Ari Emanuel: On the sports strategy, when you think about the Miami Open or Madrid, if you’ve ever been to the Madrid Open, these guys, I mean one of the biggest attractions, they sell these packages for the food festival that happens outside it. In addition, we’re adding a music festival. So those are not, yes, they’re sports, but they’re really events, cultural events, surrounding the same thing with Miami. So when you think about those sports, as you define the sports, those are actually really events. So sport is the USC, sport is WWE. Yes, PBR is there, but that’s also an event, the country kind of event that travels. So that’s how we think about it. And as it relates to the PGA, remember we had fees going back to, I don’t know if you read all the details of the structure of our offer and when we realized that one prices were getting ridiculous and they weren’t going to recognize our fees, we didn’t want to actually participate.
Mark Shapiro: Yes, just and Stephen I want to elaborate on that because I know there’s been a lot of discussion on this, a lot written about it and just the fact that you mentioned it I think I’m glad Ari responded to that. Just to make sure we level set with everybody because we want to be consistent in in our dialogue here. We’re not even on the TKO side. We are very focused on the integration there and we’re working closely with the Endeavor flywheel to make sure we maximize revenue synergies. We’re not even thinking about M&A. The PGA to Ari’s point, we have a long elaborate comprehensive history with the PGA Tour. Obviously fans and what they do, we represent a lot of golfers, but we represent them and have represented them on media rights at times, certainly internationally as well on events.
We own some sanctions, sponsorship. We have 160/90 clients that are official partners of the tour like DP World. We do their sports betting. We have analytics. So we have multiple, multiple disciplines if you will on commercial services. And so the opportunity was there that hey, would we be interested in making a minority investment being part of a consortium. And by the way that consortium was probably TBD down the line. And all we said was absolutely we would be interested in making a 10% minority investment as long as many of these commercial services deals, those contracts could get extended for $25 million per year. It was an aggressive act, maybe it was unrealistic. We figured it would get shot down. It ultimately did and then we were out of it.
So it wasn’t like we weren’t talking out of two sides of our mouth. We’re not looking to buy the PGA Tour, but certainly if we can have a little slice while we’re getting our commercial services extended at a nice premium, we would do that. That just wasn’t to be. So I think that that context is very important here. Jason can talk about the net income.
Jason Lublin: Yes, Stephen, the net income, one I would point to primarily two items. One being transaction costs associated with the TKO transaction in the neighborhood of $78 million plus and also restructuring costs associated with that transaction in the neighborhood of $70 million plus. So those were big impacts on net income for the quarter, obviously both were one-time in nature and non-recurrent.
James Marsh: Great. Thanks, Stephen. Operator, next question?
Operator: Thank you. Our next question comes from Stephen Glagola from TD Cowen. Stephen, please go ahead.
Stephen Glagola: Hi. Thanks for the question. Ari, as you recently took Endeavor public two and a half years ago, how do you view Silver Lake’s consideration of a take private proposal relative to other potential strategic alternatives you’re exploring? And also, do you think a go private would hinder any platform synergies that you see currently existing within the assets you own?
Ari Emanuel: Since my lawyers are around and you know the answer that I’m going to have, I’m not commenting on anything as it relates to the go private or the review or anything that you’ve just mentioned, but I appreciate the question.
