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20VC: Boston Celtics' Steve Pagliuca on The Future of Sports Team Ownership; What Happened with the Chelsea Acquisition | Why More Money is Pouring Into Sport Than Ever & Do These Assets Keep Increasing in Value

Feb 10, 2023

Steve Pagliuca, Senior Advisor at Bain Capital and co-owner of the Boston Celtics, shares his inspiring journey from a humble arrival at Duke to the heights of sports ownership. He discusses the parallels between managing sports teams and companies, emphasizing the critical lessons for new owners. Pagliuca also delves into the reasons behind the surge in sports investment, reflecting on the Chelsea acquisition and the evolving dynamics of team ownership. With insights on community engagement and long-term sustainability, he paints a vivid picture of the future of sports.

44:53

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Episode guests

Steve Pagliuca

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Episode notes

Intro

4min

A Humble Arrival and the Influence of Parental Support

2min

Lessons in Consulting and High Performance

7min

Navigating Investment Lessons and Strategies

9min

Navigating Sports Ownership: Strategy and Globalization

12min

Insights on Marriage and Modern Investing

7min

Enhancing Team Collaboration and Efficiency with Essential Tools

4min

Steve Pagliuca is a Senior Advisor at Bain Capital, the firm he joined in 1982 and as a Managing Director of Bain Capital, he has helped build the firm into one of the world’s leading investment companies with over $160 billion in assets under management. Steve is also a Managing Partner and Co-Owner of the World Championship Boston Celtics Basketball franchise. Steve is also co-owner and co-chairman of the Serie A professional football club, Atalanta Bergamasca Calcio. If that was not enough, Steve currently, serves on the Board of Directors of Burger King, Gartner Group, HCA, Warner Chilcott, and FCI. Huge thanks to Moshe @ Shrug Capital for making the intro.

In Today's Episode with Steve Pagliuca We Discuss:

1.) From Duffel Bags at Duke to Buying Sports Teams:

How Steve went from having a single duffel bag arriving at Duke University to entering the world of private equity with the founding of Bain's PE funds?
Did Steve always know he would be successful? What does Steve think about the importance between luck and timing?
How did Steve's mother impact how he approaches parenting and self-belief with his children?

2.) Buying Sports Teams: Not So Different to Companies:

When buying and running a sports team, what is the same, and what is different from buying and running a company?
What is Steve's biggest advice to new owners of sports teams?
What are the single biggest mistakes sports team owners make when they buy a team?
What happened with the Chelsea bid? Why did Steve lose? How did debt change the deal?

3.) The Future of Sports Ownership:

Why does Steve believe we have seen a massive rise in American and private equity buyers of both global sports teams but also European sports teams?
How has "new media" changed the inherent value that can be placed on a team? Why does it change the value? Which forms of "new media" are most important?
How much further can the value of these sports teams increase?
Does this massive increase in the price and assets of certain clubs not lead to a massive inequality in sports? What can be done to prevent this imbalance?

4.) Steve Pagliuca: The Person and Capital Allocator:

What is the single best investment advice Steve has ever received?
How does Steve think about his relationship to wealth today? How has it changed over time?
What does it take to have an amazing marriage and be at the top of your profession?
What were 1-2 elements that made Bain able to scale to the proportions of AUM that they have done? What would he have done differently?