HomeVideos

What's Wrong with the NBA? Former Warriors Owner Explains

Now Playing

What's Wrong with the NBA? Former Warriors Owner Explains

Transcript

168 segments

0:00

all right now we're going to move on to

0:01

the 2025 biggest business loser

0:04

predictions in 2024 shamat said pro

0:07

sports teams because they hit Peak

0:09

valuations that's looking like a pretty

0:10

good prediction I would take the other

0:11

side on pro sports teams it feels like

0:14

that market is about to be

0:16

institutionalized and funds are going to

0:19

start buying pro sports teams okay that

0:22

ultimately and ultimately Capital

0:23

markets have way more resources than

0:25

kind of the wealthy individuals who've

0:27

done it for to date so I just think it's

0:32

the amount of money that can go after

0:33

pro sports teams is about to you know

0:36

10x 100x no I think I think you're

0:38

totally right the the reason I said that

0:40

last year was it was pretty clear to me

0:42

at the time and the NBA was the canary

0:45

and the coal mine that there was a

0:46

viewership problem in professional

0:48

sports and specifically in the NBA the

0:52

game has devolved into essentially

0:54

rebounds and dunks or

0:56

three-pointers and the issue with that

0:59

is that it become just meaningfully less

1:01

interesting to watch at the same time

1:03

because of the the fact that the TV

1:06

deals are really what determines the

1:08

discounted value of these sports

1:10

franchises the TV deal was so enormous

1:13

that it creates

1:15

no reliable rivalries anymore because

1:19

people will Hopscotch teams almost every

1:22

year because the compensation that they

1:24

can get is just so obscene quite

1:26

honestly and I think what happens is

1:29

sports will have a decent run until the

1:32

next TV deals get done and I think if

1:34

you for example take PHA ads outside of

1:38

TV so like that pool shrinks if you have

1:42

less viewership and so you can sell the

1:45

remaining ads less effectively because

1:47

there's just fewer of them and then

1:49

there's fewer buyers and it shrinks yet

1:51

again then the dollar pool that the

1:54

television networks and the streamers

1:56

are going to be willing to pay for

1:58

sports will go down

2:00

and the group that will be the most

2:02

price sensitive are exactly who you said

2:04

Gavin meaning the non trophy buyer so

2:08

like you know when I bought into the

2:09

Warriors I bought it purely as a trophy

2:11

asset and I was price insensitive but I

2:13

agree with you that now that you have

2:15

the PE firms on the cap tables of these

2:17

sports franchises those folks are all

2:19

DCFS those folks are all Excel models I

2:22

don't think that they're buying things

2:23

for emotion I don't think they've grown

2:26

up thinking I want to own this thing not

2:28

using institutional LP dollar

2:30

so I just think that's why that's why I

2:32

said that in 24 so I just on behalf of

2:33

Phil houth and I we appreciate you made

2:35

that vanity investment for the number of

2:37

times we got to sit in your cour side

2:39

seats yeah because I never went we made

2:42

with NBA players I never went to the

2:44

games I should have gone to more games I

2:45

went to your games it almost got thrown

2:47

out of your seats I got a red card one

2:49

time it's true is it true you did oh you

2:51

don't know that I got a I got a call I

2:54

got a call I think it was from the

2:55

Warriors or it's from the NBA something

2:57

to the effect of chouth this guy that

2:59

was sitting in your seats was almost

3:00

kicked out and I said excuse me because

3:02

I knew that it wasck Game In fairness

3:05

and and he was like jawboning our own

3:08

players I was getting into it with Bogan

3:10

and with David Lee because I told it was

3:13

unbelievable I told Steve Kerr listen

3:15

you're up 30 on my Knicks sit these guys

3:17

down this is Bush League what if Steph

3:19

Curry gets hurt out there like and uh

3:21

you know Boga told me to shut up and

3:23

Andre boett told him to basically go

3:26

pound end in a basically did it was the

3:28

funniest thing ever Gavin this is what

3:30

happens when you get B's one of our

3:31

friends he's one of our good friends so

3:33

that's why it's so funny but they can't

3:35

they come over freeberg and they tap you

3:37

on the shoulder I'm with my wife she's

3:39

mortified and the guy hands you a card

3:43

and the card says you've been uh warned

3:46

one time and one time only about abusive

3:49

you know uh Behavior if we have to warn

3:52

you one more time you will be escorted

3:53

out ridic so I look at the guy and I say

3:55

but and he goes read the card I read the

3:58

card I say he goes gives me a thumbs up

4:01

that was it I never that it you're not

4:04

supposed to then three years later I'm

4:06

sitting in the same seats I'm

4:07

interacting with Draymond during the

4:09

finals games and everybody's hokey doie

4:11

with it when you say interacting what do

4:13

you mean when you say interacting wait

4:14

hold on G Gavin wanted to make a point

4:15

about what I just no I just want to just

4:17

just come back to chath because for sure

4:19

these private Equity guys there's DCFS

4:21

the NBA has been terribly managed I

4:23

think you LeBron said they have a big

4:25

problem you know and I'd separate the

4:28

NBA is the worst managed NFL is probably

4:30

the best managed but the one kind of

4:32

CounterPoint I would say on the TV

4:33

rights is Google bought Sunday Ticket

4:36

and are extremely happy with

4:39

it Amazon and Netflix also bought you

4:43

know both bought NFL games and are

4:45

really happy with them and so I just

4:47

think those three companies it doesn't

4:49

really matter to them if Pharma ads go

4:51

away in 18 months you're going to be

4:54

able to dynamically create an ad for

4:56

each individual person and show it to

4:58

them and if a high value user with a you

5:01

know that Google knows that you're about

5:03

to book a vacation you know they'll

5:05

dynamically generate you know whatever

5:07

you know Hotel destinations you want and

5:09

show click here so I just think Sports

5:14

as long as they command the eyeballs

5:15

that they do and I for sure if the NBA

5:19

doesn't fix it the value of those

5:21

franchises will start to decline but um

5:24

just the fact that all of the biggest

5:27

tech companies are so happy with the

5:29

sport kind of rights that they bought

5:31

they're going to buy them all

5:35

every maybe maybe you're closer to this

5:37

but why wouldn't Apple Amazon or Google

5:40

just back up the truck to the NBA and

5:42

say well take the whole thing and then

5:44

anybody who's got an iPhone gets the NBA

5:46

for free and then everybody else has to

5:48

pay and they figure it out in the back

5:50

end they lose a you know five billion

5:52

they make two billion who cares it's a

5:54

rounding error for Apple I agree and

5:56

they you know I mean they all all except

5:59

for Apple really and apple they have I

6:01

think an MLs deal but they all kind of

6:03

stuck their toe in the water and I think

6:05

they feel like wow the water's warm

6:07

let's dive in um okay yeah and the New

6:11

Deal is an 11-year deal for the NBA so

6:13

these things don't come up that often

6:15

but we'll see over time maybe somebody

6:17

will buy one of these media companies

6:19

and inherit them

Interactive Summary

The video features a discussion on the future valuation of professional sports teams. While some believe these teams have reached peak valuations due to viewership issues and changing TV dynamics, others argue that institutional investors, such as private equity firms and major tech companies, will continue to drive up valuations by leveraging data-driven advertising and massive capital resources.

Suggested questions

3 ready-made prompts