US Services Expands at Modest Pace, Power Players Event
Sep 5, 2024
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Steve Miller, Chair of the ISM Services PMI, discusses recent modest growth in the U.S. services sector and its implications for the economy. Randal Williams, Bloomberg U.S. Sports Business Reporter, highlights how NFL ownership is shifting from families to institutional investors. The conversation dives into the booming popularity of women's soccer, with insights on the National Women's Soccer League and its international appeal. Discussions also explore the evolving landscape of college sports and the influence of new regulations on athlete branding.
The integration of AI technology within businesses can lead to substantial performance improvements, as demonstrated by Netflix's enhanced streaming capabilities through Intel's systems.
Recent ISM manufacturing data indicates modest growth in the US services sector, suggesting a positive economic trajectory that may influence Federal Reserve rate decisions.
The NFL's shift allowing private equity investments represents a transformative moment in sports ownership, enhancing capital access and addressing succession issues for franchises.
Deep dives
AI and Business Performance Enhancement
The integration of AI into existing business structures can significantly enhance performance. For example, Netflix has reported a three and a half times improvement in streaming performance through better AI systems powered by Intel's technology, which itself outperforms competitors by 30%. This highlights the importance of leveraging advanced technology to optimize current architectures rather than overhauling them completely. Companies can harness AI to analyze operations and increase efficiency, demonstrating that better AI solutions can lead to substantial performance gains.
Economic Indicators and Service Sector Growth
Recent data from the ISM manufacturing index indicates modest expansion within the US services sector, reflecting a consistent growth trajectory for the past few months. A key finding reveals a significant drop in backlogs, attributed to improvements in supply chain performance and the fulfillment of delayed orders. This shift underscores the ongoing recovery from earlier disruptions, which had previously hampered operations. As a result, there is an expectation that the Federal Reserve may proceed with rate cuts given the data's indicative nature of slow, yet positive, growth.
Private Equity's Role in Sports Investments
The NFL's recent allowance for private equity investments marks a pivotal shift in the sports industry, as individual ownership becomes increasingly unattainable due to escalating franchise valuations. This change facilitates access to the necessary capital for franchise stakes, thereby paving the way for new investment opportunities. The involvement of institutional capital not only provides liquidity for owners but also addresses succession challenges facing teams. As seen with successful ownership groups emerging in sports, private equity can drive growth while maintaining the competitive integrity of franchises.
The Growth of Women's Sports
The landscape for women's sports has dramatically evolved, with notable investments and attention enhancing visibility and success. The National Women's Soccer League (NWSL) is experiencing a surge in interest and investment, driven by strong leadership and a competitive player pool. Recent ownership changes, such as the involvement of high-profile investors, further indicate the league's growing prominence. This momentum, coupled with favorable media deals and expanding audience engagement, positions women's sports for sustained growth and acknowledgment on a global scale.
NASCAR's Strategic Expansion and Challenges
NASCAR is undergoing a reinvigoration as it focuses on expanding its audience and enhancing the fan experience. The sport has recently reported an upswing in ratings and attendance, reversing a decline that persisted after the 2009 recession. Major media deals and partnerships with platforms like Amazon and Warner Bros. Discovery signal a commitment to capturing diverse demographics. The introduction of new racing events, including the first Cup Series race outside the US in Mexico City, reflects an ambition to broaden NASCAR's reach and appeal to a more global audience.
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*Broadcasting live from the Bloomberg Power Players event at Bloomberg Global Headquarters in New York. The summit brings together industry leaders at the intersection of sports, business and technology*
Steve Miller, Chair of the ISM Services PMI, discusses ISM Services data. Randal Williams, Bloomberg U.S Sports Business Reporter, discusses the Bloomberg Big Take story: “Billionaire NFL Family Eyes Windfall From Wall Street, Swifties.” Brittney Whiteside, Vice President, at ASP College, Altius Sports Partners, discusses how the economics of intercollegiate sports are shifting. Jessica Berman, Commissioner, of the National Women’s Soccer League (NWSL), discusses women's soccer. Midge Purce, Forward, at NJ/NY Gotham FC & USWNT, talks about what’s next as women’s soccer hits the mainstream. David Rubenstein, Co-Founder & Co-Chairman of the Carlyle Group; Owner of The Baltimore Orioles, and Cal Ripken, Jr., Baseball Hall of Famer; Founder & Partner, of Ripken Baseball, discuss the Baltimore Orioles. Steve Phelps, NASCAR President, discusses how Nascar is trying to build audiences, and expand outside the U.S. Grant Hill, Managing Director, of USA Basketball and Co-Owner of the Atlanta Hawks, discusses the big talent who brought home the gold for women’s and men's team.