometimes later in the day I make my way over. Two metro tech which is in the heart of Brooklyn. An expensive talent who's -- and and his leadership team to discuss the overall project so I'm in various places throughout the day. I enjoy it I -- where multiple hats but it's what keeps me. Well would also keep he obviously experience building on yours yours is NASCAR here. You you got the credentials. With other people clearly -- 7590. And it -- field for. So so tell us about that it as a kind of building block it. What was the score was truly great springboard for. I spent seven years they're working for a George -- is now over dungy is -- friends and me it was a great seven years. And following these the Nextel announcement. We were I was able really to parlay that into an opportunity to come work for Bruce Ratner. NASCAR are truly about brand building. It gave me the opportunity to work with some of the best programs in America. I may it was friends have followed me to New Jersey and are now going to -- -- -- -- so it was an incredible experience for me. It opened my eyes to a lot of different things that it had exposure to Gaza as I was going to my career and so locally regionally. And I'm not sure I'd be wearing today and I had that experience. -- they're obviously -- this show room here proud of the park please generate few thousand seat and on and on and I give us your elevators beat that. Well you know as everyone knows it's been a little bit today. I can't and that's about father -- two years ago it was about three years in Jersey ultimately will be a but I look at things really just happen -- helpful I think there's a silver lining in our delays I think the building. It's truly been designed. And program. For the world we live in today which is very different in the world we lived in five years ago we've got about a hundred sweets that's been able downsized from the original design. We've got numerous clubs and restaurants and lounges. Obviously the premium experiences something that people here -- -- really looking forward. And I think we're going to be able to deliver that the big time way -- JC is one of our investors it's been. A big very big part of our design team and collaborated with us on very spacious to a building. I think the architectural statement we're making starting from the exterior moving -- is going to be very bold and very dramatic. And I think fans not only throughout the region but throughout the country. As well as -- nationally are going to come to the party's senate because we're gonna give a reason to come there. Ownership. Think it's changed in the years ago. Culture. The Coulter has been redefined. Michael pro -- except nothing but the best from his people. He wants to win he's got the resources to win. He brings a global presence. On to the organization. There's a little swagger and it went step right now. We were beaten down franchise to be honest we had twelve -- of the season last year as well documented people going to talk about anymore. We've been able to -- totally go through a very quick refresher in rebrand. Under pro growth direction. We're looking forward to a great season and work we have had the most successful sale season. Selling season tickets in the history this franchise and much of that has -- because of the enthusiasm people who are shelling. Pulled off his management team and the direction this franchise. Talk about floor. He didn't get the -- you didn't get Amare Stoudemire. You feel about offseason. I think the offseason has been very successful for us and we went into offseason we -- a couple of things we want -- freshen you. We came out with our campaign it's -- him and it truly is so do you think that basketball today. We've reconfigured. Our our team I think these. To help brought forward -- -- -- with -- -- Billy King we've been able to assemble some great young talent. Which is very exciting recently Troy Murphy Jersey. Born kid and know -- to high school that don't Barton so that brings a little -- to the franchise. But I think -- this team is going to be very competitive this year and we got the building blocks for the future we've got cap space. And in addition to that obviously we have draft picks so I think the future's very bright on the court as it is off the court. And speaking -- off the court so Billy King as the front office guy and Avery Johnson -- coach. If on the nets fan and I excited about the basis of absolutely. I'm you've got young talented executives -- mean every record speaks for itself all the great things he did in Dallas. Billy took the Philadelphia 76ers to the championship. Obviously graduate of Duke. You know they've got winning and they're in their DNA. And they're gonna bring that. That nets franchise were working very closely. With basketball we all work for the same franchise were seamless. And we just can't get ready that we we just can't. You know get started quick enough and we we're really excitement -- -- But the general idea about competition. In New York market. Good football team that to -- Yankee Stadium hoping for soccer's eleven million people how do you. And he gets support. -- -- -- Yeah I think we're well. I've tried to burn ourselves the most successful team sports certainly not certainly hear your match on here I think we've accomplished that. Our players are accessible to kind of community -- probably more than any other team in the marketplace. And I think it gives them a chance to humanize themselves but it also gives a good impression. Of the next so I think we're very well position and I think we truly can you know gain some momentum. -- with a move to -- I think it's tough. For us to really reach our goals being in New Jersey based. But I think once we go to Brooklyn and more on that big stage. And we go to the fourth largest city in the US it's been underserved in sports entertainment since 1957. We're gonna have -- moment. Mean you're illustrious. Marketing push through what is the most tested whimsical successful promotion marketing. I think. Holding on to the -- deal. This is probably my greatest college. Many of my colleagues but it wasn't the first time -- most of their fourth. That's the most impressive thing are -- I can't hear -- speak you know. Is much about things like -- these guys stuck through us. Two a downturn in the economy. To them on multiple delays and groundbreaking and from day one never wavered and they said he would be portable would be part of Renaissance. And they have many choices to lead. On the Cooper just left because it was delayed because of looked at other opportunities the marketplace. My colleagues did present them with options. But they chose to to stick with us and into the the loyalty the -- they showed us is something that things don't necessarily find. In the business community. And you know for frankly speaking if it wasn't for them -- sure -- -- in place we are today we needed them. To make that commitment in -- get our financing in order for this a party truly survive. What's it like having -- brother where. It's terrific. You know he's my best friends and colleagues we throw ideas off each other. If he goes see someone that that he thinks I need to speak to there's always that referral at the end of the day goes both ways when I go to Florida could spend time with him and and meet with. You know his staff and and and pick up a couple things he does the same when he comes here too you're so it's a wonderful thing and you know I certainly -- for anything well. Are you answer 123 or none of these. He's your brother. A better athlete better business person businessman who's gonna have a better team this year. Well. I'll start from number three I think we'll probably have a better team Michaels in the rebuilding mode we York too. But I truly feel that we've makes him out so I think our teams can view as far as this businessman and athlete. I'll let you ask him six times and I'm very confident in my abilities both on and off the court I'm sure Michael would say the same thing. But at the end of the day when we get together and -- him tomorrow in the Bahamas for a couple days with our families. We probably play basketball talk business obviously report very competitive and that's where we don't work in the same market. We're at the end of the day you know it's not about who's better it's about how we can help each other. In addition to pro. Ross purchase several other NBA teams have changed hands in the last five years. Let's go inside the numbers to see those deals up close. First up Dick Gilbert he purchased the Cleveland Cavaliers back in 2005. For 375. Million dollars. Think he's having buyer's remorse now LeBron James plays in Miami. In 2006. Clay Bennett Patriot or fifteen billion dollars for the Seattle SuperSonics. And then move the team to Oklahoma City works -- with superstar Kevin Durant. Up next is -- else's who recently purchased the Washington Wizards for 550 million dollars. The Wizards and Verizon Center were valued at 550 and Leo has paid far less than that because he already owns 45%. The greatest player ever some say Michael Jordan bought the Charlotte Bobcats in 2010 for 300 million dollars. Jordan owned a small share the team before purchasing it out right earlier this year. And finally -- lake -- The new owner of the Golden State Warriors he bought them for a staggering 450 million dollars. Venture capitalist to repair record for fifty for the Golden State Warriors the previous record was 401. Million dollars. -- Roberts Harvard to buy the Phoenix Suns in 2004 -- The record -- -- your sale as one sign you economies turning around. But first three other indicators of the economy and how it's affecting the NBA it's time for bust boom and hope. Let's begin -- Reebok which heavily marketed pounding during the 2008 Beijing Olympics is closing several stores in China. The combination of a bad economy credit shoe market and too many stores ultimately made -- try to push unsuccessful. Now for. -- Reebok is closing shops former NBA or Stephon Marbury is opening shoe stores and the distribution company to Beijing for a start very brand. Start -- is looking to expand both overseas. And inside the US and finally move. The Atlanta Hawks Utah Jazz Houston Rockets will implement dynamic pricing for tickets this upcoming season. Dynamic pricing uses computer analytics -- would just ticket prices based on opponent whether they have week. And several other factors. Not every team needs dynamic pricing to maximize revenue sometimes politics is a popular owner. I valedictorian of the week is the Charlotte Bobcats. Although and Jacque can't suit up and play the new Bobcats owner is helping the team's bottom line. Charlotte sponsorships of nearly doubled in the Bobcats are among the top ten teams in the NBA in season ticket renewals. My flock out of the week as the Detroit Pistons the Pistons are up for sale and the asking price is about 500 million dollars. With the Detroit economy lagging behind the rest of the country. The Pistons will likely go for a lot last probably in the neighborhood of 400. Now for my final take. Much of the off season NBA talks that are rat who else LeBron James. His NBA's special and his move to Miami where the praised James for sacrificing personal stats to win a title. Or vilify him for taking the easy way out. There's no doubt his decision -- shaken up the NBA landscape. The last thing commissioner David Stern wants is for the NBA to have only a few -- super teams like Miami. That's why proving at least competitive balance is key topic in labor negotiations. With guys like Carmelo Anthony Chris Paul trying to force trade with little leverage. Owners will make a strong push to limit player movement. The new CBA could make resigning with eighteen even more lucrative than it currently is for like the NHL's current salary structure. The NBA could restrict players from making more than 20% of their team's payroll. In any case 29 other teams were wishing some of those rules weren't place before this year's heat summer clue. I'm Rick Horrow won't you join me next week when we go beyond the box.