more all sat down with bloomberg businessweek to talk about trends. before we get to that, the

focus on real estate. we begin with what could have been one of the largest real estate stories of the year. amazon pulling out of its plans to build a second headquarters in new york city across from where we stand right now. is pretty amazing. i feel like this played out like a reality show. >> it really was. politicians,l national politicians, the world's biggest company trying to move to new york and ultimately saying it is not worth the trouble. >> you have cities and states courting big companies, giving tax breaks. we seen this story before. it often works out with the state settling with the best incentives. what happened? >> ultimately, amazon and the mistimed their

political moment in a big way. in the district next door to this one is home to alexandria ocasio-cortez, and the local politicians in this district, state council and senate opposed this deal. carol: jeff bezos never really showed up, did he? he sent other folks to negotiate with new york. why didn't he show up? >> after the political firestorm, there was a series of meetings with the new york city council and jeff bezos did not make an appearance. those executives were on the defensive. they had to not just defend if the deal to move to the city, for facialwith ice recognition technology, the company's position on unions and worker quality of life altogether. they found themselves having to justify amazon itself rather

than just the real estate deal. carol: we've had over a week to digest the story. what does it mean more broadly for commercial real estate for companies looking to come into a city and the idea of incentives? >> the de blasio administration is frustrated because they said going in we will not do tailor-made subsidy packages for companies and they didn't. the majority of these companies came from the state, came from governor andrew cuomo so they felt they were doing their part to protect the city and they are getting a bad rap. specifically to the area, long island city is already booming. it had a few dredges and shall boom -- residential boom. a lot of developers worry about a glut in housing there and amazon could have been a one-stop shop to solve that problem and now, that is reemerging again.

carol: i wonder if they was a ripple effect in other states. big tech right now is on everyone's radar whether it is regulatory oversight, and their growing influence, i wonder if there will be a backlash against other big tech around the country. deal was coming together, we saw representatives from seattle coming to new york. here is what happened to our city when we became in amazon town. has been seen for tech more broadly and the housing pressures and affordability pressures there. carol: which is exactly what amazon was trying to avoid, right? repeating those problems. >> people looked at new york as a city that was already quite expensive, maybe didn't need this added boost. i'm not sure this would have played out the same way if they went to a secondary city. you have to wonder if they are wondering if they should have played it differently. carol: an amazing story.

caleb, thank you. riggs is here with another look at the amazon story. we know amazon is not expanding into your -- new york. it will develop its footprint elsewhere. -- charte have a shark showing how the composition of their portfolio is made up. datacenter foron amazon and this is their office space. the blue in office space has been a bigger portion of the real estate portfolio. in 2019 how to see that changes after they pulled out of the second headquarters in new york, focusing on nashville and virginia and some of their physical stores, as well. they have been mostly online and are trying to bring in that footprint but a big blow to new york in some of that real estate portfolio.

carol: taylor riggs, thank you. next, we asked the owner of the washington wizard how northern virginia landed amazon's other hq to. hq2. plus, the nba's marketing team. about the talks growing cloud of smoke -- social media in the league. this is "bloomberg businessweek ."

carol: welcome back to "bloomberg businessweek." i'm carol massar. join jason kelly and me on bloomberg radio. check up on our daily show on our podcast at itunes, soundcloud, and bloomberg.com. you can find us online at businessweek.com and our mobile app. "bloomberg businessweek what" was in charlotte north carolina for the nba all-stars technology

summit and one of the most influential names there sat with us to talk about the many hats he wears. of chairman and ceo monumental sports and entertainment, owner of the washington wizards, and owner of the capital one arena in downtown washington, d.c. started by talking to us about the explosion of e-sports. >> the nba is a platform that is no different than google or amazon. a corporate structure of the league, multiple apps, nba, league, and, summer our data that we generate is deeper, more real-time than anything you cover at bloomberg in business and industry, some just as your company grew as a platform. it started from a small group

and is now a gigantic media company focused on financial services, i believe the nba will continue to grow on a global basis. jason: that didn't happen by accident, right? it's just around the corner from other legs. -- leagues. >> we did the deal with commissioner stern. we call him commissioner.com. he started the tech conference. it is one of the most important industry events. everyone in technology wants to our game, our sport, is the most valuable data in the whole media landscape. to older relevant --

people. i call this modernist altra. -- modern nostalgia. i walked by and saw kareem abdul-jabbar. i grew up with him and it is relevant to millennials, it is very relevant to the next generation, the gen z who will never get cable, who want to interact with entertainment and stars and we are leaders in e-sport. i've personally been making huge investments into e-sport. carol: how big is that market going to be? how big? >> it started globally. it didn't start in north america or canada. it is something that started globally and it is free to get

started. made an investment in fortnite and it is the perfect communal game. kids getting together and playing a game, five on the island and talking with their friends. jason: did that become bigger than you thought? that has become a juggernaut. did you anticipate fortnite. >> yes. [laughter] jason: what is it about it? people off lot of guard. not you, apparently, but to a lot of people. >> the management and leadership spent a long time in that industry and their founder ceo really has a good touch with the publishers and the studios and understanding what is going on,

but what he was able to do was make an exchange. i will give you for free a real communal piece of software that will activate friendships, activate feeling. firstk it is the multiuser game that was designed that would be easy to follow. carol: catch more of our conversation in our bloomberg businessweek extra podcast. find it wherever you download your podcasts and at bloomberg.com/podcast. amy brooks is the nba president of marketing and operations and is the chief innovation officer. the league inut bracing social media and the importance of technology in the game. only 1% of our fans globally will ever come to a game. 1%. such a global sport. we have to bring technology.

our players embrace social media and they are great global brands among themselves. we do every thing we can to capture the game and send it out globally. jason: and want to ask you about that because the nba has done a phenomenal job with developing those, giving the players a little faith. how do you balance that because you've got big personalities with a massive most -- social media footprint? >> we see our games on tv as meals and social media and the content as snacks. our players are out there developing content, our teams are developing content and our legs are developing content. could have 105 million followers among players and teams in the league and our job is to engage fans globally. testing and learning is a big part of that. carol: talk about the process because you traditionally go to

a game, you've got women, e-sports, streaming. where is the biggest growth potential? the in gauging site has a lot of potential and our other leagues, we have our nba 2k our g on twitch, -league, we are allowing people to vote for the mvp and that mvp can take questions. carol: we talk about e-sports a lot and they talk about it being a billion-dollar business like 2020. pers the biggest growth? a potential to internationally which is harder with the nba. jason: i think you were just in china. talk about that as an opportunity. what are the challenges? it is obviously a massive market.

>> 300 million people play basketball there. we have 640 million people watch the nba there. phenomenal partners. i was amazed. people loving basketball. it is the number one team sports there. the challenge is how far away it to but we are focused on how capture that marketing unique and different ways. so they so tech savvy just love consuming nba however they can. carol:, the sacramento kings owner and software entrepreneur on the nba's future in the arena. players aren't too worried about being replaced by robots and maybe too many workers shouldn't be concerned, as well. we hear from a leading venture capitalist and how the smartest machines are actually the creators. ♪

carol: welcome back to "bloomberg businessweek." i'm carol massar. you can listen to us on radio on sirius xm channel 119, and on am 1130 in new york, 106.1 in boston, 99.1 fm in washington, d.c. and am 960 in the bay area. in london on dab mux 3 and in asia on the bloomberg radio plus app. the biggest names at the nba all-star technology summit held recently in charlotte, north carolina. one of them, sacramento kings owner and tech entrepreneur vivek ranadive. vivek: very blessed to have leaders who have always been on the cutting edge and we see our sports betting as opening a whole new avenue of entertainment, engagement, and opportunity for our fans. jason: let me ask about that

because we hear constantly from owners, and it feels genuine, how much they like the leadership at the league. i'm not sure that is true in every sport. what is it about the leadership of this particular sport? vivek: they've always been on the right side of history. if you look at all the issues we have faced, david stern and now adam silver, gave has not been afraid to step out and be on the -- weside, even being pulled the plug on that a few years ago when we felt the laws were vindictive toward certain segments of society, so our leaders have not been afraid to step out and do what is right. there has also been a recognition that it is all about the players. in our league, we are inclusive and we talk, and we welcome ideas and we are open, and then

we are also the most technology savvy league in sports. add to that a global outlook, so we are the league of the future. when i think of the other sports, they are legacy sports. carol: you are not afraid to step out, either. a widely watched and circulated where there was unrest, protests in sacramento, you have been instrumental in providing that area. what is the role of owners in this environment? issues, political social issues with people on both sides. vivek: to be an owner of an nba team is a privilege. it is an honor, but it also comes with challenges politically. to me, using that as a platform to make a difference, have an impact is really an obligation

and responsibility. when i bought the team, the first thing i did was lay out a mission statement for the team, which we do in silicon valley. it was to build a winning franchise. it starts with winning and it enhances the lives of those it touches and makes the world a better place. i make everyone repeat this statement, whether you are a coach or player or in the business office. everyone has to embrace this mission that we want to win, but we also want to do good in the world. jason: when you think about players, this is a constant theme and you alluded to it. it is all about the players. they have amazing platforms on social media. they are emboldened by owners like you and the league. how do you strike out that balance between being a cohesive team and allowing these careers and these brands to blossom? carol: and be profitable? vivek: right. it is like conducting a jazz band. the old model was a sousa

marching band where everybody march to a single drummer in a robotic fashion. today we have a jazz band. you are the conductor and you have different players and you have to make each of them feel like they can do their thing and at the end of the day, make sure it all comes together as music. think of nba as jazz. carol: what has changed in the ownership of a team over the years? just curious, owning a team, what is different? vivek: i think what has happened is -- the first and you do when -- 18 is that the team belongs to the fans, the community, and even the media. what we have seen is a new generation of owners who are very tech savvy, that are socially aware and able, and they share this desire to have a lot of fun with it and also do

good. carol: technology was a big scene at the nba tech summit, a reminder that data and automation are making their way to all aspects of our world. that lead to a round of worries that robots will replace workers. in the economic section of the magazine, we dig into why automation doesn't have to be such a scary concept and may create demand for more workers. jason and i caught up with insight venture partners managing director. >> in the general economy, we are used to something on the order of 2% inflation every year, give or take. that his prices increasing but in the technology industry, we are actually in most sectors, there is relentless extraordinary levels of deflation. a 1981, if you wanted gigabyte of storage, it would cost $500,000. cents.it is five when prices decline that much,

sometimes new business models can be unlocked. poolsew polls of labor -- of labor. the internet allows technologies etsyup work or at se -- to allow people in hard-to-reach places to participate in the system. that can increase the amount of labor per capital, and software itself in general is becoming a much larger portion of the economy. in some of the other large orustries like banking telecommunications, there were a handful of large companies that emerged. in software, there is a large number of extremely big companies that are being and even in industries like entertainment and retail, you'll have companies like netflix or amazon, which are will takeompany like, over more of the industry and software is very scalable.

in the old days, you would have technology, a machine and a handful of people could use it to be productive. software, you can build something like gmail and put it on the internet and a billion people can use it to be more productive. the racial of capital, the labor can favor labor in those scenarios because a smaller amount of capital can make more people productive. carol: that helps explain this environment. conversations about trying to understand why is it we continue to have this strong labor force, no signs of inflation, and this might help explain it. >> there certainly is a lot of software technology that is a substitute product for certain types of labor. an economic context, people talk about substitute goods and calm entry goods. the substitute good is where a new technology emerges, you might remove a paperwork role. carol: or getting a car. i don't have to call someone to get a cab.

i can do it uber or lyft. >> cars are an example of a continent three good. -- complementary good. if battery prices go down, cars that are electric can become more valuable. similarly, certain types of software and technology, as they go down in cost, the human labor that is the complementary task like judgment can actually become more valuable. machine learning, which allows predictions to come down in cost , can cause human judgment to go up in value. carol: for more on our chat, check out our bloomberg alsoessweek extra podcast, on bloomberg.com/podcast. next, more from the nba all-star tech summit. also, how blackstone became the world's largest landlord and caught the attention of its peers. a story you need to hear before

deciding whether or not to buy a home with solar panels. this is "bloomberg businessweek ." ♪

influential voices from the nba all-star technology summit. and be a great greg hill and philadelphia 76ers co-owner and head of tech ops david blitzer. speaking of blackstone, in the real estate issue what has come

to be known as blackstone's real estate model. giant made a strategic turn to real estate and others in private equity are following. we spoke to reporters stephen gandalf. -- gandell. >> you go back, and they have had real estate investments for a while. it was small, maybe a quarter of the assets. private equity was 75 billion and they had 20 billion in real estate. then they get prevented with this deal to buy these equity properties, a $39 billion deal more than doubling the size of the portfolio. theyt immediately after get it, the signs are flashing red. but they still are able to get a number of properties at the top, make a lot of money. and then pick up a ton right after the financial crisis. billion, it is larger than

the private equity firm -- portfolio. it has become a winner, such that everyone wants to do the blackstone model. jason: it is amazing, that was the pivotal year. i member in 2007. as you say, the primary architect of all of this sees everything that is happening and is literally selling while he is buying, offloading that. >> could have been a disaster. jason: turned out to be the best. and then he follows up by buying stilton at the peak. again, for a couple of years that looks like the disaster. >> and then single-family homes. jason: let's talk about the. -- that. >> i think it was a successful play on interest rates. this early on that they should produce a portfolio which they

did not think they could because of the logistics of it. they get an 8% yield or a yield thate that if you thought interest rates were going back up to five would not have been attractive, but they saw this low and new they had an opportunity in front of them. others have not been as others have merged, others have moved on. it is just there march the real estate sector. now they are going through properties in the far east, buying logistic types of places to make a play on amazon. and they are using that to leverage that back to the private equity business. hell to deal was perfect, they are using that knowledge across teams. against otherave people going to follow, they have 900 billion total invested. there are 300 billion in dry

powder.our -- they have been able to grow quickly, but a lot of people want it. interest rates look like they are not going further lower. may not be fast, it is slowing down. so the question is whether this gets too crowded. also, this makes them even bigger juggernauts. blackstone is the world's largest landowner. it puts a bigger target on their back for people like elizabeth warren and others. carol: telling us about blackstone. taylor riggs is back with a look at blackstone's real estate empire. incredible, and in that story the tower of seattle sold for $500 million and it is a small peace of the puzzle. are two competing factors going on. one is you have the nerve to get .nto the market in 2008

making a concerted effort to make it to the real estate market. as they know, they have been traditionally more in the private equity side. this has sort of worked out for some of the real estate portfolios have a larger market cap. sort of a huge portfolio. carol: shows how important it is. taylor, thank you. more on blackstone when we talk to the company's head of tactical operation. right now, our real estate focus continues with a story about rooftop solar panel and how a reporter discovered aims can get obligated when buying a home with pre-existing solar contracts. story was thatar she went to go by her first home excited about it, excited that it had solar panels on the garage, like most of us, she was

excited about an opportunity -- carol: to have a green moment? >> to take one more home off the grid, to be part of that. what she learned was that the solar system did not come with thehouse, however, application of the 20th these that the previous owner had had just begun because he had died recently. year obligation difficult the house and she would have to assume that lease if she were to buy the house. there were a lot of complications including the fact the person she brought from had an extraordinary amount of child equipment. -- of electronic equipment. she had to assume of the bill which was in excess of what was --ng and the whole scene things seem strange. she started looking into the nature of this program or this business model, which is called third-party owner solar.

carol: i would want the solar, i would feel like i was doing the right thing. but i don't want that contract, so just come and take the equipment, but it is not that easy. >> writes. -- right. the solar itself was tied to the title of the home. she were to sell the home, everyone down the line would have to. there are a lot of the juliette saly's and particularities about this particular story, one of which is california and some of the laws on the books and some requirements the state has made for homeowners going forward. californiaw home in with limited exceptions has to have solar on the roof if you are buying a solar system at right and putting it on the roof , it is unequivocally good for

you economically. if you don't have the money to put it on right now, you might be engaged with one of these third-party owner companies, the largest of which is called sunrun. that: tell us about company, because one of the great bits of reporting here is that they get right to the ceo and here's it straight from her. this has been a successful company and has taken advantage of this zeitgeist towards wanting to do right when world. -- right by the world. >> because of our cap structure, solar is very complicated. peopler countries, overwhelmingly by solar and are able to do that because the government supports it in a simple manner. if you want to buy and put it on the home, they will pay for that. gibby subsidies upfront, rebates immediately. in our country, if you are in a

position to do that, this neighborhood was north of $15,000. if they had bought outright, it would have been a good deal. you then can claim a tax credit equal to 30 percent of the system in april. claim a credit is less appealing than simply getting paid, so that is one reason, in addition to the size of the credit, the third-party solar is subsequently more popular. it is not prominent in other countries. carol: up next, one of the most prolific sports investors and the atlanta hawks grant hill. this is bloomberg businessweek. ♪

carol: welcome back, i'm carol massar. kelly and me for bloomberg businessweek everyday on the radio, two-5 p.m. wall street time. you can also catch up on the daily show by listening to our podcast. you can find us online and on the mobile app. from the nbaames technology also some sat down with bloomberg businessweek this month. netlist's david blitzer, global head of tactical opportunities at blackstone and a comanaging partner of blitzer sports and entertainment, co-owner of the 76ers. >> each year grow so dramatically, no doubt heard we have some very colorful players that really seem to dominate social media, as well as on the court, so it is fun to watch that engagement, but it is just

going strength to strength. and if you look at the global nature of the game, how that couples with the incredible performance and athleticism on , frankly, it is giving folks at home and around the world what they want. it does feel like the league, and the owners, have not just allow this to happen, but enabled this to happen. how and why? silver and the entire management team at the nba is incredible. they saw this, and they saw the saw thend they connection that could be made between the league and the anders with the fan base, given what was going on from a distribution standpoint in terms of how people are consuming media, and most -- more importantly, where the trend was going. i think they nailed it, and they continue to. carol: it is fascinating,

because this has been going on for 20 years. who thought that this is where we would be today. >> i was just talking to michael rubin who was trying term ever i think he has been on a summit -- the panel at every summit. ahead of the curve. carol: how does technology change the business opportunities? >> it is changing in so many ways. we talk about the social media dynamic about the players connection with the fan base. it wasn't that long ago when joel -embid was talking trash to him. walks over there, dunks on the kid, and it goes completely viral. literally globally. and that was not set up. a, that is joelle, and be that is the dynamic out there right now with what the players can do. so that is one area obviously

from a new arena. what is going on inside is incredible from a technology standpoint. if you gotten see the king's new arena, i cannot wait to see the golden state warriors new arena. systems going of in, the engagement they will have with the fan base is incredible. we are seeing technology change just about everything that we do. i am talking much more broadly. bring it into the sports scene, particularly here, it's great. carol: and it has opened up the rest of the world. >> the nba is the most global game and continues to go strength to strength. we have the pleasure of playing two preseason games in china. i have to tell you it's amazing. a, just the excitement it is driving in china. walking out of our hotel, the people that were around and in the arena, just the numbers, the

sheer numbers are so massive. think about the ability to connect with that fan in northern china from the court in philadelphia or boston or pick your arena. you know, amazing. carol: from nba player to team owner, grant hill has done it all. hall of famer, all-star, vice chair and co-owner of the atlanta hawks, he spoke with jason kelly and i about creating a better experience for nba hands -- fans. on,hen the game is going there's music, skits on the court, it is costly being stimulated, keep you engaged. that it is recognize not just sharing with those with you, you want to share with your entire network. you will be on instagram, on snapchat, to all of your friends whether it is 20 or 20,000. that is how we live, so we have to adjust.

another groupn: that is embraced technology are the players. you have these mega brands, bigger than any other sport. it feels like the nba and owners an eyeabled that with towards we don't know how this will go. guys think about players, social media, and the --nds they are building tech using tech? >> as a league, it starts with adam silver. this technology summit has been going for 20 years. the first of all, just the league in itself and how the league markets of players. you see our faces, it is more about the individual necessary. so lebron james or chris paul, james harden, as a fan, you feel like you know that. michael jordan, long before the

technology boom, he was well known and recognizable all over the world. this only magnifies that in the league has embraced technology and used it to spread its message, but also grow its business. cap players now understand that they can speak directly to an audience, to their fans, i also think it encourage them and contributes to their desire to speak out on things, racial injustice, and we have seen that in our league -- carol: what's the balance? an amazingve platform through your players, three or others. when you speak about social , what is your responsibility as an owner? >> as an owner, you want to be informed. obviously, you want to be authentic. work with our managing partner, and there have been things that have happened in

society during the course of our ownership. one of the things we discussed, speak from the heart. the great thing about the technology is that now you have access. when i play in detroit but something happened in cleveland, i might not know about it. but now, you can find out. you have the ability to learn and form an opinion. whether you are a player or an owner, you just want to be responsible. and i have done that, i'm on social media, i have spoken out. you can go on my page and know how i feel about everything. but it is a balance and we understand and have customers who don't agree your you want to be cognizant of that, but through it all, i do think sports is beautiful in that you can have different sides of the

aisle who may not agree in anything in life. they can cheer and be totally invested in that team. i do think sports can play a role in the feeling. jason: biggest thing that has changed in the game since you were a player? itone of the big things as applies to me is there such an emphasis on rest, on recovery. --is not the biggest thing carol: do you feel like if you have our rescue would not have more injuries? >> there was a school of thought back in the day to keep going, tape it up and keep going.

now, in this department, you think big picture. you would rather rest, take a week off. people resent that, but it is a good thing. carol: up next, rich fall. this is -- rich paul. this is bloomberg businessweek. ♪

carol: welcome back. you can listen to us on the radio on sirius xm and in new dc,, in boston, washington, the bay area. in london, and of course, on the -- app.rg business at paul. talking about rich

we caught up and talk to him about developing nba players as brands. >> the game is everything for us, and that is what we focus on. try to educate new players coming into the league and their families have a realistic evaluation of what is actually available to them. marketing,notion of people sell that, because in their minds, this is what families want to hear, kids want to hear, have your face on tv, and i tell people all the time, there is no brand out there that is going to pay you $200 million, but your team will. notoriety, it's about notoriety, the musas by billboards and put your face of their, and let's focus on the game. the game is everything, it is given ring forth everything. 10, times out of time --

the player is already there. in, you will not have the opportunities available to you that you may think or your family may think. but if your game grows, take steph curry. all, your seventh, mvp, champion, his business grew. that's how that works. everybody can't be lebron, coming in at a time out of contract, just starting, deals to start, but that's timing. think about where the game was at them, the guys the game of basketball lost. he was this new guide. social media hurts opportunities because everyone is a personality today. saw rose and smith and a mcdonald's can assure -- commercial. years ago, that was an athlete. but the brands were not spending money on an athlete as they did

not need to align with someone. everyone's on tv. the smartphone is the new tv. so the three-year partnership of yesterday has become six tweets, to stores on instagram today. that's a six-month deal. carol: for something like lebron who is so established, who has put his heart and soul into the game. what are the conversations you have with him about his brent? how do you -- brand? have you play in that environment? >> since the young age, we have always thought about doing partnerships that align with who he was. we never wanted to get out of that. commercial,atch any the brands he has partnered with was genuine to who he was as a person. every commercial that we did, it told some kind of story. his story, or there was a

message. it was always true to him. what it was samsung, nike, sprite. ,ou never see him do something and even today, i can't get lebron office couch for money. -- off his ouch for money. money doesn't move him. people say, really? you have lebron, how are you get time to make a deal for me? lebron is moving. -- is not moving. one thing you understand is that theyyou have partnerships, don't want stays in the season, they want summer. the more partnerships you have, the less days in your summer that you have. and we understand that. bloomberg: businessweek is available on newsstands now, online, and on our mobile app.

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>> i'm selina wang, this is the best of bloomberg technology. up,lyft ramping up the ipo. samsung releases their most expensive devices taking aim at apple and rising competition frin