Alex Rodriguez: From MVP to CEO; Business Lessons from Warren Buffett & Magic Johnson | E1010

1. 0:00 – 1:20

   Intro

   1. ARAlex Rodriguez0:00

      By the way, my same concern, Harry, about sports is my same concern about real estate-

   2. HSHarry Stebbings0:05

      Huh.

   3. ARAlex Rodriguez0:05

      ... is I have to think about my mother. And my mother, uh, was someone who had two jobs. We come from a very modest, you know, economic background and we cannot forget about my mother. My mother is a figurehead for someone who can't afford, uh, her apartment or someone who can't afford to come watch their favorite sports team. We have to always make sure that we have enough to make sure that we don't eliminate 99% of our fan base, which is someone that has to consider affordability. (instrumental music)

   4. HSHarry Stebbings0:42

      Alex, I am so excited for this. I heard so much from Mark Roy, your partner, before the show. So thank you so much for joining me today.

   5. ARAlex Rodriguez0:49

      It is my pleasure.

   6. HSHarry Stebbings0:50

      Now, I always like to dive in at the deep end, Alex. And so we look at your incredible history and career, but I b- believe, always believe, we're a function of our history. What are you running from, Alex?

   7. ARAlex Rodriguez1:02

      What am I running from?

   8. HSHarry Stebbings1:03

      Yeah.

   9. ARAlex Rodriguez1:05

      Um, that's a good question. I never thought about that, um.

   10. HSHarry Stebbings1:09

       So, like, I'm running from being the fat kid at school with no friends, and I'm always desperately trying to impress 'cause I think I just want people to like me.

   11. ARAlex Rodriguez1:17

       Yeah, I mean, I, I think for me, it, it...

2. 1:20 – 2:55

   A-Rod’s Childhood

   1. ARAlex Rodriguez1:20

      Probably where my heart and mind goes to is, you know, Dad leaving at the age of 10, when I was 10, and my mother, uh, leaving my mother w- and my two siblings behind. And I was the youngest of three, and I thought that was, uh, a pretty significant part of my life that kind of, uh, for better or worse, had a huge impact, uh, in my life.

   2. HSHarry Stebbings1:44

      Can I ask, how did that shape your mindset? 'Cause that is such a significant moment very early.

   3. ARAlex Rodriguez1:49

      I, I didn't, uh, really get to unpack it, um. If you fast-forward all the way to 2014 when I got suspended from Major League Baseball, uh, the longest suspension for PED use, it wasn't till then that I had a real opportunity to dive into the deep end of the pool, turn the lens inward, and met a guy, uh, a doctor that really saved my life. His name is Dr. David. Uh, unfortunately, he's no longer with us. He passed within the last 24 months. But he really changed my life and helped me unpack a lot of the things that happened due to that exit of my father when I was 10. And then, more importantly, helped me rewire my brain. Um, and I worked with him for more than six years extensively. Uh, and yeah, I, I think that's, that's where my brain goes.

   4. HSHarry Stebbings2:44

      How do you think you changed as a result of that time working with him?

   5. ARAlex Rodriguez2:48

      Uh, it completely changed. I would, I would say, Harry, that pre and post-suspension, I'm a completely different

3. 2:55 – 5:16

   How the PED Suspension Changed A-Rod

   1. ARAlex Rodriguez2:55

      person, completely different person. And, uh, it starts with just appreciation, uh, being grateful. Uh, the definition of winning and success is wholly different today than it was before my suspension. Before my suspension, I thought winning and success was exactly what I said, winning a world championship, uh, winning a big contract, having nice cars or a nice house, um, dating beautiful women. And what I understood post-suspension, post-Dr. David, was that I was completely, uh, out of my mind (laughs) and none of that is really winning and success. While it sounds nice and it, it's fun, uh, success today is really built more around, um, gratitude, uh, others around me, winning, collaboration, uh, being a present and loving father. Yeah, completely different.

   2. HSHarry Stebbings3:55

      Do you have to practice that? 'Cause I'm with you. It sounds wonderful and gratitude and, you know, appreciation, but when you're kind of in the grind... You're an athlete, Alex. (laughs) Like, I'm not an athlete. I know I look it, but I'm not.

   3. ARAlex Rodriguez4:09

      (laughs)

   4. HSHarry Stebbings4:09

      But I'm a grinder. Um, like, it's not that easy to be like, "Oh, I really appreciate this and I'm so grateful for this." It's, "I wanna win." But how do you actually bring it back to that today and ensure that you do remember that?

   5. ARAlex Rodriguez4:22

      I think it's really about priorities. And it, it's much easier, I would say, to say this in my 40s versus 20s and 30s, because the, the thought that I always share with my team is this whole idea that I see a lot of young people make this mistake where they go wide and shallow-

   6. HSHarry Stebbings4:42

      Mm-hmm.

   7. ARAlex Rodriguez4:42

      ... and they try to be experts at all things. And we always talk about, at ARod Corp, narrow and deep and what are their priorities? What are the two or three things that are most important, uh, to me personally, uh, to my family, to my company, right? And you can't be great, in my opinion, at ten things. But if you work really hard at one or two of them, I think you can be great at. So it's priorities and really simplifying and slowing down to speed up.

4. 5:16 – 7:13

   Hiring Advice from A-Rod

   1. HSHarry Stebbings5:16

      When you think about kind of where people are really great, those one or two things, I, I look for spikiness in people when I hire today, which is those one or two things. But I suck at hiring, Alex, universally crap at it. What advice would you have for me when you think about assembling great teams as a founder, as a CEO, on your lessons on finding people's one or two things and bringing them together?

   2. ARAlex Rodriguez5:40

      I, I've been very fortunate, um, playing professional sports for over 25 years, that you end up with this experience where you have pattern recognition. Now, that's not enough, right? You're able to see really talented people who are hungry and gritty.Um, but my partner, Mark Gloria has taught me a lot about reading resumes and really the key is, the 10s and the 5s are easy to recognize. The 10s, you know, jump out of the page, and the 5s are, are people you're probably not gonna hire. Th- the challenge is when you have the 6 and the 7s. And if the 6 and the 7s, uh, have the gift of gab, and are good people, and th- they can trick you, uh, over a series of two or three interviews. So one thing I would say, hire slow, fire fast. And I, I would avoid in e- even interviewing as you read through your hundreds or thousands of resumes, I, I would, I would eliminate hiring 6, 7, and 8s, and I would focus on just the best of the best. That way, at least you're in a pool of, uh, people that you want to hire, then it's just a matter of culture fit for you.

   3. HSHarry Stebbings7:02

      You mentioned Mark there, your partner. Um, one, one of the most skilled resume readers I think I've ever met. Uh, he did mention to me that you're one of the most skilled deal makers that he's ever met. Uh, and negotiators.

5. 7:13 – 9:22

   A-Rod’s Secret to Deal-Making

   1. HSHarry Stebbings7:14

      Can I ask, what does great deal making look like and mean to you? You mentioned how your definition of success has changed, what does great deal making mean to you?

   2. ARAlex Rodriguez7:23

      Well, I think it's, it's empathy and compassion, right? Uh, really connecting with the seller or the buyer and really understanding... I, I don't think, Harry, you can make a good deal with a bad guy. That's number one. N- number two, I, I do believe in this concept of win-win. If I'm trying to make a deal with you, Harry, and I don't understand that you live in Chelsea, in London, and you're this great athlete, and you s- things are important to you, I, I need to know what, what are the things that are important to you and understand what are three most important things with this transaction that mean the most to you? And I'm gonna start there, right? But if you have 10 things that are important to you, i- it's hard to meet all 10. But I can certainly focus on the top three. And I think working from there and then working backwards is really important. But also being a good listener. I think so many people are busy with, you know, running their mouths. I found that the greatest entrepreneurs and the greatest negotiators are people that are good listeners, and then try to work out a structure. Sometimes the price is not negotiable, but sometimes terms are. Sometimes the price is negotiable, but terms aren't. And if you just go full speed ahead and you don't understand the rules of engagement, I think you're not doing yourself, um, you know, giving yourself the best shot.

   3. HSHarry Stebbings8:48

      I know it varies by situation, but would you say you are a head or a heart person when it comes to decision making?

   4. ARAlex Rodriguez8:54

      A what?

   5. HSHarry Stebbings8:55

      A head or a heart. Do you think with your head or your heart when making those deals and decisions?

   6. ARAlex Rodriguez9:02

      Uh, I think back when I was... If you go back 10, 15, 20 years, definitely heart. (laughs) Um, I think today, uh, I'm a combination of head, heart and just some common sense.

   7. HSHarry Stebbings9:15

      What was the best deal that you did un- e- eh, when you reflect? And what did you learn from doing that?

6. 9:22 – 10:32

   The BEST Deal A-Rod Ever Made

   1. HSHarry Stebbings9:22

   2. ARAlex Rodriguez9:22

      I think the best deal or one of the best deals that we've done here at ARod Corp is, um, we bought a third of a business called PetroSpace al- almost five years ago. And we bought a third of the company, and it was a lending kind of brokerage, uh, business that was ESG and, and green. And it would lend to real estate owners, and it was a great substitute to mezzanine debt. So in a world where in mezzanine debt you pay mid-teens, uh, you were paying for PetroSpace money, uh, about 5 or 6%. Of course, this was before the Fed, you know, has raised res- rates tremendously. And so if you're looking at a loan that is, uh, not personally guaranteed, uh, it's half the price of mez debt, and it's green and makes the world a better place, uh, it was... I, I really liked it. I loved the two founders. Uh, we backed them, and then this, this year we sold it to Apollo for almost, uh, you know, 12 times.

   3. HSHarry Stebbings10:28

      Wow. What was the worst deal?

7. 10:32 – 12:02

   The WORST Deal A-Rod Ever Made

   1. ARAlex Rodriguez10:32

      I think the, the worst deal came around the financial crisis in real estate. Um, it was around '08. Uh, we acquired a beautiful, beautiful portfolio of about, uh, 1,000 apartment units. Uh, we paid around $60,000 per door. Uh, it was right around Yankee, uh, George Steinbrenner Field in Tampa where spring training, um... Where they still play spring training. And it was a beautiful portfolio, it was the right assets. Uh, it was the wrong timing. What happened was we woke up about two weeks later, uh, with a crash, and the assets were worth probably $40,000 per door, and we owed 42,000 per door. So we were underwater. That was probably the worst. Thankfully for us, we, we had enough capital to negotiate with the banks, and we ended up selling that like five years later for about 75 a door.

   2. HSHarry Stebbings11:33

      Ooh, that's a worrying moment.

   3. ARAlex Rodriguez11:36

      Mm-hmm.

   4. HSHarry Stebbings11:36

      In those worrying moments, I find it very reassuring to have bluntly mentors who've been there, done it, seen it. Um, you have some of the most exceptional mentors, Mark was telling me. He told me Magic Johnson, he told me Warren Buffet, John Gray, Barry Sternlicht. I wanted to unpack, uh, lessons from them. If we go to Magic Johnson, h- what's he taught you and how have you changed having learned from him?

8. 12:02 – 15:43

   What Magic Johnson Taught A-Rod

   1. ARAlex Rodriguez12:02

      I love Magic Johnson and he is a, a very dear friend. Um, he was my hero and growing up, I loved watching the Lakers against the Celtics, Larry Bird against Magic Johnson. Harry, what Magic did for me is he gave me hope. In my neighborhood, y- you did not have a lot of role models that wore a suit and tie every day to work, uh, that were men of color. Uh, and then when you go into having a Hall of Fame basketball career, and then taking that to a Hall of Fame career in business, the first thing he gave me was hope 'cause I said to myself, "Boy, if Magic can do it, why can't I?" So that was very important. The second thing he did for me as, as we then became very good friends, uh, I had a very important meeting with him that he taught me framework. And he basically gave me his floor plan on how he took Magic Johnson, the Hall of Fame iconic basketball player, to a Hall of Fame iconic businessman. And this was in the course of a three-hour, uh, dinner that we had in, uh, LA, uh, near Rodeo Drive. We went to a steakhouse, we had a back room. Uh, Lon Rosen, his longtime partner and agent, uh, set this meeting up. And it was a 30-minute meeting and it lasted around three hours. And years later, I asked Magic, I said, "Magic, I am overwhelmed. I was so nervous to ask you, but I have to ask you now, why did you give me three hours when it was a 30-minute meeting?" And he said, "Alex, you're the only athlete that I've sat with that came in with a notebook and had, like, nine pages of notes. So I felt, uh, I had to cancel my other engagement and I wanted to really lean in a- and try to help you 'cause I thought you were really sincere and present."

   2. HSHarry Stebbings14:03

      Can I ask, what was the secret to his framework? 'Cause it's clearly worked so well for him and for you. But respectfully, it doesn't work for everyone. You are very-

   3. ARAlex Rodriguez14:12

      Yeah.

   4. HSHarry Stebbings14:12

      ... few people who've succeeded in the way that you have in this business in making that transition. What was his framework and what has worked from it?

   5. ARAlex Rodriguez14:20

      Uh, I think there was, there was three things. He said, "Number one, you have to find the best people in the world to come work with you. End of story. And don't compromise that. They won't expect that from, you know, former athletes like us, right?" He said, "Number two, uh, lean into your superpowers. Mine is basketball, yours is baseball. So go out and be the best baseball player you can. And when you have an opportunity, um, you know, continue to do, uh, television work when you're playing, when you're done playing so you can stay connected to the next generation of, of baseball fans." And, and thirdly, he said, "Come out and do these kind of things, Harry, is go out and speak to the Goldman Sachses, the JP Morgans, the private equity community, and stay connected and stay informed and continue to stay in front of the smartest minds and continue to practice, uh, what you preach." Uh, so those three things, uh, I wrote them down in my notes and I've tried to execute those over the last 25 years.

   6. HSHarry Stebbings15:24

      That must've been such a cool lunch. (laughs) Um-

   7. ARAlex Rodriguez15:27

      It was a dinner, it was a dinner. (laughs)

   8. HSHarry Stebbings15:29

      I mean, still, that's a, that's a fun one. Warren Buffett, I mean, Warren Buffett is most... He managed to come to the (inaudible) as most of our heroes. I grew up on Warren and Charlie's lessons.

   9. ARAlex Rodriguez15:40

      Maybe.

   10. HSHarry Stebbings15:40

       What have you learned from Warren?

   11. ARAlex Rodriguez15:42

       Oh,

9. 15:43 – 17:41

   What Warren Buffet Taught A-Rod

   1. ARAlex Rodriguez15:43

      Warren's, uh, the absolute greatest and I've had an opportunity, uh, more than a handful of times to sit down with him and spend five, six hours in a day, uh, where he's literally going over all my books, looking over all the real estate, and, and just really giving me feedback. And again, it's, it's like having da Vinci helping you paint or, or Picasso or something. It was such a, an incredible experience. Uh, I think I learned from Warren a few things. Um, he always talks about sticking to your circle of competence. That's always been really important. And num- number two, he always talks about, you know, buy the best and forget the rest. You know, the saying that he says is, "I'm better off buying a great business for a fair price than a fair business for a great price." And that's, that's been true so far in my career. And then I, I would say this one I will share with you is, he always talks about, like in sports, separating emotion from investing. And the same is true for sports, baseball, basketball, anything. And what he means by that is being a great investor, companies, stocks, they don't care about your emotions. He always talks about emotion. Uh, great investors usually have their emotions in check. So tho- those are three things that, uh, among many that, that I'm enjoying sharing with you today. Mm-hmm.

   2. HSHarry Stebbings17:14

      Can I ask you, you know, when, when I looked at your portfolio, which your team kindly sent over before, the one thing that's staggering is the breadth. I mean, from the real estate to the kind of venture and PE investments to everything in between, that's a lot. How do you think about prioritization and where your spiky self is? Where are you best in business? So you said that your best, obviously, clearly baseball, but now you're a business leader. Where are you best in business?

10. 17:41 – 22:12

    Why A-Rod Invests in Sports & Real Estate

    1. ARAlex Rodriguez17:41

       So I, I think if you take a step back to when I started my business career about 25 years ago-

    2. HSHarry Stebbings17:46

       Mm.

    3. ARAlex Rodriguez17:47

       ... early on, I wanted to have it like a pyramid, where at the very bottom, uh, I would try a bunch of things and put some very small bets, $50,000, $100,000 in, in, in a, in a number of, uh, companies that I wanted to, A, uh, get a good return, but B, um, get a fair understanding...... of the business, of the space, of teamwork, and that's what exactly has happened over the last five years. We've really kind of worked this triangle where we're, we're only doing things that we're passionate about, that we understand really well, that we have a competitive advantage, and where we can bring real, real value to the founders. So what that looks like today at AR Corp, we do two things. We do sports and we do real estate, right? And sports, I've been doing for, uh, my entire life pretty much, and real estate, um... Look, I- I'll tell you when I was seven years old or so, I always thought about, um, you know, real estate because we were lifelong renters. We always rented. My mom had two jobs and I always dreamed about trading places with the landlord.

    4. HSHarry Stebbings19:07

       (laughs)

    5. ARAlex Rodriguez19:07

       Um, and then sports, I was playing baseball. So if you go, if you now cut 40 years later when I'm 47, uh, I'm doing exactly those two things, real estate and sports, and, uh, and are thrilled to, to be in those spaces.

    6. HSHarry Stebbings19:21

       Well, I mean, you look incredible for 47. Clearly, the facial moisturizer's working. But, uh, I do have to ask-

    7. ARAlex Rodriguez19:27

       (laughs)

    8. HSHarry Stebbings19:27

       You mentioned switching places from-

    9. ARAlex Rodriguez19:29

       Sure.

    10. HSHarry Stebbings19:29

        ... the, uh, renter to the landlord. Uh, now you're the landlord to, you know, most of America, um, (laughs) even looking at the portfolio. Um, uh, how do you think about your relationship to money, Alex? I often had this thinking when I was younger that we watched Who Wants to Be a Millionaire? I don't know if you know this game show. And I was like, "Oh, when you're a millionaire, life is great." And then I, I did that and I was more depressed than ever, which sounds very One Percent worried concern, but it didn't make me happy. How do you embrace your relationship to money today, and how do you think about that?

    11. ARAlex Rodriguez20:03

        Uh, look, money is obviously a necessity. Um, we always say we gotta keep our lights on and all of that. But my relationship with money has changed over the years, because what money allows you to do is to have, you know, more time, and the most important asset we have in our lives is, is our time, and the ability to spend time with those that you love and respect the most. And, and for me, those are my family, my daughters, and, and our team here at ARC. But money doesn't care about me. It doesn't care about you. (laughs) And w- so I, I found that when I really worry, think about process and not results, both in baseball and in business and investing, uh, if I have the best team and we're collaborating together and we have a very sound process and we're laser focused, uh, I would make the bet that in the long run, maybe not in the short run, but in the long run, uh, the success and the capital and the resource will follow.

    12. HSHarry Stebbings21:06

        What's the hardest thing with process, Alex?

    13. ARAlex Rodriguez21:09

        I think it's discipline. It could be mundane, it can be boring, it can be... We, we spend a lot of time here in coaching. Uh, we have a lot of young talented people, and we like to develop our young talent just like we do in sports. We take a lot of things from the sports world and bring them to our world here at ARC. Um, coaching, sympathy, compassion. Uh, I think all those things are important in leadership, and I think the ROI on that is tenfold. I think if you spend the time on the front end, uh, I think the back end is pretty sweet.

    14. HSHarry Stebbings21:45

        You mentioned that kind of the transferability of skills and mindset from sport to business. I think the one that's really interesting for me is when you're down, when you are losing in either, what is the mind talk that encourages you to not drop your head, not lose confidence? When you think back to days in sport and today, what do you tell yourself when you're down and you're losing to get yourself back on even?

    15. ARAlex Rodriguez22:11

        I, I think there's a few

11. 22:12 – 23:08

    A-Rod’s Winning Mindset

    1. ARAlex Rodriguez22:12

       things. When things are going... when they're not going in your favor-

    2. HSHarry Stebbings22:15

       Yeah.

    3. ARAlex Rodriguez22:15

       ... some of the things you gotta do is just slow things down a little bit, continue to be grateful and appreciative. And this is hard when things are going bad, right? But you take a step back and say, "Gosh, I'm, I live in this great country. Uh, I'm healthy. I have family and friends that love me and respect me. And if you take it all away from, from me, everything's, should be just fine." Right? So just a little bit of gratitude always helps. And then I would double down into your health and wellness, really making sure that you're having enough sleep, you're drinking enough water, uh, you're well-rested, uh, you're getting your exercise in, um, because the more you invest in yourself, the more you're able to deal with real challenges. Um, and, and... Yeah, I think that's kind of been my, my way.

12. 23:08 – 24:35

    Work-Life Balance

    1. ARAlex Rodriguez23:08

    2. HSHarry Stebbings23:08

       Alex, do you believe in work/life balance?

    3. ARAlex Rodriguez23:11

       Yeah, I do. I do. But I mean, look, sometimes y- sometimes there's times where you have to sprint, right? And sometimes, uh, it, it's more of a marathon. But y- you have to be able to have the experience, um, the team around you, the strategy that when it's go time, and Marc Lore, my partner talks about sixth gear, you have to go to sixth gear. And, but then it's okay to actually enjoy some of your success, um, to be able to have fun in the culture, to be able... We play music here at the office because we want the office to be a place where we celebrate each other, we work hard, we push each other, we keep each other accountable. And like sports, when people mess up, we have an environment here that is safe to mess up because we're not trying to, "We got you." What are the lessons? Just like in sports, we lose two in a row, we're gonna get to practice and we get, we're gonna fix this, um, and we gotta fix it collectively as a team, not to embarrass you, but to help each other out. Because the more-... the better that the team is, the better we're gonna be as a company.

    4. HSHarry Stebbings24:20

       How do you create an environment of safety where you do have that, but also not an acceptance of continuous losing? You know, if a coach loses 10 games in a row-

    5. ARAlex Rodriguez24:29

       Yeah.

    6. HSHarry Stebbings24:30

       ... we might need to cut him.

    7. ARAlex Rodriguez24:31

       If-

    8. HSHarry Stebbings24:31

       But you want him to try. How do you create that balance?

13. 24:35 – 26:30

    How to Winning Environment for Your Employees

    1. HSHarry Stebbings24:35

    2. ARAlex Rodriguez24:35

       Yeah, I think it, it, it starts at the top, right? We talked about slow... Hire and slow. And then it's cultivating that talent. But how you d- How we create an environment, I think it starts with the leader. And the leader has to be, be able to stand up and say, "Hey, uh, I take full accountability. This is on me." And the more vulnerable you are with your team, hopefully it, it creates, uh, an environment where they feel safe, uh, doing that. It doesn't mean you have to, like, spill your guts in front of everybody, but it means that, you know, at times there's challenges and to be able to come to your senior, um, report person or to someone, um, like, like myself, you wanna have that culture, you wanna have that trust. And just like, I, I can tell you, I've had coaches, hitting coaches, managers in baseball that I knew they had my best interest at heart. And because of that, if they said, "Jump," I would say, "How high?" And I would do it (snaps fingers) without thought. The opposite here is also true. I've had coaches that I felt they had my worst interest at heart. So anything they told me, I questioned. So when I take that thought process to the business world is exactly the same thing. The first thing that people, that you have to think about is, "Harry, if you and I work together, do you really think that I have your best interest at heart?" If the answer is no, we're done, right? Uh, so building that trust early, uh, building that bridge I think is, is vital.

    3. HSHarry Stebbings26:07

       You mentioned that you have best interests at heart. I'm a little bit concerned about the future of the sports industry 'cause we see this flood of PE capital coming in, respectively, largely from our dear friends across the pond in your wonderful nation, into English football. Um, but buying English football clubs and just buying sports franchises and it's kind of, sport is becoming such a business today unlike ever before,

14. 26:30 – 30:05

    Sports Team Ownership

    1. HSHarry Stebbings26:30

       which has its pros and cons. How do you foresee the next few years in terms of the business of sports franchises and where the opportunities are in your mind?

    2. ARAlex Rodriguez26:41

       I think you have to thread the needle, Harry. I think what's beautiful about sports, it's the great passion, uh, these progressive owners over the years, I can just tell you here about America, when you think about, you know, Dr. Buss with the Lakers, when you think about George Steinbrenner with the New York Yankees, uh, Al Davis with the Raiders, Robert Kraft, Jerry Jones, Jerry Reinsdorf, so many great ones. You have this heart and passion connected to the franchise, which connects with, with the fan base. Uh, you think about what Jerry Reinsdorf has done with the six championships with Michael Jordan. Uh, Jerry and Michael were very much tied at the hip. It, it would be different if it was Michael Jordan, uh, tied into Blackstone. (laughs) It just doesn't have the same feel and I think Blackstone's the greatest of the great. But if there's a combination here where we can still remain and keep the Robert Krafts, the Jerry Joneses, uh, the Buss family still involved in the forefront, and because these franchises have exploded in enterprise value, then I think is a good mix, 'cause you get the capital from the institutions, but you still get the passion and the follow-through from the Robert Krafts of the world.

    3. HSHarry Stebbings27:59

       What do you think that looks like in five years' time? How do we see sports franchises evolve and what does that landscape look like?

    4. ARAlex Rodriguez28:07

       I, I'm not sure 'cause if you asked me that question five years ago-

    5. HSHarry Stebbings28:10

       (laughs)

    6. ARAlex Rodriguez28:10

       ... I would've been completely wrong-

    7. HSHarry Stebbings28:12

       Yeah.

    8. ARAlex Rodriguez28:12

       ... of where we are today. The truth is, in the middle of COVID and this, you know, direct to consumer and what's happening to the regional sports network deal, five years ago, while some people saw some of it, I think (laughs) someone would be lying if they said, "I forecasted everything." I think we've seen more changes in the last five years than we've probably seen in the prior 30 years.

    9. HSHarry Stebbings28:36

       Yeah.

    10. ARAlex Rodriguez28:36

        I think the same is gonna be true here in the next five years. Uh, a lot of this enterprise value is driven by television, uh, by the national television deals, so it'll be interesting what that landscape looks like in the next 5, 17 years. But I do think that there's gonna be a world where it's gonna be a lot more, uh, franchise direct to consumer, and that means with the way you watch the sport, uh, how you interact with players, how you interact with buying, uh, merchandise and everything in between.

    11. HSHarry Stebbings29:10

        Is there anything to be worried about when you look at the sports franchise landscape and how it could evolve?

    12. ARAlex Rodriguez29:15

        I, I just think... I, I, I always think about the fan base a- and we can never... By the way, my same concern, Harry, about sports is my same concern about real estate-

    13. HSHarry Stebbings29:25

        Huh.

    14. ARAlex Rodriguez29:26

        ... is I have to think about my mother. And my mother, uh, was someone who had two jobs and we come from a very modest, you know, economic background and we cannot forget about my mother. My mother is a figurehead for someone who can't afford, uh, her apartment and... Or someone who can't afford to come watch their favorite sports team. We have to always make sure that we have enough, uh, to make sure that we don't eliminate, uh, 99% of our fan base, which is someone that has to consider affordability.

15. 30:05 – 31:22

    The Impact of Interest Rates

    1. ARAlex Rodriguez30:05

    2. HSHarry Stebbings30:06

       Can I ask, do you see the unfairness of life now? I'm, I was having a chat to a friend of mine, he's a billionaire hedge fund manager, last night, but I was like, "Interest rates rise, everyone poor, their mortgages go up and we sit here with a ton of cash going, 'This is great. We're getting 5% now.'"... like, this is awesome. Just the rich just got richer and we're in a super fortunate position, but I, I came from nothing too, and I'm like, "God, it is unfair."

    3. ARAlex Rodriguez30:30

       Yeah, i- it is tough. And you have to think about, you know, the local couple that, you know, maybe both of 'em are, uh, professors or teachers at the local high school or junior high, and the local nurse. And if, if you have a mortgage and you're a homeowner, and you have a five-year fixed, and you have, uh, a balloon payment in five years, and all of a sudden you go from 2% to 8%, uh, you can no longer afford that house.

    4. HSHarry Stebbings30:56

       Yeah.

    5. ARAlex Rodriguez30:57

       And, uh, those are things we have to consider as, as leaders, as government. Um, you have to think about, uh, the people that cannot afford these type of movements because they've gone through all their expenses. They've gone through all their, uh, liquidity. Most people have $4,000 or $5,000 in their bank account. So, how do we create a world that helps that person?

16. 31:22 – 34:36

    A-Rod’s Tip for Being a Good Dad

    1. HSHarry Stebbings31:22

       Final question before we do a quick fire round. You've mentioned your girls, uh, several times. I've heard you talk about them before. How did becoming a father impact your mindset towards performance, business, and how you operate?

    2. ARAlex Rodriguez31:33

       Well, I think with my background and, and, and Dad leaving when I was 10, uh, ever since I was 11, 12 years old, I remember, uh, thinking to myself, I'm making a promise that if I ever had the privilege to be, become a father, that that would be my number one responsibility, and to be a present father and raise, you know, uh, a son or, or girls, um, I happen to have two daughters, 18 and 14, that that's my number one priority in life. And I do believe in today's day and age, uh, probably in every day and age, the most important responsibility we have in this world is to raise, raise our children. And everyone talks about fixing the world, but I think it starts at home. It starts at the dinner table. It starts with putting the phone away. It's having a conversation. And this thing is really important because I see where 95% of kids quit their sport on the ride home with their parents. And if there's parents out there, uh, one of the reasons why I think I made it to the major leagues, the gift and the curse of not having a father and having my mother working two jobs is I never had this, you know, win at all cost when you're, you know, a 10, 11-year-old boy. Um, so for the parents out there, uh, I would say, be really thoughtful on how those conversations go after practice or after dance. Uh, it shouldn't be like, "Did you win? Did you get an A? Did you do this?" It should be like, you know, "What are the most enjo- what was the most enjoyable part of your day? Uh, did you work hard? Did you prepare? Did you enjoy?" Uh, it shouldn't be about results, results, results, 'cause that, that creates a lot of anxiety for young people. And I think the gift and the curse of not having Dad around, uh, I think that was one of the main parts where I think I did have a, a long, you know, fruitful career in baseball.

    3. HSHarry Stebbings33:22

       How do you engender the same ambition and hustle in your girls when respectfully they're brought up in different financial environments to, to how you were brought up in?

    4. ARAlex Rodriguez33:32

       I think it's less about what you say and more about what you do. Um, Rachel, who's sitting here next to me, uh, has been working with us for years, and I love her for a lot of reasons. But one of the main reasons I love her, she's really, uh, fair and tough with my youngest daughter, Ella. And Ella comes home and complains like, "Oh, Rachel's being this and this, and she's not being fair."

    5. HSHarry Stebbings33:56

       That's true. (laughs)

    6. ARAlex Rodriguez33:56

       And I go back to Rachel. I say, "Rachel, congrats. You just got a bigger bonus."

    7. HSHarry Stebbings34:00

       (laughs)

    8. ARAlex Rodriguez34:00

       Because that's exactly-

    9. HSHarry Stebbings34:03

       Right.

    10. ARAlex Rodriguez34:03

        ... what my daughters need. They need people that are straight, that are real, because, you know, fortunately, uh, and o- or, and, and unfortunately, they didn't grow up how we grew up. So, the more, in a weird way, the more they lose - (laughs) and the more they can learn from those lessons early on, the more people can be straight with them and not BS them, uh, the better they're gonna be. So Rachel's helping me, um, you know, and Cynthia become even better parents.

    11. HSHarry Stebbings34:30

        I, I love that. Listen, we're gonna do a quick fire round. So I say a short statement, you give me your immediate thoughts. So,

17. 34:36 – 35:03

    If A-Rod could have dinner with anyone..

    1. HSHarry Stebbings34:36

       uh, (laughs) dead or alive, you can have dinner with any person. Who's that person and why?

    2. ARAlex Rodriguez34:44

       I, I would say Jackie Robinson 'cause Jackie was the first sport athlete out of UCLA, and he was actually the first African American. So in many ways, he, he broke the barrier for all of us. And I would be curious what courage it took for him to play baseball at such a high level, be a champion, and deal with so much hate.

18. 35:03 – 35:52

    Why A-Rod Stopped Buying Real Estate

    1. ARAlex Rodriguez35:04

    2. HSHarry Stebbings35:04

       What have you changed your mind on in the last 12 months?

    3. ARAlex Rodriguez35:07

       I, I think our strategy on continuing to buy, uh, real estate assets. Uh, I've basically put a pause on everything, and we're sitting back and just watching and seeing where the Fed goes with interest rates.

    4. HSHarry Stebbings35:17

       Purely because of the interest rate environment, or...

    5. ARAlex Rodriguez35:20

       I, I think there's still a disconnect between buyers and sellers.

    6. HSHarry Stebbings35:23

       Yeah.

    7. ARAlex Rodriguez35:23

       Uh, buyer, sellers still think their asset is worth 10 bucks and we think it's worth three. And, uh, when that closes, uh, e- eventually they'll call you and say, "Uh, I, I'm ready to sell now for eight." And then we'll say, "Okay, we're not ready yet." And then they'll call back and say, "Okay, we're ready. We'll sell it to you for five." And we'll say, "We're not quite ready yet." And eventually they'll call and they'll say, "Okay, we'll take the three." And then we'll say, "Okay, we'll wire the money." We know the, we know the asset and we're ready to go.

    8. HSHarry Stebbings35:50

       Yeah. Go slow to go

19. 35:52 – 38:56

    Why A-Rod Took PEDs

    1. HSHarry Stebbings35:52

       fast. Um, the most painful lesson that you've learned that you're also pleased to have gone through?

    2. ARAlex Rodriguez35:57

       I think the suspension, uh, my suspension for PED use. Um, you know, Rob Mann first suspended me, the commissioner, for, for an, an entire season. But that uns- that season allowed me to, uh, I really think lessons learned, taking full accountability, um, my therapy with Dr. David really set me up nice-

    3. HSHarry Stebbings36:21

       Can I ask you a really rude question? You were so good. Why do it?

    4. ARAlex Rodriguez36:25

       Uh, I think that's something that, uh...It was a really silly, dumb decision. And that's kinda part of the therapy, right, that I kind of, uh, today, I, I am a changed person. I would've never, I would never do that. And what was most rewarding for me, Harry, and I've, I've come to the place where I've forgiven myself. The, the most important thing that I think about my baseball career is what happened at the very start when I was 19, where, and what happened at the very end in my last season. At 19, I came second in the MVP to Juan Gonzales, and I was just a skinny lad.

    5. HSHarry Stebbings37:17

       (laughs)

    6. ARAlex Rodriguez37:17

       Uh, at 358 and won a batting title, and then as a broken down, uh, you know, guy at 41, uh, playing for the Yankees after two hip surgeries and two knee surgeries, uh, I won the MVP for the team, um, hit 33 home runs, and brought them back to the post-season. So Harry, to your point, is when I think about I don't need any of that stuff 'cause at 19 and 41, I had two of my best seasons completely clean and in a great frame of mind, makes you go back and go, "Boy, why, why, why... (laughs) What a knucklehead." Um, but, but you know what? That mistake now sets me up for the back nine of my life, and I've never been in a better place, happier, more grateful, and if it cost me the Hall of Fame, I have no one to blame but myself. But if can help the next generation avoid some of the mistakes that I've made, then ultimately there's, there's a lot to play for.

    7. HSHarry Stebbings38:20

       What one word would be on your tombstone, Alex?

    8. ARAlex Rodriguez38:23

       I, I can't say team player 'cause that's two, maybe collaborator.

    9. HSHarry Stebbings38:27

       Yeah.

    10. ARAlex Rodriguez38:28

        I, I, I think that we very... At least in my life, anything that I've done that's been horrific has been by myself. Anything that I've done that's been great has very little to do with me and really around the people that we've collected around the room to work as a team together.

    11. HSHarry Stebbings38:43

        What do you want your legacy to be? What do you want to be remembered for, Alex?

    12. ARAlex Rodriguez38:47

        I think someone who is loving, uh, fair, and, and, and a, and a very good father.

    13. HSHarry Stebbings38:54

        And then final one for you.

20. 38:56 – 39:22

    Where will A-Rod be in 5 Years?

    1. HSHarry Stebbings38:56

       If we do this in 2028, five years time, where are you and where's ARC in an ideal world? Obviously difficult to predict.

    2. ARAlex Rodriguez39:05

       Uh, I'm probably right here, uh, (laughs) at my office with the great team, and hopefully with a world championship for the Minnesota Timberwolves.

    3. HSHarry Stebbings39:16

       Alex, listen, thank you so much for doing this. I so appreciate it, and you've been fantastic to have on.

    4. ARAlex Rodriguez39:21

       Thank you, Harry.

Episode duration: 39:22