WHEN: Today, Thursday, September 5, 2024
WHERE: CNBC’s “Closing Bell”
Following is the unofficial transcript of a CNBC exclusive interview with Los Angeles Rams President Kevin Demoff on CNBC’s “Closing Bell” (M-F, 3PM-4PM ET) today, Thursday, September 5. This interview is also part of CNBC Sport, a new vertical the company announced last week that focuses on the intersection between business and sports. Following is a link to video on CNBC.com: https://www.cnbc.com/video/2024/09/05/cnbcs-official-nfl-team-valuations-2024-los-angeles-rams-stands-at-number-2.html.
All references must be sourced to CNBC.
SCOTT WAPNER: Alright, now let’s bring in Los Angeles Rams President Kevin Demoff. Rams, as we said, number two on our list. It’s nice to see you again. Welcome.
KEVIN DEMOFF: Good seeing you again, Scott. We saw you last year in L.A. talking with Stan Kroenke about SoFi Stadium and Hollywood Park, and here we are a year later.
WAPNER: Yes, absolutely. You guys have been doing it right, number two on our list. What’s your reaction?
DEMOFF: It’s great to be number two, up on the podium. You get a silver medal. But we’re closer to 32 than we are to one. So I would say that’s the work ahead of us.
WAPNER: Yes. So how have you guys maximized the business around the franchise to get to this level? As we said, there’s a lot more than having a wealthy owner and having a stadium. You still got to put all the pieces together.
DEMOFF: Look, I think we all will always quibble with Mike quietly about the valuations, but he said something that I think is perfectly accurate, which is, the entrepreneurial nature of your owner is going to be what drives your local revenue. And I think, when Stan Kroenke envisioned building SoFi Stadium, Hollywood Park, reinventing a sports and entertainment district in the heart of Los Angeles, it was about bringing the world’s best sports events to SoFi Stadium in Los Angeles, not just NFL football, but Super Bowl, World Cup. We’re fortunate to host the Opening Ceremonies and swimming in the 2028 Olympics, and six nights of Taylor Swift doesn’t hurt.
WAPNER: Well, help us understand that a little bit better. I think most people, when they talk about NFL football valuations, they only think about the action that actually takes place on the football field. But it’s the ability to book many lucrative non-football events that actually puts you towards the top of this list.
DEMOFF: Well, I will give you a great example on someone who’s a frequent guest on CNBC. Anthony Noto is the SoFi CEO, right? Taylor Swift shot her movie about the tour at SoFi Stadium over three nights. The amount of visibility that created for SoFi as a brand is why SoFi pays us a significant amount for naming rights. When you look at our partners, they’re not just paying for 10 Rams games and 10 Chargers games. They’re looking for those extra 25, 30 events a year. Our suite holders, we have 270 suites at SoFi Stadium, which is the second largest amount in the NFL. Those people are looking for revenue in events outside of NFL football to entertain their clients. They know they’re getting the NFL. They know they’re going to get great games through the two teams. What they’re looking for is a little bit extra to put them over the top. And that’s where we can really turn that into a revenue-generating machine hopefully to go catch the Cowboys.
WAPNER: Well, I think what’s interesting too is that you and Mr. Kroenke are both thinking globally as well. The marketing rights deals that you have in many international markets, including Australia, New Zealand, China, Japan, South Korea and Mexico, can you talk to me about the presence you have there and why that matters so much?
DEMOFF: Well, I think it matters, you know, first and foremost, for us to grow our brand, grow our game. You sit in Los Angeles, one of the largest cities in the world, one of the most multicultural cities in the world. Having the Pacific Rim in Mexico as part of your marketing rights is just about marketing locally to the many diverse fans we have here in Los Angeles. But as you think about Kroenke Sports & Entertainment globally, our five teams, including Arsenal of the English Premier League, we think of ourselves as an international brand, an international company. And having rights in those markets allows us to bring the Rams, to bring Arsenal, to bring the Denver Nuggets, the Colorado Avalanche to those markets, so that we can really try to highlight the growth of American and North American sports in those markets. And if the Rams can benefit from that, even better.
WAPNER: There’s big news, obviously, in the last couple of weeks, the NFL voting to allow private equity in investing for the very first time. It’s a bit of a toe dip, if you will, because it’s fairly limited in size and scope. But is it just that? Is it the initial stages of what you think is going to be a much bigger part of the investing landscape in NFL teams in the future?
DEMOFF: Well, I think one of the things that Mike highlights with the NFL currently in the valuations is, the NFL is a growth business, and you need capital to continue to grow that business in every sense or form. And whether — you were just talking about the Bears and their stadium push they’re looking at. You talked about Washington with Mike and the stadium push they’re looking at. You have 15 to 20 stadiums that are probably on the horizon to be built or have major renovations. When you look at the investments in flag football, when you look at the investments of international, you have a game on Peacock tomorrow night in Brazil, I think that’s where the additional investment of that capital is going to go to continue to make the NFL a growth property across all 32 teams in the league.
WAPNER: Kevin, I appreciate your time so very much today. You guys have a good season. And send Stan our regards, would you?
DEMOFF: I will make sure to do so. Thank you very much, Scott.
WAPNER: Alright, we will talk to you soon. That’s Kevin Demoff, Los Angeles Rams, as we said. By the way, do not miss NFL Commissioner Roger Goodell. He’s going to be on “Squawk Box.” That’s tomorrow morning, and it’s 8:00 a.m. Eastern time. And, of course, big game tonight, NFL and Peacock, starting at 7:00, how can we forget about that? We can’t wait.
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