I'm here inside Building 32 on the campus of the Massachusetts Institute of Technology for the second annual MIT Sloan Sports Business Conference.
There are quite a few interesting panels scheduled for today, and I'm going to try and blog on a semi-live basis.
Just finished listening to the keynote speech from Wyc Grousbeck, the managing partner and CEO of the Boston Celtics.
While I was expecting a speech filled with wonky points about analytics, ticket data and marketing -- and there was some of that -- Grousbeck actually spoke more about emotions and gut feelings.
He began his speech by playing a rousing promotional video featuring highlights of the Celtics this season. Dunks by Kevin Garnett. Flashy passes from Paul Pierce. More dunks by Kevin Garnett.
"I've seen that 60 times...I love that video," Grousbeck said.
He then read from an article by John Updike published after Ted Williams' last game with the Red Sox. Williams, if you recall, hit a home run in his final at bat, leading Updike to opine on the often illogical way fans believe they can affect the outcome of a game or "will" something to happen.
"We're all searching to be that part of history," Grousbeck said. "With sports, there's an emotional connection...it can be deep....its not just recreation or an affectation."
Grousbeck said he has learned to use that feeling when making business decisions, using data and analytics only as a tool. He said his decision to keep Paul Pierce was made largely from the gut.
"I just looked at Paul and said he's a Celtic. I loved the guy," he said. "Data is a tool, it's not a replacement for your own intuition. I know you'll spend from 9 a.m. to 6 p.m. today talking about the data. This is my way of striking a balance."
Grousbeck did offer some unique insight into his decision to be the lead partner in buying the Celtics in 2003.
At the time, he said, the rumored value of the franchise was about $300 million. (The Mavericks had been sold for slightly less; everyone figured there'd be slight premium on a Boston team.) Because the Celtics were part of a public company at the time, Grousbeck and his partners did anl analysis of the team's financials. He found that the team had cash flow of about $23 million. Based on that, he determined that he could raise $180 up front and take on $180 million in debt, which averaged out to about $11 million per year. That would leave $12 per year to reinvest in the team, pay down additional debt or save for a rainy day.
"I did a 90 second evaluation on the biggest decision of my life," he said.
