Jonathan Kraft, Revolution Investor/Operator

Or broadcasting live from Gillette stadium with the continuation of our older series we started with -- value of the Celtics. We talked with Jeremy Jacobs of the Bruins yesterday we were at Fenway and visited with John Henry of the Red Sox. Today we turn our attention to soccer. And now one of the owners one of the investor operators of the of England revolution joins us and he is Jonathan Kraft it's going to visit with -- again.

Good news with eyes deceive both Michael ointment the last Thomas vote that view was. Maybe the last time it was left awfully owners serious -- of and I are mercenaries. As both look at the same dress well actually -- remember that as we commented on the shirt you -- Michael's -- today he's looking very. Very -- and that is -- Haley shirt collars and he knew him you're -- middle aged white -- okay not only sat -- how are you gotta Tommy Bahama I mean it's true I like me.

Don't have to take a beating you know we we saw Theo Epstein and Fort Myers -- total muse weren't as old man shorts and I tell them the flexibility to like -- but then again that's what it is that's what that's what you are.

Truth is the ultimate offense Parcells would always say you know which the brilliant line you know we're -- spent a lot of time talking about your soccer team here today but but I gotta say I drive by here every single base like -- this every single day. You got a little construction called on down here -- we do we're building. Patriot place which the first phase of what shall open this November but through the really cool thing about it. Is this is going to be the first time all over America people are building these things called lifestyle centers which are big open air. Retail entertainment office destination places where you get. Big piece of land hundreds and hundreds even in some cases -- thousand acres of land. You build a lot of parking in the in you you you build interest in retail interest in entertainment and office complex almost like re creating a city. And where I don't you'd down here we're doing about a 1300000 square feet to start some of these things at 34 million square feet. And because New England -- so landlocked and so difficult to get permitting them people haven't built these area hadn't. And we're excited to be building this one in the first fizzle opened this November and we're excited that bass pros going to be anchoring and I think people word for -- needs needs surprise that Jonathan what was the inspiration for patriots place. And although we had an inspiration you know my dad likes to say. You know come work here every day -- missile commit parking lots and and so we started thinking about that. I only had all this parking which is only getting used for the ten football games this. The 1617 soccer games -- a year couple concerts or so ago this land we've got the parking are in place what can we do to bring a lot of people down to use the infrastructure but also do something that would be cool. An interesting and we started talking to people probably after the stadium had been opened two years to -- around the end of the 3 season. And we started talking to people around the country who we so we're pretty smart. In creating destinations and what was going on in retail in the country and what was going on with. We entertainment retail type locations and everyone kept saying if you could get bass pro. But they'll never come but if you could get them to come out there are given the fishing in the hunting in the outdoors nature and an all of the disposable income. You'd you'd and it'd be great thing they would do gang buster business but more importantly for you meaning meaning our family. You have an anchor that would bring millions and millions of people and you could play off of that and create something so. We started looking into we visited a couple of their stores and I've never hunted in my life never had a gun in my hand oh I was one of these stores. And and it may be finished three or four times. And yet you going to the stores -- 150000 square feet none of them are alike and the the other ones aquariums archery ranges. Hunting ranges food demonstrations more product than you can ever imagine and you find yourself walking through the aisles looking at things touching stuff. And if if -- detract. Someone like me who's not interest in the -- and be willing to spend hours there we figured it was a pretty cool thing and so we chased them for a couple of years and John Morse their founders of privately owned company. He came up and he walked the back part of our property one night where we actually have a pond in some woods. And it was great because a Turkey and deer ran through just as we were doing it right here on the stadium grounds. And he looked over the sand and said you want to bass pro here. I said yes and and we did the deal

I think the -- through this before last year and you said and that's so much but I ask you again. Way back when you guys wanted to build a stadium and Boston. And you couldn't hit the support that you wanted especially if in certain communities in Boston can get the support you want it. It was not a good feeling but now that you have if football stadium here you have all this property and you putting together this lifestyles that are. Did you look back at that and say OK I didn't understand it at the time but this is actually a better situation now.

I don't think we look back like that I think if we had been able to do what we were planning on doing Matt would have been great also but this is this is awesome underworld where both. Comin' down here every day and and and looking at Gillette stadium. Is it is a great feeling we get -- sense of pride and accomplishment from looking at it because like anything in life for a lot of hard work goes into some them. And you're able to make it happen especially when people are telling you can't you feel he usually feel good about it. And and well this this patriots place was never part of our grand plan. And if we were in downtown Boston we probably wouldn't we wouldn't be able to do something like this you just you start thinking in an -- but we never put it in the context of border we like it would not and Boston because we're doing -- We put it in the context of this is where we are we want to make it is great unique him. As we can and then we're sort of latins for. Punishment that once we. Do something and get it under control we look for the next thing and and this hasn't been for sports and entertainment businesses that the craft group the next thing for us. Is patriots place that we've been in town. I'm sure would have -- we couldn't have done something like this town -- Jonathan how if at all will patriot please be related to the year two sports activities the revolution and the patriots. -- directly they've they're they're probably won't be much of a relationship although I think you'll see the players and cheerleaders and the coaches probably walking through it. And shopping here probably the biggest direct correlation will be we've gotten amazing medical care. For long before our family bought the teams down here for mass general hospital for -- aaronson out Tom -- And the people there at mass general as part of the partners system and Brigham Brigham and women's. Health care has -- actually manned the bowl and provided internal medicine and care for. Our fans here on game day. And so we got together with the with Brigham and mass general my partners umbrella and we said we're going to build. This complex and medical office being able to bring the great medical care of downtown Boston Brigham and women's and mass general or arguably two of the greatest medical institutions in this country. And if we could bring him down here to the southern suburbs to. Give access to the people in Rhode Island and southern Massachusetts to that type of care without having to go uptown and in the orthopedics -- for the orthopedic care being able to get the same doctors that the New England patriots in the New England Revolution dead in -- very convenient location as well as internal medicine from Brigham. It would be a cool thing and so -- that regard there's a direct that's probably the biggest direct correlation between the two we're going to have some other announcements of some other retail pieces of this that'll. Be fun and I guess one of the other things we've announced as the hall it patriot place which is going to be. I guess people would think of it as a Hall of Fame or maybe even a museum I think what we'd like to do was call at a 30000 square foot interactive experience. Where you can command and re -- the history of the patriots great players great games great teams. Great events on infamous events like we have the original John Deere tractor not the original -- John Deere tractor. They cleared out the space in the famous three nothing game with Miami but. They'll be some hard artifacts but mostly it'll be. The and new video screens and interactive exhibits that'll show the hard artifacts have been couple it with video. And they'll be learning experiences there will be a part of it in the lead and be -- of it. That will document the history of football throughout New England. And do it in ways that when we unveil it I think people think it's pretty cool. And the hall will be a very low cost attraction that will be one of the things that brings families down so some members of the family. Don't like shop it'll be great way to spend the day while the shopping members of the them later spending the -- capital you can have a Don Shula steakhouse right next that John.

Here to bring it altogether you know they actually asked I don't know Thursday and you're -- gonna build and rebuild again and -- who's been a great

friend of of our families we have the utmost respect forum and we're going to have a four star hotel here married renaissance hotel that's going to be a part of this. And that was one of the things that was talked about four lobby there but it probably at the end of the day. It just having a Shula steakhouse the patriot place -- too -- We too much respect for the dolphins in may have I think too much respect for respite Don Shula and his family exceptional and in great friends --

There's Europe your father said many times he got his comeuppance comeuppance as -- NFL owner right around 99697 the Parcells episode and then Robert -- targeting any kind of salary cap relief although you guys did the right thing there. With paying his bonus -- wondering. When did you figure that out on the soccer side of things because people don't remember now. The revolution in the early years not so successful now you've been to the MLS cup three times what change when did you figure out this business of soccer.

Three times in the last five years I think we have the winningest we view we have the best record in the league over the last three years I think when we hired Steven Nicholas approach who. Brings the European soccer mentality is on the greatest soccer players ever in the premier league but -- Using a hockey term would be consider real mockery he was just a tough. Working class kid who played soccer the way those of us who grew up watch in the big bad Bruins you know -- the use of Bruins analogy the way they played hockey or the ways the patriots. Play football and no nonsense physical type of style that's with Stevie did over the years -- brings. The European knowledge and sensibility of the game. But he had lived in America he understood American kids yeah understood that American acted. Can't be coached our first coach was a guy named frank Stapleton one of the greatest players in. In the premier league history also and he couldn't understand it Alexi lawless two nights a week wanted to take his guitar. And go play in clubs on -- downstream it just didn't compute. And and with Steve he brings is the knowledge in an understanding how American kids who were really good players -- good enough to play anywhere in the world. But how they need to be managed and coached. And and and when you combine that knowledge of the American kids with the sophistication in the experience that he has that the premiership -- at the highest level playing in the world it's been a great great formula and and and where were. We're very lucky that we've been able to do and I am proud of the fact that our team relative to. Other teams in the league -- we love having people we've got some great players from other countries on our team. The world so proud of the American players and we believe that you can compete for championship without having to scour the four corners of the earth sport there's enough great American players today which was always the vision with the sleek.

This the 12 here for MLS in the New England Revolution an interesting business model where all the franchises are owned by the league. You were investor operators I thought it was a unique and I think successful way to approach business. Can that business -- to -- who spent 15 million dollars on a soccer player which they've now done with David beckham's arrival this summer.

The day of an answer it's an excellent question. -- what we agreed to do in the David Beckham signing as a part of it and by the by the way David Beckham has been everything. From a business perspective that we thought it would be for the league and more. But what we said was each team. Could go out on their own if they want -- to. And effectively by a franchise player you can get one player basically outside the realm of the -- It had to be approved by all the other owners in the leave when you went out to do it because it had to. Shrimp sand it had to be worth more than a competitive advantage. On the field and had to do. Something else for the game and the league that was bigger than just the competition on the field and in the case of David Beckham EU UU clearly clearly have that and from the Los Angeles galaxy in and and and AEG who owns -- galaxy filling and shoots his company for them they actually made it a much bigger deal they effectively owned David Beckham and his images likenesses marketing rights. Lock stock and barrel for well into the future so they're going to turn this into beckham academies here in North America and go out and do product endorsement deals with them their opening up. Beckham soccer things in China and the cool part about it is. The the soccer academy's in China. Aren't going to high highlight the premiership in England or Syria Natalie it's going to highlight major league soccer to to a country that bit. Has soccer in which soccer as the number one sport. So we think it's great and we can't wait to have him here in August when it's -- early August August 12 and I think there's a -- tickets left but it's just on the verge of selling out so 1877 dead --

but I think we're just about Larry is that right with the number I've never doubt that yes 1877 dead rats yeah. Ticket hooked up billions you don't have that I know people I -- I fortunately I think I think that anybody in the Kraft family is a lifetime pass to MLS but the checks we wrote -- Nancy yes.

Speaking of writing checks -- going to be so proud of me and that's when this little research at work prepared showery Joseph that paper nothing -- Joseph awesome plan itself -- us some guys Celtic FC. Offered you one million dollars in August of 6 for the rights to -- Joseph they were rebuffed. And then another offer came in January of 7 for two million dollars they were rebuffed --

There were rebuffed because Shara -- Sharif Joseph has a great player is a great player is a big part of the team is a big part of the community. And it. And we when we're in this business to win it's not about selling a player. In making a million dollars or two million dollars in the way believe works we would get them to leave actually. Owns the rights to all the players going back to deal structure but if we sold the player on our team we get a disproportionate share of that money it's not about getting a 1000002 million dollars it's about trying to win and he's been such a great force on the field for a -- the leaders been wonderful. In the community and we're very lucky to have somebody like that and we.

Still want to do well in Jonathan lethal question what's better for MLS is it better that David Beckham come here that he wants to come here to this league. -- it matter that. An international soccer power wants to come MLS. In and get a player from here amid what is more what Aziz a what is the bigger compliment.

I think both. That's really good question and I think they're both compliments in an of their own right this is what we always hope for. That MLS would be a real player on the international soccer seem like the like Syria and like the premiership with the -- in this league in Germany. Where players moved back and forth depending on needs how people's out the map out what makes sense and slowly but surely MLS is rising to that level. And the real ultimate the ultimate compliment the ultimate payoff is going to be when the United States really really competes. For World Cup championship without ML SI. I believe that that. That they would never have come but now I think we're at a place where. For years are probably more like eight years from now. People should expect that the United States won't go to the World Cup with a real chance of competing and winning. And I think until that happens until we really from you know debt to the finals or when one. People always have in the back of their heads MLS is secondary it's not it's a minor league it's not a major league in may be when you talk about menu in Liverpool. An arsenal in the premiership and Syria out of AC Milan teams like that maybe maybe you're right but when you get right to the next here below we're already is good as any of the league in the world. And it's only getting better 'cause we've got all these kids that are playing the game. And we've got a great athletes here we've got a great training systems and were going to get there and and that will be the ultimate compliment but for right now it's pretty cool Clint Dempsey. Was bought from the revolution for. For him actually I think at the end of day it's going to come out to be like five million dollars so player on this team. Was bought for five million dollars in you're going to say well why did you sell him. In his case his contract was coming up we weren't going to re sign him Clint was going to leave and go play in Europe so that it was a matter. Of of just. Pure business because of how the contracts played out what the dollar's worth. But for us when you see things like that start to happen you know we're doing something right. 12 years into this are you with the point where where -- Matt -- I'm trying to come up with guys who want Taylor 12 owners Steve Ralston. Kim walked the streets of Boston and have people saying hey I know that -- for me all I was at a soccer tournament this weekend -- I help assistant coach to my able head coach indeed built. In Utah and pays travel team in Brookline and Brookline has a great program. And we were at a tournament Wellesley in their words. I don't know how many -- ten teams from all over but there were a lot of 40 or 50 teams. And I heard just walking around united baseball had no -- teacher no one knew who I was I heard at least six different conversations. About the -- just walking in the fields and that. That to me was great because I don't think that wouldn't happen 567 years ago and and I think they've that the guys do start when they're around town in. I think they do get a little recognition obviously it's not like patriot players are certainly like Red Sox players but it's coming and I think the kids get that I don't know that the parents do but the kids definitely get a Tuesday.

Bottom line you -- you spoke of the bottom line earlier talking about Josephson and Clint Dempsey. That's -- put around bottom line on TV ratings compare your ratings to those of other so called major sports -- in the united.

It where we're holding our own timetable if you look at the ratings of major league soccer our national broadcasts on cable were on ESPN two. And if you look at us there you look at the NHL on verses you even look at the NBA if you compare the promotion and the national footprint. You know clearly the NBA in the NHL have -- have been materially over us but our ratings are right there with the NHL's and some might argue a little bit better and the the NBA is I think we have a chance we aspire to get up to that level because in we're serious but I don't think where we're that far away from it people. There's an audience that wants to watch soccer people like a lot of people now or young adults have played it. And if it's good quality and it's well produced the Mets were ESPN is paying us a real rights -- David there are doing that for all the sports anymore they're paying us the rights fees and they're committed to a John skipper who's the president their love soccer then the World Cup last year. Did just monster numbers I think much better than they expected to do. And so they're investing in the production of the game ended and a good production. Makes it more fun to watch in at all just feeds on itself and it's it's going very well I think the whole branding issue of Thursday night soccer on ESPN you know where it becomes a destination destination viewing for soccer fans is a smart move as well it it lets kids know in particular because remember we're still only in 13 cities. And world world world world will be in 16 within the next two years or three years of the most born 13 cities so if you don't have. A home team to watch a curative in the city that doesn't have it and you want to watch American soccer. You need that game of the week that nightly thing unless you do your parents of what you -- the MLS directly package on direct TV and I doubt there. Many families out there that are doing that for the young kids. And and and so that's that's why that's important it's why channels like the fox soccer channel. What are we also have a relationship for doing really well kids want to watch the game and I think one of the things we haven't done as well as we should do. Is we have to get our players out doing more instructional little 152 32 tidbits because. It it truly is a sport that. A very large percentage of kids both boys and girls. Are playing in this country and these soccer players -- normal sized people for the most part it's not like football players not like basketball players and you. Put -- Taylor 12 men on TV showing how he shoots from the right side in a 152. Little clip and that can really help the -- at home they can pick something up from that the I'm not sure you can pick up Matt light you know showing -- how to. He'd come out of his stance and I love mad but blocking some. Block and Jason Taylor in the moves you use on them it's not transferable. But the telecom and -- is and we have to do a better job of that I think that's one of the areas we haven't done as much as we could be doing.

Can we take a credit going to take a break early as the real quickly you don't want to make it quick one and we'll get back I want to ask a -- the -- and generally don't Atlanta what David Jason I mean we've got to we stuck his picture -- our lives you don't really not doing that -- like party without himself you don't want to ask about only compact is international soccer and and you guys have a lot of it here. And also soccer specific stadiums we'll talk about all that when we come back just a couple of minutes Jonathan Kraft is with -- here to let stadium Sports Radio W media