[SOUND] Let's jump to Kevin Love. Just a little bit suitability clauses shoe deals, we all know that's the main product endorsement deal, obviously for an NBA one of the main ones. It is the shoe the client has to wear. How do you negotiate a suitability clause to make sure an athlete like Kevin Love and other in your stable has the shoe that's suitable for him to use when he's performing in his sport. >> A good question. I think that NBA shoe deals are very important part of of a client's income. And you not only have the, you know, the terrific US companies, from Nike and Under Armour, but you have a number of the Chinese companies now come in and made a big splash in the basketball world. Basketball is the number one sport in China. So what happens with a lot of these Chinese companies, they use basketball signing these NBA stars. Film them, take them back, run commercials to help them sell shoes back there. So with Kevin, actually we signed him with a company, one of the Chinese companies. And as part of the deal because I was, I was worried that it wasn't gonna be a shoe that is, he was going to be comfortable in and be able to perform in at the level where he wanted to perform. Because if you don't want to have the feet, if your feet are in bad shape, nothing else is going to work. So, I made sure and I do this all the time. I make sure that if we're working with a company where I want to determine that the product is up to par, I will put something in the suitability clause that the athlete has to make sure that he can perform in it. That it's comfortable that it's going to wear well, and, and that he can use it in competition. And so with Kevin it's a great example. The first deal we did in China, and he's been with a Chinese company now for 5 years, but the first deal we did, the company could not give the shoe right. So Kevin actually ended up wearing a Nike shoe for the first years of the deal, even though the Chinese company was paying him a significant sum. And I always joked with him that he had the best Nike deal ever, because he wore the Nike product and he got paid by the Chinese company. [LAUGH] >> Great example. Now, now let's go back to the growth of Excel. I mean, amazing NBA success story, and congratulations on same. You turned some things down, but then you, you opened the door to growing Excel when you did. And why Jeff? Tell our audience, please. >> So to me, growing any, any company it's about the people. And what was important to me was finding the right people to, to help grow the company. Coming from working at IMG for so many years, and I had so many friends there that were excellent at what they did in the business. And there was an opportunity in 2011 to talk with Casey Close, who is a, one of the leading baseball agents, about coming in and being a partner in Excel and growing our baseball business. And at the same time, we had an opportunity with Mark Stok who is probably the leading golf agent about coming in and running a golf business for us, and also being our third partner. And guys who've been friends of mine for 31 years. We started at IMG together in 1992. Probably three weeks apart. Down the hall from each other. And obviously, growing the business. I left IMG first, and then Kasey some years later. And then obviously, about three years ago. But, I always joke. Hope that I'm lying, just waiting in the grass, just waiting for, the right person, to come out there. >> [LAUGH] >> To help, to help grow, the business. And you know, I owe the clients. You absolutely want to represent the right clients. But the most important thing is the people you have around you growing your business. So they came in so three years later now we are obviously still big in basketball. We're big in developed world. We're big in baseball. And Casey just had a record year this year where he did $700 million in new baseball contracts. And no agent in the history of baseball has ever done that. getting, you know Tanikwa's deal done with the Yankees. And Clayton Kershaw's deal done with the Dodgers. Watching what Casey's done over the years with Derek Jeter, and how his career has been seamless. This will be Casey's 21st or 22nd year with Derek. Helping him in tradition from on-field to off-field, the things that we're doing with him now. Jamie's creating some unbelieving opportunities for Derek. Derek just launched Jeter Publishing in partnership. I'm in Schuster where Derek actually has his own imprint. I'm in Schuster and will be publishing books under his name. So, it's, it's been really fun. In the last six months we also just started corporate consulting. We have four corporate consulting clients already. And we want to build the corporate and sales side of the business and, and continue to grow for that, as well as growing our core of businesses. >> How about, great answer, and thanks. How about you just stay with Derek for a minute. I remember how important is philanthropy and charity and, and developing that whole thread. The Turn 2 Foundation, for example, it's very important to Derek as, as I recall. >> Very, very important. Derek has, been a, spent a lot of time on the Turn 2 Foundation over the years. His sister runs it. He's got J, Jeter's Leaders. And we actually had the kids in here, about a month ago and, and for Derek and listen for a number of others. Tiger Woods who's a client of ours. Tiger's spends, Tiger's endowment of his foundation is about either $90 or 100 million. I mean, Tiger probably has the largest athlete foundation in the, in the country maybe the world. And does amazing things. He doesn't go out and publicize it just like Derek doesn't go out and publicize it. So for us we always want our guys involved. You know, you make a lot of money in sports. You do a lot of wonderful things for yourself, it's nice to be able to give back. And, and for us, when we're signing clients, we're always looking for guys that are, have their feet on the ground understand who they are and understand that they can make a big contribution to the world. >> Just staying with Tiger for a minute, how important is it for him to keep, I mean the Tiger effect, it swept off like, like a tidal wave. Everybody want to play golf. Then he went away for a while, now he's back. How important for his career trajectory is it that he win? Is just winning solves everything? >> I think it solves a lot. [LAUGH] Tiger. It's been really interesting this summer because, obviously, he had the back surgery. And he was out for three months. And, you saw the effect it had on ratings. I mean, if you go across from tournament to tournament, ratings were down at, at historic lows. So, for Tiger, I think people want to love him, people want to hate him, but at the end of the day you want to see Tiger win and and, and winning is what drives Tiger. He want's to still compete at the highest level. You know, he's heading to the British Open next week to, to, to play in that. And for us I think that his marketability definitely comes off winning, comes off of winning. And the more he wins, the more the more marketable he is. But there is without a doubt and I haven't seen another athlete like it with such an effect on a single sport. I guess you can say at this point LeBron has a huge effect in the basketball world, but I don't think still to the extent that Tiger has in golf. >> And let's just talk about go across the two leagues for a minute. So we're talking about LeBron, let's talk about NBA. Let's talk about oh gosh the trend now Jeff is. Well, I'll take less money? I mean. >> Yeah. [LAUGH]. >> That doesn't make any sense. Whereas in baseball, it's all guaranteed, multi-year stuff. I mean, how does that come about? >> So, so that's a big pet peeve of mine. >> [LAUGH]. >> And it, and it, and a problem that I think the NBPA, that the union for the players in basketball has to solve. And they have not done a good job at this point, solving it. When I hear players talk about, I'll take less money so we can stay together. And then I see the Clippers sell for $2 billion, or you see media rights going up. The, the new TV deal in, in the NBA, which is going to happen in about two years is supposed to double the size of the current deal. It makes absolutely no sense. You wouldn't see that happen in baseball. The baseball union pushes the guys to make the most they can. You know, make that average salary higher each year than the year before. And I just actually had a conversation with our, the union head in basketball that literally a few days ago, that I think he needs to come out with a statement about what's happening with this, this phenomenon of guys saying they should take less. Players should never take less their career could be you know, one year, to at best 15 years with probably the average being somewhere between five and seven years in basketball. They have to make as much money as they can make. The, the, the way the collective bargain, bargaining agreement goes in basketball right now is definitely benefitting the owners. And I think you'll see in two years when the negotiations start again for the new CBA that the players are going to take a much a stronger stance on things than they did this last time. >> Yeah, left me just ask, and I can hypothetically, by the time this airs, we'll know. Would it be neutral, or a plus, or minus for LeBron to come back to Cleveland? >> [LAUGH] It's a great question. Everybody's talking about it. Mark, Casey, and I were actually just talking about it earlier today. I think it's a great thing if he goes back to Cleveland. You know, I think that a piece of him always stayed in Cleveland. And I understand going to Miami. I understand living the Champs. I think that LeBron is in my opinion. I don't have a crystal ball. I have no idea, but I think that it's going to be a good decision if he goes back to Cleveland or if he goes back to Miami. If he goes somewhere else, it's going to be interesting to see how the reporters, and how fans react. but, Cleveland specifically, I think it would be a great thing if he went back. >> Awesome. Jeff, do you want to finish your story of Excel? Please take us to the end of the, of the road. Your growing corporate consulting the mega trends across golf, baseball and basketball. What is it you see happening? Is it the media money that's going to drive all of sports going forward? >> I think absolutely. For whether it's team sports, or it's golf or any sport per se, media is driving everything. You see new owners coming in everyday because they're not thinking about the cash flow they're going to make, they're thinking about the media rights - [7]franchise value for them. So for us, I think that you're going to see salaries continue to go up in baseball, and you're going to see salaries go up in basketball. Probably not as much as I'd like, but they definitely will go up [LAUGH] based on media rights. And in golf, sponsorship, television, you know, digital's changing everything also in our landscape. I was reading a few days ago, did a survey with CMOs across, I forget how many number of companies. But the thing from the CM, CMOs was that in five years, 75% of budgets, of marketing budgets will be digital, which is an incredible change from where things are today. So, the digital landscape is going to become much more important and efficient, and profitable for media companies across the board. And that's going to have an effect on sports too. You'll, you won't be watching it on your television as much as you might be watching it on your mobile device. >> Last question. Does the World Cup mania make you want to get into soccer football? >> Listen, I really liked watching it, and I couldn't believe the game yesterday. because I watched a little bit of of the Brazil game with Germany. I would say no, only because of this. I think for us to get involved in soccer, we would have to do it globally. And at this time, we have other things we want to focus on, if we are going to do stuff globally, I think it's probably going to be in, more in golf, maybe some events but it's a fantastic sport. I don't think I would just do it domestically and I don't think we know enough and we're educated enough on it to do it globally, so probably not. I'll probably just stay a fan. >> You and me both. Jeff, I can't thank you enough for taking the time being with us today. Thank you so much, and, you know, congratulations on your successes at Excel and beyond. >> Thanks Peter, take care, I appreciate you having me on. [SOUND]
