Celtics Owner Steve Pagliuca: What Went Wrong with the Chelsea FC Acquisition | 20VC #976

Steve Pagliuca is a Senior Advisor at Bain Capital, the firm he joined in 1982 and as a Managing Director of Bain Capital, he has helped build the firm into one of the world’s leading investment companies with over $160 billion in assets under management. Steve is also a Managing Partner and Co-Owner of the World Championship Boston Celtics Basketball franchise. Steve is also co-owner and co-chairman of the Serie A professional football club, Atalanta Bergamasca Calcio. If that was not enough, Steve currently, serves on the Board of Directors of Gartner, Coherent, Virgin Voyages, and Deltatre. Huge thanks to Moshe @ Shrug Capital for making the intro. ------------------------------------------- Timestamps: 0:00 Steve’s Arrival to Duke 2:00 Did you always know you would be a success? 4:35 Steve’s Big Break 6:32 Lessons from Steve’s Mentors 8:44 How to Retain Humility 10:14 Downside Protectionist Mindset 12:15 What does “high performance” mean to you? 13:00 Steve’s Investing Style 13:58 Full Trust vs No Trust 14:55 Recession Predictions 17:48 Steve’s Biggest Win/Loss 25:02 3 Reasons Bain is Successful 28:11 Biggest Challenge in Scaling to $160B AUM 31:47 Disagree and Commit 32:31 Building Business vs Building Sports Teams 36:15 Dealing with Media Scrutiny 37:58 Why Money from the US is Pouring into European Sports 41:32 Will we see $50B football clubs? 43:03 Steve’s Plan to Buy Chelsea FC 46:22 Hardest Part About Owning a Sports Team 48:00 Steve’s Risk Mindset 49:30 Secret to a Happy Marriage 50:17 Steve’s Favorite Book 51:04 2023 Macro Predictions 51:47 Is Gen-Z entitled? 55:28 What do you know now that you wish you’d known earlier? 55:54 What do you look for in emerging managers? 56:32 Steve’s 5-Year Plan -------------------------------------------------------------- In Today’s Episode with Steve Pagliuca We Discuss: 1.) From Duffel Bags at Duke to Buying Sports Teams: How Steve went from having a single duffel bag arriving at Duke University to entering the world of private equity with the founding of Bain’s PE funds? Did Steve always know he would be successful? What does Steve think about the importance between luck and timing? How did Steve’s mother impact how he approaches parenting and self-belief with his children? 2.) Buying Sports Teams: Not So Different to Companies: When buying and running a sports team, what is the same, and what is different from buying and running a company? What is Steve’s biggest advice to new owners of sports teams? What are the single biggest mistakes sports team owners make when they buy a team? What happened with the Chelsea bid? Why did Steve lose? How did debt change the deal? 3.) The Future of Sports Ownership: Why does Steve believe we have seen a massive rise in American and private equity buyers of both global sports teams but also European sports teams? How has “new media” changed the inherent value that can be placed on a team? Why does it change the value? Which forms of “new media” are most important? How much further can the value of these sports teams increase? Does this massive increase in the price and assets of certain clubs not lead to a massive inequality in sports? What can be done to prevent this imbalance? 4.) Steve Pagliuca: The Person and Capital Allocator: What is the single best investment advice Steve has ever received? How does Steve think about his relationship to wealth today? How has it changed over time? What does it take to have an amazing marriage and be at the top of your profession? What were 1-2 elements that made Bain able to scale to the proportions of AUM that they have done? What would he have done differently? ----------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Steve Pagliuca on Twitter: https://twitter.com/StevePagliuca Follow 20VC on Instagram: https://www.instagram.com/20vc_reels Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com --------------------------------- #StevePagliuca #BostonCeltics #BainCapital #harrystebbings #20vc #privateequity