This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio Boom Bank.

This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio Boom Bank.

A lot of wide oppoot spaces that are filled with a lot of people. As I look around us, we're so delighted to be back here at the US Open and delighted to have back with us. Kirsten Corio, she is chief Commercial Officer of USTA, and we were talking. You've actually been with the organization now for.

A lot of wide oppoot spaces that are filled with a lot of people. As I look around us, we're so delighted to be back here at the US Open and delighted to have back with us. Kirsten Corio, she is chief Commercial Officer of USTA, and we were talking. You've actually been with the organization now for.

For seven years. This is actually my eighth US Open.

For seven years. This is actually my eighth US Open.

And yes we do count the twenty twenty pandemic US Open because it did occur.

And yes we do count the twenty twenty pandemic US Open because it did occur.

We did work, but we just weren't here well. And I will say last year felt like all right, everybody was back in a big way. You guys are having some record numbers to get this year.

We did work, but we just weren't here well. And I will say last year felt like all right, everybody was back in a big way. You guys are having some record numbers to get this year.

We are, We thought after twenty twenty two, the most spectacular US Open ever, Serena evolving away from tennis and the mania around Gosh, we got to see her one last time. How do we top that in twenty twenty three, and then here we are. You mentioned it, Tim, no Big Three, no Serena. You know, we've wondered us that are in the business, those of us that are fans, what will happen when they're no longer with us? And the truth is we've been just astonished at the demand we've experienced.

We are, We thought after twenty twenty two, the most spectacular US Open ever, Serena evolving away from tennis and the mania around Gosh, we got to see her one last time. How do we top that in twenty twenty three, and then here we are. You mentioned it, Tim, no Big Three, no Serena. You know, we've wondered us that are in the business, those of us that are fans, what will happen when they're no longer with us? And the truth is we've been just astonished at the demand we've experienced.

Well, so, why do you think that is?

Well, so, why do you think that is?

You know, I think the new stars began to break through a bit more last year, the Electric Carlos Alcarez, Cocoke Goff, There's so many others, and I think people have just rediscovered tennis is amazing. There are new stars all the time. And also the US Open is just a fantastic experience and there's so much more to do than just watch tennis. The tennis, of course is the anchor, but it's also just a great event for food and beverage, for experience, for being out in a beautiful day.

You know, I think the new stars began to break through a bit more last year, the Electric Carlos Alcarez, Cocoke Goff, There's so many others, and I think people have just rediscovered tennis is amazing. There are new stars all the time. And also the US Open is just a fantastic experience and there's so much more to do than just watch tennis. The tennis, of course is the anchor, but it's also just a great event for food and beverage, for experience, for being out in a beautiful day.

Carol mentioned record crowds here earlier this week yesterday top seventy three thousand people for the first time. What's capacity here? How much bigger could you get if you wanted to get bigger?

Carol mentioned record crowds here earlier this week yesterday top seventy three thousand people for the first time. What's capacity here? How much bigger could you get if you wanted to get bigger?

I honestly think this is it.

I honestly think this is it.

We're kind of at the cap right we want everyone to ensure that they have a great experience, that they can get around and get to the different courts, and I'm not sure we can expand.

We're kind of at the cap right we want everyone to ensure that they have a great experience, that they can get around and get to the different courts, and I'm not sure we can expand.

More than Actually I kind of agree with you, just based on my I was here Tuesday night and it was super crowded that night too, And you get to the point where you know you want to get in Court seventeen and you can't actually get in Court seventeen because it's full, but there are so many other places to go. So I guess I do wonder is like how you balance the experience of making sure that people get there with money's worth, without maximizing, you know, without putting at risk sort of being comfortable here.

More than Actually I kind of agree with you, just based on my I was here Tuesday night and it was super crowded that night too, And you get to the point where you know you want to get in Court seventeen and you can't actually get in Court seventeen because it's full, but there are so many other places to go. So I guess I do wonder is like how you balance the experience of making sure that people get there with money's worth, without maximizing, you know, without putting at risk sort of being comfortable here.

Yeah, and so I think that's it.

Yeah, and so I think that's it.

I think we'd love to be able to welcome everyone that wanted to come, but at the same time, we've got to protect the experience. And that's where the fan Week experience becomes really important too.

I think we'd love to be able to welcome everyone that wanted to come, but at the same time, we've got to protect the experience. And that's where the fan Week experience becomes really important too.

How do you you know? I was curious actually thinking about early metrics and did you guys quickly get an idea what the event was going to be, like, what was early demand? Like?

How do you you know? I was curious actually thinking about early metrics and did you guys quickly get an idea what the event was going to be, like, what was early demand? Like?

The earliest one we saw is when we went out with the full series subscriber renewal. That's kind of your season ticket holder, right if you're a team, And we renewed it better than ninety five percent, and at that moment, that was in late January, we said wow.

The earliest one we saw is when we went out with the full series subscriber renewal. That's kind of your season ticket holder, right if you're a team, And we renewed it better than ninety five percent, and at that moment, that was in late January, we said wow.

So literally almost right after.

So literally almost right after.

Yeah, and at that point in time, you know, you don't know who's playing. You know, you know that certain players have retired and we'll not be back, but that was really just the first indicator of Wow, this is going to be big again.

Yeah, and at that point in time, you know, you don't know who's playing. You know, you know that certain players have retired and we'll not be back, but that was really just the first indicator of Wow, this is going to be big again.

Kirsten talked to us too about the people who come and remind us of how diverse it is, and people coming from all over the world.

Kirsten talked to us too about the people who come and remind us of how diverse it is, and people coming from all over the world.

Yeah, and the international travel, you know, we've seen it in New York is just seems to be really back. In a typical pre pandemic year, we'd be anywhere from twenty to twenty five percent international attendees at the US Open, and we're back to that number. We're back to around twenty percent, maybe more. But it's just so so great to see.

Yeah, and the international travel, you know, we've seen it in New York is just seems to be really back. In a typical pre pandemic year, we'd be anywhere from twenty to twenty five percent international attendees at the US Open, and we're back to that number. We're back to around twenty percent, maybe more. But it's just so so great to see.

So that's something that you actually can't even describe. You kind of have to be there to feel it, like you're you're on one of these courts and you're seeing two players play from not the US, they don't speak English as their first language is. And what you have as fans who are from those countries or perhaps even from New York City, and they're cheering them on and in their native languages, and it's like like, this is New York. This is New York at its past.

So that's something that you actually can't even describe. You kind of have to be there to feel it, like you're you're on one of these courts and you're seeing two players play from not the US, they don't speak English as their first language is. And what you have as fans who are from those countries or perhaps even from New York City, and they're cheering them on and in their native languages, and it's like like, this is New York. This is New York at its past.

It is.

It is.

Yeah, you really feel it, and I'm glad you experienced that on the outside.

Yeah, you really feel it, and I'm glad you experienced that on the outside.

That's pretty cool.

That's pretty cool.

Yeah, all right, So talk to us about sponsors, right, you have to think about who you're sponsoring. And I feel like you have people that are companies and entities that have been with you from year to year, but how you continue to evolve that or grow that.

Yeah, all right, So talk to us about sponsors, right, you have to think about who you're sponsoring. And I feel like you have people that are companies and entities that have been with you from year to year, but how you continue to evolve that or grow that.

So we have twenty four sponsors.

So we have twenty four sponsors.

We have few long term, very loyal, very deep partnerships with these sponsors. Over half of them have been with us, actually seven have been with us for more than thirty years, very long term partnerships. It's really been extraordinary for us to experience. And these partners are are long term. We were new at long term, and we want to sure that they can meet their objectives here, that they can activate their brands and waves that are fantastic, and I really hope that you can experience it when you get out there watching tennis.

We have few long term, very loyal, very deep partnerships with these sponsors. Over half of them have been with us, actually seven have been with us for more than thirty years, very long term partnerships. It's really been extraordinary for us to experience. And these partners are are long term. We were new at long term, and we want to sure that they can meet their objectives here, that they can activate their brands and waves that are fantastic, and I really hope that you can experience it when you get out there watching tennis.

Stop in some of the sponsor booths as well.

Stop in some of the sponsor booths as well.

I bought a.

I bought a.

Shirt like a Ralph lahmert like I do think about. It's not just about somebody slapping a logo.

Shirt like a Ralph lahmert like I do think about. It's not just about somebody slapping a logo.

No, it's a really deep activation.

No, it's a really deep activation.

They're really out here interacting with the fans and enhancing the experience for the fans in really diverse ways.

They're really out here interacting with the fans and enhancing the experience for the fans in really diverse ways.

What did you hear from your sponsorship staff this year in terms of the ease of getting these renewals, of going and getting new sponsors. There are some new partners here this year. We like to talk to people like you because you have a good read on the entire economy. You get those updates each quarter from your staff, But what did they tell you throughout the year as they were trying to secure these partnerships.

What did you hear from your sponsorship staff this year in terms of the ease of getting these renewals, of going and getting new sponsors. There are some new partners here this year. We like to talk to people like you because you have a good read on the entire economy. You get those updates each quarter from your staff, But what did they tell you throughout the year as they were trying to secure these partnerships.

So in all of our partnerships, I'll say the intent to renew is incredibly strong. It's just a question of what are your objectives and how do you see them evolving over the next term, and how can we help you meet those objectives. So that hasn't really been a question for new partners. We've seen more demand than we can satisfy. We do reach a point where we sell out of partnership positions, and we've reached that, and so we've got more inbound demand than we can satisfy on the partnership front. And that's really an indicator of how valuable the audience is to them.

So in all of our partnerships, I'll say the intent to renew is incredibly strong. It's just a question of what are your objectives and how do you see them evolving over the next term, and how can we help you meet those objectives. So that hasn't really been a question for new partners. We've seen more demand than we can satisfy. We do reach a point where we sell out of partnership positions, and we've reached that, and so we've got more inbound demand than we can satisfy on the partnership front. And that's really an indicator of how valuable the audience is to them.

Do you ever, though you said twenty four, right, is there ever, Okay, let's make it twenty six or is there do you think about let's not make it where we're slapping things, you know what I mean?

Do you ever, though you said twenty four, right, is there ever, Okay, let's make it twenty six or is there do you think about let's not make it where we're slapping things, you know what I mean?

Yes, it's very deliberate.

Yes, it's very deliberate.

Yeah, And so so you do have like kind of a top point that you just say that's in that we do.

Yeah, And so so you do have like kind of a top point that you just say that's in that we do.

We want to protect the exposure for the few partners that we have at the level that they have and ensure that they get the exposure that that they've come to expect.

We want to protect the exposure for the few partners that we have at the level that they have and ensure that they get the exposure that that they've come to expect.

One thing I want to ask you, because we're going to talk a lot. We have a book about Althia Gibson. We're going to talk a lot more about equality, university and thinking about Billy j and King. At the beginning of the week, former First Lady Michelle Obama, how in terms of what you do the importance of diversity and inclusion and thinking about that in our world and then when you think.

One thing I want to ask you, because we're going to talk a lot. We have a book about Althia Gibson. We're going to talk a lot more about equality, university and thinking about Billy j and King. At the beginning of the week, former First Lady Michelle Obama, how in terms of what you do the importance of diversity and inclusion and thinking about that in our world and then when you think.

About sponsors, Wow, it's all incredibly important. So okay, so you know, we're celebrating fifty years of equal prize.

About sponsors, Wow, it's all incredibly important. So okay, so you know, we're celebrating fifty years of equal prize.

Fifty years.

Fifty years.

It's incredible, you know, when we're still seeing that fight for equal pay on many different stages and arenas, and especially in women's sports. So we're incredibly proud of that. But we also like to and our sponsors love this that men and women's stay. They play on the same stage, they play on the same stage. The best men in the world, the best women in the world. They're watched by men and women equally. They're watched in person. You know, women buy tickets, men buy tickets, they both watch together. We're one of the most gender neutral audiences that you could find in any sporting event, and so we're really proud of that, and our partners love that too, of course, they love reaching a very gender neutral and very female heavy when you think about sports audience that we offer.

It's incredible, you know, when we're still seeing that fight for equal pay on many different stages and arenas, and especially in women's sports. So we're incredibly proud of that. But we also like to and our sponsors love this that men and women's stay. They play on the same stage, they play on the same stage. The best men in the world, the best women in the world. They're watched by men and women equally. They're watched in person. You know, women buy tickets, men buy tickets, they both watch together. We're one of the most gender neutral audiences that you could find in any sporting event, and so we're really proud of that, and our partners love that too, of course, they love reaching a very gender neutral and very female heavy when you think about sports audience that we offer.

So, Kirsten, how do you take the momentum from this event, again a record setting event, and use that to parlay interest. It's the next four or five year olds, the people who are going to be the next Francis Tiafo's the people are going to be the next Coco Govs.

So, Kirsten, how do you take the momentum from this event, again a record setting event, and use that to parlay interest. It's the next four or five year olds, the people who are going to be the next Francis Tiafo's the people are going to be the next Coco Govs.

So that's why we play, right, That's why we're here.

So that's why we play, right, That's why we're here.

This event is here to inspire people to play tennis in the United States.

This event is here to inspire people to play tennis in the United States.

You make sure they get to experience it though, that everybody gets to experience it.

You make sure they get to experience it though, that everybody gets to experience it.

So the qualifying tournament, which has played the week before the main draw, has been repurposed into Fan Week. Okay, so the qualifying tournament is the anchor of that Fan Week. We are free and open to the public that entire week, and all of the main draw players are here practicing on courts that are free and open to the public to come and sit up close and personal and watch them. And so we had a record audience that week. Over one hundred and fifty five thousand people came through the gates that week. And really we're able to experience some of the top pros in the world up close and personal, but also watch some incredibly competitive tennis in the qualifying side, and all fan activations with our partners, and opportunities for kids to get on courts and really hold a racket. Wilson distributed tens of thousands of free rackets. That's great free rackets to those that had registered for the free fan access pass, and so we're literally getting rackets into kids hands during that first fan week and it's just so gratifying for us to see them then take those into their communities and play.

So the qualifying tournament, which has played the week before the main draw, has been repurposed into Fan Week. Okay, so the qualifying tournament is the anchor of that Fan Week. We are free and open to the public that entire week, and all of the main draw players are here practicing on courts that are free and open to the public to come and sit up close and personal and watch them. And so we had a record audience that week. Over one hundred and fifty five thousand people came through the gates that week. And really we're able to experience some of the top pros in the world up close and personal, but also watch some incredibly competitive tennis in the qualifying side, and all fan activations with our partners, and opportunities for kids to get on courts and really hold a racket. Wilson distributed tens of thousands of free rackets. That's great free rackets to those that had registered for the free fan access pass, and so we're literally getting rackets into kids hands during that first fan week and it's just so gratifying for us to see them then take those into their communities and play.

Just have about twenty five seconds left here. What have you seen in terms of the interest among a younger population in general, either coming to it and also just playing in tennis.

Just have about twenty five seconds left here. What have you seen in terms of the interest among a younger population in general, either coming to it and also just playing in tennis.

Well, I think you may have some time with our CEO, Loocire, and we love to talk about the growth over the past three years that we've enjoyed in tennis. We've got over twenty three million active players in the United States, over thirty percent increase over the past three years, and much of that coming from diverse populations where we want tennis to look like America and feel like America, and that includes the.

Well, I think you may have some time with our CEO, Loocire, and we love to talk about the growth over the past three years that we've enjoyed in tennis. We've got over twenty three million active players in the United States, over thirty percent increase over the past three years, and much of that coming from diverse populations where we want tennis to look like America and feel like America, and that includes the.

Youth population of the course as well.

Youth population of the course as well.

You're so fun.

You're so fun.

I love being here with you guys. Thanks for having me.

I love being here with you guys. Thanks for having me.

We love talking to you.

We love talking to you.

We just wish we could do this more than two days a year.

We just wish we could do this more than two days a year.

Can be coming from you.

Can be coming from you.

We will.

We will.

Absolutely Kirsten, thank you to be well. Thank you for having Kriston Courier, USTA Chief Commercial Officer right here at the US Open. You are listening and watching Bloomberg Business Week.

Absolutely Kirsten, thank you to be well. Thank you for having Kriston Courier, USTA Chief Commercial Officer right here at the US Open. You are listening and watching Bloomberg Business Week.

You're listening to the Bloomberg Business Week podcast. Catch us Live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app and the Bloomberg Business app, or wan't just live on YouTube.

You're listening to the Bloomberg Business Week podcast. Catch us Live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app and the Bloomberg Business app, or wan't just live on YouTube.

Call Master along with Tim Stenvik live at the US Open at the Arthur Ash Stadium. Literally right now, we're just in the midst of everything.

Call Master along with Tim Stenvik live at the US Open at the Arthur Ash Stadium. Literally right now, we're just in the midst of everything.

I can hear, you can hear the officials, you can hear the crowd hearing. Yes, you can sometimes hear a passionate player maybe grunter or scream. That's all part of the fun here at the US Open.

I can hear, you can hear the officials, you can hear the crowd hearing. Yes, you can sometimes hear a passionate player maybe grunter or scream. That's all part of the fun here at the US Open.

It's so much fun, it's so alive. It's just a blast to be here. Having said that, we're sorry to our Bloomberg News team in particular, who we know are fans of.

It's so much fun, it's so alive. It's just a blast to be here. Having said that, we're sorry to our Bloomberg News team in particular, who we know are fans of.

That is so cruel. Okay, next year, you guys are coming here with us.

That is so cruel. Okay, next year, you guys are coming here with us.

Okay, all right, We've got two great stories. One is about former US First Lady Michelle Obama. She spoke at Arthur Ash earlier in the week advocating for equal pay for female athletes. And she's really the latest prominent figure to push for progress in women's sports. We talked about it a little bit with Kirsten about the importance of equality and diversity and then writing about how the US Open is a test for Carlos Alcoraz.

Okay, all right, We've got two great stories. One is about former US First Lady Michelle Obama. She spoke at Arthur Ash earlier in the week advocating for equal pay for female athletes. And she's really the latest prominent figure to push for progress in women's sports. We talked about it a little bit with Kirsten about the importance of equality and diversity and then writing about how the US Open is a test for Carlos Alcoraz.

Yeah, is he the next great tennis player? Now that the Big three is no longer the Big Three? We got Ira Bouduat joining us. He is Bloomberg News Global Business reporter on zoom in New York City. Also with us is Bloomberg News Senior reporter Jillian tan Back right now in our Bloomberg Interactive Brokers studio.

Yeah, is he the next great tennis player? Now that the Big three is no longer the Big Three? We got Ira Bouduat joining us. He is Bloomberg News Global Business reporter on zoom in New York City. Also with us is Bloomberg News Senior reporter Jillian tan Back right now in our Bloomberg Interactive Brokers studio.

I feel like, Jillian, we need to start with you because I feel like equality when it comes to sports remains an issue, and I know the USTA is working on it. But tell us about Misschelle Obama, the former First Lady, earlier in the week, because she had a pretty strong words.

I feel like, Jillian, we need to start with you because I feel like equality when it comes to sports remains an issue, and I know the USTA is working on it. But tell us about Misschelle Obama, the former First Lady, earlier in the week, because she had a pretty strong words.

Yes, so she kicked off sort of Monday night action after Cocoa Golf one on Monday Night. She came out honored Billy Jan King, who where exactly you are? You guys are in the Billy Jing King National Tennis Center, and so Billy Jan King fifty years ago, went out found sponsors and was actually Bristol Meyer's squib that came up with equal prize money for women's tennis. The year earlier, in nineteen seventy two, she cashed a ten thousand dollars check her male counterpart, Gilli Nastazi twenty five thousand. So it was Billy Jinking fifty years ago pioneered you know, equal pay in sport. It took the other Grand Slams, you know, decades to catch up. The Australian Open only did it in two thousand and one, the French Open in six and Wimbledon was the last in two thousand and seven, with Venus Williams sort of helping get that along. But what's crazy is it's twenty twenty three and some of the like lead up tournaments to the US opened in Cincinnati, in DC, there's still you know, women are owning a fraction of what the men are earning.

Yes, so she kicked off sort of Monday night action after Cocoa Golf one on Monday Night. She came out honored Billy Jan King, who where exactly you are? You guys are in the Billy Jing King National Tennis Center, and so Billy Jan King fifty years ago, went out found sponsors and was actually Bristol Meyer's squib that came up with equal prize money for women's tennis. The year earlier, in nineteen seventy two, she cashed a ten thousand dollars check her male counterpart, Gilli Nastazi twenty five thousand. So it was Billy Jinking fifty years ago pioneered you know, equal pay in sport. It took the other Grand Slams, you know, decades to catch up. The Australian Open only did it in two thousand and one, the French Open in six and Wimbledon was the last in two thousand and seven, with Venus Williams sort of helping get that along. But what's crazy is it's twenty twenty three and some of the like lead up tournaments to the US opened in Cincinnati, in DC, there's still you know, women are owning a fraction of what the men are earning.

Yeah, I'm so glad you mentioned Cincinnati. I mean, it was remarkable to see that the women's prize pot is less than half of what men men get. I mean, but it's not just tennis, Julian. This is like I mean, think about the struggle of the US national women's soccer team and female soccer players that we've experienced here in the US.

Yeah, I'm so glad you mentioned Cincinnati. I mean, it was remarkable to see that the women's prize pot is less than half of what men men get. I mean, but it's not just tennis, Julian. This is like I mean, think about the struggle of the US national women's soccer team and female soccer players that we've experienced here in the US.

Yeah, exactly.

Yeah, exactly.

So the World Cup recently has thrown a huge spotlight on it. Like our colleagues wrote about how in Spain. You know, there's a lot of debate, especially in Spain one. But it's not just in soccer, it's in basketball, It's in pretty much every sport across the globe. You know, tennis is one rare sport where prize money is equal, but it only in certain events like the one that's happening this fortnite at Flushing.

So the World Cup recently has thrown a huge spotlight on it. Like our colleagues wrote about how in Spain. You know, there's a lot of debate, especially in Spain one. But it's not just in soccer, it's in basketball, It's in pretty much every sport across the globe. You know, tennis is one rare sport where prize money is equal, but it only in certain events like the one that's happening this fortnite at Flushing.

IIRA. We want to bring you into the conversation. You've got a great story about Carlos Alcoraz, but before we get to it, you know, you cover sports, you love sports. What do you think about, you know, when it comes to still kind of this fight for equality between women and men when it comes to sports, you.

IIRA. We want to bring you into the conversation. You've got a great story about Carlos Alcoraz, but before we get to it, you know, you cover sports, you love sports. What do you think about, you know, when it comes to still kind of this fight for equality between women and men when it comes to sports, you.

Know, I think tennis is are really good. I mean, I don't think it's an accident that Billy jan King has been a pioneer in this and that tennis is really part of what has led the way for equal pay because it is an individual sport primarily, and the women have been a huge draw. Serena Williams one of the biggest athletes of our generation, male or female, and so I think they have some of that leverage and Billy Jing King really showed them how to use it. But the job is still not done. What it is surprising to see at this stage in the game that we still have competitions on the tour that are not with equal prize money.

Know, I think tennis is are really good. I mean, I don't think it's an accident that Billy jan King has been a pioneer in this and that tennis is really part of what has led the way for equal pay because it is an individual sport primarily, and the women have been a huge draw. Serena Williams one of the biggest athletes of our generation, male or female, and so I think they have some of that leverage and Billy Jing King really showed them how to use it. But the job is still not done. What it is surprising to see at this stage in the game that we still have competitions on the tour that are not with equal prize money.

So the tour that's really surprising to oh, go ahead.

So the tour that's really surprising to oh, go ahead.

You sorry, just to jump in.

You sorry, just to jump in.

Like the tour actually has been feeling the heat from the whole world sort of saying, hey, what's going on, guys, And they've actually outlined a plan to have equal prize money, but not till twenty twenty seven at some of these big events.

Like the tour actually has been feeling the heat from the whole world sort of saying, hey, what's going on, guys, And they've actually outlined a plan to have equal prize money, but not till twenty twenty seven at some of these big events.

Why so long? Why is everything so long? All you have to do is like say.

Why so long? Why is everything so long? All you have to do is like say.

Give me the money, wit, just do.

Give me the money, wit, just do.

Sponsorship, Carol.

Sponsorship, Carol.

So it's about you know, the sponsors. You know they don't believe the eyeballs. The viewership is there, but if you know, if your numbers are to believe, like the US up the soccer down in Australia, like the ratings were off, the charts.

So it's about you know, the sponsors. You know they don't believe the eyeballs. The viewership is there, but if you know, if your numbers are to believe, like the US up the soccer down in Australia, like the ratings were off, the charts.

Well, we just talked with Curio. She is here, she's chief commercial officer, she's doing the sponsorships. We just talked to her about this issue. And even though you don't have you know, Serena here, you know that things are changing. The older you know, elite if you will, from tennis is moving on slowly. That still you're getting record numbers here. So it's just interesting about this idea that the eyeballs. I don't know, I feel like it's an old argument. Having said that, we do want to get to Ara your story. Talk to us about Carlos Alcarez. He's a young he's part of the next generation potentially.

Well, we just talked with Curio. She is here, she's chief commercial officer, she's doing the sponsorships. We just talked to her about this issue. And even though you don't have you know, Serena here, you know that things are changing. The older you know, elite if you will, from tennis is moving on slowly. That still you're getting record numbers here. So it's just interesting about this idea that the eyeballs. I don't know, I feel like it's an old argument. Having said that, we do want to get to Ara your story. Talk to us about Carlos Alcarez. He's a young he's part of the next generation potentially.

Yeah, I mean for sure.

Yeah, I mean for sure.

And this has been the question in men's on the men's side for decades. Now, what happens when Federer, Nadal and Djokovic you're done? And now that Feder's retired and the Doll's about to retire, Djokovic looks like he has some you know, left in the tank, but is obviously in his twilight years or entering them. Who's next? And I think Wimbledon and last year's Open, we kind of got a glimpse anyway at the answer and it's Carlos Alcaraz and what I was writing about is the opportunity that that presents him because if he can sort of consolidate that and dominate on the men's side for the next decade or two, because he is only twenty, he could very realistically be the next sort of billion dollar at fleet. You know, you look at Roger Federer's lifetime earnings on the court prize money, but also off it where you get the majority tennis players as in an individual sport, they can really cash in, and so Alcarez stands to really profit from his brilliant play recently.

And this has been the question in men's on the men's side for decades. Now, what happens when Federer, Nadal and Djokovic you're done? And now that Feder's retired and the Doll's about to retire, Djokovic looks like he has some you know, left in the tank, but is obviously in his twilight years or entering them. Who's next? And I think Wimbledon and last year's Open, we kind of got a glimpse anyway at the answer and it's Carlos Alcaraz and what I was writing about is the opportunity that that presents him because if he can sort of consolidate that and dominate on the men's side for the next decade or two, because he is only twenty, he could very realistically be the next sort of billion dollar at fleet. You know, you look at Roger Federer's lifetime earnings on the court prize money, but also off it where you get the majority tennis players as in an individual sport, they can really cash in, and so Alcarez stands to really profit from his brilliant play recently.

It's interesting, I right, tennis players can really cash in if they're the top of the top right five of the fifty highest earning athletes of all time. This is in your story according to estimates by Sportico are tennis players. The thing is is you have to be the top of the top and actually to actually make a living, because you know, there are so many players out there, many of whom qualified for the US Open this year that really, you know, essentially live tournament to tournament and paycheck to paycheck. Yeah, I mean, it is.

It's interesting, I right, tennis players can really cash in if they're the top of the top right five of the fifty highest earning athletes of all time. This is in your story according to estimates by Sportico are tennis players. The thing is is you have to be the top of the top and actually to actually make a living, because you know, there are so many players out there, many of whom qualified for the US Open this year that really, you know, essentially live tournament to tournament and paycheck to paycheck. Yeah, I mean, it is.

A ruthless eat. What you kill sport and the pyramid. You know, the difference between one and ten is huge, and the difference between ten and one hundred and the rankings is even wider. It's just very difficult. But if you can get to the top with the mountain, the rewards are as rich as an in sport. And for Alcarez, it's interesting because in talking to marketing people, talked with guy Bob Dorfman, who does sports marketing and clinical advertising, he's saying, you know, the ceiling is the limit for him in terms of categories endorsement deals. Besides the obvious stay healthy, keep winning, he needs to sort of start to show his personality. Obviously, in US is the biggest market. Everyone's always waiting for the next US tennis star. But Alcarez can really capture that too if he works on his English a little bit more and just kind of let's let's the world see who he is. I was at this event at a low Ta Palace hotel before the Open, where they had him and a few other players, and he really was the star of the show. It's a little cocktail hour and he has a big, contagious smile. He clearly knew how to work a room. But I think we've get to see that kind of leveraged in a big way in endorsement deals and in marketing.

A ruthless eat. What you kill sport and the pyramid. You know, the difference between one and ten is huge, and the difference between ten and one hundred and the rankings is even wider. It's just very difficult. But if you can get to the top with the mountain, the rewards are as rich as an in sport. And for Alcarez, it's interesting because in talking to marketing people, talked with guy Bob Dorfman, who does sports marketing and clinical advertising, he's saying, you know, the ceiling is the limit for him in terms of categories endorsement deals. Besides the obvious stay healthy, keep winning, he needs to sort of start to show his personality. Obviously, in US is the biggest market. Everyone's always waiting for the next US tennis star. But Alcarez can really capture that too if he works on his English a little bit more and just kind of let's let's the world see who he is. I was at this event at a low Ta Palace hotel before the Open, where they had him and a few other players, and he really was the star of the show. It's a little cocktail hour and he has a big, contagious smile. He clearly knew how to work a room. But I think we've get to see that kind of leveraged in a big way in endorsement deals and in marketing.

You know, Jillian, As we look at the next round for men's players in tennis, the next general, I think about the next generation for women and we're starting to see that. We certainly saw it last time around. But I do think about last time that I was here at the Open, I watched Serena and Venus play in a doubles match, and I watched Serena.

You know, Jillian, As we look at the next round for men's players in tennis, the next general, I think about the next generation for women and we're starting to see that. We certainly saw it last time around. But I do think about last time that I was here at the Open, I watched Serena and Venus play in a doubles match, and I watched Serena.

Play what you saw her last match?

Play what you saw her last match?

I saw her last match. You know, when I do think about the next generation for women, how are you thinking about it? And we really I think all did think Serena and Venus would make it so that there was more parody, and they definitely have moved it along. But we still have a ways to go.

I saw her last match. You know, when I do think about the next generation for women, how are you thinking about it? And we really I think all did think Serena and Venus would make it so that there was more parody, and they definitely have moved it along. But we still have a ways to go.

Yeah, I mean, I think there's a bunch of upcoming styles. Obviously, Coco's leading the way. Jessica Pagola, her dad owns the Buffalo Bills, She's the third seed. Her and Coco actually played doubles together. Like there's another American called Alicia Parks. Like the bench is deep and to our's point about you know upcoming US players. There's a couple that are really already stamping their foot on the map, Francis Tfo and then Chris Eubanks being one that've had had deep runs and slams.

Yeah, I mean, I think there's a bunch of upcoming styles. Obviously, Coco's leading the way. Jessica Pagola, her dad owns the Buffalo Bills, She's the third seed. Her and Coco actually played doubles together. Like there's another American called Alicia Parks. Like the bench is deep and to our's point about you know upcoming US players. There's a couple that are really already stamping their foot on the map, Francis Tfo and then Chris Eubanks being one that've had had deep runs and slams.

All right, well, great stuff.

All right, well, great stuff.

Looking forward to seeing a handful of those players today.

Looking forward to seeing a handful of those players today.

Absolutely, absolutely, there's a lot right to look out for. Wish you guys both were here, but really fun to read both of your stories, So thank you so much for joining us today. Jillian tan of Courstinia, reporter at Bloomberg News back there in our interactive Brokers studio at Bloomberg Headquarters in Ira Boodway, Global Business Reporter and on zoom from New York City. That story a BusinessWeek story, so check it out to at Bloomberg dot com slash BusinessWeek.

Absolutely, absolutely, there's a lot right to look out for. Wish you guys both were here, but really fun to read both of your stories, So thank you so much for joining us today. Jillian tan of Courstinia, reporter at Bloomberg News back there in our interactive Brokers studio at Bloomberg Headquarters in Ira Boodway, Global Business Reporter and on zoom from New York City. That story a BusinessWeek story, so check it out to at Bloomberg dot com slash BusinessWeek.

You're listening to the Bloomberg Business Week Podcast. Catch us live weekday afternoons from three to six Easter on Bloomberg Radio, the Bloomberg Business App and YouTube. You can also listen live on Amazon Alexa from our flagship New York station, Just Say Alexa, Play Bloomberg eleven thirty.

You're listening to the Bloomberg Business Week Podcast. Catch us live weekday afternoons from three to six Easter on Bloomberg Radio, the Bloomberg Business App and YouTube. You can also listen live on Amazon Alexa from our flagship New York station, Just Say Alexa, Play Bloomberg eleven thirty.

On grass A play everyday.

On grass A play everyday.

Okay, good time is ironic?

Okay, good time is ironic?

Shall we say ball is in your court.

Shall we say ball is in your court.

Love it grass clay and they're playing it. It's not grass here though, Nope, not these days, Nope, nope, not these days. One of the things I don't know when it comes to you, I don't know if grass could be better with AI. Do you think it could be better with AI?

Love it grass clay and they're playing it. It's not grass here though, Nope, not these days, Nope, nope, not these days. One of the things I don't know when it comes to you, I don't know if grass could be better with AI. Do you think it could be better with AI?

Well, Wimbledon, Yeah, I guess so.

Well, Wimbledon, Yeah, I guess so.

Yeah. Anyway, we're gonna talk a little bit about AI, Artificial intelligence. It permeates everything that we do, including what's going on here at the US Open.

Yeah. Anyway, we're gonna talk a little bit about AI, Artificial intelligence. It permeates everything that we do, including what's going on here at the US Open.

Yeah. The US Open is actually harnessing AI through their partnership with IBM. So we've talked a lottle bit in the past, Carol about player analysis and predictions that are powered by IBM. But here's something cool that the tournament is doing this year. AI generated commentary for match highlights, so the USCA can quickly get the highlights out of fans around the world. You know, you have hundreds of thousands of people come to this event every year. Yeah, but you have millions of people who actually follow the event of the USTA website and also through the app, and they need to get quick updates. And I guess my question is, you know, are we going to be out of a job because they don't even need announcers anymore.

Yeah. The US Open is actually harnessing AI through their partnership with IBM. So we've talked a lottle bit in the past, Carol about player analysis and predictions that are powered by IBM. But here's something cool that the tournament is doing this year. AI generated commentary for match highlights, so the USCA can quickly get the highlights out of fans around the world. You know, you have hundreds of thousands of people come to this event every year. Yeah, but you have millions of people who actually follow the event of the USTA website and also through the app, and they need to get quick updates. And I guess my question is, you know, are we going to be out of a job because they don't even need announcers anymore.

No's laughing, We're not laughing.

No's laughing, We're not laughing.

No.

No.

Psychon is abou Us. He's VP of Sports and Entertainment Partnerships at IBM. Once again back with us on site at the US Open.

Psychon is abou Us. He's VP of Sports and Entertainment Partnerships at IBM. Once again back with us on site at the US Open.

How are you I'm excellent.

How are you I'm excellent.

How are you guys doing well? So tell us about this.

How are you guys doing well? So tell us about this.

So AI commentary. There's a lot of tennis going on out here. There's seventeen courts of action, but there's only commentators on two or three courts. We know Patrick McEnroe, John McEnroe, Chris ever Well, a lot of videos captured from those courts, and the USTA really asked us, you know, how do we create a better experience for people who are who are seeing these highlight packages? How do we lay commentary on top of those packages? And so that was a great challenge. So when you go to the US Open dot org this week or download the app and you see these highlight packages for every singles match, what you'll see is AI generated commentary laid on.

So AI commentary. There's a lot of tennis going on out here. There's seventeen courts of action, but there's only commentators on two or three courts. We know Patrick McEnroe, John McEnroe, Chris ever Well, a lot of videos captured from those courts, and the USTA really asked us, you know, how do we create a better experience for people who are who are seeing these highlight packages? How do we lay commentary on top of those packages? And so that was a great challenge. So when you go to the US Open dot org this week or download the app and you see these highlight packages for every singles match, what you'll see is AI generated commentary laid on.

Top of them. When you say commentary, do you mean just text on screen or do you mean actual voice?

Top of them. When you say commentary, do you mean just text on screen or do you mean actual voice?

We have voice commentary, So we'll provide a little texture about who those players are, maybe something about how they've played before, what countries there.

We have voice commentary, So we'll provide a little texture about who those players are, maybe something about how they've played before, what countries there.

Does it sound like a human being or does it sound like a robot?

Does it sound like a human being or does it sound like a robot?

Well, I don't know what a robot sounds like anymore, but you know you're trying.

Well, I don't know what a robot sounds like anymore, but you know you're trying.

I am that's what a robot sounds Definitely not.

I am that's what a robot sounds Definitely not.

Look, we all have our GPS or our little smart devices and we have those voices and it sounds pretty much like that. But what we're excited about. In addition to what we're doing today, we're doing English language. But if you think about the players that come out here, they're from countries around the world. They have fans around the world. So next year we'll be doing multi language translation. So wherever you are in the world, you're going to get highlights in your language, which isn't available today.

Look, we all have our GPS or our little smart devices and we have those voices and it sounds pretty much like that. But what we're excited about. In addition to what we're doing today, we're doing English language. But if you think about the players that come out here, they're from countries around the world. They have fans around the world. So next year we'll be doing multi language translation. So wherever you are in the world, you're going to get highlights in your language, which isn't available today.

How does it work, Like, what's the pull of information that it's using to do that to make sure it's good. I'm sure you have people who are fact checking and reviewing it, But how does it all work?

How does it work, Like, what's the pull of information that it's using to do that to make sure it's good. I'm sure you have people who are fact checking and reviewing it, But how does it all work?

Yeah, So there's data feeds that come off the court, right, and that captures all the statistical data from the court from each competition. Then we use a large language model, which is the underpinning of our Watts next generative AI platform. That large language model knows language already. It's already been taught language. So what we teach it is tennis, what a passing shot is, what a winner is, what Arthur ash Stadium is versus Louis Armstrong Stadium, So it knows language. We bring in the data feed, we teach it what a winner is in all those different dimensions, and then we bring them together to generate the commentary. So it's the data coming off the court combined with large language model, combined with teaching tennis to the AI.

Yeah, So there's data feeds that come off the court, right, and that captures all the statistical data from the court from each competition. Then we use a large language model, which is the underpinning of our Watts next generative AI platform. That large language model knows language already. It's already been taught language. So what we teach it is tennis, what a passing shot is, what a winner is, what Arthur ash Stadium is versus Louis Armstrong Stadium, So it knows language. We bring in the data feed, we teach it what a winner is in all those different dimensions, and then we bring them together to generate the commentary. So it's the data coming off the court combined with large language model, combined with teaching tennis to the AI.

I'm not being facetious with this question at all, but no, but I'm wondering about personality. You mentioned you know, the Macenroe brothers, Chris ever, like this is those people are great at what they do. Because they're great at what they do. I mean, if their personalities come across we know them by now. If you've been watching tennis, you know them. If you just watch the US Open for two weeks, you get to know them. How do you give these bots personalities?

I'm not being facetious with this question at all, but no, but I'm wondering about personality. You mentioned you know, the Macenroe brothers, Chris ever, like this is those people are great at what they do. Because they're great at what they do. I mean, if their personalities come across we know them by now. If you've been watching tennis, you know them. If you just watch the US Open for two weeks, you get to know them. How do you give these bots personalities?

I don't know if person the right way to think about it, but you know, reflecting on some of the commentators, if you were out here at eight, nine, ten o'clock this morning, you'd probably see those commentators roaming around the practice courts. They know the players, they know the coaches, right, So there's texture that the commentators have. They'd probably have seen these players grow up. Frankly, there's texture that the commentators have that the AI probably doesn't have. What we give is a little bit of inflection. So the AI knows what a breakpoint is, So the commentary around a break point is going to have a little bit more substance, a little bit more flair, so to speak, than a different point or the end of the mat or end of the set, all of those different dimensions around tennis or what drives a little bit more inflection and texture.

I don't know if person the right way to think about it, but you know, reflecting on some of the commentators, if you were out here at eight, nine, ten o'clock this morning, you'd probably see those commentators roaming around the practice courts. They know the players, they know the coaches, right, So there's texture that the commentators have. They'd probably have seen these players grow up. Frankly, there's texture that the commentators have that the AI probably doesn't have. What we give is a little bit of inflection. So the AI knows what a breakpoint is, So the commentary around a break point is going to have a little bit more substance, a little bit more flair, so to speak, than a different point or the end of the mat or end of the set, all of those different dimensions around tennis or what drives a little bit more inflection and texture.

In the voice.

In the voice.

How does generative AI change Watson?

How does generative AI change Watson?

Well, I don't know if generative AI changes Watson, but the Watson X platform is going to change how AI.

Well, I don't know if generative AI changes Watson, but the Watson X platform is going to change how AI.

Is able to be created, meaning what speed.

Is able to be created, meaning what speed.

Speed, and the availability of large linelanguage model. So, like I said, we use one of these large anguish models that was already taught speech and language, so it's already there, pretty baked. Now tune it to your task. Your task may be tennis, your task may be creating a chatbot for a big bank to serve your customers better. So those underpinning development platforms have pre baked models that allow for more rapid development, more of raried use gives.

Speed, and the availability of large linelanguage model. So, like I said, we use one of these large anguish models that was already taught speech and language, so it's already there, pretty baked. Now tune it to your task. Your task may be tennis, your task may be creating a chatbot for a big bank to serve your customers better. So those underpinning development platforms have pre baked models that allow for more rapid development, more of raried use gives.

I keep thinking of the Jeopardy example, and I bring this up because you were very involved in all of this, and I'm just thinking, like, what did it take to make that work as well as it did? And now how many years later we're like, oh my god, generated AI And I'm just curious how you guys are thinking about it and what it means like the next level.

I keep thinking of the Jeopardy example, and I bring this up because you were very involved in all of this, and I'm just thinking, like, what did it take to make that work as well as it did? And now how many years later we're like, oh my god, generated AI And I'm just curious how you guys are thinking about it and what it means like the next level.

Well, look, yeah, I'm glad the world finally caught off to us, and the Jeopardy.

Well, look, yeah, I'm glad the world finally caught off to us, and the Jeopardy.

Probably handed that to you. You're welcome.

Probably handed that to you. You're welcome.

I'm glad that the world up, but I'm curious caught up to that.

I'm glad that the world up, but I'm curious caught up to that.

But you know, it's really a whole differ for an animal now from where we were, you know, years ago, and people are concerned about, you know, the challenging parts of AI, but the reality is, just like at the US Open AI is going to be assisting people that we're not replacing the commentators, We're adding new flavor We're adding you know, value into the white space the courts that weren't covered. And I think that's how businesses are going to be thinking about it as well. You know, how do I create new experiences that add value.

But you know, it's really a whole differ for an animal now from where we were, you know, years ago, and people are concerned about, you know, the challenging parts of AI, but the reality is, just like at the US Open AI is going to be assisting people that we're not replacing the commentators, We're adding new flavor We're adding you know, value into the white space the courts that weren't covered. And I think that's how businesses are going to be thinking about it as well. You know, how do I create new experiences that add value.

It's been the uptick in that in terms of that. You've done that the coverage, right, you started it.

It's been the uptick in that in terms of that. You've done that the coverage, right, you started it.

Yeah, we started this actually at the Masters. Okay, we progressed at Wimbledon. Now we bring it at the USC So at Wimbledon we saw over two and a half million views of these videos, right, and we started with the commentary defaulted off and immediately we saw people turning them on and wanting to hear this commentary, and so it went to default on. We try to take a little slow start to anything, make sure that the users are having a positive experience, and we saw that at Wimbledon.

Yeah, we started this actually at the Masters. Okay, we progressed at Wimbledon. Now we bring it at the USC So at Wimbledon we saw over two and a half million views of these videos, right, and we started with the commentary defaulted off and immediately we saw people turning them on and wanting to hear this commentary, and so it went to default on. We try to take a little slow start to anything, make sure that the users are having a positive experience, and we saw that at Wimbledon.

They know the USTA and the US Open. You've had this more than thirty year relationship with IBM with them. How do you draw a line from the money you spend here to top line growth at the company.

They know the USTA and the US Open. You've had this more than thirty year relationship with IBM with them. How do you draw a line from the money you spend here to top line growth at the company.

Yeah, Well, one of my most exciting moments is when we're with a client or a customer and we share what we're doing. Well, you know, how we created this engagement with fans or use large language models, and when the clients turn to us and say we need that, we need to bring that into our business. That's a direct line between what we do here and a client saying we need to work with.

Yeah, Well, one of my most exciting moments is when we're with a client or a customer and we share what we're doing. Well, you know, how we created this engagement with fans or use large language models, and when the clients turn to us and say we need that, we need to bring that into our business. That's a direct line between what we do here and a client saying we need to work with.

You more deeply. So what I'm hearing is upselling, not necessarily new customers.

You more deeply. So what I'm hearing is upselling, not necessarily new customers.

I think it's probably a little bit of both. You know, if you're experiencing this on a mobile application or a website, we get inbound demand like I want to know more about that semi setup and appointment with one of our experts. So it's a little bit of both, but certainly there's a big expansion that we see with existing clients.

I think it's probably a little bit of both. You know, if you're experiencing this on a mobile application or a website, we get inbound demand like I want to know more about that semi setup and appointment with one of our experts. So it's a little bit of both, but certainly there's a big expansion that we see with existing clients.

When you think about kind of where it goes next? Right, thirty years, you guys have been working and developing different things to kind of have fun when the customer experiences your clients, the IBM customers, So how do you think about kind of where it goes, like, what's next? What's after you've done?

When you think about kind of where it goes next? Right, thirty years, you guys have been working and developing different things to kind of have fun when the customer experiences your clients, the IBM customers, So how do you think about kind of where it goes, like, what's next? What's after you've done?

Your boss is like, yeah, I'm not a huge prognosticator, but I really just think about how how productivity is going to be accelerated with these capabilities.

Your boss is like, yeah, I'm not a huge prognosticator, but I really just think about how how productivity is going to be accelerated with these capabilities.

Think about coding.

Think about coding.

Coding is going to be one of the first places you know, AI generated code is going to Again we've talked about speed earlier. Yeah, if AI can help coders generate code to create new experiences more quickly, then businesses are going to be able to please their customers.

Coding is going to be one of the first places you know, AI generated code is going to Again we've talked about speed earlier. Yeah, if AI can help coders generate code to create new experiences more quickly, then businesses are going to be able to please their customers.

If Microsoft hadn't made that investment and announcement, would we be talking as much about AI? In your view, would something else I've done it or would have I'm just curious, like all of a sudden, it's not like it's new.

If Microsoft hadn't made that investment and announcement, would we be talking as much about AI? In your view, would something else I've done it or would have I'm just curious, like all of a sudden, it's not like it's new.

No, I don't know if it's a matter of the investment or not. I think it's a matter of when people touch these things, it just it just creates an extra level of interest. And I think some of the things we've seen with chat, GPT, where now people can literally get their hands on it.

No, I don't know if it's a matter of the investment or not. I think it's a matter of when people touch these things, it just it just creates an extra level of interest. And I think some of the things we've seen with chat, GPT, where now people can literally get their hands on it.

Yeah.

Yeah.

You know, if you have a college student trying to write a college essay, now they're having a very visceral aperience with you know, how language can be used. But the reality is that trust is going to be really important in this era. Were using trusted data and that's what we really pride ourselves.

You know, if you have a college student trying to write a college essay, now they're having a very visceral aperience with you know, how language can be used. But the reality is that trust is going to be really important in this era. Were using trusted data and that's what we really pride ourselves.

We have a colleague, Matt miller Man. He's on top, what.

We have a colleague, Matt miller Man. He's on top, what.

He's doing on that thing, what he's doing asking it everything.

He's doing on that thing, what he's doing asking it everything.

Thank you so much, Thanks Ron, We always appreciate it. In to a psych in VP of Sports and Entertainment Partnerships. He's a busy guy here at IBM.

Thank you so much, Thanks Ron, We always appreciate it. In to a psych in VP of Sports and Entertainment Partnerships. He's a busy guy here at IBM.

This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus gloom O Business Finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.

This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus gloom O Business Finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.

Carol Masser on Tim Steneviick live at the US Open. We're just outside Arthur ash Stadium, having really a lot of fun. And when she's not here at the Open, although she is right now, she comes every year all the time with her family. She's usually pretty busy reporting on some really important stuff.

Carol Masser on Tim Steneviick live at the US Open. We're just outside Arthur ash Stadium, having really a lot of fun. And when she's not here at the Open, although she is right now, she comes every year all the time with her family. She's usually pretty busy reporting on some really important stuff.

Yeah, she's got an education angle and economic one. And in the end, it's all about the big money in the form of college endowments or the big moves that are happening when it comes to some of these colleges and universities.

Yeah, she's got an education angle and economic one. And in the end, it's all about the big money in the form of college endowments or the big moves that are happening when it comes to some of these colleges and universities.

See a move today, Bloomberg News Higher Education financial putter Janet Lauren here with us on site at the US Open. Hello, Hello, Hello, thanks for having me again. We love having you here. We love seeing your family. They're on the sidelines. Some news today Yale's president. What's going on?

See a move today, Bloomberg News Higher Education financial putter Janet Lauren here with us on site at the US Open. Hello, Hello, Hello, thanks for having me again. We love having you here. We love seeing your family. They're on the sidelines. Some news today Yale's president. What's going on?

Yeah, Peter Salvey announced that he is retiring after eleven years of leading Yale in New Haven, Connecticut, and he's going to go back to being a professor. You probably don't know this, but he was one of the people who developed the idea of emotional intelligence.

Yeah, Peter Salvey announced that he is retiring after eleven years of leading Yale in New Haven, Connecticut, and he's going to go back to being a professor. You probably don't know this, but he was one of the people who developed the idea of emotional intelligence.

I did not know that. So why is he like done?

I did not know that. So why is he like done?

Well, it's been a tough decade plus one in higher education. We had COVID, There's a lot of fundraising, and it's been a tough time. Finances are not so easy. This year we're going to talk about endowment returns. Last year was not a great year for endowment so the Yale of the Ivy League schools was the only one that was had a positive return.

Well, it's been a tough decade plus one in higher education. We had COVID, There's a lot of fundraising, and it's been a tough time. Finances are not so easy. This year we're going to talk about endowment returns. Last year was not a great year for endowment so the Yale of the Ivy League schools was the only one that was had a positive return.

What is a typical tenure for a college professor, I mean a university president who oftentimes are start at.

What is a typical tenure for a college professor, I mean a university president who oftentimes are start at.

Of course they're always college professors.

Of course they're always college professors.

It used to be about ten years, but lately we've been seeing a lot of retirements. Keep in mind, one of the biggest jobs is not teaching, which is the fun part for them, but it's raising money.

It used to be about ten years, but lately we've been seeing a lot of retirements. Keep in mind, one of the biggest jobs is not teaching, which is the fun part for them, but it's raising money.

It's like, come on, that's all they do is raise money.

It's like, come on, that's all they do is raise money.

But right now dealing with some big issues affirmative action. Yale was not a litigant, but it's one of its rivals. Harvard was, and that's what a lot of them are trying to figure out how they're going to go about the school the next academic cycle where they're recruiting kids. Do you don't talk about race, but Harvard, you know their essay. They've changed their essay, and it's not going to be an easy time, although of course they've been expecting this for the last year.

But right now dealing with some big issues affirmative action. Yale was not a litigant, but it's one of its rivals. Harvard was, and that's what a lot of them are trying to figure out how they're going to go about the school the next academic cycle where they're recruiting kids. Do you don't talk about race, but Harvard, you know their essay. They've changed their essay, and it's not going to be an easy time, although of course they've been expecting this for the last year.

Yeah, it's funny that you say that. I was talking actually with Tom Keane and he's got a daughter who's getting ready or starting to think about college and so and so forth. But what's interesting is investment officer, I don't know you are hearing you have you have to figure out, right, bill Stone?

Yeah, it's funny that you say that. I was talking actually with Tom Keane and he's got a daughter who's getting ready or starting to think about college and so and so forth. But what's interesting is investment officer, I don't know you are hearing you have you have to figure out, right, bill Stone?

Bill Stone, all right, they're going to get that next once. We're gonna keep talking to Janet.

Bill Stone, all right, they're going to get that next once. We're gonna keep talking to Janet.

We are, we are, But he was talking about that. All of a sudden, they're thinking about training for kids for S A T S and P S. A TS again. I'm like, I thought they were done with that. He's like, no, Apparently colleges are finding that that's a good way of a good metric to figure out if kids can do well at their schools.

We are, we are, But he was talking about that. All of a sudden, they're thinking about training for kids for S A T S and P S. A TS again. I'm like, I thought they were done with that. He's like, no, Apparently colleges are finding that that's a good way of a good metric to figure out if kids can do well at their schools.

Yes, well, m I T last year said we are bringing it back, and m I T is one of a few outliers. Many of the schools are still saying we're going to give it another couple of years. We want to evaluate how our kids are doing in their freshman year. But m I T is a place where you got to do the math and science in order to be successful. Purdue also announced that they are going back, and another school, Georgia Tech, only had a.

Yes, well, m I T last year said we are bringing it back, and m I T is one of a few outliers. Many of the schools are still saying we're going to give it another couple of years. We want to evaluate how our kids are doing in their freshman year. But m I T is a place where you got to do the math and science in order to be successful. Purdue also announced that they are going back, and another school, Georgia Tech, only had a.

Had the the pause.

Had the the pause.

For one year of the requirement.

For one year of the requirement.

Is that going to be the trend? Do you think we'll start to see colleges bring it back.

Is that going to be the trend? Do you think we'll start to see colleges bring it back.

It's unclear.

It's unclear.

Especially with the Affirnative Action ruling. There's a question of access, and everybody knows that wealthier kids tend to do better because they have more resources for test prep, they perhaps have more time, and so we'll see.

Especially with the Affirnative Action ruling. There's a question of access, and everybody knows that wealthier kids tend to do better because they have more resources for test prep, they perhaps have more time, and so we'll see.

It's it's been very interesting, you know.

It's it's been very interesting, you know.

Harvard announced about a year and a half ago that they were going to have a four year moratorium before anybody else did, and you kind of think, well, what do they know that everybody else doesn't know. And while they were, they were preparing for what was the inevitable Afferative Action ruling a couple months ago.

Harvard announced about a year and a half ago that they were going to have a four year moratorium before anybody else did, and you kind of think, well, what do they know that everybody else doesn't know. And while they were, they were preparing for what was the inevitable Afferative Action ruling a couple months ago.

It's getting harder and harder right to run a university system. Go back to you were talking about endowments, So what are we seeing this year? Because they've had a tough year.

It's getting harder and harder right to run a university system. Go back to you were talking about endowments, So what are we seeing this year? Because they've had a tough year.

Yeah, so this year we're hearing you know, eight point seven percent, which doesn't sound like a bad year, but then you throw in inflation and there's not really a lot left and considering last year was on average was a minus ten percent return, not such great time. So people say, but what are you talking about? Harvard has fifty billion dollars. How is that not enough money? Which is an excellent point, but they're you know, they're used to spending a lot. It's constrained. You know, if you get a get a gift for you know, the Yale hockey team, you can't spend it on a science building. So it'll be interesting to see, you know, we know that most of these big endowments are in an alternatives, in private equity and hedge funds, and you know, there's an influx huge amounts of money chasing the same deals and the returns aren't as great. And the smaller endowments this year actually did better. Look at the stock market, it was up eighteen percent in that same period.