From a CNBC Delivering Alpha conference interview on November 13, RedBird Capital Partners Founder Gerry Cardinale shared his vision for content creation and talent partnerships. These insights are relevant as RedBird Capital owns 50% of the UFL, providing perspective on its approach to sports and entertainment investments.
While Cardinale never mentions the UFL or even sports. His view on the entertainment market can give you a clue on the direction RedBird is looking and why the United Football League fits that vision.
On Content’s Value
Cardinale explained why properties like the UFL are valuable in today’s market:
“For the first time in my career, I actually think content has the possibility of being king. Well, Redstone — Paul Allen, you know, in the late ’90s, we were rolling up cable systems. And what everybody thought was that Paul wanted to get into distribution. He actually didn’t. He wanted to create walled gardens of content. I think he was one of the first people to talk about content being king, but he was way ahead of his time. Today, content has the ability to be king.”
On Talent Partnerships
Cardinale emphasized the importance of bringing talent into ownership positions. You see them doing that when purchasing the XFL out of bankruptcy in 2020 with The Rock and Dany Garcia.:
“What we’ve done in this conversation and what we’ve articulated is we’re starting to put the talent at the table. Now, by the way, the Saudis put the talent at the table in golf, right? That’s the ‘so what’ of LIV, right? And so we put the talent at the table and we created one team with the NFL PA and Major League Baseball PA.”
On Financial Accountability
Cardinale stressed the need for stronger financial discipline in entertainment. This has been something with the UFL after the 2024 season, cutting the pay of coaches and letting go of some staff:
“I don’t see the same level of financial rigor and accountability in the entertainment — in this part of the entertainment industry that I see in other industries… There is a whole ecosystem of unaccountability. In the real world, that’s what the whole capitalistic construct is about, is accountability.”
On Industry Evolution
The investment leader discussed how the industry landscape is changing:
“For me, it’s an arbitrage that I’ve been practicing in sports and media for 30 years, in some form. It’s the same thing… now the talent’s at the table. That genie is never going back in the box.”
On Future Growth
Cardinale sees technology as an opportunity rather than a threat:
“Look at AI. AI, everyone’s scared of AI. AI is a tool in the tool box that will rejuvenate intellectual property. You will make more intellectual property, more original content for half the cost.”
The interview reveals RedBird Capital’s strategic approach to sports and entertainment investments, emphasizing the value of content, talent partnerships, and financial accountability.
Cardinale’s vision suggests the UFL’s ownership structure under RedBird focuses on maximizing content value while maintaining strong financial oversight. His extensive experience in sports media investments and emphasis on accountability provides insight into how the UFL may operate under RedBird’s and FOX’s ownership. This merge is all about the content more than the football itself.
The full interview can be accessed through CNBC’s Delivering Alpha conference archives from November 13, 2024.
