The NFL Draft Hits Pittsburgh, Boston Prepares for the World Cup

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2:02Bloomberg Business of Sports from Bloomberg Radio. This is the Bloomberg Business of Sports where we explore the big money issues in the world of sports. I'm Michael Barr. And I'm Vanessa Bernomo. And we have some exciting news joining us in the studio and officially joining the show as our co-host is our friend. You know him. It's business of sports reporter Randall Williams. He just got back from Pittsburgh and you know what? He's tired, but he can't help by looking handsome. Randall, welcome, man. That was one hell of an intro. Thank you for having me and excited, excited to be on. Well, you won't get any more intros like that from Michael, and that's it.

2:44Now you're part of the show, and you're not a friend of the show anymore. Leave it to Vanessa to rain on my parade. Thank you, Michael. I am away. I'm away. Coming up today, we're speaking with legendary head coach and Super Bowl champion Tom Coughlin, and we will also be checking in on the high prices of getting to the World Cup. But first, we're speaking about the NFL draft coming to Pittsburgh. This is the first time the city is hosting the draft since 1947, and they think it's going to be big business. Joining us now is Matt Smith. He is the chief growth officer for the Allegheny Conference of Community Development.

3:20Matt Smith, welcome to the Bloomberg Business of Sports. And, you know, I'm speaking as a native Detroiter because we hosted the NFL draft. And, man, it was something else. It was a big spike for the city financially. people were coming in and I'm assuming it's the same thing for Pittsburgh. It is the same thing. We're certainly going to try to match all of the drafts that have occurred before us and exceed them, but it really is the same thing. You have an immediate economic jolt, tax revenue, economic impact from all of the visitors. And then from our perspective, the longer term, even greater enhancement is the attention that the draft is going to provide provide us as a platform, global platform, actually, multiple platforms for us to tell the Pittsburgh story.

4:15And that's absolutely critical for our ability to attract business investment to this region. So tell us how you will measure success for when the draft's happening, how many visitors you get, what the economic impact is going to be. And like you said, for afterwards, what does success look like for you? Yeah, success for us looks like being able to turn this event, which is, again, a global billboard into attention and then into relationships and building those relationships into active projects. And ultimately, the way that we're going to measure success is have we been able to deliver economic development projects for this region based off of the attention and the relationships that we've cultivated as part of the NFL draft?

5:01So for us, we want to turn the spotlight into a sales funnel, bring decision makers here, show them our assets, which we're doing, connect them with our corporate leaders and create the relationships that ultimately are going to land to deal land to deals for the Pittsburgh market. Cool. And so now tell me who came up with the term Pittsburgh. That was the work of our tourism and promotion agency, Visit Pittsburgh, along with many of the partners. So they wanted to make sure there was a draft element and they wanted to obviously tie it into the Pittsburgh element as well. We're talking with Matt Smith, chief growth officer for the Allegheny Conference on Community Development.

5:45Key word, Allegheny, because I have some friends that are in Pittsburgh. And yes, Allegheny, that is one of the colleges that is in that area. and I should add to the last time Pittsburgh hosted an NFL draft, they had leather helmets and I saw it personally. No, I'm kidding. Did you? Yeah. 1947, right? That was before the NFL was the current day NFL, right? Yeah. The 100 yards was like only 50, but no, I'm going. I was babbling. But that is a long time. And I'm amazed that here's a city that has won the Super Bowl numerous times and they have not had a chance to host a Super Bowl. Yeah, I mean, you know, it's Super Bowl is one thing.

6:38I mean, we're really grateful for the NFL draft. But, you know, it's interesting talking about the Steelers. And I'll give you one data point on the value that that we attach to being able to, you know, attach ourselves to a brand, not only like the NFL, but the Steelers. When Pittsburgh is mentioned globally, outside the United States, 50 % of those mentions contain the Pittsburgh Steelers as a reference point. And so there's not only a value in us being able to host the NFL draft and with brands like the a brand like the NFL, but to be able to work with the Pittsburgh Steelers on this, which we've done over the last couple of years, provides incredible impact for us and our ability to sell this region because everyone knows the Pittsburgh Steelers and they know the Super Bowl history and they know the player history with the Steelers.

7:26And so there's a tremendous value for us to be able to attach ourselves to a global brand like the Steelers. So obviously, like Michael's point, you know, it's it's a tragedy that's Pittsburgh hasn't been able to host a Super Bowl. But there are limitations to, you know, every city, especially when we're talking about northeast cities and you're talking about an outdoor stadium. So is there any world where you would see maybe the city coming together with the Rooney family to try and create and build a domed stadium so that one day you could host a Super Bowl? And do you think that would be worth it for the investment?

8:01Yeah, it's funny. That actually came up as a question to Mr. Rooney yesterday. And his answer about a domed stadium was not while he's living. So I think that kind of put a very hard underline on it. But I think for us, we look at it even though we probably won't host the Super Bowl. We look at these types of events, the NFL draft. We hosted the U.S. Open at Oakmont Country Club last year. From our perspective and the differentiating role that we play, these are great tourism events, the great attention events. the differentiated role that we play is we want to activate these events. We want to host, as we've done for the draft, as we did for the U.S.

8:45Open, we want to host site selectors who are the buyers that we want to appeal to with this region. So we're hosting a group of site selectors. They've been in town since Tuesday. They visited sites that we just left a roundtable with those site selectors and our corporate community, as well as Governor Shapiro, the lieutenant governor, the mayor. And we were able to paint a very vivid picture for them, both in that roundtable, as well as visiting the sites that they've hit here, about what the new Pittsburgh looks like. And what we've learned is when we're able to bring in site selectors or corporate leaders to actually experience the city and the region and see it firsthand, they leave with a remarkably positive impression about the quality of life, the aesthetics, the architecture, and also the vibrancy that's occurring in this market now.

9:42And that's a really, really important thing for us to leverage when we host a U.S. Open or we host an NFL draft. It's really interesting to hear you talk about the Super Bowl because there are a bunch of teams that are putting domes on stadiums, and yet none of them have been awarded a Super Bowl just yet because of the fact that outside of having a dome, it comes with so much more. You need hotel space. You need the convention center and all of those things. But going back to the draft, what is the signature thing that you want tourists to take away from this week? Every city sort of outlines and rebrands itself in a different way.

10:19And I mentioned Pittsburgh as well. But when people are coming in today and tomorrow and Saturday, what do you want them to leave with? Yeah, I want them to say a couple of things. One is the vibrancy that we all know as Pittsburghers that this market provides. Our downtown area, the North Shore, which is where the draft is occurring, areas that are really unique, like our strip district in Lawrenceville. We want them to come away with the idea that this is a vibrant market. There's a lot going on here. We're a beautiful city. As we were talking earlier, the fact that we have architecture and bridges that are really unique here and that it's not the Pittsburgh that maybe many people would have assumed it was based on impressions from 50 and 60 years ago.

11:06So we A, want them to take away that this is a vibrant market. And I think B, from a corporate site selector or business investment perspective, we want them to take away that Pittsburgh is a market that solves big problems. And if you have an interdisciplinary issue that you want to solve or an opportunity that you want to leverage, Pittsburgh, our economy right now is diverse. We have multiple sectors that are growing. They all tie into each other. So, for instance, energy, manufacturing, robotics and AI, health and life sciences, the very strengths that our sector offers is really where the world is headed.

11:49And we want to make sure that people visiting understand that. But in particular, as I said, the groups that we're talking to, site selectors, CEOs, decision makers who are here during the NFL draft, we want to make sure that we're showing them that Pittsburgh is a place to build the next economy. And that's a really important message that we want people and organizations to take away from this experience. And speaking of the economy, as we're talking to Matt Smith, Chief Growth Officer for the Allegheny Conference on Community Development, two words. When you have a big event like this that benefit bars and restaurants, tell us more about that, because that is huge for all those businesses.

12:35It's massive. You're going to have hundreds of millions of dollars in economic impact once it's all said and done. You've got visitors coming in and spending money, experiencing those bars and restaurants. And, you know, Pittsburgh is a city that has never been shy about our affinity for bars and restaurants, whether it's back in the day, a steel worker coming off of their shift and doing a shot in a beer or to today, where you can experience bars and restaurants that literally are steps away from the NFL draft stage that sit along one of our rivers. And that's, again, the quality and character of life, and I really prefer the term character of life in this region because it's not just one particular quality of life that we're selling.

13:25If you come to this region, whether you're living here or whether you're visiting here, there's something for you. There's something for you to experience. And we really want people to take that away. And one of those things is visiting one of our many bars and restaurants here. And some cases, those bars and restaurants have been passed down through generations of family ownership. And we think that's a really special part of the Pittsburgh story. That was Matt Smith. He is the chief growth officer for the Allegheny Conference. Up next, you know, it's my favorite subject. We are talking about the World Cup and why it's getting more and more expensive to attend a match.

14:02That's straight ahead on the Bloomberg Business of Sports for Vanessa Cardona and Randall Williams. I'm Michael Barr. You are listening to the Bloomberg Business of Sports Bloomberg Radio around the world.

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16:14This is Bloomberg Business of Sports from Bloomberg Radio. This is the Bloomberg Business of Sports where we explore the big money issues in the world of sports. I'm Michael Barr. I'm Vanessa Perdomo. And our friend, Bloomberg Sports Business reporter, Randy Williams. Not even a friend anymore. He is officially now just part of the show. He is a host. I really appreciate you carrying the energy on because Vanessa said this is the first and only time I'm ever going to get this. Only today. Only this week. Well, I'm excited to be here with you guys every single week. And coming up now, we are shifting to the other version of football and talking about the World Cup.

16:53Not only are tickets to this year's World Cup the highest ever, but now it's going to be impossible in certain cities to get to the game without spending hundreds of dollars just to get there. Joining us now to discuss a recent story he wrote is Bloomberg News Boston Money and power reporter Greg Ryan. Welcome to the Bloomberg Business of Sports. Man, the World Cup is coming and I've checked my wallet and three moths just flew out. I'm like, how am I going to afford trying to get around for the World Cup? Yeah, you're going to have to put those moths to use because it's going to be expensive, especially in New York and Boston.

17:34The costs are really, really high. In New York, it's$150 for a round-trip ticket out to the stadium, including where the final is going to be played. A bus trip isn't much cheaper. And if you're planning to drive there, first of all, there are no parking spots at MetLife Stadium, the site of the games. You might be able to park nearby, but you'll be paying a pretty penny to do that. And nearby, we mean Pittsburgh. And I mean, it's going to be difficult for people. I mean, there's nothing over there. Well, yeah, I mean, and a$30 ,000 helicopter ride, if you want to get to the World Cup for eight people.

18:13Heck, man, I can't even afford$2, man. This is really expensive. The interesting thing about that helicopter ride. So that's in Boston. There's an operator offering a helicopter for eight people for$30 ,000 round trip. But that won't even get you to the game. That will get you to a tiny airport about nine miles from Gillette Stadium, at which point you'll have to get into a black car service or some sort of car and then get to the game by on the road. And you'll be sitting in the same terrible traffic as everyone else. It's really crazy. I mean, obviously, this is this has been the conversation around the World Cup this entire time is how expensive it's going to be.

18:53but it just keeps going up. And now with that high cost for the NJ Transit, the New Jersey governor, Mikey Sherrill, came out and she's trying to push back on FIFA, saying that maybe they need to offset some of the costs. But FIFA saying that it's in the contract not to do that, as per your reporting. Why is she coming out and saying this now? I mean, she obviously wasn't in office at the time that New Jersey was given these games. But is this just for show? Oh, is she just trying to show people that she's trying to do something even though she she knows she can't? I think that largely is the reason I think it's for political cover.

19:32She came out and made those comments shortly before the official announcement that train tickets would be one hundred fifty dollars round trip compared to the usual thirteen dollars. So but yeah, if you look at that contract, actually, the original version of the contract with host cities called for host cities to make public transportation free for World Cup fans. That was modified a few years ago, allowing enabling host cities to offer transportation at cost. So if you look at the contract, there's really little to no chance FIFA is going to move on this. FIFA's statements since the governor's comments have indicated they're not going to move on this.

20:11this is going to be the cost for the games. It's really interesting because I'm holding a FIFA World Cup soccer ball right now. And the same cost that for the official ball is just like$30 more than transit to and from MetLife. And it makes me think like, and you sort of talked about it, but how did we get here? Like if this is years into planning and there are years that, you know, you could provide solutions. And we've seen different cities, of course, have different solutions and different things. We've heard what's going on in Philadelphia and other cities that you've mentioned and written about.

20:47But why did we get to a point where now we're in the middle of a political showdown with FIFA in Jersey when in all reality, the last in championship match is going to be here? And it feels like this is something that should have been resolved a long time ago. I think part of the reason is because host cities were hopeful that fundraising, corporate fundraising would go better than it's gone. I know here in Boston, the host committee set an ambitious goal initially of raising$170 million to host the games here. And they've come nowhere close to that. They've only been able to line up three primary sponsors so far.

21:23So I think there may have been a hope that, you know, if we get enough corporate money, that may defray some of the transportation costs. That hasn't materialized. And, you know, now we're at the point where, as you mentioned, we're, you know, it's a few months before the games and, you know, people are just finding out now after they purchase tickets just how much it's going to cost to actually get to the stadium. And in some cities, you know, like Miami, for instance, they still have to make announcements about transportation costs. So in some cases, fans are still in the dark. And where does federal funding stand with this?

21:54I know the Trump administration has said that, you know, they were going to allocate some funds to go to this. But I remember a story that you wrote months ago that said there were some cities who were still waiting on this funding. Where does that stand? Yeah. So a few months ago, there was a big problem because the security funding that Congress had allocated was being held up because of the government shutdown. And so you had a situation where months from, you know, a few months from the games, these stadiums weren't able to get the security funding they needed. That money was ultimately released.

22:23But now on the transportation side, the federal government allocated$100 million to help systems pay for World Cup expenses. Doesn't seem like a lot. No. Yeah, split that across 11 cities. Consider that some cities, they had to build infrastructure to support the level of service they're going to need for the games. Like here in Boston, the station at the stadium site, it's really very rarely used. For Patriots games, it's only used once they only send one or two trains out there. For World Cup games, they're going to be sending 14 trains out there. So they had to build they spent thirty five million dollars, you know, building new platforms and really improving that station.

23:03So that hundred million dollars does not go very far. We're talking with Greg Ryan, Bloomberg News Boston reporter. And I want to expand more on what you were talking about here in the New York area. they are providing for$150 there is transportation from New York's Penn Station to MetLife Stadium. And that's just to ride it. And that's pretty much the only way you can get there. Can you expand more on the Boston side of it and how they're handling it? And how much are tickets for just a ride? That's right. So tickets for train tickets are actually that look to be the cheapest way to get there.

23:46But they're going to be$80 round trip compared to the usual$20. So four times the price. A bus is actually even more expensive. But as I mentioned, this train line out to the stadium, it's not, you know, it hasn't been used to carry anywhere near this capacity. So, you know, there could be some logistical hurdles, these first few games for making sure everything's running OK. And even if things go perfectly, the MBTA is only going to have space for 20 ,000 people to get to the game by train. So that means the bulk of the people, you know, it's a 65 ,000 seat stadium. The bulk of the people are going to have to get there by some other way.

24:27But parking is also limited. There are only 5 ,000 parking spots compared to the usual 20 ,000. FIFA has a larger security perimeter. They have a lot of activities outside the stadium. So parking is way down. So I think you're going to see people using Ubers and Lyfts. And this is going to be a problem not just in Boston, but in every host city. It looks like there'll be significant surge pricing for Ubers and Lyfts. So yeah, even if you're paying$80, you might not even be able to have the privilege of paying$80 to get to the game if those train tickets are sold out. One of the things that I think is interesting, though, like with Boston, obviously, like you kind of laid out, there's logistical things that they can't take everyone who's going to the to the stadium by train.

25:12But it feels like in New Jersey, I don't really understand why they're, you know, changing the price of the tickets, because this is a typical thing that we see at MetLife for Giants games, Jets games, concerts. They're used to this. So that's the thing that's very confusing to me. Can you shed a little light on why they think they need to surge this price? Yeah, so I think the reasons out there are a few of them. One, because there won't be parking at MetLife Stadium, so the parking will be a lot harder to get to the game. A lot of people who go out to MetLife for a Giants or Jets game or for a concert are driving out there.

25:52And the other reason is because there will be a lot more international visitors for an event out of the stadium than there typically are. So people who are relying on public transit. So there will be more people using the train to get out to the game than there typically are. So I think, you know, that's what officials have pointed to is, you know, this is a really unprecedented surge in demand here. So to make sure we meet it, to make sure we're running enough trains, make sure we have the staffing, we're going to have to increase the pricing. So now I want to get your opinion on something. When the FIFA World Cup was announced that it was coming to North America, all everyone said was that it's going to be the biggest sporting event of all time.

26:32And as we inch closer, it seems like more drama is continuing to come up. Some of it is being resolved in other cities. But, of course, New York, Boston, even you mentioned Miami, has not unveiled the transportation plans. And so the question I want to pose to you is with all the hype surrounding this event, do you think the FIFA World Cup will live up to the hype and potentially be the biggest sporting event of all time? There is good reason to doubt that will be the case. I know hotel bookings in certain cities, including New York and Boston, are behind where they had anticipated to be at this point.

27:09Is that because of pricing? I think pricing is a factor. I think the president's unpopularity abroad is a factor. I think there are a few reasons for that. But the pricing is a big one. I'm sure that these increased transit costs aren't aren't helping things. But, yeah, the hotel bookings, you know, they I think they're they're a big indication of where things stand now. And, yeah, they're just not meeting expectations so far. Greg, I know we're running out of time here, but I want to expand more on that because you had mentioned about President Trump and the latest attitudes that are from foreign countries.