Boston Celtics co-Owner Steve Pagliuca on Atalanta BC Championship, Bill Walton

Summary

In this interview, Steve discusses the remarkable success of Atalanta, an underdog football club that has recently achieved significant victories, including winning the European Cup after 100 years. He credits the club's scouting and academy for identifying and nurturing talent, enabling a winning culture. Steve also reflects on the monetization of sports teams, noting the impact of social media and global fan bases on sponsorship and merchandise sales. The conversation touches on the challenges of managing both football and basketball teams, emphasizing the importance of talent acquisition and retention. Lastly, he pays tribute to the late Bill Walton, a legendary basketball player, and his lasting impact on the sport.

Takeaways

• 🏆 Atalanta's success is monumental, having not won the European Cup in 100 years, and the city of Bergamo is ecstatic about their achievement.
• 🎉 The fan support for Atalanta is immense, with 10,000 fans welcoming the team back from their game, leading to a celebratory atmosphere that was hard to navigate due to the crowds.
• 🔍 The club's scouting and talent identification have been exceptional, repeatedly finding and nurturing talent that other clubs have overlooked, such as Koopmeiners and Lookman.
• 🌟 Atalanta's academy has been a significant investment and a key factor in their success, developing young players who have become integral to the team.
• 💰 The club's financial strategy includes taking calculated risks on young players, such as Russ, who was bought for a record sum and later sold for a significant profit.
• 🤝 The collaborative efforts of the coaching staff and the entire organization have been credited for Atalanta's success, creating a supportive environment for players.
• 🌍 The globalization of sports has dramatically increased the fan base and revenue potential for teams like Atalanta and the Celtics, with social media playing a significant role in this expansion.
• 🏀 The Boston Celtics' success is attributed to a strong management team, smart player trades, and a culture of winning championships, similar to Atalanta's approach.
• 💼 The monetization of sports teams has evolved with technology and globalization, leading to increased sponsorship, merchandise sales, and ticket revenue.
• 🚀 The value of sports teams continues to rise, as evidenced by the significant increase in the sale prices of teams like the Cavaliers, indicating that there is still room for growth in the market.
• 🕊️ The basketball world mourns the loss of Bill Walton, a legendary figure who contributed greatly to the sport and was an inspiration to many, leaving a lasting legacy.

Q & A

What is the significance of Atalanta's recent success in European football?

Atalanta's success is significant because it's a club that hasn't won the European Cup in 100 years. Their recent achievements have brought immense joy to the City of Bergamo, with fans ecstatic and the team being mobbed upon their return from games.

How did Atalanta manage to identify and develop talent like Koopmeiners and Lookman?

Atalanta credits its scouting and evaluation team for identifying talent. They have heavily invested in their academy over the last 15 years, which has paid off by identifying and nurturing young talents like Koopmeiners and Lookman.

What was the impact of Atalanta's qualification for the Champions League on the club's future prospects?

Qualifying for the Champions League not only provided Atalanta with a prestigious slot in the competition but also helped in the recruitment of players to improve the team further, indicating a bright future for the club.

How does Steve Kaplan view the challenge of running a football club compared to a basketball team?

Steve Kaplan sees similar challenges in running both a football club and a basketball team, emphasizing the importance of acquiring and retaining top talent, keeping them motivated, and making their lives easy to perform at their best.

What role does technology play in the growth and monetization of sports teams like the Celtics and Atalanta?

Technology, particularly social media, has expanded the fan base from hundreds of thousands to millions, creating a global audience. This has led to increased sponsorship income and brand association, making sports teams like the Celtics and Atalanta more valuable.

How has the landscape of sports monetization changed since the purchase of the Celtics in 2003?

The landscape has changed significantly with the advent of social media and digital platforms. The fan base has grown exponentially, and the value of sports teams has skyrocketed from millions to billions, creating a virtuous circle of popularity, talent acquisition, and fan growth.

What is the strategy behind the Celtics' and Atalanta's success in acquiring and retaining talent?

The strategy involves having a strong management team that works together to make smart decisions in player trading and acquisitions. They also emphasize the use of statistics and scouting to identify talent from a young age, fostering a culture of winning championships.

How does Steve Kaplan describe the emotional impact of winning championships on the players and fans?

Steve Kaplan describes the emotional impact as very powerful, with people crying on the pitch after victories and huge celebrations in towns like Indiana. The hard work of the players and the difficulty of winning championships make these moments particularly poignant.

What is the current state of opportunities for investment in sports teams, according to Steve Kaplan?

Steve Kaplan believes there is still room for growth in the value of sports teams due to the global nature of sports and the ongoing fight for viewers' attention among new media platforms. Sports properties, which attract viewers, are in high demand.

How did the recent passing of Bill Walton impact Steve Kaplan and the basketball community?

The passing of Bill Walton was devastating to Steve Kaplan, who had a close relationship with him. Walton's legacy as an avid sports fan and champion is deeply felt, and his influence is remembered and honored by the basketball community.

Outlines

00:00

🏆 Atalanta's Historic European Cup Victory

The first paragraph discusses the significance of Atalanta's European Cup win, which is a monumental achievement for the club as they have not won it in 100 years. The city of Bergamo is ecstatic, and the team's return was met with a massive celebration from 10,000 fans. The club's success is attributed to its academy, which has invested heavily in talent development over the past 15 years, and a strategic approach to identifying and nurturing talent. The interviewee, Steve, highlights the importance of taking risks on players that other clubs have overlooked, such as with the signing of Koopmeiners and Lookman. The conversation also touches on the business side of running a football club, with Steve discussing how the club's approach should be a case study in schools and how they managed to retain and develop talent despite financial challenges, such as when Manchester United came knocking for one of their star players.

05:04

📈 The Business of Sports: Monetization and Global Reach

The second paragraph delves into the business aspects of sports, focusing on the monetization strategies of the Boston Celtics and Atalanta. The discussion highlights how winning championships and building a strong brand can lead to increased sponsorship income and global recognition. The interviewee, Steve, explains that the landscape of sports has changed dramatically with the advent of social media and new media networks, which has expanded the fan base from hundreds of thousands to millions. This global reach has created a virtuous circle where popularity leads to attracting great players, which in turn attracts more fans. The paragraph also touches on the emotional impact of winning, with players crying on the pitch after victories, and the importance of a strong management team that works together to make smart decisions in player trading and acquisitions. The conversation concludes with a reflection on the legacy of Bill Walton, a basketball icon, and the impact of his loss on the sports world.

Keywords

💡Underdogs

The term 'underdogs' refers to a team or individual that is not expected to win but manages to perform well or achieve success despite the odds. In the video's context, Atalanta is described as the underdogs of Bergamo, overshadowed by the more glamorous Inter Milan. This highlights Atalanta's unexpected success in the European Cup, which is a significant achievement for the club and its fans.

💡European Cup

The 'European Cup' is a prestigious football competition that has been won by Atalanta after 100 years, as mentioned in the script. This term is significant as it represents the pinnacle of club football in Europe and is a major achievement for any team that wins it. Atalanta's victory in the European Cup is a central theme of the video, symbolizing their historical success.

💡Academy

An 'academy' in the context of sports refers to a training institution where young athletes are developed and prepared for professional careers. The script mentions that Atalanta has heavily invested in their academy over the last 15 years, which has paid dividends by identifying and nurturing talent. This investment in youth development is a key factor in Atalanta's success and is a recurring theme in the video.

💡Champions League

The 'Champions League' is an annual club football competition organized by the Union of European Football Associations (UEFA) and contested by top-division European clubs. The script discusses how Atalanta qualified for the Champions League, which is a significant achievement that helps in the recruitment of players and further improvement of the team. The Champions League is a key part of the video's narrative, illustrating the high level of competition Atalanta is involved in.

💡Talent Evaluation

Talent evaluation is the process of identifying and assessing the skills and potential of athletes. The video emphasizes the importance of talent evaluation in Atalanta's success, as they have taken a chance on players that other clubs have overlooked. This concept is central to the video's theme, as it showcases how Atalanta's scouting and evaluation have contributed to their achievements.

💡Manchester United

Manchester United is a professional football club based in Old Trafford, Greater Manchester, England, and one of the most successful clubs in the history of English football. In the video, they are mentioned as having come knocking on Atalanta's door for a player, indicating their interest in talent that Atalanta has developed. This reference highlights the club's influence and the high regard in which Atalanta's talent is held.

💡Sponsorship

Sponsorship in sports refers to a financial or other support provided by a company or organization to a team or individual in return for advertising space or other benefits. The video discusses how winning the championship and building the brand of the Celtics has led to more sponsorship income. Sponsorship is a key aspect of monetizing success in sports, as highlighted in the video.

💡Intellectual Property

Intellectual property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce. In the video, the discussion about monetization touches on the intellectual property aspect, suggesting that the teams' brands and reputations are valuable assets that can be leveraged for financial gain. This concept is integral to the video's discussion on the business side of sports.

💡Global Fan Base

A 'global fan base' refers to a sports team's audience that spans across multiple countries and continents. The video mentions that the Celtics now have fans in the millions, indicating a significant increase from the time when they were purchased in 2003. This global fan base is crucial for monetization and brand building in sports, as it expands the potential for merchandise sales, ticket sales, and sponsorships.

💡Championship Culture

A 'championship culture' is an environment within a sports team that fosters a winning mentality and a commitment to excellence. The video discusses how having a championship culture and reputation helps attract sponsorship and creates value for the team. This concept is central to the video's message about the importance of a winning attitude and its impact on the success and monetization of a sports team.

💡Bill Walton

Bill Walton is a former professional basketball player and a sports commentator mentioned in the video. His legacy is discussed in the context of his impact on the basketball world and his connection to the Celtics. The video script pays tribute to Walton, indicating his significance in the sport and the loss felt by the basketball community upon his passing.

Highlights

Atalanta's historic achievement of reaching the European Cup after 100 years has brought immense joy to the city of Bergamo.

The underdog status of Atalanta, overshadowed by Inter Milan, adds to the significance of their success.

Atalanta's fan base is ecstatic, with 10,000 fans from Bergamo showing their support at the airport and practice facility.

The club's approach to talent scouting and development, including players like Koopmeiners and Lookman, has been a key factor in their success.

Atalanta's heavy investment in their academy over the last 15 years has paid off with the emergence of young talents.

The coaching staff and organization at Atalanta are credited for creating a winning culture and putting players in the right positions.

Atalanta's risk-taking approach in acquiring young talent like Russ, who was signed at 18, has proven successful.

The sale of players like Russ to Manchester United for a significant sum has allowed Atalanta to reinvest and improve their squad.

Atalanta's qualification for the Champions League provides a platform for attracting and retaining top talent.

The challenge of retaining talent at clubs like Atalanta when faced with massive offers from wealthier clubs is discussed.

Steve's experience in running both a football club and a basketball team highlights the similarities in managing top talent.

The growth of social media and technology has significantly increased the fan base and global reach of sports teams like the Celtics.

Monetization of sports teams has evolved with the increase in global fans and sponsorship opportunities.

Championship success translates into increased merchandise sales, ticket sales, and sponsorship income for teams like the Celtics.

The Celtics' consistent success is attributed to strong management, smart player acquisitions, and a winning culture.

The emotional impact of winning championships is evident in the reactions of players and fans in both football and basketball.

The ongoing question of the value of sports teams and the potential for growth in the global market is discussed.

The recent loss of Bill Walton, a legendary figure in basketball, is mourned and his legacy is remembered.

Transcripts

We've been talking offline. I know.

I was so happy for you. Congratulations to you and a team.

I want to begin with Atalanta, and I want to go through what this means to

you. They are the underdogs of Bergamo,

overshadowed by their glamorous counterparts of Inter Milan out of

Milan. How important was that for you, for that

side, for the history of that club? I think it was huge.

The Atalanta is not won the European Cup in 100 years and the City of Bravos is

just ecstatic right now. When the team came back from the game.

That a nice shot of of the fans in the stands there's 10,000 folks from Bergamo

there and when they came back, they couldn't even get out of the airport.

It was mobbed. And then they they took a bus to the

practice facility and that was also mobbed and the feeling.

So they're feeling great. There's quite a secular goalie with the

medal, and it was just a just a wonderful time.

That's a big cup, by the way, to two NBA championships was decided to stay.

If your approach to this club and the way this business has been run should be

a case study in a lot of schools. I just want to go through some of that

so our audience really understands the background here.

You've taken a chance on a lot of players that some clubs have left

behind, including my own club, Milan and the likes of Cdcc.

You picked up Schematic Lookman too. You've identified talent, the likes of

Koopmeiners. This hasn't happened once.

It's not happened twice. It's happened repeatedly.

It's not an accident. Steve.

Where does that come from? We get a lot of credit to the to a look

up AKC and the Italian team we have on the field there,

they they've done a fantastic job evaluating talent and the mainstay of

Atlanta is their academy They invested heavily in the academy in the last 15

years and that's paid a lot of dividends scalping the 21 year old defenseman that

starts the youngest one in the entire career and several others like that.

And then I think really, really taking players and putting them into a team

where it's just like the Celtics and having them pass the ball and putting

them in the right spot. So the coaching staff, the fricassee,

the whole organization gets credit for that.

And you know, it's been it's been it's been wonderful to watch.

You know, it also helped that we took a risk on Russ was foiled two years ago

and he's a very young player. I met him at Stern Bros.

The Austria team that he played for, and he was 18.

And we paid, I think, a record sum for one record sells for each year of that

time, 20 million and Manchester United came knocking the door of the season

that we had to lose them, but they paid 85 million that we invested in Slovakia

and several other players to improve the squad.

It's been a magical season. Steve, could we talk a little bit about

that as well? The difference between Atlanta and the

South takes when you have a star like Hyland and you get Manchester United

coming in with massive money, how difficult it is to retain that talent at

a club like Atalanta and whether that is still the future, Is that inevitable?

Whether you're going to have to sell somebody stars again to continuously

reinvent yourself, reinvent the club going forward.

It's really not that different. NBA is when you win a championship.

Everybody wants your players and and so we think we can continue to prosper.

Atalanta with a mix of young players and a mix of players that are sold because

they have great opportunities, I think I'll change that a bit.

You know, we we're playing European football before that when we qualified

for the Champions League, and that gives you a slot in the Champions League as

well. So that's going to be really helpful in

our recruitment of players to improve the team further.

Steve, to really put you on the spot, has it been harder to run a football

club or a basketball team? They both have similar challenges.

You know, it's all about getting and retaining top talent and keeping them

motivated and trying to do everything that you can to make their lives easy so

they go out on the pitch or go on the court and play hard.

And we try to do that. Both organisations, it's very similar.

Atalanta is kind of the kit and the team with a great culture.

Italy is is the favorite team of many and then Ballon d'Or but also also is a

favorite is probably everybody's second favorite team in Italy.

We just came back from Rome and we were waiting in a hotel room.

My wife and I found a large cake with lots of symbol on it.

So it's still we had a lot of fever in Italy right now.

Steve, you are living pretty much everybody's dream, so congratulations

for winning life. You have definitely done it.

There is this idea, especially as you have two really successful teams,

Celtics heading to their NBA finals, the second finals appearance in three

seasons. How do you monetize this?

And I know that that's not the reason why you do this.

You're in this for the love of the sport and all the passion.

Is it going direct to the distributor? Is do you find it actually more

compelling right now because you have the the actual intellectual property in

a way that has changed with new technological advancements?

Absolutely. You know, when we purchased the Celtics

back in 2003, there was no Facebook or minimal social media, almost nothing.

Maybe email was the technology of the day.

Now what we have is, is fans were kind of back then the hundreds of thousands.

Now they're counting the millions. And in possibly $500 million for four

global soccer teams. And also the NBA, which is prospering in

Europe and China and all of the world. So the landscape really changed.

The lives of these teams have become teams of the world.

And the Boston Celtics certainly have that reputation.

And so in terms of monetization, it's just a virtuous circle.

If you get more popular, you get great players, get more great players, you get

more fans, and it's a great it's a great place to be right now, being the final

couple years in a row. On that point, though, Steve, when you

get a trophy, where does it immediately start to translate into money?

Is it immediately in merchandise ticket sales?

Mania quickly translates into a sponsorship.

So for the Celtics, just building the brand

and having a championship team gets us more sponsorship income The way we

bought the club, especially the was de minimis and now it's in the tens of

millions and approaching hundreds of millions.

Brands want to be associated with the brand Celtics and Atalanta as well.

Getting in the Champions League gives us a lot more eyeballs.

So having that championship culture and the brand and reputation that that's

what does it the long term creates value in the short term.

You went through what makes Atalanta so special and how you really transformed

that team. What about the Celtics?

They're always winning. Why are they so good?

Well, that's one of the better questions I ever had, I guess.

I think they're good because we've had an incredible management team led by

we've Groesbeck for 20 years now, which Gotham, our president, started out with,

Danny Ainge and Brad Stevens in the basketball operation, a great coach.

They all work together as a team and have been very smart and player trading

acquisitions. Same story in Atlanta.

So it's it's all about trying to try to get the top talent on the field and

doing, you know, in both organizations, we believe in doing more work and

exploring, using statistics, you know, using scouts to see players 20 or 30 or

40 times find players still from when they're, you know, eight years old in

high school and college. And so that work ethic and kind of a

will to to win championships pervades each organization.

And we've never been happier with those folks.

And that's a great thing to see in both these situations.

People were crying on the pitch in Atlanta after that victory.

And last night in in Indiana, which is a great basketball

town. You know, there was a huge celebration

after that victory. And I'm just so happy for those players

that work so hard. It's just really hard to win

championships. And the NBA is at different times.

Last five years, same thing in Europe. It's just hard to to get up every night

and beat these great teams and overcome injuries.

So I'm just pinching myself and hopefully the dream will continue next

week. Steve, it sounded like you are a stable

matrix believer there for a second, so that seems to be part of what's going

on. I will just say right now you must be on

such a high. I probably haven't slept in a couple of

weeks. There is this question of what's next in

terms of are you still interested in playing other teams?

Is there still value out there? Or do you think that basically things

have been beat up to such a degree, given all of the interest that pretty

much the opportunities aren't there anymore?

Well, when we bought the Celtics in 2003, the headline was the Cavaliers pay

a record price for team those 260 million.

And now the values are counted in the four in the four billions.

So that's been that's been a question I ask every single year.

I think the fact that this technology has changed the sports are now global

in the fight for eyeballs between the the new media, you know, such as such as

Facebook and Apple and all media networks continues and everyone wants

properties that get eyeballs. And the properties that get eyeballs are

sports properties. So I think there's still room, room to

go up. Steve, before we go, we've got to talk

about a loss to the basketball world over the weekend.

Bill Walton, we'd love a final word from you on his legacy.

I was devastated last, and I'm so glad we won that game.

I felt like those looking down on it, I was very close to Bill in the 20 year

run we had here. His son made it work for us at the

Celtics and I just texted Bill. Two weeks ago he sent me a nice, nice

sunset message about about winning the Rainbow Cup.

He was watching it. He was an avid sports fan and I would

expand expanded everywhere he went. He proselytized that.

What a great experience it was to be a self that can be a champion.

So the world in the NBA has had a major loss of interest in the one and two

years before Bill Russell, two of the most iconic centers of the game.

And we're really missed still. And hopefully our players will take, you

know, extra part into the games because of remembering Bill.