By coinnews 
0:03 spk_0
Welcome to the opening bid podcast. I’m Yahoo Finance executive editor Brian Sai. Like I always say, this is a podcast that will make you a smarter investor. And of course this podcast is sponsored by our friends at Vanguard. Joining us now is Clutch Sports CEO Rich Paul.
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Good to see you as well. Thanks for having me.
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This is your first time at Milton. What brings you here?
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Well, obviously, um, you know, the, the opportunity to be educated on everything that’s going on in the world.Um, from every aspect possible is, is why I’m here. I’ve always been invited, scheduling has been a little bit troubling, but I’m, I’m, I’m excited to be here. I’m actually speaking on the panel, so I’m excited for that too, but I would come just to be.Someone in the crowd just learning honestly, I would. It
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is, uh, it’s quite the crowd international investors, a lot of CEOs. Take us through your business. Uh, we’ve been I know I have personally been following your journey the past 15 or 20 years. I guess we’re kind of a little bit around the same age, same generation. How big is the, the business now? What have you been up to?
1:04 spk_1
Oh, the business has gone, you know, wrong, wrong, um, tremendously.And you know, when you’re in the representation space, obviously that could be capped, and so we’ve been focused on really growing different verticals. The commercial side of the business is where a ton of growth opportunity is.Um, but still keeping the main thing, the main thing. Our foundation has always been in representation, but now we’ve evolved that representation, not just players, but representing other companies, other brands, uh, from a brand consulting perspective, we’re doing a lot of data and and and analytical work for, for companies to help them have a better understanding of their ROIs and things of that nature. Uh, so it’s been, it’s been fun. It’s been.You know, I never get too high or too low about things, but it’s been great. I mean, to see where the company is today, to see us go from just being a basketball-based business to where we are today, uh, is a tremendous, um.I guess tip to my from from my cap to my my team and my staff, I I couldn’t get here without the special group of people I come to work with every day.
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How did youknow when to make that pivot?
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Uh, you know, I never get complacent about anything and sometimes I think it’s, it’s not, well, all times it’s not great to sit in your success, and so I’ve never been wanting to do so. I’ve always tried to be one to surround myself with those smarter than me, more capable in a lot of ways of doing other things that that that I personally could and um.And then picking the right partners, you know, I pick my partners at UTA, which has been a tremendous help to us. Also, just people and partners matter when you’re trying to build a business and as you know, um, it’s really hard to scale any business, and then it’s definitely really hard to scale a business while maintaining your culture. So we’ve been able to do that, but it’s, you know, every day is, um, every day is an uphill battle. It just is. Yeah, but, but you wouldn’t want it no other way,
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right? That’s true. I agree with you yeah.How did you get here? You have a fascinating life story. Not that we could distill your entire life down to twenty-minute podcast, but try, give it a whirl.
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I think I got here by uh just having an open mind, you know, not really allowing people to put or place limitations on myself, uh, continuing to dream, continuing to uh uh be motivated. I think where I come from, obviously there’s a, there’s a, there’s so much hopelessness that surrounds you and to be able to persevere through all of that and be where I am today, I think it’s just resilience, uh, being a product of my environment, my family.Uh, the people that I’ve been able to come across and work alongside, continuing to want to be educated and learn from others, being inspired by others, and so I think there’s been a, you know, a culmination of all those things that allowed me to get here for sure.
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From whatI would have been able to read about your life and your career, your dad is a real.He’s been a real inspiration.
4:03 spk_1
Oh yeah. He’s, you know, someone who I lost at a very young age, but gave me so much of a foundation that allowed me to have just a grand perspective on all things. And so having that foundation.To build the house that I’m currently building on was, was, I was very lucky, hence my my book title Lucky me, uh, to have that.
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How have you mentioned culture at Clutch Sports? Yes, as you’ve grown so fast, what is that culture and how do you protect it?
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I think the way you protected is, you know, sticking to what we know got us here and why we wanted to to and and and and the why of us being in existence. We’ve always had this mentality of not doing things just from from a transaction perspective but doing things the right way and wanting to to to.The athlete holistically and that leads into other things. If we have a brand of representation, we want to represent that brand the right the right way. We’re never gonna do things just from a fiscal perspective. Uh, it’s not all based on a transaction. You have to continue to lead with integrity.Um, and you have to continue to be a great partner. So those are things that are non-negotiable in our culture, and then you have to treat others the right way, you know, inside of our building, uh, around the, the, the country, the offices that we have, as well as externally, we want to lead with that. And if you talk to any of these teams that we have clients on or brands that we’ve worked with, that tends to come back. And so we, that, that’s how you know you’re doing things the right way when when that comes back and you continue to get.To get business opportunities as well,
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how do you take that culture and impart it on the people you represent, the players, the athletes,
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you know, just understanding they are people first. I think oftentimes you look at talent and you think about what they do as talent and you kinda put that in front of the person. We, we put their talent behind the person and we get to know the person, we get to know what’s important to them.We get to know um how they can actually grow and and and the things that needs to be said and done and executed at a high level to help them get there. Everyone’s different. Everyone’s not gonna have the same um thought process or the same care or the same want of of things, but.No matter what we try to tailor make the relationship to fit their silhouette.
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There’s, you know, we’ve seen an explosion in player salaries. How is this generation of athletes set up to manage their finances? uh, they, they seem a little bit in a better shape, but,
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well, the better shape is because they’re making more money. But, but I, but I think it’s all about the, the discipline is a discipline. I think.It’s such a slippery slope because the lack there of trust allows them to be miseducated. It also allows them to open the door of their finance being led by sometimes people that don’t understand financing at that level, and that’s no knock because it could be a family member, it could be a friend, it could be.Anyone for that matter, and you, you know, you, you have to be able to say no, right? It’s a tough, it’s a tough spot for athletes, they have the toughest in that regard it’s extremely tough for them because the lack of trust, the lack there of trust leads to a lack of education and the lack of education leads to a lack of discipline and infrastructure and um.You know, ultimately, you can’t save your way to wealth. You just can’t. And so because of that.I think people are placed in positions that, yeah, you may trust them in most things, which is fine and it’s good to have, but capabilities matter, especially when it comes to finance.
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I was just, uh, just fresh off the NFL draft and I was looking at the signing bonus of someof these players. I’m like, Yeah,well, what would you tell this generation? how do they, some folks, they, they, they’ve never seen this type of money by any stretch of the imaginations. What
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are they? I would, I would keep it simple for them and I would probably tell them.You know, if you make $100.Probably only 15 of that of that 100 is actually of usage for you. There’s taxes that come with it and then the other part should be probably invested if you can. So for every 100, look at 15 to enjoy actually I try to keep it as elementary as I possibly can. It’s
8:54 spk_0
awesome. Uh, hang with us. We’re gonna go off for a quick break. We’ll be right back with opening bid.All right, welcome back to Opening Bid. Of course, Opening Bid sponsored by the, uh, our friends over at Vanguard, having a great conversation here, uh, on sports, the outlook for sports, Rich Paul, clutch sports CEO.Um, I’m getting ready to have a lot of conversations here about women’s sports, the explosion and this attention, contracts, but a lot of folks have told me that this is a growth investment. There’s still a lot of risks associated with women’s sports. Do you agree with that?
9:31 spk_1
I do. But it’s, I think it’s twofold. One, the excitement around women’s sports is something that you have to, to be appreciative of and root for and and invest in.I think women’s sports hasSomething that allows you to kind of grow with them, right? There’s no eagerness to leave right away. You see, you know, that we’ve seen over the past couple of years, especially in women’s basketball, this infectious.Um, attention to, to their game and, and the storylines and things like that. It’s because they stay in existence for so long, we’re able to see their ups and their downs, and that just allows you to want, you know, to wanna really become a fanatic of it.But there is a lot of risk. I think you see a lot of leagues popping up. I don’t know how great they’re doing or not doing. I do know the challenges of the WNBA and things that they’ve been able to overcome and the investments that’s been made there and and the excitement around there, but like anything, it’s gonna be a risk. I think, and I always ask for them to learn from the mistakes that the men’s side of the business have made, uh, and try not to make.Those same mistakes, uh, try not to substitute growth for I would say, um, a consistency in, uh, in the product, uh, the integrity of the product. And so, you know, from a WNBA perspective, Cathy’s doing a great job leading that, but you see the other leagues and, and I think they’ll have some interest, but.There is a risk for sure.
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Isour media rights the next big deal for women’s sports?
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I think it’s one of them.
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Yeah,
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I think it’s one of them. But again,Where does it actually live? We don’t know. I think you have to have atremendous amount ofEffort amongst just a a a a a number of people to, to, to really help them make the right decisions. I think um ESPN was one of the early ones in terms of taking that step right, giving that platform, really uh investing in the women’s sports, and then now I think you’ll start to see brands and uh media rights partners and things like that come in and invest, which will help grow the game.Um, but we need those stories. We need that competitive nature. We need that, that support to continue.
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I was, uh, I was thinking back ahead of this interview, and I grew up watching on Channel 4 basketball. I still can hear the song with Marv Albert like playing that tune in my head. Is it just that we’re gonna, sports will be owned, not owned, but dominated by the streaming platforms, Amazon, Netflix. I mean, we all want to get into the live programming. And we’ve seen, I’ve see what Amazon’s doing with football. Is that where all this is headed?Yeah.
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That’s tough because I think you still need to land here in the household. But, but also the way kids watch games today, the way people watch games today, for the most part,It’s starting to be, and I don’t know the data on this, but I imagine you’re watching it.As much on your home television as you are on your tablets. And so because of that,You need the streaming platforms, right? And now,How many, you know, there’s a lot out there. Yeah, the way they’ve chopped it up, uh.Sometimes it’s kinda hard to get to and so I think kind of working on those elements of it all. But I think, I think you need a balance of both. There’s nothing like sitting at home in front of the TV watching the game with the family, with, with a spouse, with friends, etc. but also.For someone who travels as much as I do, being able to still see key games and capture key moments on your phone in real time, that’s the benefit that we did not have. That’s a luxury that we did not have.
13:41 spk_0
This has to be themost amazing timeto do what you do.
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Yeah, because you don’t miss a lot, you know, whereas before,You were kind of pigeon he to certain things. Now, you know, there’s a lot of accessible for you as long as you have Wi Fi, planes, trains, you know, back of driver, you know, back of, um, you know, car services and things of that nature. So I’m appreciative of it all. I, I really am.
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Are theplayers, are the players in the driver’s seat like never before?To negotiate deals with whatever theywant,
14:13 spk_1
but you know I always thought that was very misleading. I, when I talked about player empowerment, it came from a place of educating the player. I think for many years there was a lack of education and still now players aren’t as.as they should be and then you got some that pretends to be educated more than they actually are, um, but I think it’s just having an understanding of the business and how you should approach things as a player and what’s going on around you. Um, sometimes it can be misleading to where.You give up things which we have in this idea of wanting to have ownership and things of that nature, I think that could be a little misleading, but ultimately, to understand the business around you and, and, and where it’s going and, and, and how things work, you can never, you can, you can never go wrong being in the know.While having an understanding of how to start in your role of what that in the no actionis.
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Of course, one of your early clients, LeBron James, and I’m a no under under no losers you can see and telling me, but LeBron is retiring, and I get it. So let me ask you this way.Is life after playing in the NBA for LeBron? Does it look like a Tom Brady where, uh, a little bit of a team ownership, he’s still on air. Like, what is his post-life investment portfolio?
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I mean, his, well, his current life investment portfolio is really strong, so I don’t think he has to worry about that.Uh, in terms of what he wants to do whenever he decides to stop playing, I think he crosses that bridge when he gets to it, you know. I don’t, I don’t talk to him a ton about it because the thought of him not playing really, really bothers me because I just enjoy.him on the floor so much, but I know at some point it has to come to an end. But I think he’ll cross that bridge when he gets to it. I, you know, that guy loves the game of basketball so much. I think it’s gonna be extremely hard for him to exist, um.In a world that doesn’t involve him playing the game that I that I know he loved so
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much, a competitive guy. Does he want to own a team? Is that histhing? I mean,
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he’s came out and said it, um, but at the same time, what does that actually mean, right? Um, you’re talking about an industry now in which owning a team, is it good? Yeah, but is it a good investment? Is it not a good investment? We don’t know. I know it was for those who got in early.Will these teams continue to grow? Will they continue to um reach the value that they have, you know, I mean, I think what Boston just sold for $6.1 billion and they don’t own the arena.Right, so that is unbelievable not to own the real estate and to for that team to still sell at that level like Kevin McHale’s ghosts. Matt Matt bought the team in Phoenix for what, 4 billion? I think Rick bought the team in Charlotte for whatever he bought it for. I know what Dan bought the cal for and what, um.I think the real winners have been Mark and Alex, you know, in terms of what they bought the Timberwolves for. I think they made money right away on the buy. If you can get some of those types of situations, then great. But will we see these teams continue to, to, to, to grow? You know, I don’t know. I know who don’t have enough money for me.
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Well, you’re coming close.
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And I know that, you know, this idea of me wanting to own a team and trying to, you know, get me out of the representation space, that won’t happen no time soon. But, you know, I think, look, LeBron has done enough to do whatever he wants to do and that’s a great, it’s always great to have options.
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Last one before I let you go, as someone, it’s not often you get to see greatness up close and personal.What has made him great as someone that has literally worked with him, I met him at an airport as a, as a
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teenager. I think what has made him great is.Continuing to number one, care, love the game, care. I think the way he treats people, uh, those around him, whether it’s brand partners, uh, his, his, his attention to detail, little things like being prompt, not being on time, being prompt, whether it’s his plane or not, he’s early, um.And commercial shoots and meetings and things like that. He’s coming in with the understanding of this is business, not that, not leading with his ego. I think it’s important to understand when to take that jacket off and hang it up, uh, and obviously on the floor you need that cause that brings a bravado like no other, but it’s a little detailed things. Never been out of shape, continuing to work throughout a year, um.Whether it’s, whether you put the basketball down, that’s one thing. I have to give that a break, but from a physicality perspective.Never not training, right? Um, and I think that ultimately it’s allowed him to do great business, have great business partners, you know, because, look, we’re at.This conference, these people don’t need the athlete. They don’t have to do business with an athlete. They can do, they can be in the business of sports without ever doing business, quote unquote with the athlete, um, and just because you’re an athlete or a popular person, they don’t necessarily grant you anything. Um, how you do things matter, and I think for those that were athletes, accomplished athletes, the stray hands, uh, the Brady’s.The LeBron’s, uh, you know, the D Wades, um, you know, people that after the game, you’ve seen do, do things, you know, whether it’s big or small, but just have the opportunity to do things. I think it’s personally a testament to who they are as people. And um you’re starting to see it more and more, uh, and I can identify it right away and I would.I would encourage the current athlete, no matter how much money you’re making playing the game.I say this, there’s not enough meaning.It’s not enough, right? OK, if you only want to do that, and that’s it, then maybe so. But if you inspire or aspire to do other things.When I say it’s not enough, meaning, not that it’s not enough that you don’t have the ability to buy what you want to buy.It’s not enough to be the end all be all to allow you to open up other doors that will then place you in in these positions that could become generation. The money is not enough. You gotta be able to lead a different way.
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First Paul, it was a pleasure to get some time with you. Uh, a big moment in your career and what you’ve achieved. Thank you. Look forward to. Thank you so much. That’s it for the latest episode of the opening podcast, of course, sponsored by our friends at Vanguard. We’ll talk to you soon.