1 00:00:00,440 --> 00:00:03,920 Speaker 1: Flo. I'm Scott, I'm Van Noby Williams, and I'm Michael Barr. 2 00:00:03,960 --> 00:00:06,600 Speaker 1: And this is the Bloomberg Business of Sports podcast, where 3 00:00:06,600 --> 00:00:09,280 Speaker 1: we explore the make money issues in the world of sports. 4 00:00:09,320 --> 00:00:11,840 Speaker 1: Let's start with the Olympics. Evan, we were talking about 5 00:00:11,880 --> 00:00:14,640 Speaker 1: this off Mike. What's going on? Yeah, so pretty big 6 00:00:14,680 --> 00:00:17,800 Speaker 1: news in the Olympic movement. The United States Olympic Committee 7 00:00:17,800 --> 00:00:21,320 Speaker 1: has taken the first couple of steps towards de certifying 8 00:00:21,560 --> 00:00:24,880 Speaker 1: USA Gymnastics UH. If it happens, and there's a few 9 00:00:24,920 --> 00:00:27,280 Speaker 1: steps that have to happen before that, it would essentially 10 00:00:27,320 --> 00:00:29,560 Speaker 1: be a death penalty. Would mean the USA Gymnastics, the 11 00:00:29,640 --> 00:00:33,760 Speaker 1: national governing body in the Olympics parlance UH, ceases to 12 00:00:33,880 --> 00:00:36,919 Speaker 1: exist UM, and that there needs to be a new 13 00:00:37,000 --> 00:00:40,279 Speaker 1: organization that steps in to manage both the high end 14 00:00:40,440 --> 00:00:44,440 Speaker 1: Olympic ultra competitive professional gymnast in America, but also the 15 00:00:44,520 --> 00:00:47,240 Speaker 1: hundreds of thousands of gymnasts and the thousands of clubs 16 00:00:47,240 --> 00:00:50,720 Speaker 1: around the country that participate in gymnastics. I've been correct 17 00:00:50,720 --> 00:00:53,800 Speaker 1: me if I'm wrong, but there is no nonprofit that 18 00:00:53,840 --> 00:00:56,200 Speaker 1: I'm aware of that's ready to step in and take 19 00:00:56,240 --> 00:00:58,600 Speaker 1: the role of USA gymnasts, and there's not Yeah, I 20 00:00:58,600 --> 00:01:00,760 Speaker 1: think under under this sister him right now the U 21 00:01:00,840 --> 00:01:03,760 Speaker 1: S o c IS is taking taking the reins a bit. 22 00:01:03,960 --> 00:01:06,000 Speaker 1: There's there are a lot of questions what this means 23 00:01:06,040 --> 00:01:08,520 Speaker 1: for the athletes right now, what it might mean for 24 00:01:08,640 --> 00:01:11,880 Speaker 1: participation in Make no mistake that there will be a 25 00:01:12,000 --> 00:01:14,560 Speaker 1: U S gymnastics team in the Olympics in two years. 26 00:01:14,680 --> 00:01:17,920 Speaker 1: But on the overall it is certainly the biggest step, 27 00:01:18,000 --> 00:01:22,800 Speaker 1: the biggest movement towards some kind of bigger ramification for 28 00:01:22,920 --> 00:01:25,880 Speaker 1: a group. That's yes. And in the wake of of 29 00:01:25,959 --> 00:01:28,880 Speaker 1: Larry Nasser and and I'm sure our listeners are familiar 30 00:01:28,920 --> 00:01:31,400 Speaker 1: with with with the horrible acts that he committed over 31 00:01:31,480 --> 00:01:34,760 Speaker 1: a very in a horrifyingly long period of time. Um 32 00:01:34,920 --> 00:01:36,720 Speaker 1: And in the wake of that, you know, they've gone 33 00:01:36,720 --> 00:01:39,039 Speaker 1: through a number of ceo s, A number of them 34 00:01:39,040 --> 00:01:41,400 Speaker 1: have been in place for you know, less than a year, 35 00:01:41,520 --> 00:01:43,560 Speaker 1: less than a couple of months, less than a month. 36 00:01:43,720 --> 00:01:45,920 Speaker 1: You know that they have they have been unable to 37 00:01:46,000 --> 00:01:48,840 Speaker 1: write the ship that they're still looking for a permanent CEO. 38 00:01:49,280 --> 00:01:51,480 Speaker 1: They haven't put someone in place that that athletes are 39 00:01:51,480 --> 00:01:54,200 Speaker 1: happy about. A lot of things built up to the 40 00:01:54,240 --> 00:01:57,040 Speaker 1: point when at which the new leadership at the us OC, 41 00:01:57,200 --> 00:01:59,600 Speaker 1: Sarah Hurshland, who is pretty new to the job herself, 42 00:02:00,000 --> 00:02:01,400 Speaker 1: said you know what, this is enough. I don't think 43 00:02:01,400 --> 00:02:03,800 Speaker 1: you guys are capable of fixing this yourselves. And the 44 00:02:03,920 --> 00:02:07,120 Speaker 1: latest said official gout in the trouble because of the 45 00:02:07,200 --> 00:02:12,520 Speaker 1: controversy involved with well now former NFL quarterback Colin Kaepernick. Yeah, 46 00:02:12,560 --> 00:02:14,480 Speaker 1: that's Mary Bonno, who was who was in place for 47 00:02:14,680 --> 00:02:16,600 Speaker 1: less than a month, you know, when when it turned 48 00:02:16,600 --> 00:02:19,160 Speaker 1: out that maybe the background check they did wasn't it 49 00:02:19,320 --> 00:02:23,680 Speaker 1: wasn't full. The woman before her, Carry Perry, lasted nine months. 50 00:02:23,720 --> 00:02:26,800 Speaker 1: She hired Mary Lee Tracy, who was a coach and 51 00:02:26,800 --> 00:02:29,440 Speaker 1: a gym owner who had been supportive of NASSA or 52 00:02:29,520 --> 00:02:33,560 Speaker 1: even after allegations came out. The CEO before her, Steve Perry, 53 00:02:33,639 --> 00:02:36,240 Speaker 1: this is the guy that resigned, you know, amid problems 54 00:02:36,280 --> 00:02:39,480 Speaker 1: and then turns out he was arrested recently for possibly 55 00:02:39,480 --> 00:02:42,920 Speaker 1: tampering with with documents and investigations. Um, it's been a 56 00:02:42,919 --> 00:02:44,880 Speaker 1: it's been a mess at the top. There's a new 57 00:02:44,880 --> 00:02:47,480 Speaker 1: board of the USA Gymnastics that that's really not that 58 00:02:47,560 --> 00:02:50,480 Speaker 1: old either. But you know that clearly the USO thinks 59 00:02:50,520 --> 00:02:53,480 Speaker 1: the USC thinks more and I are always on the 60 00:02:53,520 --> 00:02:56,839 Speaker 1: same page. Who's the one person, number one person I'm 61 00:02:56,880 --> 00:03:03,000 Speaker 1: putting on this hiring committee, smoll Biles, you can say something, Ali, Yeah, 62 00:03:03,160 --> 00:03:06,160 Speaker 1: both both fund I'm calling Alie Raceman. I'm saying, listen, 63 00:03:06,440 --> 00:03:08,840 Speaker 1: this has not been a good thing. We get it. 64 00:03:09,120 --> 00:03:11,480 Speaker 1: You know what, help us out here. Yeah, give the 65 00:03:11,520 --> 00:03:14,720 Speaker 1: reins back to the women who lost to you, hide 66 00:03:14,720 --> 00:03:17,760 Speaker 1: control reviews from them. Yeah. Absolutely, say Ali, help us 67 00:03:17,800 --> 00:03:21,360 Speaker 1: out let you help us find somebody that is qualified 68 00:03:21,720 --> 00:03:24,480 Speaker 1: that can do this job. And there are civil lawsuits 69 00:03:24,480 --> 00:03:26,519 Speaker 1: that are coming. There are probably large settlements. You know, 70 00:03:26,560 --> 00:03:30,239 Speaker 1: who knows. USA Gymnastics might be bankrupt uh within a year. 71 00:03:30,320 --> 00:03:32,320 Speaker 1: There there's a lot of possibilities that are going to 72 00:03:32,400 --> 00:03:35,160 Speaker 1: play out as a result of this. NBA Commissioner Adam 73 00:03:35,200 --> 00:03:38,840 Speaker 1: Silver concerned about all the spending that's going on in 74 00:03:38,880 --> 00:03:41,200 Speaker 1: the league. I love this well, not not just all 75 00:03:41,240 --> 00:03:44,640 Speaker 1: the spending, but all the spending chasing. What he says 76 00:03:44,800 --> 00:03:47,760 Speaker 1: is the Golden State Warriors and the championship and our 77 00:03:47,880 --> 00:03:52,000 Speaker 1: teams pushing themselves to lose money in this chase for winning. 78 00:03:52,520 --> 00:03:54,720 Speaker 1: I love this because you know why, bar you can 79 00:03:54,880 --> 00:03:58,080 Speaker 1: count on it. Anytime you're on the horizon of labor, 80 00:03:59,120 --> 00:04:01,800 Speaker 1: you can always out on the league to say, well, 81 00:04:02,200 --> 00:04:04,440 Speaker 1: you know, where there's because we maybe have to tweak 82 00:04:04,640 --> 00:04:07,880 Speaker 1: some things because the system is not quite perfect. And 83 00:04:07,920 --> 00:04:11,120 Speaker 1: remember the way it's set up is players get roughly 84 00:04:11,840 --> 00:04:14,000 Speaker 1: of what's called b r I, the basketball related revenue, 85 00:04:14,040 --> 00:04:17,680 Speaker 1: which includes most things. But it's never too early to 86 00:04:17,720 --> 00:04:20,240 Speaker 1: sort of sound the alarm bell. This is just this 87 00:04:20,320 --> 00:04:22,039 Speaker 1: is maybe not an alarm bell. This would be like 88 00:04:22,080 --> 00:04:24,040 Speaker 1: the triangle or your call for dinner thing ing ing, 89 00:04:24,320 --> 00:04:26,360 Speaker 1: come and get it. You know, it's not it's not alarmed, 90 00:04:26,839 --> 00:04:31,000 Speaker 1: but it's just sort of, hey, this we may have 91 00:04:31,120 --> 00:04:33,240 Speaker 1: to look at some things because our owners, you know, 92 00:04:33,279 --> 00:04:37,120 Speaker 1: they're so competitive, they really want to win, and they 93 00:04:37,200 --> 00:04:40,000 Speaker 1: may be spending a little bit more in that chase. 94 00:04:40,400 --> 00:04:43,560 Speaker 1: So just sort of heads up players that we may 95 00:04:43,600 --> 00:04:46,280 Speaker 1: need to tweak a few things. And along that formula, 96 00:04:46,680 --> 00:04:49,919 Speaker 1: I assume you'll hear something similar from the other side 97 00:04:49,960 --> 00:04:52,400 Speaker 1: at some point relatively soon. Michelle Roberts, who runs the 98 00:04:52,520 --> 00:04:55,200 Speaker 1: m d p A, UM, we've got a few years, right, 99 00:04:55,200 --> 00:04:59,760 Speaker 1: the CBA doesn't expire until something like that. UM. But 100 00:05:00,120 --> 00:05:02,760 Speaker 1: then the exactly, yeah, this is this is a tried 101 00:05:02,800 --> 00:05:05,479 Speaker 1: and true formula for for for kind of starting to 102 00:05:05,520 --> 00:05:10,720 Speaker 1: air your grievances long before it becomes, you know, directly tied. Now, 103 00:05:10,720 --> 00:05:12,880 Speaker 1: i'd compete with the Warriors. I would I put a 104 00:05:12,880 --> 00:05:15,159 Speaker 1: compelling product on the form making a fun, entertaining thing 105 00:05:15,240 --> 00:05:17,800 Speaker 1: people to say. I'd say, come see the Warriors whenever 106 00:05:17,800 --> 00:05:19,840 Speaker 1: they're in town. We're gonna do our best. We're gonna 107 00:05:19,880 --> 00:05:21,960 Speaker 1: we're gonna do our best to compete for a championship. 108 00:05:22,080 --> 00:05:24,320 Speaker 1: We're gonna put the best team on weekend, but we 109 00:05:24,360 --> 00:05:26,080 Speaker 1: have to do it a physically responsible way. And we'll 110 00:05:26,160 --> 00:05:28,480 Speaker 1: let Golden State celebrate their four five titles and then 111 00:05:28,480 --> 00:05:29,800 Speaker 1: we'll see if we can step We'll meet them in 112 00:05:29,839 --> 00:05:33,000 Speaker 1: the finals every year. Happy for an East Coast team 113 00:05:33,080 --> 00:05:36,600 Speaker 1: versus the Warriors for the next couple of years. Great Senators, 114 00:05:36,600 --> 00:05:42,360 Speaker 1: what's up boy? We talked about them last time when 115 00:05:42,440 --> 00:05:45,000 Speaker 1: you Melnick the owner put a put a video out 116 00:05:45,040 --> 00:05:47,080 Speaker 1: that was a little weird that that caught some attention 117 00:05:47,080 --> 00:05:49,159 Speaker 1: where he made one of his former players in essence 118 00:05:49,400 --> 00:05:51,760 Speaker 1: or one of his players interview him and talking about 119 00:05:51,800 --> 00:05:57,240 Speaker 1: the franchise. But then what six or seven senators decided 120 00:05:57,279 --> 00:05:59,760 Speaker 1: to take an uber ride the other day and the 121 00:06:00,240 --> 00:06:02,960 Speaker 1: rolling camera in the car, and now that they were 122 00:06:03,000 --> 00:06:05,920 Speaker 1: trashing the coach, they were trashing the penalty kill was 123 00:06:05,920 --> 00:06:08,800 Speaker 1: a little weird, pretty much just trashing the organization. And 124 00:06:08,839 --> 00:06:11,960 Speaker 1: now the video got out. Yeah, it's unclear how it 125 00:06:12,000 --> 00:06:13,640 Speaker 1: got out. Is from about a month ago when they 126 00:06:13,680 --> 00:06:16,480 Speaker 1: were they were in an Uber and Phoenix. Um, some 127 00:06:16,600 --> 00:06:19,640 Speaker 1: real privacy concerns here. I mean I would imagine that 128 00:06:19,760 --> 00:06:22,160 Speaker 1: is your expectation of privacy in someone else's car though, 129 00:06:22,160 --> 00:06:23,719 Speaker 1: I mean I haven't talked to any attorneys. Do you 130 00:06:23,720 --> 00:06:26,320 Speaker 1: have any expectation of privacy? Yeah, I would imagine that. 131 00:06:26,360 --> 00:06:29,480 Speaker 1: You know, executives at Uber look at this and they say, damn, 132 00:06:29,480 --> 00:06:31,680 Speaker 1: we got we have to fix. Like there's so little 133 00:06:31,720 --> 00:06:34,360 Speaker 1: regulation in the ride sharing world. Um, but you can 134 00:06:34,480 --> 00:06:36,520 Speaker 1: have a system where you know people who are in 135 00:06:36,560 --> 00:06:38,559 Speaker 1: your car end up, you know. And this has happened before. 136 00:06:38,640 --> 00:06:40,599 Speaker 1: There was what the mayor of Calgary a number of 137 00:06:40,640 --> 00:06:43,039 Speaker 1: years ago, right, got a lift in Boston and he 138 00:06:43,120 --> 00:06:45,680 Speaker 1: was bad mouthing the CEO of Uber and that got 139 00:06:45,680 --> 00:06:49,280 Speaker 1: put online here to apologize for that. Um. Yes, I 140 00:06:49,279 --> 00:06:52,440 Speaker 1: would imagine that. Uber and they've commented already, but there 141 00:06:52,440 --> 00:06:56,080 Speaker 1: will be more being said here about the concerns over privacy. 142 00:06:56,200 --> 00:06:58,560 Speaker 1: If if every time you step into an Uber there's 143 00:06:58,560 --> 00:07:01,440 Speaker 1: a chance that's being periscope live or we'll end up 144 00:07:01,480 --> 00:07:04,599 Speaker 1: on YouTube, that's a problem for My favorite part of 145 00:07:04,600 --> 00:07:09,440 Speaker 1: this whole story bar is that let's not think that 146 00:07:09,800 --> 00:07:12,840 Speaker 1: it affected the deal between the Senators and Uber, because 147 00:07:12,840 --> 00:07:16,480 Speaker 1: they do have a marketing partnership. So there was Uber 148 00:07:16,720 --> 00:07:19,560 Speaker 1: on the scoreboard the other night, and it's just like 149 00:07:19,640 --> 00:07:24,440 Speaker 1: it's like there it is bring the noise, like way 150 00:07:24,480 --> 00:07:27,840 Speaker 1: to go Uber, and like this is all surrounding the team. 151 00:07:27,880 --> 00:07:30,960 Speaker 1: This is the Bloomberg Business of Sports podcast. I'm Michael Barr, 152 00:07:30,960 --> 00:07:33,440 Speaker 1: along with Scott Sasnake and Nevan Nobody Williams. We're here 153 00:07:33,480 --> 00:07:36,240 Speaker 1: every Monday, Wednesday and Thursday exploring the world of money 154 00:07:36,240 --> 00:07:37,920 Speaker 1: in sports. Join us again at the end of the 155 00:07:37,960 --> 00:07:41,440 Speaker 1: week when we speak with Syracuse University sports management professor 156 00:07:41,600 --> 00:07:44,560 Speaker 1: Rick Burton. You're listening to Bloomberg Business of Sports on 157 00:07:44,600 --> 00:07:48,240 Speaker 1: Bloomberg Radio around the world and online where our podcast 158 00:07:48,560 --> 00:07:49,080 Speaker 1: is available.