Jonathan Kraft, Revolution Owner/Investor

We are very thankful right now to welcome in our off fifth and final member of the owners group for this week he is the president and chief operating officer for the Kraft group. Jonathan Kraft is with a take Jonathan I don't.

Michael what's going on. Not a lot. On. Them I'm watching. The news studios there. Which like all a lot of weight of I never realized it was our studio lot and we had a stake in Gillette Stadium -- this is very exciting. You -- you do lose a little plaque right here -- and it's perfect but it's you have Wimbledon somebody's name query against killing two we charged rants -- it is our studio complete record out.

Appreciate your bill -- absolutely. Absolutely as one is is the cuts mean and I'll be perfect well we began our owners series this year when your dad joined us via at the patriots foundation charity golf tournament a couple of weeks ago one. And we include things with with your presence here the crap is it is a name that we've all heard I don't think we really have a clue. As how -- reaching this whole thing is it's not just the patriots in the revolution it's a lot.

There we com. Where our main businesses are on paper and packaging and so we have some box factories of paper -- big global paper distribution business which is actually. Last year I think -- the thirty ninth or fortieth largest exporter in the United States in terms of number of containers loaded on ships so we do a lot of things in paper and packaging and actually recycling in the environment. And we have a sports a group which also includes -- stadium we do some concert promotion. And we do some real estate and we do some private equity and venture investing also so there's a lot of different things under that umbrella. But the things -- most -- passionate about everything we do but we have a special passion for our sports properties obviously because that's. That gives you a lot of it into Asia and outlet that you don't get -- other businesses that an awful lot of fun. How how do you balance the the fund businesses so to speak. Verses the the real world businesses. I attempt spend my time wherever we have a problem or committing new capital so I'd get I'd get a lot of headaches sometimes. And an -- I I -- that's one of the reasons you'd you'd. I'm not always walking around out of the practices are doing some other things it's it's. It. I I go to all the games or go to as many of the games as I can and then when when I can add value to either the sports businesses. In terms of when we're strategizing about doing new things -- has structure something financially they'll spend my time imports were so fortunate to have great staffs. At the patriots and that the revolution and Gillette Stadium and a lot of people who have been with us for a long time it. That. During media Monday through Friday work week it doesn't usually require as much time and attention as some of the other things --

Trust me we'll get to the nitty gritty of soccer exclusively in the second -- always wondered about this. Since you. You're involved with the revolution. In your involved with the patriots are wondering if it's been kind of like gay and graduate course for you or even a doctoral program verses. If you if you think about where you were what you thought about soccer and football before you became involved and ownership and -- you think about those sports now. It's gotta be a dramatic difference doesn't just in terms of your I'm about the business side just your understanding of the games.

It is while -- football as a kid and I know the stories and whole lot but it was the one thing my dad and my three Brothers and I used to do and used to sneak us through the turnstiles appealed stated because we might not have enough tickets and and we would go and we'd have this great bonding experience around around the game and you thought you knew it and understood it. But once we once you're fortunate enough to sit on on the other side event that the biggest thing I think you don't appreciate. Until you can really see what the people who work at this to every day and and Michael you were intensely involved when you were writing your books you've seen it -- Dell has done the play by play for the team and been actively involved I think the biggest change at the the biggest thing with footballers. How much work. And goes into those sixteen games how much time and energy on a 365. -- a year basis truly goes and to putting the team together. Getting the team ready for the season and in the week to week preparation if it. It it it it's it's mind boggling and I thought I was an educated intelligent fan. Before we get into the business and -- your -- you just have a whole new level of respect and I. I think I've gotten to learn a little bit about some of the other sports and obviously were involved with with soccer. But nothing nothing compares to the time and energy. That the people involved in in both coaching. And playing for the football team put in to be ready to play those sixteen games it's it's it's truly unbelievable.

As a a resident of rent them Louis about nine miles from the stadium all personally thank you for patriot place. I commend -- for somebody who lives down where I live it's a godsend. I know we aster data about this couple weeks ago you had no way of knowing what was going to happen economically that far down the road. How have things gone as well as they could've given the economic situation in the world right now.

I think we've we've probably. We we we we like challenges so we've picked a challenging time to open up. Dining and entertainment and retail venue the world we're lucky because that the dining. This was clearly an underserved market for dining options and entertainment options and I think that part. As performed Jews. Even better than we could have expected in good times it's it's really. Whether it's the halls the cinema deluxe showcase alive all of the restaurants. From top to bottom mortgages. -- very happy with now all of that has gone. The retail environment is challenging environment and and anytime you open a new retail destination. It always takes a little bit of time to bills and did your everyday traffic involved with -- and and so we would have normally have -- throw on top of that what's happened in the world it's made it more challenging but so far -- We're won't pick I think you could have been it could have been worse and more challenging for us and I think the biggest thing that we face going forward is how many retailers in this country. Have their own problems just trying to stay solvent and get access to capital. Keep their businesses going in and to stay vibrant retailers but it. Hopefully we're aware through the worst of that and we're encouraged in the last part of patriot place for the last two pieces which. Have been doing wonderfully as well -- partners facility where the Brigham. -- women's and Mass. General have combined for a really great medical facility in what has traditionally been an underserved market. And in the Renaissance. Hotel here patriot place and spot which. I think in its first month is is way ahead of where they hope to be in -- really a wonderful place anybody that. Lives in the region and has relatives coming in the you don't want to put up to your house and now have a real nice -- and the opportunity to do that if and you're doing them a favor as well so it's a perfect thing. Relatives -- want to put that your house and trying to tell us something. -- perhaps that situation. Those that do. For those unable our -- option. For them and and and I thank also those listening in all reviewing equipment and network that come down for games. Or other things we've now created an -- away for people to come down an experienced Gillette Stadium and everything. Patriot place has patriot place has sparked a card you can literally spend the weekend here being occupied and -- in to those that. Haven't been bass pro shops and the first couple month and opened. You really should come back to bass pro shops and go experience. The -- have nature trail that's been created by times store. And ocean spray is about worry about announcement may be be jumping gone but will be working cranberry -- back there. So there's a lot of really cool things to come and do ruined and and spend time with the -- at the hotels here. It makes it very easy to have sort of movements in -- for -- with training camp coming up that's another. Added benefit as well let's talk about soccer because I've done my homework I'm excited about yours now. California Michael just before it into everybody should know motivated to thirty today east coast I'm in the US is playing. Spain in the number one team in the world with tied for now the longest winning streak in international competition. In South Africa in the semifinals of the confederation cup and that mobile really awesome. Awesome thing to watch him one of the next revolution players. Clint Dempsey. Who's a great guy is one guys that portable against each of the other decline in the view -- things do. Predicted in particular may -- your opinion columns and.

Clint Dempsey has a great personal story through and we've talked with them in the past that if you've got to consummate incredible background. Incredible story. Let me ask you about your team this year and on the one hand. I understand you're at the top of group. Group being here still pro league title defense how how to do so far as the -- perfect okay so that's the good thing but the bad thing is. You're near the bottom of the Eastern Conference in the standings what is wrong with the revolution this year.

We we -- it well nothing's wrong when nothing's wrong we're actually very excited about how we started out we started our season. Com with three of our first four for our first five games on the road it's one of the other and with I believe six or seven of our projected starters. Being injured guys like Taylor Twellman. And Steve Ralston and then Matt Reese went down. And so we needed -- read Joseph we had key key players. Who were out at the start of the year in and and Stevie I think there's a wonderful job. Getting some of our younger players to step out. And and get some much needed experience over the long season and we've stayed in contention and I think we've got. Three or four games in hand on most of the teams. That are ahead of us so that there's actually Brian Malone and I were talking earlier this morning. That that if we want all the games that we have in hand we would be in first place so I think it's more a matter. Of the number of games we've played relative to the guys who were at the top of the table and as I said we've done that we're now getting back and with the exception of Taylor. Who's still trying to work through a couple of things. We're we're back in more healthy which is were probably getting healthy is just it's just the right time. And for those that have seen in the last couple games and there was wonderful having Taylor back for a couple of them were were different team when we have our full compliment on the field.

The revolution one of the original ten franchises in Major League soccer you've been playing soccer down there since 1996. It is considered one of the truly great soccer venues in this country eleven international friendly July 26. That will pack the place again. Have you been a little disappointed though that just overall attendance numbers are round ML last not necessarily here haven't continued their growths.

It's a good question you know and it's really a tale of two different scenarios and -- and one half and others are in the other for the most part the teams that have been able to get that 20000 seat. Soccer specific stadiums built and create that amazing -- did you get when you're watching. In a right sized building for the game. They have they have been doing while an attendant says has has been doing well. In in those markets and actually one of our expansion teams this year out in Seattle which is playing in Qwest Field. Is averaging over 30000 people game. So I I think. I think that in some of the older markets that are still in the large buildings you've seen attendance level off and I think until you can get the atmosphere. Because we're never gonna do we're certainly not in the next couple generations 4555000. Game. But 20000 game is is a very reasonable expectation. And is being achieved in a number of places. And we're a little we're just a little bit below that here but what it does is it creates a much better environment there's a real. There's there's a real sense of camaraderie and excitement being in the building. And I think I think as a -- we're still building the two expansion teams that we've announced for 2011. Com which both a pretty large prices to come into the league and in the case of Vancouver and Portland. Com. Are both going to have soccer specific stadiums. And I think they've each got fifteen to 20000 people artist signed up for season tickets and those markets were excited. About that model going for -- I should also point out. That goes through teams the expansion of the -- 35 million dollars in each case and that's a real. Cash expansion fee but then they're each committing. Over a hundred million dollars to -- soccer only stadiums so effectively. The price of entrance today -- to Major League soccer's close to a 150 million dollars club.

As -- mentioned you've been in business since 1996 with the soccer team. And in the beginning there were some turn over with coaches. You didn't really have a great team out there and something changed what what was it did you guys figure out. Okay this is what we wanted to do was it coincidence what do you think the big difference was in making the revolution a consistent contender.

Steve -- combines what -- we started out to our first coach was gentleman named frank Stapleton who have played. Over in the premiership his whole career here is one of those kids that at the age of -- was sort of plucked out of school. And thrown into the training grounds for playing soccer in Europe. And he was used to something were 24/7 365. You lived -- bring you the sport period. And we brought him over he was -- retired -- had a lot of success. And she couldn't get the mindset of the American player which was so different. Suited to what it's like in Europe and then we weren't -- guys who were more North American based as coaches. And and even though they were foreigners they spent their soccer careers here in the US guys like Thomas Reinemund Fernando would -- And and -- They were almost I think a little too accommodating the players with Steve Nicol. We've really gotten the best of both worlds he played at Liverpool is still to this day considered to be. One of the best defenders ever to play in the premiership he was an incredibly tough physical player. But he's lived in raised his family now in the states for anything close to. As maybe not be twenty years for fifteen years and he coached in the minor leagues of soccer in the US. So as she came to this with an understanding of how the Americans think about the game because the majority of your roster is Americans yet with. The real cash today. And the knowledge of what it's like to play the game at the highest level and I think that's been that's been the right combination the other thing about Stevie. I hear and suppliers respects immediately but he also was a great evaluate her talent and I think are drafting and our. Are signing of free agent players from around the world has been dramatically better. And and it's just been wonderful -- type of consistency that. Most people listening know the we've had with Bill Belichick were lucky to have Steve -- is of the Bill Belichick in my opinion. Of of Major League soccer in that regard.

On two occasions Gillette Stadium has had a rousing success hosting the NCAA lacrosse championships including. Just a month or so on one of the incredible sporting events I've ever watched. What are the chances that Gillette could be in the running to host NCAA soccer championships for instance it's.

I think if the NCAA wanted to bring that to a neutral site in the northeast I gotta believe we'd be right at the top of the list for doing that -- I'm not sure soccer -- soccer boo -- NCAA championships for soccer have gotten that level I think the thing that makes lacrosse so unique is. That Final Four in -- cross is truly the best lacrosse you'll ever see in the world. Because the professional leagues they're they're part time leagues they're not the real deal. And and so of the lacrosse tournament has taken on a life of its own I think College Soccer. -- Any Major League soccer team would it would absolutely. Destroyed. Any of those College Soccer teams so I think it's a harder thing to take on the road. In the way that they have with the NCAA tournament to a big time neutral site and all your media savvy and your father's media savvy as well. Are there any plans. To broadcaster games on channel 38 and HD. Yeah we it's a good question -- we third 38 has been a great partner of -- expanding mobile partnership we have with CBS here in Boston. And and I think it next year or certainly the year after will do that the league as a whole. Is trying sort of finalize. A production format. War -- the and we had been waiting I wish we had pulled the trigger on it this year I think. Soccer in high definition is is really a pretty special thing missy and the one thing that that's been really great about the crowds over the last couple years and I've noticed it from early on. Where this was really all about the youth soccer kids bringing their parents down of the games. We now. It's it's as much it it's as much adult soccer fans who know and understand the game. As it is kids coming which is great and I think those same people when they're watching on television. Can really want to see the game and high definition because they appreciate. The technical skills of the players and and and that's what they want to see. So when when when Panasonic now theory tenements Sally is running down and dribbling at full speed the ability to be able to watch that -- when Sharif Joseph is. Fighting for control of the ball when Matt -- dives to makers say it. All those things in high definition. We'll just look that much better and and we should have done it this year and I think it's safe to say that no later than eleven. But probably in -- Sierra games and I death. Jonathan would you say that David Beckham experience has been a success for MLS -- lost. I think it's it's been a success. That I know people point to this fact. David Beckham thought I think that he was done at the highest levels of international soccer and yet he came to this country. Played a seasonal got hurt then played his second season here is this is after a year of being basically on the sidelines. Later season and MLS and then when he was playing for the in -- the of the UK national team England's national team. All of a sudden even though the coach allegedly didn't want him was playing so well coming out MLS. That that they had to have him so then all of a sudden I think he says to salvage the I'd probably have another World Cup in me. And and he gets excited and in the coach I think basically gave him an ultimatum and said. I don't know there's so pay for those bloggers out there were right and stop this is me hypothesize. And but what I think basically happened is the coach said if you want to be on our World Cup team you've proven to me you still have it and again the kept those skills being an MLS you've got to come back and play in the premiership. For us to be satisfied. And and comfortable putting you on the team and I think that's what's led to that piece. -- him playing at AC Milan this year and joining us mid season although he will be here at Gillette on August 8 I believe. Com so that's dealing with the negative part first on the positive side. He he gave us credibility more and more international players are contacting us all the time. Because they -- Boston. As a place that they'd like to be and we were in negotiations with a number of pretty high profile names this year none of them were able to come to fruition. But I think it definitely has raised the visibility around the world with the great players and within this country in MLS. Having to definitely raise the credibility of the league and and and I I mentioned are two expansion teams Vancouver and Portland I should point out that there were four losers. In that expansion around all willing to pay the price that Vancouver and Portland were and I think that the David Beckham. Factored definitely helped us on that last round of expansion. And we still have a number of them that are trying to ask us to get in in the league now for 2012. And thirteen. And I think. The Beckham experiment if you want to call it that it's not what I would call it but the Beckham experience is what sort of finally pushed us over that complete line. The soccer credibility on a global basis.

You know Jonathan at a debate with -- Robert last year regarding -- pre season ticket prices in pre season parking went back and forth. And we we respectfully. Agreed to disagree but there's one thing this year. That I that I think is very impressive when it comes to the revolution. And I and pricing issue is parking parking is free what went -- what went to that decision to make parking for.

What what we did is what if that's actually bigger now I think this is our second or third year what we finally were able to convince the league. Was that let us let us include. Effectively. Parked in the in the prices take -- we shared brigade we didn't we didn't raise our ticket prices and we did this but we went to MLS. And we said look. The who we we would much rather sort of looked at our our ticket pricing. And make this easier for people coming into the building you just drive right in you know you're document data hit -- extra expenses. We are trying to make this something more family of 46 can come. And have an affordable day of high -- sports entertainment. And and so we did it two or three years ago -- agreed with us that it was a good idea. And I think people have enjoyed its so far and and at the time. When we were doing at a patriot place hadn't opened yet. But now is I think about it we would have had a real disaster pitcher that we did this three years ago now that I'm thinking about it. But obviously with everything else that's going on down here. It if it helps. If it helps reduce the lack of complications on revolution game day. But originally the idea was to try to just make this you know you -- you buy your tickets you know what today is gonna cost you and you come down and have a fun time.

Jonathan is the return of the Boston breakers in WP yes good for business overall or does it split the soccer apply even more for. I don't I think it's good for his soccer overall.

It it it we haven't seen it have an effect on us and it didn't have an effect on the house when. When was now it's the WP yes but before was -- At the breakers are great we support them there's joke Cummings who's running a team used to work with us here Gary -- the majority owner. Is a great friend of ours and we look to support him anyway we tan. And it's it's it's really had a different. A different product him and I think it's great I think when we don't have a WNBA team in this town. And when you can have a professional woman steam. And the thing I always tell people about soccer is these no these wounds or WPS teams. Could go and play a.

A -- him a -- college steam or -- high school team and beat them and beat them pretty good. And I don't think WNBA teams would ever have a whole. Of beating a college team were certainly beating big time high school basketball teams. In major cities in this country see you're seeing soccer and its highest level played by great female athletes and that's a good thing for us to have in this town maybe if we were in a place like little rocker. You know smaller community where there were limited dollars maybe you'd -- competition but here it's just a great thing. Breakers revolution double headers are possible in the future. We yeah we talked about it I think this year logistically it could work when we used to do with the breakers in there old form and it's definitely not out of the question for the future we would we've we've. We'd love to try to -- to do that if we could. -- Boys soccer team in the country -- touched the -- woman's. OW PS team of the women's national team. But you put a WNBA team up against the that this city champs. In New York or Washington. It tag -- that Dallas Chicago any major city with great hoops and going to touch those I mean Michael you know basketball you tell me. I will LeBron James is a high school seniors and his team out there Ohio. -- there was no woman -- that was going to touch. That's right now and then but as much love is allowed to give to. The Connecticut Sun. And I don't know I don't know it's just it's -- according to him it is that different game. But these women who who plays soccer at the it's unbelievable and it's like -- MLS I get a little sick of people saying. That that that Major League soccer is injected a cool we've played in the premiership know we couldn't -- the Mexican Professional League. Which is considered to be a pretty darn good league we won super legal last year we beat the -- the top Mexican teams last year. To win to win that tournament and you can look at that premiership you can look at Syria I you can look at the blue in this league. And you can look over in Spain and beyond that I get -- yeah I don't think there's a leave it -- be on the -- for a leagues which have. A hundred plus years of history. And where the sport is the national sport every other country in the world has soccer a league. I believe MLS is on par or better than. Any of those other countries and that's pretty good after you know 1415. Years in business I don't think it's out of the question. That 2030 years from now. Who were on par and in the end it in the scheme of the sporting life for the world that's pretty good catch -- time. And and so it's sort elect a similar debate with the women verses. That that woman's basketball soccer team with MLS and and and the rest of the world and I do think it's sports fans. Are starting to understand that this is pretty good soccer. And if the US today could go out and beats Spain which it it's not a likely thing that happened but to put it in perspective there was sort of be like the patriots beat the rams and in that first Super Bowl it could happen and if it does all of a sudden a group of American kids with the kids in this country. Have all these other sports pulling away the best athletes don't always stay with soccer. We have a chance today in an international competition to beat the number one team in the world. Who who's tied with Brazil now for the longest win streak in history. That'd be pretty cool and and and if that happened. I think it would just be another step towards validating that American soccer team compete at the highest levels.

Jonathan we always appreciate the time thank you for helping us complete the the of the five some money -- series and best of luck to you this year.

Hey guys thanks -- one last thing tonight if you do want to see the revolution player Mexican team. We have a double -- excuse me replay -- replay Kansas City tonight and super league the other MLS team. But then we we have a couple of the Mexican teams as well playing here tonight so for. You can come down to two games for the price of one and hopefully having the weather's gonna clear up the -- be of phonics.

It's pretty well the plea bargain -- my pocket that's right now let's let's get some free parking for the football through and the good guys we can't afford that if you want us to put a team on the field but group -- MLS it -- Jonathan thank -- and I appreciate it.

Jumping Kraft president and chief operating officer but the craft group com I'm I will tell you by the way just to make sure we'd meet complete this whole thing. We did invite Don Garber the commissioner of Major League soccer to join us as well in fact he was going to join us. -- everything was all set he had a last minute travel. Conflict come up in fact -- called Jimmy. An hour -- so -- and apologizing profusely for not being able to join us I don't want the soccer fans out there to think that we short changed them we didn't. I don't want them to think that Don Garber the commissioner of MLS didn't want to be with us he did. Eight jets for travel reasons and conflicts that didn't work.

So the only commissioner who gets the big scarlet letter from us is David Stern of the -- at the only. Don Garber Don Garber is bald chick in apologized pro cute -- gonna check in after class is going to get extra credit he's going to be all right but that David Stern is and not so much.