Warriors Said To Be Valued at $11 Billion; Next 3 Founder Carolyn Tisch Blodgett

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0:30a bulletproof business. Racing's unique because there is absolutely no reason why we can't compete with the guys. Come on, it's pro pickleball real? Are people really going to tune into this? If you're playing money ball with a huge bag of money, you're going to be really, really good. 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 Damian Sassauer. And I'm Vanessa Perdomo. Coming up on the show, we'll hear from Gotham FC lead owner and Governor Carolyn Tish Blodgett.

1:02Blodgett is also CEO and founder of Next3, which her family, the Tish family, the co-owner of the Giants, are using to get into more sports ownership. All that and more straight ahead on the Bloomberg Business of Sports. But we start with some of the big headlines in the sports world, including one involving what could be the most valuable NBA franchise. That's right, Michael Barr. this past week, news came out that a minority stake in Golden State Group, the holding company for the Warriors, very well could be up for sale. And that stake values the franchise at approximately$11 billion. Join us now to discuss that and more is friend of the show, Bloomberg U.S.

1:42sports business reporter, Randall Williams. Randall, welcome to the Bloomberg Business of Sports. Thank you for having me as always, Michael Parr. So, look, I got a$5 bill. We can put some more fives together, and maybe we can get a minority stake in the Golden State group. And this is something that surprised me is that they're the holding company, by the way, NBA's Golden State Warriors, up for sale. I didn't know, first of all, that they were supposedly the most valued NBA franchise. Yes. I mean, all of that is driven by, of course, Steph Curry, Klay Thompson, Draymond Green, and the run that they went on.

2:19that really revolutionized basketball and the threes that went on. And then, of course, you have the infrastructure that Joe Lacob built out there. And it's resulted in probably one of the most valuable sports conglomerates in the world. And this is just a 5 % stake. But you do the math and the 5 % stake of the Golden State Group, which outside of the Warriors includes the Valkyries, it includes their home, the Chase Center, it includes the G League team and probably some other things as well. But a 5 % stake could very well go for over$500 million. That's insane. So that's the interesting thing there, Randall.

2:50It's$500 million. So they already have a private equity firm invested. So are they looking to get another one? Can you have another one? Or are they looking to sell 1%, 2 % at a time? Interesting question. I'm not entirely sure. I mean, yes, ideally they could bring in another private equity group. But this stake comes with some special privileges that I'm not sure a private equity group would be interested in. I think that an individual would like to sit courtside and be able to go into the ownership suite and have a bunch of other luxuries that come with the stake on a board seat on the Golden State Group as well.

3:21And so private equity is not involved in the decision making of these organizations. I think that whoever is selling this, which is Citigroup, but the individual who is selling this specifically will probably be looking for another individual because that's their straight route to cash. Well, Rhonda, we know that, you know, team valuations is squarely in your wheelhouse. And, you know, I get it. You know, the Warriors are the highest revenue team in the NBA. So, you know, they're right to have a valuation there. But, you know, if you were to parse out, you know, their holdings, the WNBA holdings, you know, the G League, everything that they, the Chase Center.

3:53Do you think the actual franchise value is still the most expensive in the NBA and commands a premium over, say, the Knicks and the Lakers? I do. I do. I think that, look, if you put all three on the market right now, I think the Knicks would probably trade the highest. But as it stands right now, in the 2025-2026 NBA season, I think the Warriors, just based on their success recently, the Lakers won a championship in 2020. That was the pandemic. A good portion of people don't really remember that. We all remember Steph Curry in 2022. We remember them in 15 and 17 and 18. And so I think that in combination with it being right next to Silicon Valley and all of the tech infrastructure out there will make it the most valuable.

4:36And then, of course, there's the Valkyries there and we can't forget about them and what Joe Lacob has done there. I think Sportica valued them as the most expensive and most valuable WNBA franchise. And that goes a long way as well. I think that's the interesting point there, Randall, is that they they are technically right. The most valued franchise on its own. Right. So that's more than the Lakers that were sold last year for$10 billion. And then you have the arena that the Lakers didn't have. So you have the arena, which is one over a billion dollars. And the Valkyries are$500 million. So are they undervalued, actually?

5:08So that's something that I've thought about a lot. Because if the Lakers are valued at$10, let's just say the Warriors start at$10. And then you have, of course, like you said, the arena. Then you have the Valkyries there. That very easily gets to$12 very, very quickly. But I'm not the person selling this. So whoever is buying this will properly evaluate it. And I think that the entire sports industry is looking at the Lakers sales like that's the high benchmark. That's a mark that no one wants to pass. And this being a 5 % stake, we'll see where it ends up valued at. I can't see a 5 % stake reaching a billion dollar price tag at this current moment.

5:43Now, maybe in a couple of years from now, if the Warriors are able to continue to build post Steph Curry, maybe it can reach that. But right now, we'll have to see. Feels like the Valkyries are just still part of it, not really being valued on their own. I think so. I think so. I mean, WNBA is obviously in a completely different juncture with CBA stuff, but they've done an incredible job of building the business over there. Jess Smith, who we know very, very well. And I think that, you know, they're just waiting for a superstar. And once that happens, if they were to get a Juju Watkins, if they were to get, you know, one of these superstar college basketball players, then I think that the Valkyries would skyrocket as well.

6:22Randall, I wonder if we could switch gears a bit here and talk about the Chicago Bears. Obviously, you know, there's been talks with Pritzker, you know, the governor of Illinois for it seems like years and years and years about the potential for a new stadium. And it seems like we may be getting a little closer to something here. What are your thoughts there? I don't know how close we are. I think that this saga has gone on, as you said, for many years. It started downtown. It went to Arlington Heights. There has been proposals from Naperville. Are we going to Indiana? Now they're talking about going to Indiana.

6:53And then, of course, the Chicago Tribune reported that Roger Goodell was touring various sites over the weekend ahead of the playoff game. And so with that in mind, I don't know what the end result is. I can't imagine that anyone would be happy about the Chicago Bears playing in northwest Indiana. It just doesn't sound right. And then there's pictures going viral on Twitter right now about the Bears leaving Soldier Field, which, of course, is the NFL's smallest stadium. And that skyline over the city of Chicago, I think, does have some meaning, but not to the billionaires if they're trying to build a city and at the cheapest rate as possible.

7:24I bluntly thought this was a done deal for the Chicago Bears leaving Soldier Field. But reading what's the latest, it looks like this is far from over. They had identified Arlington Heights earlier this year. The Bears president, Kevin Warren, had come out and wrote a letter to fans essentially and saying, hey, we're leaving Soldier Field. We're going to build this thing in Chicago. And the next thing you know, there's another statement that says we're exploring things in northwest Indiana because we can't get a deal done. Now, what Pritzker has said is more optimistic than what he's previously said.

7:54But I don't know, based on just political standpoint, what the Bears are doing and what the governor is doing and how they're positioning against each other. You know, Randall, I wonder how much of this has to do with the fact that, you know, Chicago, like, you know, San Francisco and others, it's a gateway city. Right. And office. I mean, Class A office is probably barely doing OK over there. I mean, but certainly Class B is off the charts. I mean, it's it's it's distressed now. So, you know, when you're building new stadiums, you have to think about, you know, mixed use. You have to think about, you know, office, about retail, about entertainment, you know, and all that goes hand in hand with it.

8:29Is Chicago just not a venue, a destination that makes sense from an investment standpoint? There's an argument for it, but my argument against that would be just look at what happened in Kansas City. Kansas City just struck a deal for a dome stadium. And ideally, anytime one of these teams wants to build a dome, they're thinking about ways in which that they can fill the arena in the non-NFL season. And for those listening, you have to remember that the NFL season is only guaranteed eight or nine dates a year, depending on that alternates every other season. Tax situation is quite different down south.

8:59I mean, you know, we know that Illinois, especially Chicago, they've been bankrupt before. So, you know, they obviously the tax situation there is probably a little bit more prohibitive. And so if you're in the Midwest and you're you have an open air stadium, you can't book a Taylor Swift. You can't book for Vanessa Jonas Brothers. Oh, no. No. You can't book a Beyonce or a Kendrick Lamar and SZA because in the summertime are the only time those shows can happen. But if you're a SoFi Stadium and if you are Mercedes-Benz Stadium, then in your away games, you absolutely can sell out those tour dates.

9:29And so with that in mind, the Bears and so many other teams are beginning to think about dome stadiums because they want to maximize their revenue. And they're trying to pitch these to local municipalities and saying, hey, this is good for the city. This is good for our state. We're going to create so many different jobs and so many different opportunities. And Governor Prisker is looking at it and he's like, look, I hear you. But the taxpayers, they don't. What do you think, Randall, is the most desirable job right now? Because there's a lot of openings. The Baltimore Ravens. I think they are in Super Bowl contending position with, again, another owner who's very, very stable.

10:05And I think Baltimore and Pittsburgh sort of resemble each other in some ways. They're like cousins and bitter rivals because of the division rivalry there. But with that in mind, you have Lamar Jackson, and when you have an MVP quarterback, then that's going to put you in position to win. Now, of course, he's competing against some tough talent there. I think Pittsburgh is always tough. And if the Cincinnati Bengals can ever get anything together, then Joe Burrow is a tall task to go against twice a year as well. But you can't rule out coaching Lamar Jackson. They've been to the AFC Championship game.

10:36Outside of this year, they've been in the playoffs every single year. And so if I was on the coaching market, then I would be raising my hand to go to Baltimore. I get that the Ravens are kind of positioned to win now with Lamar Jackson and what have you. But, you know, up front, their offense and defensive line look pretty damn soft this year. And the Giants are young and an up and coming team with a draft pick. So, you know, if you're a coach looking to plant your end, I think, you know, if you're a Tomlin, you can really command from certain franchises control over, you know, everything from the draft on down.

11:04So, you know, I hear you. But I also believe that in Jackson Dart is an incredible talent. But at the same point in time, it's everyone can have a really good rookie year. And we look at what CJ Stroud did. You look at Jaden Daniels this year. Obviously, Jaden got hurt. But with that in mind, John Harbaugh, I think, would bring validity to an organization that has lacked it for many years. And it would be great for Jackson Dart. But what does Jackson Dart look like year two? And what does the contract situation look like? They did not fire their GM, who seemingly started this whole thing by signing Daniel Jones instead of Saquon, which, again, sent the Giants into purgatory for a number of years.

11:37And so John Harbaugh, I think, brings the CEO feel to the Giants. But going up against the Cowboys and Dak Prescott and the Eagles and Jalen Hurts and so much talent in these organizations, I wouldn't be raising my hand to compete in the NFC East. You know, there's a lot of other teams that are basically, I mean, you know, like the Dolphins, you know, like some of these guys who are left over. I mean, what is it going to be, Chris Shula coaching the Dolphins? I mean, look, the Dolphins situation in particular is fascinating to me because what is always said about the Dolphins is that it is a resort football team, that they have incredible facilities and you never want to leave and all that.

12:11But the Dolphins also haven't had a memorable season recently in a very long time. And Tua is openly talking about leaving. He has a huge dead cap hit. What is his trading value? Second, third, fourth round pick for a guy who went in the top five a couple years ago. That is a hard situation to inherit. And I think Sean Payton went to when he was hired at the Broncos, inherited something similar because Russell Wilson was there. But Sean Payton is probably one of one. So finding another Sean Payton in Miami is going to be difficult. Our thanks to our friend, Bloomberg U.S. sports business reporter, Randall Williams, for joining us.

12:42Up next, we turn to the high-stakes negotiations for a new collective bargaining agreement in the WNBA. For Damian Sassauer and Vanessa Podomo, I'm Michael Barr. You are listening to the Bloomberg Business of Sports from Bloomberg Radio Around the World.

13:01this 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 Damian Sassauer and I'm Vanessa Perdomo we still do not have a deal between the WNBA players and the WNBA on a new collective bargaining agreement putting the upcoming season at risk here to break down on the latest is not just anyone's friend it's tom friend he's a basketball staff reporter for the sports business journal tom welcome to the bloomberg business of sports thanks for having me appreciate it wnba deadline expired no deal what happens if there is no deal as the season continues well you know they have a little time i don't i don't think the players are panicking yet They're dug in.

13:52This is their best opportunity ever to do a deal. I mean, the league is at its highest peak with Caitlin Clark and all the players around, Angel Wilson, all the players who played great, the TV contracts, everything. So this is their time. They're well aware of it. They've taken deals in the past to hear them talk, people in the union talk. They've taken deals in the past because they want to keep the league going. They want to keep the league going. You know, they want to do their best to help the league, but now they want to help themselves. And so dig in because this is going to go a while.

14:24I think if the players, they want to get it done by February 1st. But I don't know if that's realistic. Really, it boils down to very small, if you really boil it down, it's revenue pie. You know, the players want 30 percent of revenue. You know, they want revenue as the league grows. They want that revenue as the league grows. the unions number even though it says they're more at 70 million uh 70 net revenue it's really about 15 gross revenue so you're talking about a 15 difference on the surface you could think you know that that's something they could bridge and get down but they're dug in and um i don't think it's going to end anytime soon that's just my personal opinion tom i mean it's interesting that you say that right because february 1st the players probably say that thinking it feels long a while away and then every single time a deadline has passed, they haven't had a deal.

15:16It feels like they're very far away on this, right? Like you said, how come in this instance they chose to operate in good faith instead of calling for the strike that they voted yes, that they would do if they felt like it needed to come to that? How come they're operating in good faith right now instead of doing that? Because they want to deal. They want to play basketball. I think that's the one thing. And if you start striking, it gets more acrimonious than it already is. It is kind of acrimonious. If I've gotten the back and forth, it's pretty bad. But the players are going to strike more than the league is going to lock them out.

15:49I don't think Adam Silver, I know that I'm pretty certain that he does not want to draw a hard line right now. And as he's taking it, you know, just being hard on these women. I don't think he wants to do it. I think he has good relationships with them. I don't think they want to have a lockout. So it's going to come down to whether the players are going to strike. I think you're right. Why aren't they doing it now? They're going to. If this doesn't get done by, I'd say, March 1 or mid-February, I think that's probably more likely. There's time. The season doesn't start. They don't go to training camp until March, or I think April, actually, usually.

16:28The league wants to move it up to March. But the season doesn't start until May, so there is a little time here. But I think the union is bracing for the league to say, hey, if you don't do a deal soon, the season is delayed. They expect they're going to hear threats. The other thing is you have two new expansion teams, the Portland Fire and the Toronto Tempo. You never heard of them probably, but they're coming. These are the next two teams that are coming this year. There needs to be an expansion draft. There are over 100 players in this league that are free agents. So you have free agency to do.

16:57You have an expansion draft to do. You have teams that are forming for the first time. There's lots of business to be done, And there's a moratorium now. There'll be no free agency until this gets done. So I don't know when it when it just starts wrapping up here, because there's a lot to do. This is what's interesting to me, right? Because Kathy Engelbert, she represents the WNBA, right? And she obviously, you know, I guess what I'm saying is you have the haves and you have the have-nots. And so who does she represent in these, you know what I mean? Like you probably have some of these smaller teams that can't offset the losses from a lockout.

17:30And they're probably going to, you know, be more inclined to do a deal along the lines of what you're discussing with the 30%. And then you have, you're right, the, you know, the Valkyries and the Fever and teams that can basically wait them out, right? I mean, it just seems so interesting. Like, what must be going on inside, you know, the WNBA, inside, you know, the war room between Silver and Engelbert? Like, where do they really stand with this? It sounds to me like they're going to wait them out. Yeah, you mentioned Silver and Engelbert. That's a really good dynamic there because Engelbert has really not really much power.

18:01I think the best thing that would happen to these whole negotiations, and I don't want anybody to lose their job, but if Kathy Engelbert was exited earlier, I think they would help it. I think there's not a lot of trust between the union and the league. And it's nothing to get, you know, Kathy's a very strong leader. She's built, the business has gone scoggered since she's been the commissioner. But the lack of trust, there's been a number, I'm not going to go through them all, but there's been a lack of trust there. And so Adam is really pulling the strings behind the scenes. And it's just a question of how far he wants to go.

18:33Tom, I think that's an interesting point. You brought it up earlier about Adam Silver having a good relationship with the players and him not wanting to bar them out of this league. But at the same time, if he does have to step in and the players have called for him to step in, the reports are that he has stepped into these negotiations because Kathy Ungerberg couldn't get it done. So if he does step in and they do, eventually the two sides come to a deal, but it is less seen, less favorable for the players if the players do end up kind of giving in to the league. And does that then put any sort of smudge on Adam Silver's reputation with the players, with the WNBA, in that way if he negotiates a deal that they feel isn't fair to them?

19:15Well, you're right. Adam values his relationship with these players very much. He values his relationship with all the NBA players as well. He is that kind of owner where he comes from the David Stern mold where he really wants that relationship. David Stern's relationship with Michael Jordan, Magic Johnson, Larry Bird, Chris Paul. Over the years, Adam has a great relationship with Chris Paul and these kind of players. Andre Iguodala, he values relationships. So I think that's important to him. I don't think they're going to bury this season. I think eventually it will get done. I think the players are not going to give as easily as the league thinks.

19:50And that's what I'm trying to say. I think that there has to be an olive branch somewhere. I don't think Adam's legacy or his image with the players will change any. I think he will only step in if he's asked to. He's not really in the meetings right now. but um i just think that eventually that they'll get it done i just think that um the players are going to make it hard on them i don't think they're going to give in this time i think they have unrivaled which is this three-on-three league this 54 players getting paid there you have project b it's an international f1 style league starting in november of 26 they already announced their first tour stop in japan and tokyo um in march of 27 i mean these players are going have options they have a little leverage too i mean they don't have to go to the nba wmb and make money there's there's leagues overseas there's you know they can they can dig in and do this now from their brand standpoint you know caitlin clark will be fine but some of the other ones need it need to need the game to be played so um i i just think that eventually this will get wrapped up but um i don't think adam i don't think he's going to lock him out this is but like that he does care that much you know you make a great point he cares to the point that i don't think he once that relationship is soiled.

21:03We're talking with Tom Friend, basketball staff reporter for Sports Business Journal. And by the way, Sports Business Journal is partnered with Bloomberg through our new subscription bundle, which gives readers access to both Bloomberg's business reporting and SBJ's industry-leading sports coverage. I don't mean to sound like gloom and doom, and I know we're running out of time, unfortunately, but if a strike comes, that is a killer to the WNBA. And I think back to the strike years ago with Major League Baseball, and it took a while for them to get the momentum back. Still really having recovered from that.

21:40Yeah. I will say that the players will have the public on their side. This is my opinion. I think that these players have been underpaid. The league hasn't been taken seriously for a lot of years. Now it is. It's amazing. I, you know, these games are appointment viewing for me where they weren't before. I'm just speaking for myself and I'm a big basketball fan. So I think that public sentiment is going to be on the player's side. I think the league probably knows that. I don't think they're being unreasonable. They're not asking for 50 percent of their revenue. They're asking for 30 percent. There's some dynamics to that.

22:20The other thing is that on the team side, you know, the players, the league's saying they're going to lose 700 million if they accept this 30 percent revenue and the union says well you have expansion fees coming but these expansion fees are not as big as they people think they're not paid all at once they're paid over time and they're not as big as as the union maybe thinks so it's hard if you dissect it all yes it's fair what the nba is saying the wba is saying but when you boil it all down public sentiment sentiment's going to be on the players i think i'm right on that maybe you guys disagree with me but i think it is i i definitely agree with you on that for sure and i think that when you look back at that baseball strike the players were the villains right i mean they were all villains you know everybody was everybody was villains um that was a that was the millionaires versus billionaires argument this is not this is not that these players are not millionaires only a handful and that's not because of their basketball on the court right it's their brand and so i i think that that's going to change the way this goes i don't think this is going to be a long term i like the i don't think it's going to ruin the day.

23:25It's going to ruin it. You're right. I mean, the WNBA, it's at its peak. Why would you mess with the momentum? And I think that the league has said that in their statements. They've played out said, you know, we didn't reach a deal under this deadline. We want to capitalize on the momentum. And I think they all do. And I think that's why there's going to get a deal. There's going to be a deal. They don't want to ruin this. You make a great point. I don't think they do. I got to end on this because any man who has written the book, the chicken runs at midnight you know i love him tell me quickly about that book well the chicken runs at midnight is a true story about the well let me go through it uh there there is a baseball coach been for the pittsburgh pirates who who who his his daughter was dying of a brain cancer brain tumor and she saw him coach third base he's cupping his hands talk to the runners at second base hey get off get off the base and she goes dad what were you saying to the runners because she couldn't see from the stands she couldn't hear she goes dad what were you saying the chicken runs at midnight and everybody laughed like why are you saying the chicken what is that and you know she no one knew what it meant it became a family mantra and she dies of brain cancer and then five years later he's the third base coach for the florida marlins they're in the world series um they had a second baseman named craig council you may have heard of he's the cubs manager and back then he was a young player and he looked like a chicken the way he held his bat and And the family used to nickname him the Chicken Man.