WEBVTT - The Return of Sports

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Masser and

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<v Speaker 1>Jason Kelly on Bloomberg Radio. Let's talk more about sports.

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<v Speaker 1>It's so exciting that sports are back, Carol. Are you

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<v Speaker 1>guys excited at home? Oh my god, are you kidding me? Yeah?

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<v Speaker 1>We can't get enough. I mean, you got lacrosse coming

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<v Speaker 1>up this weekend. We got a little baseball to watch.

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<v Speaker 1>Not that my kids care about baseball, um, but so

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<v Speaker 1>much going on the NBA on the verge of coming back.

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<v Speaker 1>We'll see what happens in the fall. Obviously a lot

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<v Speaker 1>of big questions, so so many questions for Noel la Montaigne.

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<v Speaker 1>He is a director at Verden's Capital Advisors, joining us

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<v Speaker 1>on the phone from Los Angeles. Noel, you're a former

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<v Speaker 1>NFL player, former professional athlete. You've got to be excited

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<v Speaker 1>to write. I'll tell you what, just to have something

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<v Speaker 1>get going that we don't know the ending two already,

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<v Speaker 1>or we it's gonna it's gonna be great, whatever's to

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<v Speaker 1>be great? Well said? And so what do you make

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<v Speaker 1>of it so far? Because I mean this is ultimate Lee.

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<v Speaker 1>We're Bloomberg after all. I mean, this is an economic story.

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<v Speaker 1>This is a business story in many ways part of

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<v Speaker 1>why these teams had to get back on the field,

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<v Speaker 1>and certainly in the case of baseball, we're talking on

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<v Speaker 1>opening day here had much delayed Opening day was and

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<v Speaker 1>how tortured it was was largely owing to uh, let's say,

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<v Speaker 1>some disagreements between the owners and players, but ultimately business

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<v Speaker 1>had to win out. Well, I think with any business,

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<v Speaker 1>the player there's going to be a driving force, and

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<v Speaker 1>in sports, the driving force as the players. So figuring

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<v Speaker 1>out how to safely and efficiently get them back on

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<v Speaker 1>the field, keep them safe, and make them comfortable going

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<v Speaker 1>out there and performing for the audience, that's that's the

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<v Speaker 1>key component. So you know, it's really kind of an

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<v Speaker 1>interesting time. Um, you know, how do you see it

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<v Speaker 1>kind of unfolding? I mean, it is all about safety. Well,

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<v Speaker 1>and I just do wonder what you're hearing from some

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<v Speaker 1>of your clients about their expectations, what they're hearing from

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<v Speaker 1>their teams, from their managers, from the franchises about you know,

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<v Speaker 1>is it really not going to be sports like we're

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<v Speaker 1>used to until well into well with Burden's Pro which

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<v Speaker 1>is our athlete and Entertainment division, we've had a lot

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<v Speaker 1>of direct conversations proactively with our clients, and there's there's

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<v Speaker 1>obviously a lot of trepidation and fear associated with the

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<v Speaker 1>virus and the ramifications of the virus. Keeping your family safe,

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<v Speaker 1>but it's also about seeing what the answers are from

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<v Speaker 1>these leagues in terms of how are these athletes going

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<v Speaker 1>to be kept safe, How are they going to be

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<v Speaker 1>put back into the practice fields and on the field

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<v Speaker 1>ultimately in a safe way, what happens if somebody gets sick,

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<v Speaker 1>How are they going to be looked after? How is

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<v Speaker 1>their financial well being going to be going to be

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<v Speaker 1>considered if they do get sick. And as those answers

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<v Speaker 1>have come, it's eased some of the tension. The virus

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<v Speaker 1>isn't going away anytime soon. It's proven that, and the

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<v Speaker 1>guys under and that. But the question just becomes how

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<v Speaker 1>are they going to be treated when it when it

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<v Speaker 1>does rear itself well, because and you said it very well, Noel,

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<v Speaker 1>just a minute or so ago, about you know, ultimately

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<v Speaker 1>the sports don't happen without the players. And at the

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<v Speaker 1>same time, the players have a living that they need

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<v Speaker 1>to make. How does it change the advice that you're

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<v Speaker 1>giving them. Given all of this uncertainty, and I think

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<v Speaker 1>about baseball, and in part because it is opening day,

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<v Speaker 1>collective bargaining that is going to be renegotiated, the collective

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<v Speaker 1>Bargaining agreement next year. A lot of folks looking ahead

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<v Speaker 1>to that as we look ahead to an NFL season

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<v Speaker 1>that may or may not happen, or may happen a

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<v Speaker 1>little bit differently, how does the advice that you're giving

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<v Speaker 1>your guys change well during tough times like this, times

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<v Speaker 1>that are unfamiliar, we we fall back onto on, really

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<v Speaker 1>onto our foundational beliefs, and education is one of the

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<v Speaker 1>biggest things that we preached to of our clients and

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<v Speaker 1>making sure that whatever situation they're going to go into,

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<v Speaker 1>they do it knowledgeably. They look at it from every direction,

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<v Speaker 1>they ask questions, and players are in a position of

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<v Speaker 1>power if they are educated on what they're getting into.

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<v Speaker 1>And I think those two things go hand in hand,

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<v Speaker 1>between just making sure guys know what they're getting into

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<v Speaker 1>and understanding the position that they're in when they do

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<v Speaker 1>take the field. I mean, is it pretty clear. I mean,

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<v Speaker 1>is it that teams and owners are kind of taking

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<v Speaker 1>an approach of they want to take care of their players.

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<v Speaker 1>They have they have a mutual um. They've got the

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<v Speaker 1>same ultimate goal. The owners obviously want to run their businesses.

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<v Speaker 1>They want to get the players back on the field

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<v Speaker 1>so that they can make money, even if it's going

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<v Speaker 1>to be a little bit less than it's been in

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<v Speaker 1>the past. And players want to go out and do

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<v Speaker 1>what they've been working their whole lives to get to

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<v Speaker 1>the point of doing again. They don't want to be

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<v Speaker 1>off the field. They don't want to be looking at

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<v Speaker 1>a zoom call and and and trying to figure out

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<v Speaker 1>how their teammates are doing. They want to be entertaining.

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<v Speaker 1>They want to take the country's mind off of all

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<v Speaker 1>of these things that have been thrown at it over

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<v Speaker 1>the past several months. And they want to give people

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<v Speaker 1>a little bit of hope that this country is resilient.

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<v Speaker 1>Sports are resilient, and they want to be a part

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<v Speaker 1>of the healing process. Do the short term or mid

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<v Speaker 1>term economics change because of no fans And how do

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<v Speaker 1>you counsel your players? What are you hearing from your

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<v Speaker 1>players and candidly from the owners and the management of

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<v Speaker 1>various sports around how this may change the economics, whether

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<v Speaker 1>it's salary negotiations and other things that have to do

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<v Speaker 1>with compensation in the short and mid terminal. Well, I

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<v Speaker 1>think that's difficult to predict. Obviously, the most people assume

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<v Speaker 1>it's going to be less. Again, I think sports are

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<v Speaker 1>they are huge business. That's not a that's not a

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<v Speaker 1>rocket scientist statement. But they're also going to be very

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<v Speaker 1>very biliant. They're they're extremely popular prior to this. They're

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<v Speaker 1>gonna be extremely popular in any form that they come back.

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<v Speaker 1>So the players, the players have to be smart. They

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<v Speaker 1>have to realize that there is potential for an economic

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<v Speaker 1>dip and with certain sports careers are shorter than others,

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<v Speaker 1>and an economic dip. This year, this this might be

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<v Speaker 1>potentially your last or one of the last years that

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<v Speaker 1>you're going to get the opportunity to play professionally. So,

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<v Speaker 1>you know, we preach, we preached our clients you've got

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<v Speaker 1>to be responsible. You've got to look long term and

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<v Speaker 1>what's in your best interests, even if that might mean

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<v Speaker 1>from a health concern not participating or opting out in

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<v Speaker 1>some form. Um. You know, that's that's been a big

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<v Speaker 1>discussion with a lot of the sports leagues as of late. Um,

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<v Speaker 1>So you know, that's the way you've got to look

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<v Speaker 1>at it. The ramifications are yet to be determined. It's

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<v Speaker 1>all speculative and and um, there's gonna be there's gonna

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<v Speaker 1>be different reasons for arguments on both sides of what

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<v Speaker 1>that's gonna look like right now. But until we know,

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<v Speaker 1>it's tough to react to from a league standpoint at least.

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<v Speaker 1>All right, speaking of speculation, I'm gonna ask you to

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<v Speaker 1>speculate on one thing you played in the NFL? Is

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<v Speaker 1>there going to be an NFL season this year? Do

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<v Speaker 1>you think? I am extremely optimistic? Uh, and hopeful. And

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<v Speaker 1>there's there's so much there's there's so much willingness on

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<v Speaker 1>both sides. Players want to play, the owners obviously want

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<v Speaker 1>to make money. Um, and in this country we need

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<v Speaker 1>an outlet. Everybody, everybody at home, whether they're a fan

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<v Speaker 1>or not, they want something to watch. And I know

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<v Speaker 1>that the athletes and the owners out there are fighting

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<v Speaker 1>like heck against against this this virus to figure out

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<v Speaker 1>how to give that to them. So, yes, I'm I'm

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<v Speaker 1>an optimist and I think I think it will happen. Well.

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<v Speaker 1>I think the TV contracts hopefully may and help ensure that. Right,

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<v Speaker 1>a lot of money to be made. As you say,

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<v Speaker 1>on all sides of this, all right, Nola Montaigne, thank

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<v Speaker 1>you so much, directing director over at Vergen's Capital Management,

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<v Speaker 1>giving us some nice insights as a former pro athlete

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<v Speaker 1>and also someone who's talking to pro athletes every day.