Michelle Wie West on Golf Dealmaking, and Alex Closes His Deal

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0:42Welcome back to The Deal. I'm Jason Kelly alongside Alex Rodriguez. Coming up on the show, Michelle Wee-West, legendary golfer. She is a fierce business person as well. We're going to talk about some of the deals that she's been doing of late. But first of all, partner, congratulations. This is it. You did it. I mean, this is the first time we're talking on our show about the fact that you and Mark Lurie closed your deal to buy the Minnesota Timberwolves and the Minnesota Lynx. How are you feeling? I mean, what a journey. Well, thank you, partner. And look, I'm very, very happy and even more relieved.

1:15It's been a long time coming. So grateful for this opportunity. When the decision came, it was like waiting for this for like months and months and months. It was probably the most nervous I've ever been and couldn't be happier and really excited for both of our teams. And the fan base here has been really supportive and we're excited to dig in. Yeah, I'm talking to you. You're in Minneapolis this week. Big game for the Lynx, which will be decided by the time folks listen to this, the Commissioner's Cup. I mean, talk about the Lynx for a second. You're the governor of that team now. This is a juggernaut team in the history of the W.

1:52They won the most titles. Nafisa Collier obviously is one of the standout players in the entire league. What a moment, not just for that team, their success this season, but historically, you've got a franchise that truly is one of the signature clubs in the W. Yeah, and when I think about that, Jason, I think about our great leader, you know, Cheryl Reeves, who's been here for over 15 years. She has four titles. She coached in the Olympics. We have this incredible, incredible sticky fan base that just loves their team. And Lynx fans are different. They're used to winning. They're a bit almost spoiled, right?

2:27With four titles, they almost won another one last year. And you have Nafisha Collier, who could be the MVP this year. And it's really, really exciting. I'm really excited to see what this year has. But they have it rolling, and they've been rolling all year. Yeah, of course, this comes on the heels of an announcement earlier this week. Three new franchises coming to the WNBA. The expansion fee, a record$250 million. That's five times more than the Valkyries, who are seen as a very successful expansion team, commanded in terms of an expansion fee. So clearly a very good business to be in. Flipping over to the Timberwolves and really to the macro of it all, I would love for you to take me and to take our listeners inside like you were nervous leading up to it.

3:13What's it like when you actually like you're signing to become an owner? I mean, this is a generationally impactful and meaningful moment for you, for your family, all of it. Like, what does it feel like? Yeah, look, I think Mark and I, we were like 10-year-olds waiting for our parents to say, yes, you can go out for the weekend and go get an ice cream. I mean, we're literally waiting by the phone with so much anxiety and stress because ultimately, Jason, you don't know, right? You think you have a good case, but the arbiters can decide one way or another and you just really never know. But, you know, Mark and I both, look, I come from nothing.

3:50And when you come from nothing, you appreciate everything. So obviously, there's like a real, real dream come true for both of us. I mean, we're both from New York. We always dreamed of being a part of an ownership group. And to have this moment and the responsibility, the real stakeholders of these franchises are the fan base here. And we're lucky enough to have the financial wherewithal to be able to steward these two franchises. And we both feel very happy and grateful for the opportunity. I saw a great post that you had on Instagram of getting a call for being drafted and making a call. I mean, it's a cool split screen to see, but what a split screen to live.

4:33There are only a couple other people who've ever been able to do that. Michael Jordan being another one. to make that call knowing what it feels like to have your life changed on the other side. Tell me about that. Yeah, it's funny, Jason, because when you saw the draft this year, there was an incredible amount of emotion with all the young players. And you see the tears and you see the gratitude and appreciation and the disbelief with their families, with their partners, you know, whoever's there with them. And I remember getting that call in 1993 and having the same exact emotions. I mean, here I am a few years before that, I saw my mom, you know, collecting food stamps because she was a single mother.

5:13And here I am getting a million dollar signing bonus. I thought it was like all the money in the world. And it was and it still is. And to make that call now and hear the emotion on the other side when you talk to these young players, we drafted two kids, both over seven feet, both 18 years old. And I was there. I was an 18 year old at the kingdom playing for Lupinella and playing in front of Ken Griffey Jr. and boy, I tell you, what a whirlwind in 30 years to be able to do that and make somebody else's dream come true is pretty awesome. Yeah, and so as you think about even the next few weeks, there's a sense of you were working literally for years to get this particular deal done, but what comes after the deal is often the most interesting, but some of the most challenging stuff.

6:00So what's on your mind? What are you and Mark sort of saying to each other as, you know, you're in season with the Lynx now, you're about to go to Summer League in a few weeks with the Wolves. Like, I'm sure you're talking like 10 times a day. Like, what are those conversations like? Yeah, I just hung up with them, actually. Look, I think, Jason, we have the great luxury that Mark and I try to get our MBA on the MBA for the last four years in this ownership transfer. And we were allowed to run basketball basically for the last four years. One of the moves we made early on was bringing in Tim Conley.

6:32And then Tim Conley brought a world-class team around him. And that's worked out pretty well. We've gone to back-to-back Final Four-ish Western Conference Finals. We've come up short of our goal, but we want to copy and paste that same exact philosophy, bring in a world-class leader on the business side, and hopefully we can have similar results. Well, meanwhile, in the NBA, you and Mark are now governors of that league. The biggest headline in the NBA, maybe the biggest headline in sports over the past couple years, has happened since we were on these mics together, which is the Los Angeles Lakers, perhaps the most iconic franchise in all of sports, certainly in the top three, top five, sells for a valuation of$10 billion.

7:15It's an amazing moment, not just because of the number, but because of what Jerry Buss and his family have meant to the league. this was someone you knew you know Jeannie well she's a partner in the league obviously what was your reaction to that news of an ownership change and of course Mark Walter well known for Guggenheim and the champion Los Angeles Dodgers taking over that franchise what was your immediate reaction well I think my first thought was what would the great Dr. Buss be thinking right now and how proud he is of his six children and obviously Jeannie Buss has just done an incredible job being a steward of that great franchise who learned under Dr.

7:55Buss. My daughters are huge fans of Jeannie Buss, and they hope to one day, you know, follow her footsteps. Look, the NBA is just an incredible global league. And what really makes me happy about this transaction for the Buss family and Jeannie is that they're handing it off to an incredible business person who has a world-class track record. Look, what he's done with the Dodgers. The Dodgers operate like an NFL team, almost like the Dallas Cowboys. So if you're a Lakers fan, you're in good hands. And good news for the Lakers is that it looks like Jeannie Buss is still going to stay on as governor for at least a few more years.

8:34And the Lakers are one of the most powerful franchises in all the sports, not domestically, but around the world. And I was just as shocked as you. When I got the news, Jason, I was like, what? And I think that was a reaction for many fans around the world. Yeah, our text thread was a series of expletives, I believe. So as I'm sure yours were, you know, my phone was blowing up just because, you know, in the world of business, and again, it's not just about the number, it's about the fact that there was a trade in the parlance of dealmaking that really just knocked people's socks off. Interestingly, our guest on today's show has a connection to the Los Angeles Lakers, Michelle Wee West.

9:17The West is her married name. Her husband, Johnny, works for the Golden State Warriors. Her father-in-law was the late Jerry West, the logo, and obviously made his name with the Lakers and did so much for that franchise and for basketball. Meanwhile, Michelle Wee, before she was Michelle Wee West, completely changed the game of golf. I mean, really brought women's golf, I think, to the fore. She has since become an incredibly influential and powerful dealmaker in her own right and has really expanded her remit a lot around sports. She became an investor in together. I love golf. I love watching her and her career and what she's done.

9:59So I know you were excited about this one as well as I was. Yeah. I mean, look, she's an extraordinary young woman. This is one that I'm going to tell my daughters, you have to listen to this episode. It was a great conversation. We're excited for you to listen to it. Coming up, Michelle B. West.

10:41IDA Ireland and Schneider Electric. Learn more at bloomberglive.com slash techlondon.

10:56We are so excited today to have none other than Michelle Wee-West with us. Michelle, awesome to have you here. Thank you. Thanks for having me. All right. So you are just like exactly the type of person we'd love to talk to on this show. An incredible athlete who has really excelled in her business endeavors so far. But I want to take you back to one of your first big business decisions, if we can, which is something you have in common with my friend here, Alex. Alex signed with Nike when he was 17. And people don't usually get him on stuff like this, but you've got him. You signed at 15. Walk us through that deal.

11:38Like what was going through your mind? Is that all happens? I mean, this is obviously an iconic brand. Walk us through that. Yeah. I mean, to be honest, I really wasn't too involved with that. I mean, as you expect a 15 year old, I really had no interest in, you know, learning about the business. I wish I wish I did in hindsight. You know, I was very fortunate that my my parents, you know, were really good with money. My dad was a math major, statistics major, you know, taught statistics at a university. So he was very numbers based and was very protective of my legacy and my time and everything.

12:15And for me, I just wanted to play golf. And it was funny because back in the day, I don't remember that MTV show, My Sweet 16, where they had this like lavish birthday parties for 16 year olds. And I was so obsessed with it. I was like, OK, be really cool if I turn pro on my 16th birthday, I did a big press conference and I did a whole thing. All I really wanted was that. And in terms of, you know, the technicalities of the contract, you know, I had signed with WME. I was with Jill Smoller, powerhouse of his agent. So I was very, yeah, very well protected in that space. So I just I just a full trust and really trusted my parents, really trusted my agent and my agency.

12:55And, you know, I think they had my back. I think I signed a pretty good deal. But when I was playing, I really tried to separate myself from the money aspect of it because I never wanted it to feel like that. And in golf, very different from team sports, you pay for everything up front. You pay for your flights, you pay sometimes for your caddy flights when they're international, your PT, your trainer, you know, your support staff that are coming with you a lot of times, you know, every week that was my parents, you know, your hotel room. And when you start to think about money, it really starts to mess with your head.

13:32And there was like a short period of time when I was playing, I would start thinking about that when I was like missing cuts and playing really poorly. I was like, oh my God, I'm in the red every single week. And it just, it makes you not play well. It makes you feel like it's a job and whatnot. And I felt like I played my best when I just separated the two and I played because I wanted to play well. I wanted to win. I wanted to feel the feeling of that and not because of the money aspect of it. And of course, I was very fortunate, signed some amazing deals with some amazing companies, but I really tried to separate the two when I was playing.

14:05So, Michelle, I love that. And our audience just loves this kind of nuanced stuff, right? You just mentioned this is totally different than team sports. I couldn't think of paying for a team flight or uniforms or like caddies. He's like, Batboys just come with us. They just show up. When you think about when you first started, you mentioned being on the red. How much of an investment up front do you have to make and how much do you have to make to be on the black? Yeah, that's a great question. You know, my parents, obviously, you know, we're very middle class. My dad was, you know, a professor.

14:38My mom was a realtor. And, you know, I was very fortunate because time-wise, my parents were very flexible in being able to spend time with me. their time, which is so important. My mom can make her own hours. My dad had spring break and all of summer off. So I was very fortunate in that sense with, you know, obviously time being wealth and my parents being able to invest so much of their time with me, you know, but money wise, another factor of it was I grew up in Hawaii and, you know, to play in tournaments, it's not just a quick drive here and there. It's not like I was born living in Southern California and I could play in all the tournaments, I could just get in a car and drive to Nevada, drive to Scottsdale, drive to the Bay Area.

15:20It's a five-hour, a substantial air flight to play in these tournaments. But early on, you know, I contribute a lot of my success to, you know, we call in Hawaii, like, you know, everyone is aunts and uncle. And even though you're not family, I acquired a lot of amazing aunties and uncles, you know, in Hawaii who, you know, paid for my course fees. I had a lot of support from you know my people in hawaii and that's kind of why i kind of started this strange career path in terms of playing in pga tour events when i was 14 and then qualifying for lpg events when i was 12 and i think a lot of that contributed to the financial aspect of it i I was just trying to find tournaments on island.

16:10Sony Open happened 10 minutes from my house. And, you know, when I was 12, I had already won the largest woman's amateur event, the most prestigious woman's amateur event in Hawaii by 13 strokes. Oh, my God. Yeah. Like, where do you go from there? Right. And I'm like, OK, within that small space. Then I started playing in men's events. And then I was like, oh, why don't I play in the Sony Open? That's 10 minutes from my house. It doesn't cost anything. Or why don't I qualify for the Take Fuji Classic, which was on the Big Island when I was 12? You know, I qualified for the USJ Public Links when I was 10.

16:45But, you know, it's just it's so much money. And when you're playing to those amateur events, you don't get anything back. My parents, you know, they sacrificed so much for me to get where I am. But, you know, think about the financial aspect of it. Not because I did these things to muster up the image or try to get a bigger deal with Nike. It wasn't even that. It was just pure. I'm just trying to not be so much in the red. Yeah. You know, trying to find tournaments local. And that ended up being, I guess, the PGA Tour event, which is the Sony Open, which is kind of wild to think about. What were you thinking about at the time?

17:22Did it just feel like, well, this is what I'm doing? Did it feel as radical as it, you know, read to the rest of the world? No, I mean, this is like my 14 year old self thinking this was like, you know, I was I played on the boys baseball team in Little League. I was the only girl. I made the all star team. I was like, this is just like that. Yeah. And so at that point, I mean, I'd love to. I mean, Alex is a very good golfer. I am a very poor golfer, but we both love the game. I mean, talk to us about golf and the business of golf when you came in and then maybe fast forward to where we are today.

17:57for both the overall game and especially for the women's game? Yeah. You know what's so amazing about golf is that it really opens the doors for you to play with CEOs and high executives. And already when I was 10, 11, 12, I was playing with the most influential people in Hawaii just because they wanted to play with this kid who's like really good at golf. And, you know, we would, you know, have some friendly games, money betting games and ended up acquiring a big stack of cash, which I was like, I'm going to save this money to buy my first car. That's just so powerful about the game of golf. And I get so passionate about getting more girls of color into the game of golf just because there's no other sport that connects you to the most powerful people in the world.

18:47So, Michelle, I just want to follow up on that. I mean, that is an interesting concept of someone so young. You're a female. You're still in college. And you're playing with some of the most successful CEOs, as you said, in the world. At what point in those 18 holes do you know, I may have some traction here. Is it, you know, the back? And do you sometimes kind of misread it? Like, oh, my God, I'm going to get a deal here. And you get nothing. And sometimes you think, oh, this was quite pedestrian. And you get a big deal. Has that ever happened? And when do you know? Yeah, I don't know. I mean, I don't think it's so specific like that.

19:20But, you know, I think the world, everything is about connections and making human connections with people. And, you know, I've been very fortunate in my life. And I think, you know, I think golf is so different from other sports, like even like baseball or football or basketball. You know, when you're assigned with a company, you're not going out. The CEO is not playing a sport. Like, let's say, you know, they signed a really famous football player. These CEOs are not just being like, hey, let's just pad up and let's play football against each other. Right. They don't get these like organic experiences, whereas golf, you're spending five hours of like meaningful connecting time with these top CEOs.

19:59And it's I think it's extremely powerful. But it's gotten me some in some very interesting rooms and feel very blessed about that. And what do you think about sort of the state of the game now, Michelle? I mean, it feels like we're at this fascinating moment for both the men's tours and the women's game as well. You know, we've had changeovers in leadership across the board. As you look at the state of golf, you know, as someone who obviously played it at the very highest level and someone who cares about the game, like, what do you make of it at the moment? Yeah, I mean, I think the men's side and the women's side, you know, they have some connecting paths.

20:36But I think the women's side, I'm extremely excited about the new leadership. You know, our purses are getting bigger on our tour. We're getting better viewership. I still think there's a lot that needs to be done to give these girls what they deserve in terms of, you know, media attention and viewership on broadcast. You know, on the men's side, it's definitely a little messier right now. And I think they're trying to find their way. But, yeah, I think it's an exciting time for both men and women. There's a lot of change going on. There's a lot of competition going on, especially on the men's side, if in terms of leagues.

21:11And when that happens, I always think there's a net positive at the end of it. It also feels like even more broadly that the game is is like gaining steam. I mean, you think about I know you're involved with with TGL as an owner. I got a we got a chance to interview Mike McCarley on this show. I was able to see one of the matches live and in person. What attracted you to that as a deal in terms of growing the game? Yeah, I was very intrigued from the moment I heard about TGL when they were incorporating the amount of technology that they are with simulator golf and, you know, all sorts of technology.

21:50I love the aspect of bringing the game indoors into an arena. I think that's kind of like one thing that golf is so great about. But in terms of spectatorship, live spectatorship, it's hard. It's hard as a spectator to go out to a golf course, especially in the summer when it's hot, to follow your favorite golfer for five hours walking. I think bringing it indoors brings a more casual viewership, more casual spectator into the game with the rise of Topgolf and golf simulators all over the country. I think it just really brings on a fun new twist to the game. I went to one TGO match live and I was so impressed.

22:32I was blown away. I think the tunnel is such a fun idea. It kind of brings in the fun aspects of like NBA, NFL, like that energy into golf, which I think is so refreshing. I think TGL is a great supplement to, you know, quote unquote, real grass golf. I think it's a really fun way that you can see teen sport and professional golf and see these guys' personalities and see the technology. It's pretty cool. I'm excited about it. And Michelle, you talked about how happy you are with where women's golf is today. But just wondering, obviously, there's always a ways to go in everything. When you think about if there's one or two things that you can do to improve the game and make it better, what would be those two things?

23:17I can go on and on about this. Yeah, I think that the TV quality, the broadcast quality of our tournament needs to get a lot better. And that means more cameras on site, more on screen technology, more. And this is my second point, which I'm going to bake in into one is better statistics. You know, on our tour, the caddies still write down statistics, shots gained and all that. They still manually write it down instead of it being automated and, you know, and whatnot. And that, you know, comes hand in hand with sports betting. And, you know, obviously people have their views on that whatnot. But it is a fact that sports betting does drive viewership in terms of people who watch sports.

24:09And when we don't have really accurate statistics, it's hard for people to get into sports betting, which obviously, again, like, you know, that's a very controversial topic. But I do think that we need to work on our broadcast quality in terms of number of cameras on site. You know, I believe that the men have, you know, more than tripled amount of cameras that are on site. So they cut to a lot of places. I think it just came out that a lot of stuff isn't really live anymore. They just cut to the best shots and it just produces so much more drama, so much more excitement. When I was our tour, you know, you have maybe one camera following the lead group or a couple of cameras based around the golf course.

25:00And, you know, our players look slower to the TV viewer because one camera is just following one player a lot longer instead of cutting back and forth. And people, especially nowadays with their, you know, our lack of attention span, you know, we need that better cutting back and forth. So, you know, I think if we can increase our broadcast quality, I think our viewership will also rise. And I think if we have better statistics, I think the people who are talking about our game will have more stats to back it up with instead of being like, oh, Nellie Cord is a really great player. And you're like, why?