How Peloton’s Robin Arzón Built a Successful Brand

23:20So as you're speaking, I'm thinking about the NBA and the WNBA, and I'm involved with the Minnesota Timberwolves and the Lynx, and I'm very passionate about this. and my background is baseball. So I come from a little bit different world, but some things cross over. And what I'm thinking about is the culture you've created inside the four walls. I'm thinking to myself as you're speaking, how do we create that culture and energy and light the fire inside the four walls that target center where both teams play? I know you're a consultant, but if you want to give me some free advice or I can pay you later, what kind of things would you be thinking about?

23:54You know, when you have 20 ,000 people, there's a lot of heat in the room, teams are doing well. How would you think about it? High level. I mean, I think it's storytelling and ritual. Ritual, is it? Ritual. I think that's what's so cool about fandom. What do you mean by that? So there's the story that we all understand. And is that like what the media is capturing, conversations like this? I think especially with social media, it's like user-generated content of the fandom. That is what I think is so interesting about seeing what members post. Because there's like things that you can't plan, like curiosities around yellow, for example.

24:29Like yellow became a thing because I was just – yellow is kind of my power color and I would naturally wear that for tough classes like Tabata classes, interval sprints, race day. And now that's a thing. Like people wear yellow for these classes and it is associated and now it's going to be incorporated into some products that I have coming out, athletic products because there's a thing about that. So that's what I mean about what's the story and then what's the ritual? and can you kind of pair those things, you know, from a product perspective or even a storytelling perspective, you know, before the games, after the games.

25:05And then, of course, there's, like, the adjacent things like fashion and stuff where there's just little hooks. Yeah. That you kind of have to marry, like, the details with the larger story. And it's finding the right people who can, like, notice the details. Like, oh, fans are kind of doing this weird thing, whether they spot it in the venue or on social media. Yeah. And then you make it a thing. And then that becomes a snowball. Connecting the dots. Connecting the dots. The ritual point is really interesting too because the ritual of class – I mean, if I might fell out for eight years, it is ritual-based.

25:35It is like – it's a routine in the same way that like showing up to a game or watching a game, being connected. I mean, you know better than anyone the rituals of baseball. Oh, yeah. And there's superstition. Right. Fans wear the same colors if you win. If your favorite player Anthony Edwards scores 40. Right. They'll post about it and like do something weird about it or they drank a certain thing. Right. And the idea is how do we just connect those dots? Yeah. And spotting what's already naturally happening and then communicating what the players and what the teams are doing. Because people just love understanding like what's the morning routine?

26:13What's the ritual? What do you do pre-show? And unpacking that and like telling that story in a way that is appropriate for the brand. So I'm really curious, Alex, as how do you choose the teams? You know, you entered sports teams, ownership groups that are not baseball. So how did you do that? Because I just recently invested in a football club, a women's football club in Europe. I can't announce the team name yet. But I was a little trepidatious because I'm not like a soccer expert. but I'm so passionate in this opportunity to come across my desk. And it's like, how do you toe that line of like, I can offer something here?

26:54Because for me, it's not just the dollars. It's like, I also want to be able to sit in seats like this and be like, this, I believe in this. So Robin, that's a great question. Like, so for me, Magic Johnson was kind of like my North Star. He was one of my heroes, someone that I just loved so much. Going back to the Laker days at Showtime with Pat Riley. And it's interesting. He went from the hardwood to the boardroom. He also went from the court to baseball ownership with the Dodgers. And I've gone from baseball to basketball. And with Magic and I talk, we often are advising each other, him on the Timberwolves and the Lynx and me for the Dodgers.

27:27But in a weird way, I think 60 percent you have a crossover. You still want great character, well-conditioned athletes, create a great culture, create heat inside those four walls we spoke about. And I'm a firm believer of just go out and hire the best people in the world and get the hell out of the way. Yep. And I think not everyone does that. And because I don't know, I'm not an expert in basketball, I actually think that works in my favor. I don't know if I'll be such a great baseball owner, to be honest with you, because I maybe know too much and I will probably get more frustrated. But with basketball, I'm in awe of all our players, the men and the women.

28:00And they're incredible and they're young. And I get to talk to them about all the mistakes that I've made and hopefully they can avoid those mistakes. And I have a great partner, Mark Laurie. So I actually love it. And I love learning. I love planting seeds. Every day I study five or six hours every day about basketball, whether I'm asking Jason questions or I'm reading or I'm listening to podcasts. So I've enjoyed it and I wish you the best of luck. And they're very lucky to have you because you bring something that I wish we had from a partner's point of view because you see the world from a different lens than all of us do.

28:31So yellow is the color. Well, I appreciate that. I'm inspired. I'm really inspired. And so help us understand, and I know Alex has sort of done this same balancing act. You're on a team, you work for a company, you run a team, and yet you're a brand in your own right. You're doing your own deals. How do you balance that? How does it work? How do you approach it? It seems like this was the plan from the beginning, but how has it evolved? So it used to be, there used to be one-off conversations. It was just like, hey, I'm publishing a book next week. Oh, okay, great. Now there's an internal process, right?

29:12We have 50-plus instructors globally, and there are lots of conversations that are happening within the walls of Peloton and outside of it, but they have to run in parallel tracks. You know, like whether the pee on my chest is outside my clothing or underneath my clothing, it's always there. Just like the players are always, you know, part of the organization. Still a Yankee. You know, you're part of that organization. And so there are things that are wellness adjacent that are obviously – we talk about that with much more specificity. And there's stuff, you know, like my children's book or like, you know, things that kind of were outside of the scope that I would never do within the Peloton walls anyway.

29:56And so usually that's a green light. But there are conversations for sure. And it's with our leadership team, you know, and obviously our marketing team, you know, has points of view on it. But our CCO is really integral to that conversation. And now we're at the place where our agents and our managers and our external teams have a relationship with the stakeholders at Peloton. Right. So it's really like one big conversation. So following up right on that, I mean, kind of wearing two hats again, right? Like you're the team player for Peloton, one of the great leaders, and you're also running your own kind of family office.

30:30Yeah. So when you think about your family office, how does your team look and how do you kind of vet deals and where do you see yourself in three to five years? I mean, hiring the team is the most crucial thing in the world, especially because I want, I'm really at the juncture where I need to understand what scales beyond my physical presence. And now it's thinking of, for example, well, the short answer is I work with my husband who serves as my manager and he's also my business partner. He has a history in business. So it's really, he's a subject matter expert in a lot of this stuff. And then the deal details, we obviously lean on my agent and our legal team.

31:13We have a PR team. So there's lots of spokes to the wheel. But the core of the strategy is my internal team, right? So we have a chief strategy officer, and it's important that we all align. And they keep me kind of – I know I'm very – I think one of my superpowers is being incredibly decisive. So I know whether I want to do something, but 90 % of the time the answer is no. And the no's usually come from leaning on business advice from people who actually understand trends and dollars. So that's what we consider. Three to five years. I want to continue to build in the lifestyle space. So whether that's food or beauty or fashion, I personally am still going to be continuing to compete and get strong.

32:11I want to continue to be strong and be an athlete and model that for women and girls especially. So on a personal level, I will continue to be moving my body. But on a professional level, I want to widen the aperture of how I'm seen. So it's not just Robin who teaches Peloton classes. I also am, you know, on the speaker circuit. I also, you know, I've published five books. And now I want to get into beauty and fashion as well. Right. And so it feels like, you know, you look at IP very closely in the deals that you're doing. And, I mean, it's interesting, you know, we started off talking about your history as a lawyer.

32:53You're still a lawyer. I mean, it feels like that still plays a really big part in sort of how you do your deal making. Is that fair? Every day. Yeah. Yeah. There's a strategy. I think as a lawyer, there are puzzle pieces that you're always trying to fit. And the overarching thing is you're, at least as a litigator, I think even as a corporate attorney, you're understanding narrative. Yeah. And that was when I understood narrative a little bit more specifically. Yeah. And narrative as a tool. and obviously now as a creator on social media, that's deeply relevant. But in creating Swagger Society with my husband, I initially co-founded Swagger Society in the Web3 days as a membership club.

33:33And then we were like, okay, well, clearly the landscape is changing there. And it migrated into a media company. So under the Swagger Society umbrella, we have a wholly owned podcast that will launch a newsletter and production company. and these are conversations that were like seeds and I was like oh let's pull on that thread a little bit let's look at titans in the industry like Reese and Eva and Shonda and just learn from them Reese Witherspoon, Eva Longoria, Shonda Rhimes just name checking and they are obviously iconic and I'm just learning and watching and understanding and then trying to see if I took a literal, not even a page if I just took a paragraph out of that book What would it look like for me and what would infuse joy?

34:21And that is a threshold that I'm not willing to sacrifice on. Like if I'm not filled with joy, and I get joy from hard work, by the way, so it's not like it's all walking through lily pads. But if there's not joy in it for me, it's just a no. Right. I really like how you articulated earlier 90 % no and being super disciplined about what you say yes to. I call it – I used to go wide and shallow. I know I go narrow and deep, and it's been a lot more productive for me. When it comes to deal flow, does your team go out and try to find deal flow? Or if you like a company that identifies to your soul, do you kind of cold call and say, hey, can we take a meeting?

35:02Or are you just inbounding and whatever comes in, you get the best of what's coming in? It's both. I think now I'm at the point where I could be a little – I want to be more strategic. Like I want to say like I love this product or I love this vertical and let's go for it. That involves, you know, strategic conversations like who do we know at this place and this place? What are the top three? What would be the dream collab or licensing deal or whatever it is? Or what would the deal look like, right? So like I think before I was so stuck in how many social posts, how many appearances, how many photo shoots?

35:37And now it's like, no, no, no, let's play the long. Are we talking about – is this a board seat? You know what I mean? Like these are different conversations now. Yeah. And that's exciting, but it's also really daunting. Right. Because it's like it could be anything. Yeah. And it's not just about a liquid dollar amount. It's different now. Yeah. We'd be remiss if we didn't talk a little bit about Peloton. Speaking of narratives, if we were sitting here in front of our respective Bloomberg terminals, we'd look and we'd be like, whoa, that was a big high. And now it is not where it was. It has been quite a journey to say the least.

36:10You're still there. Like you have stuck through it. Why? Oh, gosh. I have always believed. I still believe. I think that I have the unique privilege of seeing, I'm not exaggerating, millions of comments over the years of people whose lives are changed. And if you don't know, you don't know. And it's our job to widen the group of people who know how special the fitness experience is, the wellness experience is. And when that light bulb goes off and somebody understands the quality of fitness content that they have at their fingertips, there is nothing. It is unparalleled. And, you know, we continue building.

36:54We continue iterating. and I'm willing to ride the wave because I, at my core, you know, I mentioned that in recruiting instructors, they have to have a point of view. My point of view is that I will light fires globally in the tens of millions and Peloton will be a key to doing that because we are going to move the needle and make people healthier. I want to add years to people's lives, but I also want to add life to their years. And we're doing that at Peloton every day to millions of folks. I mean, you know, you're a leader inside the company. How do you sort of galvanize the troops? Because I have to think, you know, in the four walls of your company, people are looking to you for belief, for, you know, for that sort of thing.

37:42And you laid out a very good case for what it's doing. How hard has it been at times, though, to be like, listen, guys, we're doing this. Like, it's happening. Like, I know we had this high high, but now we're, you know, like, we're grinding it out. We're doing the work. How do you keep people motivated? I mean, we're all in a position where we have to motivate people who work with us. Right. I mean, leaders do that every day, right? It's interesting to be on a team where lots of, I mean, there's lots of public figures that you're dealing with, right? Yeah. And so and there they have their ear to the ground, too.

38:16Right. Like, it's not just what the street is saying. It's like, what what are you seeing in your inbox and your comments on social media? What conversations are you having in the marketplace? I think I don't know. I don't I don't ride really high highs or let the low lows. Like, I just have to have a really even keeled mentality. And it does come back to that. Like, was the class I just filmed my audition tape? like what if it all boiled down to that one class would I be proud of it and I think keeping it that granular and keeping myself that like checked and then communicating that obviously to the team and it's interesting because I am yes I have like executive function but I'm also the rules apply to me I'm still doing the same job they're doing so I think that there's a credibility there because It's like we're just truly in this together.

39:06Yeah. And we have successfully created camaraderie in a bubble amongst our team globally that it's like I will rep my people and they will rep me. And that's how I think the team really – I think the team really respects that. I feel like you need to bring her in for a motivational team. I was thinking the same thing. You're repping me. I'm repping you. I feel that way about the deal. Yeah. I mean like I – We should say that to each other. We're in it. We're in it. Yeah, exactly. I'm repping you. You're repping me, bro. So, you know, Alex talked about the next three to five years. You know, I guess what I would love to ask is like the right now and sort of as you assess and look around, you're clearly at, I mean, maybe you've had multiple catalytic points in your career.

39:52This feels like, I mean, it feels like you are in a mode where you are leveling up. You're talking about ownership. You're talking about, you know, all these, you know, kind of, I think Alex would agree, sort of next level athlete things. Does it feel like that to you? Does it feel like this is another one of those, like, leaps forward? It definitely does. Strategically and financially, I understand that. Like, I'm having conversations that I would have only dreamed about. but also I have such a day one mentality that it's hard for me to sometimes like make those things match right like you know it's like have you made it what's your most no of course I haven't made it like none of us have if you really think about it like we're out here like grinding and that I love that so I'm having different conversations now and the stakes have changed, especially when my own money is involved.

40:52But it also, I'm a student. And so it's just finding the places where I am confident and leaning into that. And then admitting when I don't know something and that being okay too. And sometimes I'm in these conversations where I am known, but around the table, I'm like, what are they talking about? Like, I don't need this deal. These financial terms are like beyond me. And I'm okay asking questions. I think as I listen to you, I'm so inspired, Robin, because I think the three of us, well, we've done a few things in our lives. I think all of us feel like we're in the super early innings of our career.

41:26Yeah. I mean, many days I feel like I'm in the bottom of the first inning in business, especially because, you know, I was busy playing baseball for a long time, and now I'm in my pivot, right, which is business. And you're the same thing. And, you know, Jason's made some wild pivots too. I think it's exciting. I think having that thirst and curiosity is the one common theme. I mean, we're all very curious. And some of the great mentors that I've had, they all have that same characteristics. They want to ask questions. And they listen more than they talk, you know? Well, and I am sitting here, you know, thinking about where you are on this stage.

41:57And I'll ask a question. You know, this is a guy, you know, my partner here who, you know, was a standout athlete from an early age and was getting a lot of attention. You know, goes to the major leagues right out of high school. You had a different journey. And so basically people knew who he was. He's on the cover of Sports Illustrated with Derek Jeter. You know, like we all know that story. For you, it was a very different journey. What was it like and what is it like where you can't walk down the street without people? I mean, people must shout at you across the street. Like, what is that like for someone who, you know, went to NYU, you know, corporate litigator with Paul Hastings?

42:37Like, you're doing your thing. It's a different world you live in now. What does that feel like? I mean, it's an honor. It is an honor. Like, that's beyond. And usually the interactions, yeah, it'll be like, oh, Robin, whatever. You know, at the U.S. Open, it was like literally – it was such a – it's so charming and exciting still when somebody's like, oh, hey, I know you. I just took your whatever class. Yeah. But what's overwhelming sometimes are the moments where I have a few more minutes or I'm stopped and it's like this intense outpouring of like – You changed my life. the breast cancer, the divorces, the, and some, it's not always like a sob story, but they're intense.

43:16And I'm in somebody's living room and like over hundreds of thousands of classes, like early mornings, late nights, like there's a parasocial relationship that is super legit. That's very intimate. Very. Um, and I am being myself, right? So I'm, I have a class plan, I have notes, but I'm me. And every instructor, that's who they are, truly. And that's, I think, the special sauce. And that's why it's replicable over thousands of classes, because it's not an act, and it's not a script. And we're not wearing in-ears of somebody saying, hey, next up, say da-da-da-da. We're not scripted. I understand just different production environments, and I have such deep respect for the authenticity of Peloton.

43:56I mean, I do think that it's easy to take for granted how intimate an interaction it really is and how you – and we talked with Carolyn Tish Bladgett when she was here about, you know, it's almost like a Rorschach test of like, all right, who's your instructor? You know, like when you're in – and it says something about sort of your personality or even like the mood that you're in on any given day. Absolutely, and we all do that. It's like, what mood am I in today? I mean, I will tell you, I only take your classes when I'm like ready to get my ass kicked. Run through a wall, I hope. When I need it, this would be a good one for you.

44:32We have plenty of that. Yeah, there's a lot of that.

44:46All right, we're going to do a rapid fire. So it's 10 questions. Just first thing that pops to your mind. You don't need to think about it too hard. All right. I'll start and then Alex will pick up. Ready? Mm-hmm. What's one word to describe your deal-making style? Decisive. What's more important to you, gut or data? Gut. Who's your dream deal-making partner? Oh, gosh, there's so many. I would love to work with Dwayne Johnson. I think what he's done at$7 is genius. And Danny Garcia. And Danny, of course. What's the best piece of advice you ever received on deal-making or business? The best advice.

45:20It's either a yes or a no thank you. What's the worst advice you've been given? Stay in your lane. What's a deal you wish you had done? I don't regret it, but after I left Adidas, I was negotiating with another athletic brand. And the reason I left Adidas is because I really wanted to do a capsule collection or something that was creatively inspired by myself and the brand. And we were really, really close to signing a deal that would have involved that. But I still felt like the financials weren't there. It was kind of like, hey, we'll throw you a bone. You'll have a capsule collection. But I felt undervalued.

45:58And it went a few years without an athletic partner. And then now having conversations with Noble, it feels like, oh, right, that door closed because it created this one. What's harder, running an ultramarathon or writing a book? I think writing a book because there are so many other players in that process. This one is going to be a tough one. What is your hype song before you go into a big meeting or negotiation? I mean, listen, M.O.P. Annie Up was on my labor playlist for the hospital. So clearly I have playlists for everything. If I'm really trying to get into a groove, Beyonce's homecoming live performance, like front to back, really inspires me.

46:39Obviously the music is dope, but the symbolism of it, of her being a black woman headlining Coachella, just really inspires me. and then keeping it in the family. Jay-Z's My First Song, it goes to that day one mentality. Yeah. And it both pumps me up, but also keeps me grounded because it's like, it's day one. We're still hustling. Hustling. This may be the first time you said hustle. I was expecting like hustle throughout this whole thing. You can only watch one sport for the rest of your life. Which one is it? Watch one. I think it would be track and field, actually. I like love track and field.

47:15If one team can win a championship, which one would that be? I think my husband might be very upset if I don't say the Jets. Because good God, they need it.

47:31That's the saddest answer we've had to that question. I wasn't expecting that one. I was not expecting that one at all. Robin, you continue to surprise on so many levels. What a pleasure. Thank you so much for being here. I'm honored to be here. Thank you for having me.

47:56The Deal is a production from Bloomberg Podcasts and Bloomberg Originals. The Deal is hosted by Alex Rodriguez and Jason Kelly. This show was produced by Anna Mazarakis, Stacey Wong, Lizzie Phillip, and Eden Martinez. Original music and engineering by Blake Maples. Matt Madula was our sound operator. Our booker is Paige Keffer. David E. Rivella is our managing editor. Our executive producers are Jason Kelly, Amy Keene, Jordan Opplinger, Trey Shallowhorn, Regina Delia, Kelly LaFarriere, and Ashley Honig. Sage Bauman is our head of podcasts. Special thanks to Rachel Carnevale, Elena Saus Angeles, and Nick Silva.

48:43Joshua DeVoe is our director of photography. Rubab Shakir is our creative director Art direction is from Jacqueline Kessler Camera operation by Suma Hussain, Ryan Cavatero, and Holly Fisher Our gaffer is Julia Goweski And our grip is Emily Wolowski Taja Smith is our video editor You can listen to The Deal on Apple Podcasts, Spotify, or wherever you get your podcasts You can also tune in to the video companion on Bloomberg Originals and on Bloomberg TV. Thanks for listening.