is bloomberg. we are in boston this week, showcasing the innovation, diversity, and power. we are at boston's historic fenway park. in the next hour, we sit with red sox president sam kennedy and talk about how -- has become

a global phenomenon. reebok is innovating the food industry. theill speak about how company is using 3-d technology for its products. 2-0 intics are currently the eastern conference finals. --speak to celtics president the celtics president. first, our top story. most iconic landscapes in american sports. 106 years old and counting, home of the fabled boston red sox. fenway park. from the early days of babe ruth thee 1975 world series, teambreaking championship -- now the red sox are half of the game back from their rivals to lead in the american league

east. a man who has been with the sox for 50 years and is now their president. thank you for being here. show.y technology talk to us about how you can be at the cutting edge of technology with the stadium like this despite its age. >> we got a lot of young fans coming through the gates and we need to make sure they are connected at all times. whether it is extended wi-fi or distributed -- systems. when people come here, they need to be connected to each other. not just at the ballpark, but to their friends around the world. has spentue baseball a lot of money on upgrading technology around ballparks and interacting with fans through their website and social channels. how do you ensure it

is a priority? you sell out games anyway. fore don't want to take granted that people will keep coming through the gates. we have 3 million people come in every year, not just for concerts,ut international soccer games, football, ice hockey. we do different things to make sure people are coming the same way through the year, and we are lucky to have such a loyal fan base. caroline: different things like what? >> concerts. jay-z and justin timberlake have played here. zac brown band and pearl jam will be here this summer. ski jumping, snowboarding, the celtic football club. we try to bring new and different events to the city of boston. it is great for fenway park and our fans. the company that

oversees this fenway sports group has a stake in -- what are the similarities internationally? i know that back home, we are obsessed with -- soccer as you guys call it. warner, oury, time that it isaking sure a great experience for fans, and to win. you are in the professional sports business to win. fortunately, liverpool is playing the chance in the finals in kiev. ,t is a passionate fan base over in liverpool and around the world. we have learned a lot from international football, as you call it, and we try to bring those traditions to america, to boston. including playing international football games in the park.

we are still looking up at the yankees, but have a way to go. caroline: that rivalry is so important. how are you trying to get ahead? invest heavily in your baseball operations department. our operations manager has done a great job. we are a half game behind the yankees. we have a scouting player , and we aredraft fortunate to have the resources. as many yankee fans know, investing in the free agency market. we try to do both, and it is hard to keep up with the yankees. they had been our rivals for so long, and it is good to see both teams at the top of the league. caroline: you say it is important about investing, spending the money. it has been a weird off-season.

that changing the way people are waiting to spend money on players? does it make a better place for you if you have deep pockets? it was a slow moving off-season around the league, with a few exceptions. we invested heavily in free agency and re-signing some existing players. we have one of the highest payrolls and the game. if we continue -- it may have been a moment in time due to market conditions being a little different. what is available, what teams are able to get through the threshold. we will see how the next off-season develops. if it is a blip on the radar or a trend as we move forward. caroline: how do you ensure the money keeps making enough money to invest in the players? >> you have to be focused on the fan experience.

red sox fans, the smartest fans in baseball, or having a great experience. good,ant to enjoy competitive baseball and other amenities around the ballpark, whether it is kids getting involved in virtual reality, or authentic reality. caroline: so it is tech heavy. yes, but we have to balance that with the fact that sometimes people come to ballparks to be away from screens. to grow the game, we have to invest in technology. the next generation is tech savvy. their mobile devices 7, 8, 9 hours a day. interest what might people -- if they could bet on sports on their mobile devices. i come from the u.k. -- it looks like your supreme court might

allow it to happen in the united states. how would that change the game? >> we will see. major league baseball has been proactive in working with state officials. the supreme court said states can decide whether to legalize it. major league baseball has been working with legislators. we think it will be a good thing. is happening -- there is a massive amount of illegal activity taking place. if the government can regulate that activity, that is a good thing for safety and to make sure the integrity of the game is preserved. and whether there's more fan engagement and interest in the sport. that has happened around the world. i think it will occur, but it is early to see. the supreme court just ruled earlier this week. but we see it as a positive development. caroline: how will you protect the players? >> they need to be subject to

the rules that all of us in baseball will be subject to. you cannot bet on baseball if you are involved, which is obvious. and i think through greater regulation and monitoring of gambling activity, that will be aided and expanded. -- workinge baseball with adam silver and jay monahan to make sure the sports governing bodies are linked and aligned. a cut?e: should we take >> i think it is appropriate for an integrity take fee. there will be a lot of legal costs, intellectual property, the investments that the industry makes to put the content out there. i think that is appropriate, but that is up to the government to decide. hereine: sam, you've been

15 years in excess of. >> i grew up in boston, about one mile down the street. my favorite moment was in 2005, when i was able to give our 2004 world series ring to my dad. that was a special moment. to havee good fortune my career started with the new york yankees in 1990, then i went to the san diego padres. but to come home and work in the town i grew up in has been a dream come true. all ofners in professional sports. they have invested heavily in fenway. i know we will have to go back, but there are fans very interested in this conversation. the president of the boston red sox, sam kennedy. usig thank you for letting

forecast in this historic stadium. we speak with the reebok president. and if you like bloomberg news, you can listen on the radio app, online, and on xm. ♪

caroline: welcome back to a special edition of bloomberg technology, here in fenway park in boston. reebok is using 3-d technology to break the mold. how it is using proprietary software andal robotics to drop shoes in three

dimensions. isthe footwear industry seeing a jumpstart in technology. made selfer adapt lacing shoes a reality. 3-d printing with comfort. liquid factory is making intricate, lightweight designs along with the company's 100% footwear line. is head of reebok future. getting awayy from from using molds like every other shoe in the market, and draw the bottom of the shoe instead. it is like 3-d printing, only much faster. it has been able to streamline production and keep up with consumers. onee went from making million pairs of one shoe in one type and hope everyone likes it, and we are moving to smaller

batches. 10,000 instead of 100,000. and you get closer and closer to custom. >> how is that a benefit to reebok? fastercan get them a lot and react more quickly to the consumers. >> reebok is not alone. , nike, and under armour have also moved into the 3-d printed sneaker game. liquid factory material is proprietary. the process uses computer software and robotics to draw shoes in three dimensions. >> we are faster than the old model now. each bottom unit takes a couple of minutes to put together, all automated. adidas purchased reebok and 2006 for $3.8 billion, then in 2010, began a turnaround to reposition it as a fitness brand

by signing a partnership with crossfit. reebok today is the one unit that remains unprofitable. still, adidas says it is committed to the future of reebok, and moved its headquarters from the boston suburbs to downtown this year. >> the spirit of the company has changed dramatically. we were always an established shoe brand. excitement ofhe this district has the place feeling like a startup. >> it does "feel like a startup," breathing new life into the classic white leather sneaker. joining us to discuss reebok's strategy, matt: tool, reebok president -- matt o 'toole, reebok president. >> i think one of the things we wanted to do is change the

dynamic we were in by moving into the city. we moved into the heart of a thriving innovation district in boston. we occupy 25% of a one million square-foot facility. the rest of the building houses 128 startups. our goal has been to inject life through innovation and connecting with the amazing things happening in boston now. >> do you think it is working? >> i think we have been upon this journey of rethinking the process of making shoes, allowing us to do things that have not been possible before. liquid factory is kind of a crowning achievement. it not only change is a process -- in seconds, but for the consumer, we can create one of. they fit your cushioning needs and stride, completely different from the next shoe.

ability to do the that. what you see in customization is colors, materials, style, but from performance point of view, this is important. caroline: the consumer is clamoring for customization. do you feel like this is a good time to be in fashion? movingconsumer is quicker than ever. they want it right away. innovation gives us the opportunity to do that. the customer is also focused on the environment, sustainability. how do we make shoes entirely out of things that grow, so that they can become biodegradable? today, every athletic shoe is made of some petroleum product. it cannot biodegrade in a short can we push that envelope?

, we start the cotton and corn initiative. caroline: what people also love is boutique workouts. spending a bit of money on themselves. weretime we spoke, you really focusing on crossfit and the gym. do you think you own that market as much as you should? >> i think it is such an important focus. there's any for people to move, that there's not a lot of things keeping people coming back. what we've found is that the secret sauce has been communities. crossfit, or a spin class, when you have a community that is in gauged that really works and is the kind of partnership we are focused on. caroline: any other ones you are looking for? --we are excited about the relay, people taking turns running in eight 100 mile race. inis a great bonding event

what would normally be a solitary event. -- how is your business, revenue was declining in the previous quarter. but your owner, adidas, is committed to you. >> i think the good news is that in 2018, the u.s. market is set to grow. we have seen good momentum and the rest of the world. from a profitability perspective, we have raised our margins by 400 basis points. the trend is right. we are in the middle of a four-year turnaround, and it ultimately comes back to us toivering on our strategy, refocus on our business beginnings. we started as a women's fitness brand, the first ever women's fitness shoe in the 80's. ourselves tomitted being outstanding in fitness, running, training. was the: but it

training and running that led declines in the previous quarter. what is turning the u.s. around, then you harness that you can ensure it has trodden the same path? >> the consumer is looking for authentic stories that are relevant not only to today, but fit to brand's dna. we have such a brand -- such a rich history of classics. along with our current fitness crop it is really what is making a difference. caroline: what about your owner, adidas. they say they are committed and there's no sale at the time. would it matter to you if you were sold? helpful for us to be part of such a powerful global company, whether from a digital or distribution perspective. our ceo, who has been on the job for almost two years, took a look at the portfolio companies

of the business, but has remained committed. you will you think continue to span out? it is clearly fiercely competitive when it comes to the shoes you look at wearing at the gym. >> it is technology. we have to continue -- we have done it in the past with things like pump, dmx technology. beenlobe right shoe has awarded -- we have to stay ahead on the technology side. caroline: we will come back and hear from you in the future. thank you, indeed, president of reebok. later in the show, celtics rising. teamegendary boston sports on the cusp of the nba finals. our chat with the celtics president. ♪

>> now to a few headlines grabbing our attention. goldman sachs says tesla may need $10 billion in funding by 2020. that is to pay for operations, new production, and an unlikely expansion into china. elon musk has been cutting costs. has gotten regulatory approval for cell of its memory chip business, clearing the way

for the $18 billion deal with bain capital. missedl had previously earlier deadlines for clearance as the company waited for chinese antitrust authorities to make a decision. -- struck its first deal in the u.s.. kroger agreed to buy a high forent stake in the company its exclusive technology of distributing groceries. -- plan to open 20 robotic warehouses. planned -- expand its delivery service to more than 100 metro areas this year, with delivery handled by services such as uber. we talked to rich gotham, president of the boston celtics. his team looks to continue its stunning playoff run. that is next, this is bloomberg. ♪

♪ caroline: welcome back to "bloomberg technology. coming to you from the home of the red sox. at historic fenway park. for now, we turn our gaze to another electric team in the midst of a stunning playoff run, the boston celtics. they weren't supposed to get this far, especially missing layers.o best but it are just two wins away from another nba finals appearance. and they're doing it while beating lebron james and the cavaliers. joining me now, one of the chief architects of this amazing run, rich gotham, the president of the boston celtics.

welcome. rich: thank you for having me. i like your office. caroline: what a historic run. how do you feel about his next games? rich: i feel pretty good about it, our team is playing very well now, continuing to defy expectations. cleveland'sting best, they will not go down without a real fight, so we expect to have two really difficult games out there. if we get one of them come i will feel really good about that but we would love to get both. our team is on a nice role, playing with a lot of confidence0 what is behind the confidence? rich: i think it is a lot of things coming together. this team has a special vibe and special kutcher that they have had all your long. they are really resilient. the coach is still the lot of belief and instilled in them the belief that they can do it.

we have a lot of talent and the team commander couple of guys had to get hurt in order to see all the talent surface. people that jason tatum come a young guys who are really getting their first chance to show what they can do on the big stage. . they have really grown into those roles our offer has been a great player, a great leader on the team. so i think it is a lot of things coming together at once. caroline: when you are missing two of your top players, how does that affect the franchise? rich: it really hasn't affected business this year, we have been on quite a roll without them fortunately. -- the celtics are great brand, we are one of the truly global sport brands and i think we have a bit of a recession-proof quality to us. because we have such a large, global, loyal following. so the team doesn't tend to go

up and down as much as business performance. and doesn't tend to twist in the wind with a win-loss record or layer injuries. it has been a pretty steady state and this year has been nothing but growth. caroline: is about stoking loyalty and keep the fans engaged. the nba is on a roll with one billion viewers internationally. how do you harness that? how do you use technology to engage with us and norman's fan base? rich: we are running some great fans -- we have some great fans in the nba. people, digitally savvy it is a game that can be played by both genders, nonviolent sport. a lot of trends are in our favor by probably the biggest is the exposure to digital. content globally it allows us to anywhere.h friends usually, you follow the team in your state or your city, now, we world.ns all over the we have more facebook followers in the philippines than we have

in the greater boston area. not to mention the nba fans in china. we get 20 million video views a month through content that the boston celtics produces here in boston. and pushes out globally. so that more than anything, is what has really fueled the growth in the nba. our players are really savvy in terms of using the digital technology and social media. caroline: to brand themselves rich:. that's right, they really do. that has really helped to grow the game very well. out of that is feeding into the bigger macro trend of the value. television ratings are growing up, and not only television but also streaming, without detracting from television ratings. so it has really been a great story. and we are really reaching that groups,get 18-30 four the young people who tend to be distracted by technology. thatould think that with it would go down but it has

really grown for the nba. caroline: making the old bat come i know that is what is happening in the united kingdom where it is legal to bet on sports, but it might even be a legal here in the state soon, how is that affecting the nba? rich: it has been happening in the shadows, so i'm not sure how it changes things when and if it comes to light. i think that at the celtics, we don't have a fully formed point of view at this stage, we articulate our cue from the nba who has been looking at this issue for a while. and believes that there should be some amount of federal regulation. caroline: a cut to the sports, she did get some money if it does go legal? seen.it remains to be i haven't given much thought to the trickle down economics of that. we are right now and in the middle of the season and we are playing some big games. we don't have much time to focus on anything but the next game? rich: focusing on the next game is all about training and practice.

talk. to us about the practice arena. this is very you are putting technology in the forefront as well? rich: yes, we are embarking on an new practice with somebody that will. come out in june we will have a state-of-the-art athlete performance center. we are building this out to accomplish that goal and hopefully he will give us a competitive advantage. it is all about getting athletes to their peak performance, and strengthening and conditioning, rest and recovery, nutrition and first and foremost, injury-prevention, which is the interesting area to apply technology. because you need a lot of data to be able to crunch a lot of big data. and we are partnering with ge for that, on a project to understand how we can better predict one player injury might occur. we also have their badge on our jersey? rich: there is a company which is all about helping players by collecting data.

how about the players, with they like to monetize their data in any way? to --that is a subject that is subject to play her consent. those things have to be collectively bargain between the players.d the we haven't really thought about what to do with the player information, other than to help them stay healthy and be at the performance. but you can imagine -- at peak performance. with that kind of data, it's a .ot of ways for players to engage with the game such as how many miles they run during a game, their heartbeat, you can envision that some day, that could be very interesting to people. caroline: what should we be looking for on that day, one element we will be keeping a keen eye on for a man who knows the business and knows the team? rich: i think that as with the second game, we have to be ready for them to come out and give us everything they have. if we can hang close early in the game, i will feel good.

i think we have a shot to beat them. that is what we look for going into that game, and it will be really indicative of how it will go. caroline: we are all going to be viewing. thank you very much, wonderful to have you here. president of the boston celtics. to, youtube is getting ready launch its new music service as soon as next week. itsay 22, youtube will spin music service often its youtube brand offering. or will be two versions, one paid and one ad supported if a not include. background listening and download. youtube to us compete with the likes of spotify when it comes to music streaming. in the world of wearable technology, this company has become a stand out with professional athletes and tech leaders such as jack dorsey. we will speak to the ceo next. and coming up, because last sports betting is no longer just for places like las vegas.

we look at how it will impact the online gambling world. this is bloomberg. ♪

♪ welcome back to a special edition of bloomberg technology from boston's fenway park. up -- this startup manages

to collect an amazing man of data with its wearable devices and they have gained a lot of fans and investors from the tech and ports world around the. way. that is bring in our next guest, the ceo of loop. talk to us about the product. >> we just launched yesterday, the membership which will bring this technology focused on human performance, to a much larger audience. so, with a membership, you will get the hardware, the strap, it timeseasure data at 100 per second, it will give you this -- on exercise and recovery and sleeps, ultimately preparing people to perform in their daily lives with this membership as well, there will be weekly reports to give analytics, whole

membership services where you can get additional feedback on your information. and you will be part of a community which includes professional athletes. caroline: who are the athletes that use the product? >> you will have to find out on the community, but we work with every sports lake, we just became the official wearable sportsr major associations. it has been a great year in the nba, we do a lot of work with the nba, and the technology was really grounded to work for the best athletes in the world. caroline: what can we see in terms of the monetization of such data? when you have the best athletes in the world using it, are they able to use it not only to see their recovery at peak, but also let the world know there secrets with the data? will: yes, you recently saw the

court ruling on the supreme court on gambling. i think it is a way that the players can start monetizing their health data. our membership with the sports association was grounded on this being able to provide the data from the best athletes in the world to the fans. there was only 30 years ago that professional athletes started lifting weights. now, you can't go to a hotel in america that doesn't have a jim. a lot of that story -- doesn't have a gym. a lot of that story came out of those stories that were brought to the masses. so i. with.is happening recovery and with sleep you will learn from the best athletes how to recover and sleep properly. caroline: i think what is really interesting is you don't only have athletes but also fortune 500 ceos. what are the things they're learning from their data? will: much in the same way that you need to be at the top of your performance as a professional athlete, we are working with performance

executives who want to perform in their daily lives. a lot of it comes down to recovery and sleep, but also other things you are doing in your life. things like meditation, can that help? travel, can that hurt? we work on them on how they can deal with jetlagged to see how it can minimize the effect of what -- how to minimize the effect it has on their body. caroline: does that include changing times of flights? yes, tenure exercise appropriately, thinking about her early you get into a city in order to recover properly, a lot of that is the work that we did originally with professional athletes. as a general role, dudley obama takes this information that we learn from the best sports teams in the world, and we use that information to help a larger rule,ce -- as a general

whoop takes this information that we learn from the best sports teams in the world and we use that information to help a larger audience. data is 100 megabytes of from one person per day, and it is much more accurate than anything else in the market. this is not doing phone calls or calling an uber, it is collecting health data. giving you an understanding of your body that can help you perform at a higher level. caroline: what do you think the next innovation is, is it more granularity? will: we will continue to invest in our hardware and our data. i think you'll see a lot more approaches coming in that regard. flexibility in terms of how to where the technology in your body. i think that analytic some of the backbone of what you need to improve, will keep driving you. caroline: will it be on your clothes? when you say that it will disappear? will: will have to see, there is lots to come. caroline: how do you look to

broaden the base in terms of membership? you are charging a relatively expensive upfront fee, and a cheap monthly basis. where would you like to be in the marketplace? will: membership is $30 a month, the equivalent of one fitness class a month. in turn, you're getting a coach on your body. so how do you make the most of that one fitness class? in a lot of cases, people are spending $100 per training session with their trainer. whoop can augment the trainer as well. a month seems quite affordable for the training service, but historically, we have charged anywhere from 1002 2000 dollars a month for athletes at the professional level. so we have seen a great response in the last 24 hours to this great offering. and we are growing fast, so it is exciting. caroline: what is a great start?

you said you had a great start, what is that, do you mean in the numbers? will: we mean that a lot of people are buying the product and are exciting about rush etc. about it. we don't expose the numbers publicly because we are private company, but it is an exciting moment for us as a start appearing boston? will: it has been great. caroline: we will see you next time, think it's a much for joining us. will ahmed, ceo ceo of whoop. this is bloomberg. ♪

♪ caroline: welcome back to bloomberg technology. coming at you from the home of the red sox, historic fenway park. the supreme court ruled on monday that states can legalize sports heading, big news for our

next guest and his company, draft king. an online website that allows you to bet on sports. the ceo estimate that americans spend about $150 billion illegally through offshore betting venues. we caught up with him earlier this week to get his story. we have a product we have been working on for almost a year, we are very excited to bring that to market and we are looking forward to having sports betting come this fall. caroline: you have really lined yourself up to get advantage of this? guest: yes, for us, the opportunity was too great to not be prepared, even though we didn't know what the outcome would be, we thought that the upside was great that we had to be ready for it. the day that we heard that the court had picked up the case, within 24 hours, we were off to the races on working on the product. caroline: pretty sure that new

jersey will get going pretty swiftly on this, where do you see the rest of the state starting to enact this and make it legal, sports betting? several have already passed laws, including pennsylvania, west virginia and york. my guess is, although i don't know, they will probably try to make sure their regulations are ready for nfl season. i think the other states still in session are considering the bill, for legalized sports betting, you will probably see a handful of them working on it, courtat we saw how the landed, they will be getting for the nfl season as well. caroline: how do you keep fans engaged? jason: a lot of what we have built already is pretty applicable from the ai systems, that target the sports affinity and data, a lot of it is just thing.se

the product of sports betting itself will require a lot of work to make sure that we're the best in the market. there is a lot of innovation that will happen commanded think where are looking at today is not going to be whether products now.like four years from so it will have to work hard, but we have the advantage of a lot of technology that we have already built for fantasy sports, that can be repurposed for sports betting. caroline: and a lot of that technology was built right here in massachusetts. do you think the state that there is -- there is not much talk of them embracing this comedy think they should? jason: well, just yesterday there were coming from the governor the indicated that this is something they wanted to look at. there is a chance that it could be discussed, but i think massachusetts has proven itself in a number of areas to be very much a hub of technology. think there was real opportunity for them to take ownership of the sports technology space. hopefully become the leading

space for that, a space that sports technology companies can find a home. caroline: heavy build an ecosystem to a certain extent? you have a lot of talent based here, has a other competitors to your front door? jason: and has certainly helped. i see a lot of startups here, and our a lot of companies we work with that of talked about opening a boston office. i think it is helped, but really it is more about policy makers the aggressive. .nd i think this is a great example of an opportunity there will be early movers come in new york and others in the area, so it is important for massachusetts to stay competitive. caroline: you're talking about ai being something they have a readied developed. what other technologies are you looking at? jason: a lot of what we do is similar, anything from taking acquisition.tomer a lot of that sounds like a dozen have a lot of technology underpinning but it does.

there is a lot of work to be done to process tens of thousands of payment transactions per minute in the moments before and after an nfl game starts, when everybody is trying to get their deposits in. one we are running on dozens of different mobile networks, buying across many, many different channels, having a data environment that tracks -- and tracking systems in place, there is a lot of underlying technology we have built in those areas, and we are always adding to that as well. it is always changing, so we have to keep up-to-date. caroline: with what about going public? do you see that within the next year or two? see.: we will have to how quickly the market develops we feel like there is enough traction and stability for us to be a public company, then that is something we will look at. caroline: until that couple of years, what is the focus now? i feel like every ceo tells me that it is the war of talent. where do you really apply your time? .ason:

talent is really important we are always looking for great talent, especially when you're entering a new vertical come at you have to help you in that. we have made several hires in that area. . also, building a huge technology platform. we home grew most of our fantasy technology, and the goal is to do the same thing with sports books. we went to make sure we have the best technology platform out there, and i think we have a very talented group of engineers, and they are all getting educated on this as well. and also continuing to work with policymakers. not just here in massachusetts, but in a way that allows for innovation and allows for good product for consumers everywhere. caroline: that was our conversation with jeff king's ceo jason robbins. that does it for this -- draft kings ceo, jason robbins. tomorrow, we will be at the headquarters of mass challenge, a startup accelerator making a big impact here.

that is all from now from boston's fenway park. this is bloomberg. ♪ retail.

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♪ >> 10 year treasury yields pushed to break through .1% with renewed confidence in the .conomy -- 3.1% >> the russell 2000 hits an all-time high. >> postretirement income in sisterly and during population is growing. >>