1 00:00:00,280 --> 00:00:03,360 Speaker 1: This is the business of sports. Let's talk Super Bowl 2 00:00:03,520 --> 00:00:06,600 Speaker 1: and Fox Sports every single thing that occurs. I want 3 00:00:06,600 --> 00:00:08,880 Speaker 1: people to remember this is a business. Guaranteed money isn't 4 00:00:08,920 --> 00:00:15,280 Speaker 1: necessarily guaranteed. Michael, how high can these valuations got? Everybody 5 00:00:15,320 --> 00:00:18,200 Speaker 1: loves rooting against him? Right? Evan Williams Off the field, 6 00:00:18,239 --> 00:00:20,439 Speaker 1: the NBA has never been buzzier. And the leaders in 7 00:00:20,480 --> 00:00:23,720 Speaker 1: the sports industry Major League Baseball Commissioner Rob Manfred MIKEA. 8 00:00:23,840 --> 00:00:26,560 Speaker 1: Riscoe is the commissioner of the American Athletic Conference. Here 9 00:00:26,600 --> 00:00:29,319 Speaker 1: In Smith, President of Ticketmasters in the Race, Card driver, 10 00:00:29,440 --> 00:00:34,240 Speaker 1: Elio Castro, and Evs Bloomberg Business of Sports from Bloomberg Radio. Hello, 11 00:00:34,280 --> 00:00:36,920 Speaker 1: I'm Scott So, I'm Evan, Novie Williams, and I'm Michael 12 00:00:37,000 --> 00:00:39,680 Speaker 1: varn This is the Bloomberg Business of Sports podcast, where 13 00:00:39,720 --> 00:00:42,479 Speaker 1: we explore the big money issues in the world of sports. Today. 14 00:00:42,600 --> 00:00:45,720 Speaker 1: We'll begin with Marge Madness. That's right, it's that time 15 00:00:45,720 --> 00:00:49,200 Speaker 1: of the year. Now. There's an advocacy group that wants 16 00:00:49,240 --> 00:00:51,960 Speaker 1: the n C Double A to consider holding tournament games 17 00:00:51,960 --> 00:00:54,959 Speaker 1: without crowds in the stands in response to concerns over 18 00:00:55,000 --> 00:00:58,640 Speaker 1: the coronavirus outbreak. Will that happen. Well, we don't know, 19 00:00:58,680 --> 00:01:01,560 Speaker 1: but certainly REMOEA. Huma, who was the head of the 20 00:01:01,680 --> 00:01:05,720 Speaker 1: National Collegiate Players Association, has made it clear that he 21 00:01:05,800 --> 00:01:10,240 Speaker 1: wants to know how athletes are being protected with this 22 00:01:10,360 --> 00:01:13,160 Speaker 1: virus outbreak, and he said, you have to give serious 23 00:01:13,240 --> 00:01:16,880 Speaker 1: discussion to playing these games. And we all know how 24 00:01:16,959 --> 00:01:20,000 Speaker 1: much money that these games make, most of them from TV. 25 00:01:20,120 --> 00:01:23,000 Speaker 1: But obviously gate is important as well for the n 26 00:01:23,040 --> 00:01:26,480 Speaker 1: c a A. So it would have to take an 27 00:01:26,520 --> 00:01:30,240 Speaker 1: extraordinary thing for the n c A to decide that 28 00:01:30,280 --> 00:01:32,800 Speaker 1: they were going to close doors on these games. But 29 00:01:33,160 --> 00:01:37,520 Speaker 1: you know, there's a good chance that coronavirus is that everything. 30 00:01:37,760 --> 00:01:41,160 Speaker 1: The tough thing about the tournament, uh one, is that 31 00:01:41,360 --> 00:01:45,160 Speaker 1: arenas you know, are tightly packed groups of of people 32 00:01:45,360 --> 00:01:49,360 Speaker 1: different the country, where in some places where it is 33 00:01:49,480 --> 00:01:52,160 Speaker 1: it is truly a nationwide event. You know, if you 34 00:01:52,200 --> 00:01:55,800 Speaker 1: look at the first and second rounds, there's a Spokanic's 35 00:01:55,840 --> 00:01:57,880 Speaker 1: hosting one. We know what's happening in Washington right now, 36 00:01:58,080 --> 00:02:02,120 Speaker 1: also Sacramento, Omaha, St. Louis, Tampa, Greensboro, Albany, Cleveland. The 37 00:02:02,200 --> 00:02:04,720 Speaker 1: regionals are in New York City, Indianapolis, Houston, l A. 38 00:02:04,880 --> 00:02:07,160 Speaker 1: The finals are in Atlanta. This is clearly a This 39 00:02:07,240 --> 00:02:10,520 Speaker 1: is truly a nationwide event. And yeah, who knows what 40 00:02:10,760 --> 00:02:13,480 Speaker 1: is happening in any of those cities come three weeks 41 00:02:13,480 --> 00:02:15,680 Speaker 1: from now when they're supposed to be hosting games. Well, 42 00:02:15,680 --> 00:02:17,560 Speaker 1: why does it have to be just the n C 43 00:02:17,639 --> 00:02:20,200 Speaker 1: Double A can be any sporting event, It could be 44 00:02:20,240 --> 00:02:23,400 Speaker 1: the NBA. Well, they're exactly right, and they have started 45 00:02:23,600 --> 00:02:26,799 Speaker 1: group like a committee at the at the NBA to 46 00:02:27,000 --> 00:02:30,040 Speaker 1: look at what's going on and whether such a thing 47 00:02:30,160 --> 00:02:34,440 Speaker 1: will be necessary. If you have a major outbreak in 48 00:02:34,480 --> 00:02:38,079 Speaker 1: a high dense population place like New York City, do 49 00:02:38,160 --> 00:02:41,519 Speaker 1: you want eighteen thousand people convening for a basketball game? 50 00:02:41,880 --> 00:02:43,799 Speaker 1: They might just shut the door. And I mean, you 51 00:02:43,840 --> 00:02:46,679 Speaker 1: can look at what other countries around the world are 52 00:02:46,720 --> 00:02:50,040 Speaker 1: already doing. Right. Switzerland has said no public convening of 53 00:02:50,040 --> 00:02:53,320 Speaker 1: more than a thousand people. France, I believe, said ten thousand. 54 00:02:53,760 --> 00:02:56,359 Speaker 1: You believe the Thai Football Association said no fans for 55 00:02:56,400 --> 00:02:58,840 Speaker 1: the game already. Syria is looking at this. You know, 56 00:02:58,960 --> 00:03:00,600 Speaker 1: there have been games in China that have been played 57 00:03:00,639 --> 00:03:03,320 Speaker 1: with no fans already. Um, it does not seem like 58 00:03:04,520 --> 00:03:06,799 Speaker 1: it's a It's a long stretch to think that fairly 59 00:03:06,840 --> 00:03:08,959 Speaker 1: soon here in the US we could be experiencing what 60 00:03:10,320 --> 00:03:12,960 Speaker 1: you know, how do you handle refunds? What do fans 61 00:03:13,160 --> 00:03:16,680 Speaker 1: get without question? And then you and the lost revenue 62 00:03:16,680 --> 00:03:18,160 Speaker 1: of course. Yeah, and I think that the kind of 63 00:03:18,160 --> 00:03:20,400 Speaker 1: the second question that I'm sure is happening, you know, 64 00:03:20,440 --> 00:03:22,640 Speaker 1: everywhere from the Olympics all the way through to tow 65 00:03:22,760 --> 00:03:26,160 Speaker 1: NHL and NBA teams here. Um, do you do would 66 00:03:26,160 --> 00:03:28,480 Speaker 1: you rather cancel? Would you rather try to figure out 67 00:03:28,480 --> 00:03:31,440 Speaker 1: a way to cancel games and maybe postpone them to 68 00:03:31,520 --> 00:03:34,200 Speaker 1: a time when you know the public is less skittish 69 00:03:34,200 --> 00:03:36,840 Speaker 1: about going outside, or do you feel the need to 70 00:03:36,920 --> 00:03:40,119 Speaker 1: be beholden to the main money, which is your broadcast money, 71 00:03:40,120 --> 00:03:43,760 Speaker 1: obviously at the expense of the fans. Well, they show 72 00:03:43,800 --> 00:03:46,640 Speaker 1: you how much this has impacted you mentioned about Switzerland. 73 00:03:46,920 --> 00:03:50,120 Speaker 1: The Geneva Auto Show got scrapped because look at you. 74 00:03:51,080 --> 00:03:52,960 Speaker 1: I know, I can't help it, man, it's I love 75 00:03:53,000 --> 00:03:55,640 Speaker 1: four wheels. I love it. Man. It's like they it's 76 00:03:55,760 --> 00:04:01,200 Speaker 1: it's been canceled because the time frame that when ends 77 00:04:01,280 --> 00:04:04,600 Speaker 1: on March fIF which would have been the last day 78 00:04:04,920 --> 00:04:06,920 Speaker 1: of the Well, Evan and I were just dicussing the 79 00:04:06,920 --> 00:04:09,200 Speaker 1: big is coming. The Biggie is what will happen with 80 00:04:09,240 --> 00:04:13,160 Speaker 1: the Tokyo Olympics if if this is not under control 81 00:04:13,200 --> 00:04:16,080 Speaker 1: in the next couple of months, um, the I o 82 00:04:16,160 --> 00:04:18,599 Speaker 1: C is going to have a very difficult decision to 83 00:04:18,640 --> 00:04:20,839 Speaker 1: make and one big thing to consider when when we 84 00:04:20,839 --> 00:04:22,960 Speaker 1: talk about all these things, and this is not you know, 85 00:04:23,000 --> 00:04:26,880 Speaker 1: the difference between them happening or not. But all these teams, leagues, 86 00:04:27,200 --> 00:04:31,280 Speaker 1: Olympic committees, they have insurance. And it's a question right 87 00:04:31,279 --> 00:04:33,640 Speaker 1: now because we obviously don't see we can't look at 88 00:04:33,640 --> 00:04:36,200 Speaker 1: the policies they have. Some of these groups are probably 89 00:04:36,240 --> 00:04:39,520 Speaker 1: insured for pandemic and some of these groups are probably 90 00:04:39,520 --> 00:04:42,719 Speaker 1: not insure for pandemic, and be very interesting to see, how, 91 00:04:42,839 --> 00:04:45,120 Speaker 1: you know, as the money unwines from games that don't 92 00:04:45,160 --> 00:04:47,440 Speaker 1: have fans or maybe don't happen at all, what the 93 00:04:47,480 --> 00:04:49,679 Speaker 1: insurance looks far. You should see me throwing things in 94 00:04:49,760 --> 00:04:52,680 Speaker 1: terms like force major around, you know, I mean, how 95 00:04:52,760 --> 00:04:55,000 Speaker 1: is a pandemic not the same as as a hurricane? 96 00:04:55,040 --> 00:04:59,320 Speaker 1: I don't know, But what we'll see. Let's talk about 97 00:04:59,320 --> 00:05:02,719 Speaker 1: Tony Romo. Ah, he's making Scott Sashnick money now. He 98 00:05:02,800 --> 00:05:08,440 Speaker 1: has scored a gigantic contract extension at CBS NFL lead 99 00:05:08,480 --> 00:05:13,080 Speaker 1: game analysts, Romo will reportedly earn seventeen million dollars per 100 00:05:13,160 --> 00:05:16,159 Speaker 1: year and that will make him the highest paid game 101 00:05:16,200 --> 00:05:20,680 Speaker 1: analyst in TV history. Were most what was it most Radominut? 102 00:05:21,040 --> 00:05:25,440 Speaker 1: What was his nickname? He should have known it was coming, 103 00:05:26,640 --> 00:05:28,719 Speaker 1: which I'm guessing he did, But you'd have to guess 104 00:05:28,920 --> 00:05:31,880 Speaker 1: ESPN would have wanted him to show this commitment to 105 00:05:32,279 --> 00:05:35,960 Speaker 1: the NFL. It's a lot of bucks for a chickens 106 00:05:36,200 --> 00:05:41,200 Speaker 1: mar chicken. He's taking care of the chicken. Um. CBS 107 00:05:41,400 --> 00:05:45,920 Speaker 1: showing UH as early as possible and in the first 108 00:05:45,960 --> 00:05:51,120 Speaker 1: way it could that it is very serious about keeping 109 00:05:51,120 --> 00:05:54,360 Speaker 1: the NFL in a big time way. And let us 110 00:05:54,360 --> 00:05:58,000 Speaker 1: not forget CBS also has lots of golf. Tony Romo 111 00:05:58,320 --> 00:06:01,400 Speaker 1: likes golf. You would have to think for that kind 112 00:06:01,400 --> 00:06:04,640 Speaker 1: of money, it would not just be as NFL lead analyst, 113 00:06:04,839 --> 00:06:06,560 Speaker 1: but he do a lot of other things for the network. Yeah, 114 00:06:06,560 --> 00:06:09,400 Speaker 1: so let's actually talk about the NFL Media Writes package, 115 00:06:09,440 --> 00:06:12,080 Speaker 1: which listeners of our show are well aware, is already 116 00:06:12,120 --> 00:06:15,280 Speaker 1: being renegotiated. You know, these contracts expire in one year 117 00:06:15,320 --> 00:06:17,920 Speaker 1: or two year, depending on which contract you're talking about. 118 00:06:18,520 --> 00:06:20,799 Speaker 1: Does does the fact that CBS is willing to open 119 00:06:21,560 --> 00:06:23,640 Speaker 1: the wallet for Tony Romo, does that of any effect 120 00:06:23,720 --> 00:06:27,640 Speaker 1: outside of signaling that obviously they're very serious to pay. 121 00:06:27,520 --> 00:06:29,200 Speaker 1: They're gonna have to pay. They're gonna have to show 122 00:06:29,200 --> 00:06:30,520 Speaker 1: me a digital strategy. They're gonna have to show me 123 00:06:30,520 --> 00:06:33,680 Speaker 1: a sports risky And if I mean, I think we 124 00:06:33,760 --> 00:06:37,440 Speaker 1: assume pay this in the in the grand scheme of things, 125 00:06:37,480 --> 00:06:39,440 Speaker 1: of of keeping football and needing football, this is a 126 00:06:39,480 --> 00:06:41,240 Speaker 1: rounding error. So I'd say, no, well, you know it's 127 00:06:41,279 --> 00:06:44,400 Speaker 1: already paid all for CBS, because we're talking about CBS 128 00:06:44,520 --> 00:06:47,480 Speaker 1: right now for keeping Tony rom doesn't mean I can 129 00:06:47,520 --> 00:06:50,359 Speaker 1: tell you what's in CBS? Is time light up? Is 130 00:06:50,360 --> 00:06:54,440 Speaker 1: blue Blood still on? I have for let's see, he 131 00:06:54,560 --> 00:06:56,640 Speaker 1: has a big bang, ain't there. I know that. For 132 00:06:56,640 --> 00:06:59,480 Speaker 1: folks who are wondering looking at spot track, which does 133 00:06:59,520 --> 00:07:02,840 Speaker 1: a pretty good job of covering contracts, do you look 134 00:07:02,839 --> 00:07:07,120 Speaker 1: at I don't need it for I'm citing where I'm 135 00:07:07,120 --> 00:07:10,840 Speaker 1: getting my um. It looks like Tony Romo seventeen million 136 00:07:10,840 --> 00:07:12,720 Speaker 1: would would if he was if that was his NFL 137 00:07:12,760 --> 00:07:15,680 Speaker 1: contract right now. Rank him around thirty four in the 138 00:07:15,760 --> 00:07:17,880 Speaker 1: NFL in terms of highest paid players. How many hits 139 00:07:17,920 --> 00:07:20,680 Speaker 1: is he gonna take. I think less than one, less 140 00:07:20,680 --> 00:07:24,240 Speaker 1: than one. I would say four, with less than one. 141 00:07:25,520 --> 00:07:28,880 Speaker 1: There were some people who were taking this news and 142 00:07:28,920 --> 00:07:32,080 Speaker 1: applying it to the ongoing negotiations right now between the 143 00:07:32,160 --> 00:07:35,840 Speaker 1: NFL and its players Association, essentially saying that this number, 144 00:07:35,880 --> 00:07:38,120 Speaker 1: the fact that he's being paid more than all but 145 00:07:38,120 --> 00:07:42,480 Speaker 1: but thirty four NFL players, highlights how bad a deal 146 00:07:42,640 --> 00:07:44,560 Speaker 1: NFL players have right now. I'm not sure if I 147 00:07:44,640 --> 00:07:47,640 Speaker 1: fully understand the relationship there, but what did you guys 148 00:07:47,640 --> 00:07:49,680 Speaker 1: think about that kind of that connection right there? I'm 149 00:07:49,720 --> 00:07:52,040 Speaker 1: not buying into what the average or the active player 150 00:07:52,160 --> 00:07:55,920 Speaker 1: gets now in a salary cap system. Yeah, the Tony Romo, 151 00:07:56,000 --> 00:07:58,880 Speaker 1: the analyst is negotiating in a free market where there 152 00:07:58,960 --> 00:08:02,320 Speaker 1: is no restrictions. CBS isn't doesn't have a restricted pool 153 00:08:02,320 --> 00:08:05,280 Speaker 1: of money to pay all of its NFL talent. It's 154 00:08:05,320 --> 00:08:07,840 Speaker 1: to me, it's apples and oranges. But it was interesting 155 00:08:07,880 --> 00:08:10,040 Speaker 1: to see people say, look, you know, this is this 156 00:08:10,120 --> 00:08:12,760 Speaker 1: is why players should be rejecting this deal, because we 157 00:08:12,800 --> 00:08:14,760 Speaker 1: have an analyst in the in the booth making more 158 00:08:14,800 --> 00:08:17,400 Speaker 1: than almost This is why they should practice into tape 159 00:08:17,440 --> 00:08:19,520 Speaker 1: recorders during their off weeks and bye weeks instead of 160 00:08:19,520 --> 00:08:22,760 Speaker 1: playing so much football. See this is also why I 161 00:08:23,160 --> 00:08:25,920 Speaker 1: have a problem. Just because you play the game doesn't 162 00:08:25,960 --> 00:08:28,960 Speaker 1: mean you can hop in the booth and broadcast really 163 00:08:29,120 --> 00:08:32,800 Speaker 1: good at it. That's the difference. Well, anytime you're the 164 00:08:32,840 --> 00:08:35,480 Speaker 1: best at what you do, there's a good chance that 165 00:08:35,520 --> 00:08:38,440 Speaker 1: you're going to be compensated. Well, yeah, no, I agree. 166 00:08:38,640 --> 00:08:41,000 Speaker 1: It's I remember meeting Joe Green. He, I mean, one 167 00:08:41,040 --> 00:08:42,960 Speaker 1: of the best ever for the you know, for the 168 00:08:43,000 --> 00:08:46,120 Speaker 1: Steelers that play the game, went into the broadcast booth 169 00:08:46,600 --> 00:08:50,000 Speaker 1: and lots have tried. It's it's not easy. And by 170 00:08:50,040 --> 00:08:51,920 Speaker 1: the way he worked at it, you could tell he prepared. 171 00:08:52,000 --> 00:08:54,720 Speaker 1: He prepared to broadcast a game the same way he 172 00:08:54,800 --> 00:08:58,680 Speaker 1: prepared to play a game as quarterback. Finally, owners of 173 00:08:58,720 --> 00:09:03,439 Speaker 1: the Los Angeles Football All Club, yes we're talking about soccer, 174 00:09:03,679 --> 00:09:07,760 Speaker 1: have partially bought out a steak held by Malaysian businessman 175 00:09:07,920 --> 00:09:10,920 Speaker 1: Vincent Tan in a deal that values the club at 176 00:09:10,920 --> 00:09:13,640 Speaker 1: more than seven million dollars, the most ever for a 177 00:09:13,720 --> 00:09:16,480 Speaker 1: major league doesn't matter, it's a soccer, sports and entertainment 178 00:09:16,640 --> 00:09:19,760 Speaker 1: And this was Mr Novie Williams story. Evan, I mean 179 00:09:19,760 --> 00:09:22,319 Speaker 1: the eye popper here, I don't know, no surprise here 180 00:09:22,400 --> 00:09:25,200 Speaker 1: is the valuation for sure. Yeah, I mean the deal 181 00:09:25,480 --> 00:09:28,240 Speaker 1: Vincent Tan was one of the original l AFC owners. 182 00:09:28,280 --> 00:09:31,240 Speaker 1: He had about steak, which might not sound like much, 183 00:09:31,280 --> 00:09:34,040 Speaker 1: but the ownership group there is so fractured that it's 184 00:09:34,040 --> 00:09:37,000 Speaker 1: actually a pretty darn big, big steak. And he's been 185 00:09:37,000 --> 00:09:39,080 Speaker 1: looking to get out of his soccer soccer holdings for 186 00:09:39,120 --> 00:09:41,480 Speaker 1: a little bit. Uh. So, yes, they absorbed about half 187 00:09:41,480 --> 00:09:43,440 Speaker 1: of his stake ten percent stake in the valuation there, 188 00:09:43,440 --> 00:09:46,199 Speaker 1: as Scott said, seven hundred million dollars by far, a 189 00:09:46,280 --> 00:09:49,760 Speaker 1: record for an MLS team at in a transaction. Uh, 190 00:09:49,800 --> 00:09:52,000 Speaker 1: and pretty darn good news for the league as they 191 00:09:52,200 --> 00:09:54,400 Speaker 1: you know, right before they kick off their twenty fifth season. 192 00:09:54,920 --> 00:09:57,560 Speaker 1: We we've talked about expansion fees. They continue to rise 193 00:09:57,920 --> 00:10:01,280 Speaker 1: valuations for these teams in trans actions. Albeit you know 194 00:10:01,360 --> 00:10:03,120 Speaker 1: this is not at full arm's length and this is 195 00:10:03,160 --> 00:10:06,560 Speaker 1: a kind of a closed internal thing, but still, you know, 196 00:10:06,760 --> 00:10:09,720 Speaker 1: a very big number. They're inching toward billion dollar valuations 197 00:10:09,720 --> 00:10:12,280 Speaker 1: in MLS. Uh. They better show me something in the 198 00:10:12,320 --> 00:10:15,040 Speaker 1: next broadcast agreement. I'll tell you that. Yeah, it's pretty wild. 199 00:10:15,080 --> 00:10:17,520 Speaker 1: I mean, the Forbes does this list of most valuable 200 00:10:17,520 --> 00:10:20,840 Speaker 1: soccer clubs. Ever every year, Uh, seven hundred million dollars 201 00:10:20,840 --> 00:10:23,320 Speaker 1: would put l a f C right now four in 202 00:10:23,360 --> 00:10:26,440 Speaker 1: the real give me a sandwich in between, which Russia 203 00:10:26,440 --> 00:10:29,320 Speaker 1: Dortmund would be the one, Athletico Madrid one above it 204 00:10:29,320 --> 00:10:31,800 Speaker 1: as well, ahead of Inter Milan and a s Roma 205 00:10:32,120 --> 00:10:33,640 Speaker 1: to kind of put that in, to put that in 206 00:10:33,679 --> 00:10:35,959 Speaker 1: full perspective. Again, I'm not sure if l a f 207 00:10:36,040 --> 00:10:38,400 Speaker 1: C would sell for seven drellion dollars in in an 208 00:10:38,440 --> 00:10:42,800 Speaker 1: open market in Los Angeles. Yeah, there's with with the stadium. Yeah, 209 00:10:42,840 --> 00:10:45,800 Speaker 1: I'm not sure they wouldn't. Yeah, it's wild. It's just 210 00:10:45,880 --> 00:10:50,360 Speaker 1: kind of underscores what scarcity values underscore word again right, 211 00:10:53,320 --> 00:10:58,160 Speaker 1: he always doesn't the parade no parade rate shape, but 212 00:10:58,200 --> 00:11:01,599 Speaker 1: not right. It's cloudy and raining. This is the Bloomberg 213 00:11:01,640 --> 00:11:04,199 Speaker 1: Business of Sports podcast. I'm Michael bar along with Scott 214 00:11:04,240 --> 00:11:07,720 Speaker 1: Sasnik and Evan Nobe Wooden. We're here every Monday, Wednesday 215 00:11:07,760 --> 00:11:09,839 Speaker 1: and Thursday exploring the world of money and sports. Join 216 00:11:09,920 --> 00:11:11,280 Speaker 1: us again at the end of the week. We're speaking 217 00:11:11,320 --> 00:11:13,840 Speaker 1: with the biggest and brightest in the sports business world. 218 00:11:13,880 --> 00:11:16,600 Speaker 1: You're listening to Bloomberg Business of Sports and Bloomberg Radio 219 00:11:16,679 --> 00:11:19,320 Speaker 1: around the world and online wherever you get your podcasts,