1
00:00:00,160 --> 00:00:01,720
Speaker 1: At the end of the movie Blue Chips. It's a

2
00:00:01,880 --> 00:00:05,240
Speaker 1: very famous sports movie Nick Nolty plays. The came out

3
00:00:05,280 --> 00:00:08,600
Speaker 1: in the early nineties. Nick Nolty plays a college basketball

4
00:00:08,640 --> 00:00:13,880
Speaker 1: coach in Imaginary College, and there's very famous basketball players

5
00:00:13,880 --> 00:00:17,880
Speaker 1: in Shaquille O'Neil, Anthony, Anthony Hardaway, Matt Nover who is

6
00:00:17,880 --> 00:00:22,040
Speaker 1: a star at IU, and the coach is sort of

7
00:00:22,079 --> 00:00:24,840
Speaker 1: in the mold of Bob Knight. It's pretty clear that

8
00:00:24,840 --> 00:00:28,480
Speaker 1: that's who they were thinking of when Bob Knight's actually

9
00:00:28,440 --> 00:00:30,720
Speaker 1: in the movie, and the movie is filmed here in

10
00:00:30,720 --> 00:00:34,559
Speaker 1: Indiana at the Frankfurt Gymnasium, and the whole premise of

11
00:00:34,560 --> 00:00:39,559
Speaker 1: the movie is Nick Nolty, much like Bob Knight, is

12
00:00:39,720 --> 00:00:43,680
Speaker 1: sort of becoming this dinosaur of college basketball and would

13
00:00:43,760 --> 00:00:47,240
Speaker 1: never cut a corner to be successful, and his glory

14
00:00:47,320 --> 00:00:48,960
Speaker 1: days had kind of passed him, and he would the

15
00:00:49,080 --> 00:00:51,559
Speaker 1: university and the donors and the boosters were you know,

16
00:00:51,800 --> 00:00:54,200
Speaker 1: sort of get you know, getting on him, and he

17
00:00:54,400 --> 00:00:58,560
Speaker 1: never ever cut a corner. And he finally decides that

18
00:00:58,720 --> 00:01:02,520
Speaker 1: winning is so important to him that he will go

19
00:01:02,600 --> 00:01:05,920
Speaker 1: against every fiber of his being and everything that he

20
00:01:06,000 --> 00:01:10,360
Speaker 1: knows to be right and wrong, and he will finally

21
00:01:10,440 --> 00:01:13,920
Speaker 1: agree to allow these superstar freshman players to come in

22
00:01:14,319 --> 00:01:17,800
Speaker 1: and be paid to play. And I think once the

23
00:01:17,840 --> 00:01:19,800
Speaker 1: movie's been out thirty plus years, you can spoil it

24
00:01:19,840 --> 00:01:21,560
Speaker 1: for people, right, But if you're desperate to see the

25
00:01:21,560 --> 00:01:24,000
Speaker 1: movie blue Chips, cover your ears for the next minute.

26
00:01:24,200 --> 00:01:27,720
Speaker 1: At the end of the movie, though, the pressure, even

27
00:01:27,760 --> 00:01:30,679
Speaker 1: though he finally has this great team and he beats

28
00:01:30,840 --> 00:01:35,280
Speaker 1: Iu of all people and Bob Knight, the pressure of

29
00:01:35,400 --> 00:01:38,800
Speaker 1: knowing he's done wrong becomes too much for him and

30
00:01:38,840 --> 00:01:41,040
Speaker 1: he stooges on himself at the end of the movie,

31
00:01:41,280 --> 00:01:44,200
Speaker 1: and he gives this incredible speech about how it's all

32
00:01:44,280 --> 00:01:47,400
Speaker 1: become about money, the idea of the game, the love

33
00:01:47,440 --> 00:01:48,040
Speaker 1: of the game.

34
00:01:48,520 --> 00:01:49,760
Speaker 2: It's not about the sport anymore.

35
00:01:49,800 --> 00:01:52,680
Speaker 1: It doesn't matter anymore. It's all about money. And it

36
00:01:52,760 --> 00:01:57,480
Speaker 1: was you that was such a such a powerful scene

37
00:01:57,600 --> 00:02:00,840
Speaker 1: at the end of that movie, because he just he

38
00:02:01,040 --> 00:02:05,480
Speaker 1: knows he hasn't won fairly, and he knows he is

39
00:02:05,520 --> 00:02:08,120
Speaker 1: now a part of the problem, which they even got

40
00:02:08,160 --> 00:02:10,200
Speaker 1: to him. The guy who couldn't be broken, the guy

41
00:02:10,200 --> 00:02:13,440
Speaker 1: who couldn't be corrupted. He needed it so bad that

42
00:02:13,520 --> 00:02:16,480
Speaker 1: he gave in. And I mention all of this because

43
00:02:17,480 --> 00:02:21,320
Speaker 1: while what Nick Nolty was talking about thirty years ago

44
00:02:21,440 --> 00:02:26,320
Speaker 1: was taboo because people who were paying out and paying

45
00:02:26,360 --> 00:02:30,760
Speaker 1: players were frowned upon and you know, ostracized if they

46
00:02:30,760 --> 00:02:35,200
Speaker 1: were caught, and et cetera. Now that's all college sports is.

47
00:02:35,800 --> 00:02:37,600
Speaker 2: It's expected, especially with the NIL.

48
00:02:37,800 --> 00:02:42,280
Speaker 1: It's a mini professional league. It's a breeding ground for

49
00:02:42,400 --> 00:02:47,040
Speaker 1: professional athletes, and they are basically just pros, but not

50
00:02:47,160 --> 00:02:50,240
Speaker 1: as good. And it's all about money. Yeah, it's not

51
00:02:50,360 --> 00:02:54,880
Speaker 1: about the idea of competition, or your college education or

52
00:02:55,280 --> 00:02:58,720
Speaker 1: bettering yourself as a human being, or using your athletic

53
00:02:58,760 --> 00:03:02,560
Speaker 1: ability and sport to make yourself a person who's going

54
00:03:02,639 --> 00:03:04,760
Speaker 1: to learn life lessons. It'll make you a productive member

55
00:03:04,760 --> 00:03:09,480
Speaker 1: of society. These kids, especially on big time college sports

56
00:03:09,480 --> 00:03:13,480
Speaker 1: and campuses, are just there, many of them for the money,

57
00:03:14,240 --> 00:03:17,919
Speaker 1: and the institution means nothing. And now I think it's

58
00:03:17,919 --> 00:03:19,919
Speaker 1: about to get infinitely worse with what the Big ten

59
00:03:20,000 --> 00:03:20,920
Speaker 1: is talking about doing.

60
00:03:20,720 --> 00:03:23,320
Speaker 2: Well, the institution seems to be on board many of them.

61
00:03:23,360 --> 00:03:25,560
Speaker 2: Big ten basically starting a side hustle.

62
00:03:26,280 --> 00:03:29,960
Speaker 1: So ESPN had this article and this is both horrific

63
00:03:30,240 --> 00:03:35,640
Speaker 1: and fascinating at the same time. Where the Big Ten, look,

64
00:03:35,640 --> 00:03:38,880
Speaker 1: I mean, there are two dominant conferences. Now the ACC

65
00:03:39,120 --> 00:03:43,000
Speaker 1: is hanging on by a thread still with North Carolina Duke.

66
00:03:43,080 --> 00:03:46,800
Speaker 1: In terms of college basketball, they're fine, but let's face it,

67
00:03:46,840 --> 00:03:49,360
Speaker 1: football as the driver of everything. Now. The Big twelve

68
00:03:49,440 --> 00:03:54,160
Speaker 1: is still also hanging on by a thread. But the

69
00:03:54,160 --> 00:03:57,160
Speaker 1: Big ten and SEC have recognized because they've created these

70
00:03:57,200 --> 00:03:59,880
Speaker 1: mega conferences, which, let's face it, the idea that you

71
00:04:00,040 --> 00:04:05,120
Speaker 1: USC and UCLA are in a conference with Indianam Purdue

72
00:04:05,160 --> 00:04:09,200
Speaker 1: is ridiculous. They have no points of commonality, they have

73
00:04:09,240 --> 00:04:10,680
Speaker 1: nothing that binds them together.

74
00:04:10,880 --> 00:04:11,640
Speaker 2: TV markets.

75
00:04:12,600 --> 00:04:15,120
Speaker 1: It's all about money. It was all about to create

76
00:04:15,160 --> 00:04:19,200
Speaker 1: these super conferences, and now the Big ten and SEC

77
00:04:19,680 --> 00:04:22,480
Speaker 1: have recognized. And this article is about the Big Ten

78
00:04:23,600 --> 00:04:28,000
Speaker 1: that we are so powerful now that there are numerous

79
00:04:28,160 --> 00:04:32,680
Speaker 1: ways we can make money. Period. That's it. That's what

80
00:04:32,720 --> 00:04:35,640
Speaker 1: this is about. Not make our conference better, not make

81
00:04:35,680 --> 00:04:40,440
Speaker 1: the educational experience better, that we can make money. That

82
00:04:40,480 --> 00:04:43,520
Speaker 1: they are now exploring creating, for lack of a better term,

83
00:04:43,560 --> 00:04:46,600
Speaker 1: to sort of conglomerate in which they will bring in

84
00:04:46,800 --> 00:04:52,600
Speaker 1: private financers and they will use this conglomerate, which will

85
00:04:52,640 --> 00:04:57,760
Speaker 1: now be backed in part by private money, to create

86
00:04:57,800 --> 00:05:03,280
Speaker 1: a multi billion dollar billion with the b enterprise with

87
00:05:03,440 --> 00:05:08,280
Speaker 1: various marketing and licensing and other endeavors that will make

88
00:05:08,320 --> 00:05:14,120
Speaker 1: them one of the most powerful I don't know, corporations

89
00:05:14,160 --> 00:05:17,200
Speaker 1: not the right word groups, groups, I guess for lack

90
00:05:17,200 --> 00:05:20,880
Speaker 1: of enterprises. Yeah, potentially over the next couple decades in

91
00:05:20,920 --> 00:05:21,720
Speaker 1: the entire country.

92
00:05:21,800 --> 00:05:23,880
Speaker 2: So, the Big Ten is in talks with a private

93
00:05:23,920 --> 00:05:29,560
Speaker 2: capital deal equity group worth two billion dollars. They would

94
00:05:29,560 --> 00:05:33,600
Speaker 2: form this new commercial entity tentatively called Big Ten Enterprises,

95
00:05:34,160 --> 00:05:37,960
Speaker 2: and this new enterprise would manage all the revenue generating

96
00:05:37,960 --> 00:05:43,039
Speaker 2: activities like media rights, like sponsorships, like league revenue. So

97
00:05:43,120 --> 00:05:47,560
Speaker 2: what you would have is, for example, Michigan versus Ohio

98
00:05:47,560 --> 00:05:51,440
Speaker 2: State presented by Taco Bell and on all the jerseys.

99
00:05:51,560 --> 00:05:57,440
Speaker 1: Instead of each individual school having a sponsor or whatever, Hey,

100
00:05:57,640 --> 00:05:58,760
Speaker 1: every Big ten.

101
00:05:58,680 --> 00:06:01,440
Speaker 2: Team would have the same right logo.

102
00:06:01,320 --> 00:06:02,880
Speaker 1: And you're gonna pay for that.

103
00:06:04,040 --> 00:06:04,360
Speaker 2: Now.

104
00:06:04,839 --> 00:06:07,799
Speaker 1: This is a great example of how out of control

105
00:06:07,920 --> 00:06:11,240
Speaker 1: things get very quickly, and the NCAA is in large

106
00:06:11,240 --> 00:06:14,679
Speaker 1: part to blame because they had these ridiculous rules about

107
00:06:14,680 --> 00:06:18,000
Speaker 1: how kids could make money, about how they could couldn't

108
00:06:18,000 --> 00:06:22,200
Speaker 1: work second jobs, that they couldn't make money, like. All

109
00:06:22,240 --> 00:06:24,840
Speaker 1: of that stuff pushed it to the wild West in

110
00:06:24,839 --> 00:06:26,800
Speaker 1: which the courts had to get involved. And once the

111
00:06:26,839 --> 00:06:28,919
Speaker 1: courts got involved, they basically said, there are no rules

112
00:06:28,920 --> 00:06:35,800
Speaker 1: on this, and what we now have is something that

113
00:06:35,920 --> 00:06:41,200
Speaker 1: is about nothing but profit. There is no love of school.

114
00:06:41,320 --> 00:06:44,359
Speaker 1: I'm talking the big times right, Like, I'm not doubting

115
00:06:44,400 --> 00:06:46,800
Speaker 1: if you go to Wabash and you play football at Wabash,

116
00:06:46,880 --> 00:06:49,800
Speaker 1: there is are Marion that there is a you know,

117
00:06:49,839 --> 00:06:52,320
Speaker 1: a love of school and education. We're talking about the

118
00:06:52,360 --> 00:06:56,440
Speaker 1: tippy top programs, institutions, et cetera, especially as it relates

119
00:06:56,440 --> 00:07:00,320
Speaker 1: to college athletics. But when I was a kid, when

120
00:07:00,360 --> 00:07:03,320
Speaker 1: I was growing up, whether it's Notre Dame football or

121
00:07:03,360 --> 00:07:07,840
Speaker 1: IU basketball, you were invested in who the new freshman

122
00:07:08,000 --> 00:07:11,200
Speaker 1: class was because you knew, oh cool, I'm going to

123
00:07:11,280 --> 00:07:14,640
Speaker 1: see this guy for the next four years. And you're

124
00:07:14,680 --> 00:07:17,280
Speaker 1: literally whether you were a kid like me or an adult,

125
00:07:17,920 --> 00:07:23,320
Speaker 1: you invested in those individuals because they were investing in

126
00:07:23,400 --> 00:07:25,800
Speaker 1: something that was special to you and you were literally

127
00:07:25,800 --> 00:07:27,400
Speaker 1: going to get to see them go from an eighteen

128
00:07:27,480 --> 00:07:29,280
Speaker 1: year old kid to a twenty two year old man,

129
00:07:29,400 --> 00:07:31,640
Speaker 1: and you were going to get to see their life

130
00:07:32,160 --> 00:07:34,480
Speaker 1: and then you tracked them throughout the rest of their

131
00:07:34,520 --> 00:07:38,760
Speaker 1: life because you saw them evolved. That's done. It's all

132
00:07:38,800 --> 00:07:42,680
Speaker 1: about money, it's all about making a buck. It's all

133
00:07:42,760 --> 00:07:45,280
Speaker 1: about kids moving from one place in exist and whatever

134
00:07:45,360 --> 00:07:47,360
Speaker 1: best deal they can cut in the moment. And we

135
00:07:47,400 --> 00:07:51,560
Speaker 1: have totally gutted, we have totally destroyed the thing that

136
00:07:51,680 --> 00:07:53,440
Speaker 1: made college athletics so special.

137
00:07:53,600 --> 00:07:56,000
Speaker 2: So these discussions have been going on for a while.

138
00:07:56,040 --> 00:07:59,640
Speaker 2: Now Ohio State and Michigan they're on board, and it

139
00:07:59,680 --> 00:08:03,280
Speaker 2: would structure out like they would provide upfront cash payments

140
00:08:03,280 --> 00:08:06,000
Speaker 2: to the schools and it would be a tiered system

141
00:08:06,560 --> 00:08:10,080
Speaker 2: based on the school's current budgets and the school brand power.

142
00:08:10,160 --> 00:08:13,200
Speaker 2: So I'm curious, is a school like the Ohio State

143
00:08:13,280 --> 00:08:16,360
Speaker 2: University gonna get a bigger chunk of the money than

144
00:08:16,560 --> 00:08:18,280
Speaker 2: say University of Maryland.

145
00:08:18,360 --> 00:08:20,480
Speaker 1: Well that's where the you know the old saying, the

146
00:08:20,480 --> 00:08:23,520
Speaker 1: devil's in the details. And it sounds like, look, they're

147
00:08:23,560 --> 00:08:25,360
Speaker 1: going to do this is what it sounds like. They're

148
00:08:25,400 --> 00:08:28,280
Speaker 1: not to the point where they're ready to sign you know,

149
00:08:28,360 --> 00:08:30,680
Speaker 1: a document yet, but if you can picture the way

150
00:08:30,720 --> 00:08:34,240
Speaker 1: this will be structured. According to the ESPN report, this

151
00:08:35,160 --> 00:08:38,360
Speaker 1: conglomerate or whatever group, whatever you want to call it,

152
00:08:38,360 --> 00:08:42,199
Speaker 1: it'll have basically twenty members to it, it'll have the eighteen.

153
00:08:42,559 --> 00:08:44,840
Speaker 1: By the way, how stupid is it that they call

154
00:08:44,880 --> 00:08:47,959
Speaker 1: it the Big ten and there's eighteen schools, right, How

155
00:08:48,360 --> 00:08:52,280
Speaker 1: stupid is that? Okay, so you've got eighteen schools. Then

156
00:08:52,320 --> 00:08:54,560
Speaker 1: the Big Ten as an entity will be a part

157
00:08:54,559 --> 00:08:57,560
Speaker 1: of it, and then whoever this outside person is that

158
00:08:57,679 --> 00:09:01,280
Speaker 1: infuses cash into it, and the outside person will get

159
00:09:01,320 --> 00:09:03,080
Speaker 1: their money back over time. But being a part of

160
00:09:03,080 --> 00:09:06,480
Speaker 1: this conglomerate and whatever deals get made, they're essentially become

161
00:09:06,520 --> 00:09:10,560
Speaker 1: a shareholder in the thing. So let's say they infuse

162
00:09:10,600 --> 00:09:12,680
Speaker 1: I'm just making numbers up here. Let's say they infuse

163
00:09:12,679 --> 00:09:15,880
Speaker 1: one hundred million of cash instantly, that goes and gets dispersed,

164
00:09:16,120 --> 00:09:19,280
Speaker 1: and then over time whatever these deals are, as a shareholder,

165
00:09:19,440 --> 00:09:21,760
Speaker 1: they'll get money off the thing. They also, I will

166
00:09:21,800 --> 00:09:24,439
Speaker 1: guess use whoever this person is going to be is

167
00:09:24,480 --> 00:09:26,920
Speaker 1: going to be massively connected in the business world, and

168
00:09:26,960 --> 00:09:30,280
Speaker 1: so they'll utilize that person to get these deals done.

169
00:09:30,440 --> 00:09:33,520
Speaker 2: Yeah, they say, these private investors, they would own equity shares,

170
00:09:34,000 --> 00:09:38,040
Speaker 2: but the investor wouldn't receive any voting control or beyond

171
00:09:38,120 --> 00:09:43,080
Speaker 2: any of the board, so it would preserve the university's autonomy.

172
00:09:43,120 --> 00:09:45,800
Speaker 1: Don't you hate that? Like you're Notre Dame has been

173
00:09:45,840 --> 00:09:48,480
Speaker 1: a little different. They seem to have a lot of

174
00:09:48,520 --> 00:09:51,600
Speaker 1: the guys come back year over year, but every year

175
00:09:51,640 --> 00:09:53,719
Speaker 1: Notre Dame has a different quarterback now, who know that?

176
00:09:54,520 --> 00:09:57,000
Speaker 1: Every year and a lot of the other positions. But

177
00:09:57,080 --> 00:09:59,680
Speaker 1: don't you hate that that from one year to the next,

178
00:10:00,120 --> 00:10:00,920
Speaker 1: you know you.

179
00:10:00,440 --> 00:10:03,000
Speaker 2: You can't see him progress and get better.

180
00:10:03,760 --> 00:10:08,040
Speaker 1: You don't invest in them anymore like you like Notre Dame.

181
00:10:08,080 --> 00:10:10,839
Speaker 1: I like Notre Dame because of tradition and history and okay,

182
00:10:10,880 --> 00:10:14,960
Speaker 1: so we cheer for Notre Dame, but I don't It

183
00:10:15,000 --> 00:10:17,720
Speaker 1: doesn't feel the same to me anymore. Like I watched

184
00:10:17,720 --> 00:10:19,319
Speaker 1: all those games last year when Notre Dame went to

185
00:10:19,320 --> 00:10:22,360
Speaker 1: the national championship, and I cheered for them, But I

186
00:10:22,400 --> 00:10:24,640
Speaker 1: had way more investment as a kid when they were

187
00:10:24,800 --> 00:10:27,880
Speaker 1: you know, eight and three or you know, you know

188
00:10:28,040 --> 00:10:31,280
Speaker 1: nine and two and going too the you know the

189
00:10:31,360 --> 00:10:33,280
Speaker 1: Pop Tart Bowl that wasn't around back then. But you

190
00:10:33,280 --> 00:10:35,800
Speaker 1: get what I'm saying, right teams that weren't winning national

191
00:10:35,880 --> 00:10:38,360
Speaker 1: championships are playing for them than I did last year

192
00:10:38,400 --> 00:10:40,240
Speaker 1: because I'm not going to see a bunch of these

193
00:10:40,240 --> 00:10:41,120
Speaker 1: guys next year. Right.

194
00:10:41,120 --> 00:10:43,920
Speaker 2: It's like you would watch Brady Quinn and then you knew, oh,

195
00:10:43,960 --> 00:10:46,080
Speaker 2: he's going to be back next year, and let's see

196
00:10:46,080 --> 00:10:48,520
Speaker 2: how much he's improved and how much the team has

197
00:10:48,520 --> 00:10:52,040
Speaker 2: come together. Well now it's it's different every single year.

198
00:10:52,280 --> 00:10:55,480
Speaker 2: They say this move is in response to the rising

199
00:10:55,720 --> 00:10:57,160
Speaker 2: athletic department costs.

200
00:10:57,800 --> 00:11:00,680
Speaker 1: Oh yeah, they went up by two billion k yeah

201
00:11:00,679 --> 00:11:02,400
Speaker 1: they Yeah, they've increased by two billion