Why Willow Bay Invested in Angel City FC

0:00Get the news you need in just 15 minutes. Start your day with Bloomberg Daybreak, the podcast with a global view on the stories that matter. I'm Nathan Hager. And I'm Karen Moscow. Join us each morning for curated stories on current events, politics, business and foreign relations. Plus one conversation on the day's biggest developments all in just 15 minutes. Subscribe to Bloomberg Daybreak for a precise, thoughtful take on the stories that matter. Listen to Bloomberg Daybreak each morning on Apple, Spotify or anywhere you listen. Bloomberg Audio Studios, podcasts, radio, news. Please welcome to the stage Willow Bay, Dean of the USC Annenberg School for Communication and Journalism and controlling owner of Angel City FC for a live taping of The Deal with Bloomberg's Jason Kelly and Alex Rodriguez.

1:04All right. Welcome. Thank you. But that was a very quiet response from this audience. I know. I mean, are there any Angel City fans in the house? Thank you. Yeah, there we go. All right. Well, we're so excited to have all of y 'all here for a live taping of The Deal. And we're especially excited to have Willow here with us. So we're going to talk about lots of different things. We're going to talk some hoop. We're going to talk some soccer, obviously. But I want to start with your day job, if we can, Willow, as you were introduced, Dean of the Annenberg School over at USC. We're at the Screen Time Conference.

1:35Clearly, there has been a lot of talk today, every day these days, it seems, around the First Amendment, free speech. You're living this every day. Yep. What are you saying to your students? What are they saying to you? Yeah. So let me just start with one thing, which is day one fan of the deal. Ah, thank you. Day one fan of the deal, so thank you for having me. So, yeah, freedom of the press, free speech, free expression, which encompasses all of them. They're core and central to what we do at USC and what we do certainly at USC Annenberg, where we teach journalism, public relations, communication, and public diplomacy.

2:14And related to that is academic freedom, right, which is the freedom to teach, research, and study free from interference. and my day job is to protect all of those things for our students and for our faculty. We're not an ivory tower institution. We're deeply connected to our industries of practice. So when something hits the news, whether it's Jimmy Kimmel and ABC, whether it's the Compact for Academic Excellence, which is the letter that the Department of Education has sent to a number of schools of which we are among them, or even the anniversary of October 7th when we had student protests on campus, the news of the day is what informs what goes on in the classrooms.

3:04Our faculty toss out the agenda, they toss out their syllabi for the day, and they get into it. And I think at this moment, our students are really hungry for that. They're asking powerful questions and we don't have the answers, but it is so clear that right now at this moment when we are Commodifying outrage and all we hear is shouting that we create these spaces where people across our University and certainly in our classrooms can come together and and wrestle with these issues in thoughtful ways Yeah, I appreciate your thoughtful answer now. I'm gonna undertake what we call in this business a hard pivot But one of the places that does feel mostly safe, I think you'd agree, partner, is sports.

3:54You know, that we can disagree. We can disagree. And I think you're familiar with people disagreeing about sports, Alex. So let's go back, if we can, to your career. Let's talk some hoop. So the first time I heard about Willow Bay was, I'm going to take you back to the great 90s, where such a fun era. and I saw you for the first time on my buddy Ahmad Rashad on Inside Stuff. And in a funny way, now being an NBA governor, that's really when I first started, fell in love with the NBA. It made a huge impact on me. It started my passion. Did you understand the impact it would make on that community and fan base that still looks back at that show as a big pivotal point?

4:37Look, I can't pretend to know the impact it would have decades later. I knew that it was an incredible moment, an incredible front row seat to what was going on. My first day on the job was the day that Magic Johnson announced that he was HIV positive. That was the first day? That was my first day, my first show that happened. We actually had taped the show and we had to redo it. And it was, that was my first indication that buckle up, you know, we're really in for a profound kind of cultural journey as much as we were a sports journey. And, you know, when I look back on it now, the two things were clear.

5:18David Stern hired me, the NBA commissioner, and Adam Silver, current commissioner, was just starting. So kind of grew up alongside Adam, who quickly became my boss. But, you know, the two things that David was really clear about with that show was expanding the fan base, right? To your point, that was the first time you saw it. And that's why there was a woman sitting there at the desk week in and week out and not as a sidekick but as a partner because he wanted to open the sport up to young people and and certainly to women and the other the other piece of it which is the more I think obvious piece of it was it was really the first time on a weekly basis we told the stories of players and their lives off the court we had great highlights and great music it was really a cultural moment too but when you look at the through line between those stories.

6:09That was the only way you got those stories. It was the way other players got those stories, right? It wasn't just the audiences. To today's era of, you know, the athlete as communicator in chief, right, of their own brand, you really see just what a wise soul David Stern was. Because I would imagine it changes the way you think about media as an athlete is that a fair assessment if you're watching that and you're seeing these players because just a couple of years after that you're a professional athlete how did it change you yeah i mean i go back again to the 90s i grew up with mel allen and this week in sports and you get one opportunity on saturdays to get a recap of the whole week while we're all watching you know score boxes and we remember those days when we could like get the paper and see what keith hernandez and daryl strawberry did and inside stuff was that but people are googling right now Now they're like, what is the scorebox?

7:04It just kind of opened it up. When I came in, I led with fear with media because I didn't feel like I had the tools. And as I've, you know, the arc has gone to where, like, I understand the media could be an ally and some very powerful tool. And I think you started that. You are the media now. I remember. Yeah, you're the media. You're sitting here. You're on this couch now. That's right. Yeah. Well, and to that point, just to go back actually to your day job, sort of bringing it all together. You guys just did some work around this. What did you find about athlete-driven media? I've been wanting to do an academic study on the phenomenon that we've all been watching unfold, which is athletes as creators, athletes creating their own content, but also owning the IP and monetizing it.

7:47So this is the first academic study to drop. Academics don't really use the term drop, but I'm going to teach them how to do that. And what it has demonstrated is this is reshaping the media ecosystem and the sports storytelling ecosystem in very profound ways economically and culturally. Athlete-owned media enterprises are driving billions of dollars of value, and the athletes themselves as owners are benefiting. It is driving innovation because they are using new platforms and new storytelling formats to connect with their fans in direct and immediate ways. And you will appreciate this because now you are the media.

8:32It puts the decision-making authority in the athlete's hands. They get to decide what stories they're going to tell, what platform they're going to tell it on, and how they're going to distribute it. And so what I find so interesting about that is you guys are now both dealing with this as owners. You know, you dealt with it as an athlete. Now you have several very, very famous in the news everyday athletes who play for your teams in Minnesota. Oh, have any of his players made news? No, just a little bit. I mean, I'll say their names out loud. Anthony Edwards, Nafisa Collier, obviously are out there in a very big way.

9:15You're now dealing with this as the owner of Angel City. So let's talk about what the responsibilities are as an owner. And let's talk about you as an owner. How did this deal, this is the deal, how did you come to this? You know, I love a good story, even more so if it's a good business story and sits at the intersection of sports and culture. And Angel City is a phenomenal story in the way they captured not just Los Angeles's attention, but the world's attention with this mission to drive equity on and off the pitch. I had never imagined, right, that I would be an owner. You might have. I certainly didn't.

9:50And we made the decision really quickly, my co-owner and I. But I was the one in some ways who had the grounding because I used to take students there. Every year I teach a sports immersion class in the spring. And every year we would visit Angel City because I thought it was imperative that we make sure we were centering women's sports in the array of sports entities that we were exposing students to. So every year students would do a project for them. And so it was this very intense snapshot of a startup year by year and the decisions they were making from, you know, who's the first player that we should hire to how can we develop our sponsorship partners in a way that aligns our community impact with our player interests and values.

10:41And when the opportunity arose, I had that grounding combined with, you know, what we were watching happen with women's sports, both at the college level and at the professional level. And, And, you know, I literally said to Bob, do you have any interest in doing this? And he did not even pause and said, absolutely. And there we were in the bidding process. Bob Iger is my co-owner and partner in this. And husband. And husband. Oh, right, husband. Yeah.

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11:54When you look at the deal and you acquired it for about$250 million, are you looking at this as a double bottom line? Like what can you do also for the community? Or you just think that this could be a 3 or 4x in the next 5 or 10 years? So community impact was embedded in the business model. Look, this was the biggest investment we've ever made personally. and I expect that it will continue, that will hold firm for quite some time. So what was so compelling was the purpose embedded in the business. So one of the things that's different about Angel City is that their sponsorship model directly invests 10 % of sponsorship dollars into the community.

12:38So that's not an add-on or nice to have. We didn't wait till we were profitable to do that. That was very much built in to its business, equity on and off the pitch. And by the time we got there, they had invested roughly$3 million in the community. We're at nearly 3 million meals right through DoorDash and Sprouts, our sponsors, into the community to people in need. So this is a community asset. I think it's a sort of jewel in the sports universe of Los Angeles. And is there a bottom line? Yes. Do we expect it to improve every year? Yes. Are we on the march towards profitability? Heck yes. But this is really a community and entity with community at its core.

13:28You know, it's interesting to have the two of you sit between the two of you. I don't own any sports teams, just for the record. But, you know, I know people who do. It happens every once in a while. It happens. But like, it's interesting to think about like that perspective because you now own basketball teams in the NBA and the WNBA. How do you think about it from a bottom line perspective? Because these are these are not small amounts of money. And a community perspective because you're getting to know a new community also. How did I end up getting double teamed here? Two journalists. I think, Willow, you said it beautifully.

14:01And just to bring you back five years, I mean, this was the time right after COVID, which people thought we overpaid for$1.5 billion. And then you had, obviously, the George Floyd tragedy. So when we acquired this team, it was a pivotal moment in Minnesota that kind of moved around the world. And we thought, I've seen for 30 years how sports can transform communities. And look, the truth is, when the Dodgers win, L.A. feels a little bit more chipper. So there's not too many businesses. Like when your Amazon stock goes down, you're not like depressed. You don't say we. You just say my Amazon stock is depressed.

14:37But when the Yankees or the Dodgers lose, you say we lost or we won. So I have a good understanding. And I think knowing players, having empathy for players, understanding how difficult it is to be an athlete in 2025, far greater, far harder than when I started in 1994 with all the social media. My God, I got enough trouble without social media. Next question. And so for you, Willow, you know, this is, yes, it's a community asset. There are deals to be made. You know, there are players that you have to negotiate with. There are sponsors that you have to take care of. There's a community. So when you think about the most important deals that you've done so far, the ones that really stick out in your mind, what jumps to mind?

15:20I think, look, obviously, you know, being in the privileged position to acquire Angel City first and foremost and taking on that extraordinary opportunity and extraordinary responsibility. But then I think about what we did when we first arrived, which is it was very clear that we had not invested enough in our people and our products, specifically our athletes. so we um opened a brand new state-of-the-art training facility which at its when we did it was kind of the biggest and best there was i'm really hoping that's changing because with every one of these step-ups others follow and which is what we desperately need right we need we need a significant level of investment um in in women athletes and in their ability to perform so we did that and then we got to work on the sporting side, right?

16:12Hired a new GM and a new coach because, Alex, we would love to make LA chipper the way a Yankees win makes New York chipper and by bringing a championship to the city. So that is one of the primary goals. But also thinking about our athletes, as I know you do with the Lynx, you know, we have under-invested in women athletes for far too long. And this is the opportunity. This is the moment to change that by making sure we are supporting them the way we support all of our world-class athletes and allow them to compete at the highest level. So Willa, take this room into the governor's room, the boardroom with your league.

16:55Are you a newer owner that kind of pounds a table and screams, or are you kind of an owner that - Huge screamer. Listens, asks more questions, or yeah, tell us about your style as a board member. What's really fascinating is the NWSL has a lot of new owners. So there are a lot of new voices and wildly impressive voices in the room. And what's interesting is there's a breadth of perspectives. And I think it is clear that some of us have lanes and mine is at least initially media. And how we think about our media partners, how we think about our new deals, how we think about really working with the players, the teams, and the leagues to be in alignment on our marketing and storytelling strategies.

17:40Because there's a lot of disalignment is easy. Alignment's pretty hard, even today, in kind of an always-on, 24-7 media environment. So I think there's a lot of very spirited discussion around the table, but a fascinating number of perspectives and areas of expertise come to bear, a lot of them from outside the world of sports. And so what are the deals that you think the league and the sport need to make? I mean, this has been a league that's been on the move for the past few years. You have investment in Europe coming. You have a rising tide. But how do you maintain what has been true that this is the best women's soccer league in the world?

18:21What do you need to do? I mean, first of all, we need to make sure that we maintain our stature as the best women's soccer league in the world. And the reason that it's the best women's soccer league in the world is because of the level of our talent, which remains superior. So we have to continue to ensure that we are the best place for players to come. And that's certainly salary, but it's also all the other things we do, like the requirements that we've put in place to have the kind of training facilities, to have the kind of technical teams and support staff in place, that we're creating opportunities for them off the pitch, something that we really do at scale.

18:57And obviously something as somebody who really cares about the talent pipeline, I'm also doing at a team level and an individual level. So first and foremost, thinking about our athletes and making sure that they have the resources they need to compete, but also making sure that we're the most attractive place in the world for those players to come. And the other is the, I mean, I think other on the agenda, very high on the agenda is, you know, our media rights deals. Making sure we're driving the kind of tune in that we need to be driving, that people understand where to find us on the array of networks, which I know is a theme that I'm gratified by the fact that the relatively small NWSL and the massive NBA are also having those conversations around what's the right number of platforms to put our games on.

19:49So I know we ran out of time, but I have one selfish question I want to ask you because as a father, you recently had a panel with yourself, with Charlotte Jones from the Cowboys, Ginny Buss from the Lakers, and some of my favorite people, Candace Parker. Candace Parker moderated, so it's already like a luminaries. We also need more representation of women and people of color in the owner's room, executive level, What advice would you give some young ladies that want to be like you or like Jeannie or Charlotte to have more representation in this room? The doors are wide open. Please come on through and then it's up to us on the other side of those doors to make these environments welcoming, productive places to learn and grow and develop.

20:32Because, Alex, you're absolutely right. I think not only do we need to make sure the opportunity is there for women, but we have massive growth potential ahead of us. And the trajectories are really steep, and we need a very robust talent pipeline entering all of these teams and leagues to really help us propel that growth. Before we get away from the owner's box, the owner's, you know, the governor's table, as it were, is it what you expected it would be, being an owner? Because I never dreamt of being an owner. I'm not sure I had enormous expectations. and look, I've had the privilege of knowing and working with a number of commissioners.

21:12So I sort of have seen the world through their lens and I've seen the world through the media partner lens, but I've never been in the room before and it is fascinating. The challenges come at you fast and furious as you're seeing. And it is a learning experience each and every day and I think I'm grateful at this age I can still be learning on the job.

21:41Hi, I'm David Weston. Join me every week for the Wall Street Week podcast to hear stories of capitalism from around the world, from geopolitical tensions and central bank decisions to artificial intelligence, energy, and infrastructure. We sit down with the CEOs, economists, policymakers, and thought leaders whose decisions are shaping markets everywhere we find them. Subscribe to the Wall Street Week podcast on Apple, Spotify, or anywhere you listen.

22:17All right, so we're going to do our rapid fire. I would lose on Jeopardy, so don't make them too rapid. All right, we're going to bounce it back and forth. I'll start and then Alex will pick up. What is one word to describe your deal-making style? Deliberate. What's more important to you, gut or data? Gut. Who's your dream deal-making partner? Bob Iger. Mine too. He paid me very well. Alex, we had our 30-year anniversary. We had the Yankees game at the table. On our wedding night, we had the Yankees game on the television. I love it. I love it. I love it. It's working. What's the best piece of advice you ever received on deal-making or business?

23:01So on deal making, don't squeeze your partner dry. Leave something. Let everybody walk away from the table with their heads held high. And then related to that is, therefore, don't start at the extremes. Start a little bit closer in and at a more realistic place so you save wear and tear on everybody. What's the worst advice you've been given? That I needed to change my name if I was going to be taken seriously in business. Ooh. By somebody that I adore who was just giving me some constructive. That must have been in the 70s. What's a deal you wish you had done? Oh, a deal I wish I had done. Well, look, my kids would tell you any NBA team that comes on the market that we didn't actually buy, not that we could afford it, we should have gone for and didn't.

23:58So I'm, you know, I'm failing them left and right. I think it, you know, I like the idea of Angel City as your family business. Yep, I do too. Knowing your sons a bit. I do too. Who was your favorite interview from NBA Inside Stuff? Never given that one up. They were all my favorites. I loved each and every one the same. Wow. Okay. All right. What's your hype song before a big meeting or negotiation? Beyonce, If I Were a Boy. um number but close second is the leslie powell angel city walk-on song here they come it's one of the i think it's the best in sports we gotta go see that yeah we gotta do it i know somebody um you can only watch one sport for the rest of your life what is it it's kind of a tie soccer women's soccer but basketball basketball edges out just a little bit more.

24:54All right. So we usually ask if there's one team that can win a title, which one would it be? We know what that would be. We're going to win Angels. So a little shift here is what's the first thing you would do after you win a title? Oh, that's so bad. That was such a softball. That was such a softball. You know that. No, I don't. We're going to go to Disneyland. I like that. And yes, you are invited. Yeah. All right. Willow Bay, you're a treasure. Thank you so much. Thank you, everyone.

25:32The 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, Stacy Wong, Lizzie Phillip, Eden Martinez, and Tom Gibson. Original Music and Engineering by Blake Maples. Jason Brandt 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 Sosangeles, Nick Silva, Chelsea Hoon, Adrian Toscano, Jared Sinclair, Stephen Fosberg, and Micah Rondo.

26:25Joshua DeVoe is our director of photography. Rubab Shakir is our creative director. Art direction is from Jacqueline Kessler. Technical direction by Matt Profitt. Justin Gonzalez was our video engineer. Camera operation by Don Downey, Emmanuel Moran, Matt Tomlin, Douglas Higginbotham, Patrick Morrissey, Alan Thorogood, and Cameron Wallace. Katia Vinoy is our video editor, and Will Connolly is our assistant 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.