1 00:00:00,720 --> 00:00:04,800 Speaker 1: This is Bloomberg Business of Sports, where in a situation 2 00:00:04,880 --> 00:00:07,400 Speaker 1: that we haven't dealt with in modern times, the pandemic 3 00:00:07,440 --> 00:00:11,280 Speaker 1: here has really accelerated the investments that we've been advocating 4 00:00:11,360 --> 00:00:13,680 Speaker 1: for for a year. From a macro standpoint, I think 5 00:00:13,680 --> 00:00:16,880 Speaker 1: our sport industry is really forced to look at the 6 00:00:17,000 --> 00:00:20,079 Speaker 1: business a little bit differently. In depth conversations with the 7 00:00:20,239 --> 00:00:23,439 Speaker 1: leaders in the sports industry, sport is a good admiration. 8 00:00:23,600 --> 00:00:25,880 Speaker 1: We're still moving forward with part of something much bigger 9 00:00:25,880 --> 00:00:27,800 Speaker 1: than the sport. Right now, the health and sasty of 10 00:00:27,800 --> 00:00:30,600 Speaker 1: our stakeholders are real, smart important every moment. I think 11 00:00:30,600 --> 00:00:33,280 Speaker 1: we're all from a business respective thinking about the impact 12 00:00:33,280 --> 00:00:36,000 Speaker 1: that the virus is having across the country. In Bloomberg 13 00:00:36,080 --> 00:00:40,800 Speaker 1: Business of Sports from Bloomberg Radio, Hello, I'm Michael barr 14 00:00:41,040 --> 00:00:43,760 Speaker 1: And on Mike Lynch, and this is Bloomberg Business of 15 00:00:43,760 --> 00:00:46,519 Speaker 1: Sports podcast. We explore the big money issues in the 16 00:00:46,560 --> 00:00:50,680 Speaker 1: world of sports. Jason's not with us for this podcast. 17 00:00:51,040 --> 00:00:54,080 Speaker 1: We will get him soon back, though. Let's talk about 18 00:00:54,120 --> 00:00:56,880 Speaker 1: a couple of topics, and let's start with I can't 19 00:00:56,880 --> 00:01:00,440 Speaker 1: believe it, Lynch, the Tokyo Olympics. It's schedule well for 20 00:01:00,560 --> 00:01:04,200 Speaker 1: one hundred days away. This is coming up on us fast. Yeah, 21 00:01:04,280 --> 00:01:07,160 Speaker 1: July twenty three is when the Olympics are scheduled to start, 22 00:01:07,240 --> 00:01:09,920 Speaker 1: postponed from a year ago because of COVID, and you 23 00:01:10,000 --> 00:01:12,880 Speaker 1: know one was postponed three sixty five days. Seemed like 24 00:01:12,880 --> 00:01:16,800 Speaker 1: a long way away. But here we go and Tokyo 25 00:01:16,880 --> 00:01:20,319 Speaker 1: and the news. The question is are they prepared for it? Yeah, 26 00:01:20,480 --> 00:01:24,119 Speaker 1: it's there are several questions involved. One involves the vaccines, 27 00:01:24,800 --> 00:01:28,800 Speaker 1: and obviously there's a question. They cannot get all of 28 00:01:28,800 --> 00:01:33,960 Speaker 1: the vaccines to all of the Olympic participants, so they're 29 00:01:33,959 --> 00:01:36,240 Speaker 1: trying to do the best thing that they can. Have 30 00:01:36,520 --> 00:01:41,119 Speaker 1: masks and a small bottle of hand sanitizer before the athletes. 31 00:01:41,800 --> 00:01:43,720 Speaker 1: This is This is going to be interesting though, and 32 00:01:43,760 --> 00:01:46,880 Speaker 1: it's still it's not a done deal that this is 33 00:01:46,920 --> 00:01:49,480 Speaker 1: going to take place. No, And if I was given 34 00:01:49,480 --> 00:01:52,720 Speaker 1: a hand hand sanitizement two mass, I would say, seriously, 35 00:01:52,800 --> 00:01:57,000 Speaker 1: that's it. I'm on my own right now. And one 36 00:01:57,000 --> 00:01:58,880 Speaker 1: of the problems over there that it's a country of 37 00:01:58,920 --> 00:02:02,720 Speaker 1: a hundred and twenty five million people and less than 38 00:02:02,800 --> 00:02:07,560 Speaker 1: one of the population in Japan is vaccinated. So I 39 00:02:07,600 --> 00:02:11,760 Speaker 1: think obviously, um, everyone who goes over there is going 40 00:02:11,800 --> 00:02:14,919 Speaker 1: to have to be vaccinated before they set foot on 41 00:02:15,040 --> 00:02:17,639 Speaker 1: the ground in Tokyo, and that's that's a big undertaking that. 42 00:02:18,120 --> 00:02:19,880 Speaker 1: I think you can take care of the athletes. But 43 00:02:19,919 --> 00:02:22,360 Speaker 1: I think the question, Michael Barr, if you're an athlete 44 00:02:22,400 --> 00:02:25,160 Speaker 1: over there, the volunteers that you'll be coming in close 45 00:02:25,200 --> 00:02:27,960 Speaker 1: contact with will not be vaccinated, and then what's the 46 00:02:27,960 --> 00:02:29,600 Speaker 1: comfort level of an athlete? I think that's one of 47 00:02:29,639 --> 00:02:34,320 Speaker 1: the big questions. Well, Japan passed more than a five 48 00:02:34,400 --> 00:02:39,280 Speaker 1: hundred thousand coronavirus cases over the weekend now, and that 49 00:02:39,560 --> 00:02:42,000 Speaker 1: brings up the next question. Like you just said, it's like, 50 00:02:42,639 --> 00:02:44,919 Speaker 1: how are you going to keep this from First of all, 51 00:02:44,960 --> 00:02:47,560 Speaker 1: they let me they want to do something with the spectators. 52 00:02:47,680 --> 00:02:50,360 Speaker 1: They want to try something some some of the Olympic 53 00:02:51,120 --> 00:02:53,959 Speaker 1: event organizers like the idea of the way they're doing 54 00:02:54,000 --> 00:02:58,200 Speaker 1: baseball games where there's a certain percentage of fans in 55 00:02:58,240 --> 00:03:00,200 Speaker 1: the stands, and they were thinking of trying to do 56 00:03:00,280 --> 00:03:03,600 Speaker 1: something like that in Japan, But like you said, only 57 00:03:04,760 --> 00:03:07,880 Speaker 1: in Japan. They they've been inoculated. Yeah, and this is 58 00:03:07,919 --> 00:03:12,480 Speaker 1: a billion dollar project they're putting on this for the 59 00:03:12,480 --> 00:03:15,080 Speaker 1: whole world that they had to postpone it from a 60 00:03:15,120 --> 00:03:18,240 Speaker 1: year ago. Uh, they lost some of the athletes, some 61 00:03:18,360 --> 00:03:21,040 Speaker 1: of the sponsors they lost as well. So you know 62 00:03:21,160 --> 00:03:23,560 Speaker 1: they could recoup some with by selling tickets, but if 63 00:03:23,560 --> 00:03:25,400 Speaker 1: they have to reduce the tickets, they're going to take 64 00:03:25,400 --> 00:03:28,840 Speaker 1: a big financial bath over their big bath. Oh this 65 00:03:28,840 --> 00:03:31,960 Speaker 1: this is they're done if that, If that happens, it's 66 00:03:32,000 --> 00:03:35,240 Speaker 1: not done in terms of the Olympics and all the 67 00:03:35,320 --> 00:03:38,000 Speaker 1: funding for it. It's gone. I mean, what happens to 68 00:03:38,480 --> 00:03:41,200 Speaker 1: the sponsorships, what happens to all of that? That just 69 00:03:41,240 --> 00:03:44,240 Speaker 1: goes up in flames. Well, and it's too late obviously 70 00:03:44,280 --> 00:03:46,880 Speaker 1: to to postpone it in another year, or is it 71 00:03:47,400 --> 00:03:52,080 Speaker 1: because you know, the pandemic last year really spreading, uh, 72 00:03:52,600 --> 00:03:55,400 Speaker 1: enraged during the month of March, and we're not too 73 00:03:55,400 --> 00:03:59,080 Speaker 1: far removed from that this year, and they could, I suppose, 74 00:03:59,160 --> 00:04:02,560 Speaker 1: but then they'd be, you know, colliding with Beijing hosting 75 00:04:02,600 --> 00:04:05,240 Speaker 1: the winter and it would be just like the old 76 00:04:05,240 --> 00:04:07,560 Speaker 1: times where the Winter and Summer Olympics were played and 77 00:04:07,640 --> 00:04:12,080 Speaker 1: held in the same year. What's sad too, is this 78 00:04:12,160 --> 00:04:15,000 Speaker 1: is one of the few Olympics in Japan where finally 79 00:04:15,160 --> 00:04:18,360 Speaker 1: women are being able now to be on the board 80 00:04:18,760 --> 00:04:22,680 Speaker 1: and and talk about the ways they're going to plan this, 81 00:04:23,560 --> 00:04:26,039 Speaker 1: and this thing could still be all up in flames. 82 00:04:26,040 --> 00:04:30,440 Speaker 1: So we got our fingers crossed. UH, Draft Kings. Big 83 00:04:30,440 --> 00:04:33,760 Speaker 1: news with Draft Kings, they're going to build retail sports 84 00:04:33,760 --> 00:04:39,119 Speaker 1: book at the Fame TPC Scottsdale Golf Course in Arizona, Lynchie. 85 00:04:39,120 --> 00:04:42,000 Speaker 1: According to sport ag Yeah, this is gonna be something 86 00:04:42,120 --> 00:04:45,320 Speaker 1: of the Arizona just became the twenty first state to 87 00:04:45,400 --> 00:04:49,720 Speaker 1: pass the legalized sports betting and Scottsdale is a year 88 00:04:49,800 --> 00:04:53,760 Speaker 1: round destination for golfers. UH the great golf courses in 89 00:04:53,839 --> 00:04:57,320 Speaker 1: the in the city of Scottsdale and the TPC course 90 00:04:57,400 --> 00:05:00,719 Speaker 1: in Scottsdale. It's same sixt hole, which as a stadium 91 00:05:00,800 --> 00:05:06,120 Speaker 1: hole completely UH enclosed, seats twenty people. It's one of 92 00:05:06,120 --> 00:05:08,520 Speaker 1: the It is the rowdiest hole on the p G 93 00:05:08,680 --> 00:05:11,800 Speaker 1: eight Tour and now year round you can walk right 94 00:05:11,880 --> 00:05:13,480 Speaker 1: up there and you can make place a bet on 95 00:05:13,520 --> 00:05:16,400 Speaker 1: any event. It doesn't have to be this the Waste 96 00:05:16,440 --> 00:05:18,920 Speaker 1: Management Open in Phoenix. It can be any event any 97 00:05:18,960 --> 00:05:20,440 Speaker 1: time of the year, and they expect to have this 98 00:05:20,480 --> 00:05:22,880 Speaker 1: thing up and running by the start of the NFL 99 00:05:22,960 --> 00:05:25,400 Speaker 1: season in September. I want to get back the draft 100 00:05:25,480 --> 00:05:27,120 Speaker 1: Kings in a second. But I got to talk about 101 00:05:27,200 --> 00:05:31,520 Speaker 1: this sixteenth hold the rowdiest hole in professional golf. Uh 102 00:05:32,120 --> 00:05:35,039 Speaker 1: this first of all, the let me explain this for 103 00:05:35,080 --> 00:05:38,359 Speaker 1: people who are not familiar with this. You're talking about 104 00:05:38,720 --> 00:05:42,680 Speaker 1: grand stands and sky boxes that can see twenty thousand people. 105 00:05:43,200 --> 00:05:46,200 Speaker 1: And if you take an overhead shot of this, it 106 00:05:46,240 --> 00:05:50,280 Speaker 1: looks just like you're playing in a football field. And 107 00:05:50,520 --> 00:05:53,680 Speaker 1: it really is amazing to see this. And we were 108 00:05:53,680 --> 00:05:56,560 Speaker 1: talking off the air just before we went on. Sometimes 109 00:05:57,120 --> 00:05:59,840 Speaker 1: the caddies what do they do. They race up on 110 00:06:00,040 --> 00:06:02,320 Speaker 1: the green. They used to have it like if they 111 00:06:02,080 --> 00:06:04,000 Speaker 1: have played in three sims or two sims. As soon 112 00:06:04,040 --> 00:06:06,240 Speaker 1: as the last player hit, the caddies would have a 113 00:06:06,320 --> 00:06:07,920 Speaker 1: race with a bag, and the people who would be 114 00:06:07,960 --> 00:06:10,080 Speaker 1: cheering them on most like a horse race, and like 115 00:06:10,120 --> 00:06:12,200 Speaker 1: the Kentucky Derby. You know, come on, let's go, come on, 116 00:06:12,240 --> 00:06:14,880 Speaker 1: film Nichols and caddy, let's go go, go going. And 117 00:06:14,920 --> 00:06:16,520 Speaker 1: you know they dropped the bag right at the edge 118 00:06:16,520 --> 00:06:18,280 Speaker 1: of the green, you know, and where a caddy one 119 00:06:18,320 --> 00:06:20,359 Speaker 1: would raise his fists up in the air. But the 120 00:06:20,400 --> 00:06:22,440 Speaker 1: caddy that those bags are so heavy it's like carrying 121 00:06:22,440 --> 00:06:24,960 Speaker 1: a Volkswag on your shoulders. Some of the some of 122 00:06:25,000 --> 00:06:26,920 Speaker 1: the caddies started tripping and falling, and they were worried 123 00:06:26,920 --> 00:06:28,719 Speaker 1: about them getting hurt. So they told them they can't 124 00:06:28,760 --> 00:06:31,679 Speaker 1: do that anymore. But you know, they but they actually boot, 125 00:06:31,720 --> 00:06:34,480 Speaker 1: they actually boo the golfers, They applaud the golfers, and 126 00:06:34,480 --> 00:06:36,960 Speaker 1: and everyone is really a good sport about it, you know, 127 00:06:37,360 --> 00:06:39,600 Speaker 1: and it's really a lot of fun. But so that's 128 00:06:39,600 --> 00:06:43,159 Speaker 1: where the drafts Kings is gonna have their their facility 129 00:06:43,279 --> 00:06:45,840 Speaker 1: right there and then and you can just a PLoP 130 00:06:45,960 --> 00:06:47,920 Speaker 1: right yourself right down there and you can wage your 131 00:06:47,920 --> 00:06:52,919 Speaker 1: on anything. Oh, it's gonna be big business during major events, uh, 132 00:06:53,160 --> 00:06:57,480 Speaker 1: for many reasons. And speaking of that about the online 133 00:06:57,520 --> 00:07:02,080 Speaker 1: sports betting, they are these states now at least at 134 00:07:02,160 --> 00:07:08,640 Speaker 1: least fourteen fifteen states that have approved online sports betting. 135 00:07:09,440 --> 00:07:14,440 Speaker 1: And what they're realizing is, yes, it's a decent revenue 136 00:07:15,160 --> 00:07:18,920 Speaker 1: for taxes to bring that up, but it's not the 137 00:07:18,960 --> 00:07:22,440 Speaker 1: be all end all INNGY for trying to get their 138 00:07:22,440 --> 00:07:26,320 Speaker 1: budgets in order. No, because a lot of the COVID 139 00:07:26,400 --> 00:07:28,400 Speaker 1: just took a bite out of every single state and 140 00:07:28,440 --> 00:07:31,080 Speaker 1: every single business as we know. Um, we're now at 141 00:07:31,120 --> 00:07:33,800 Speaker 1: twenty one states. So given example, Illinois, by the way, 142 00:07:33,800 --> 00:07:36,840 Speaker 1: it just became one of those states. In one month 143 00:07:37,200 --> 00:07:40,320 Speaker 1: they had they grossed to four hundred and fifty million 144 00:07:40,360 --> 00:07:43,720 Speaker 1: dollars in legalized sports betting, and there's a facility being 145 00:07:43,720 --> 00:07:46,800 Speaker 1: built right inside Wrigley Field which is going to be 146 00:07:46,840 --> 00:07:51,280 Speaker 1: opening very very shortly. So that's a pretty good way 147 00:07:51,280 --> 00:07:53,200 Speaker 1: to get a chunk of money back that you lost 148 00:07:53,280 --> 00:07:55,880 Speaker 1: during all the expenses and all the tax revenue you 149 00:07:55,960 --> 00:07:58,240 Speaker 1: lost in sales taxes you lost during COVID over the 150 00:07:58,280 --> 00:08:02,480 Speaker 1: last thirteen or fourteen months. New York would be the 151 00:08:02,560 --> 00:08:06,000 Speaker 1: largest because they're in line to to get it done 152 00:08:06,080 --> 00:08:08,640 Speaker 1: and they're hoping to maybe get something set up by 153 00:08:08,760 --> 00:08:14,280 Speaker 1: next year, and at least they are looking at as 154 00:08:14,320 --> 00:08:17,720 Speaker 1: you know, they're budget issues with New York because of COVID, 155 00:08:17,840 --> 00:08:20,840 Speaker 1: so maybe that would help them. Yeah, a lot of 156 00:08:20,880 --> 00:08:23,920 Speaker 1: states have it um and they just can't get the 157 00:08:24,000 --> 00:08:27,200 Speaker 1: legislature to approve it. I know that everybody wants it here. 158 00:08:27,360 --> 00:08:30,360 Speaker 1: I'm in Massachusetts and it's ready to go. But it 159 00:08:30,600 --> 00:08:33,640 Speaker 1: hasn't been a standalone issue. It's always been wrapped up 160 00:08:33,640 --> 00:08:36,880 Speaker 1: in some type of package and with the legislature. But this, 161 00:08:37,440 --> 00:08:40,440 Speaker 1: you know, when when you see like four fifty million 162 00:08:41,760 --> 00:08:44,959 Speaker 1: dollars embedding one month in the state of Illinois. That 163 00:08:45,000 --> 00:08:48,080 Speaker 1: would sort of get me going to to get this 164 00:08:48,120 --> 00:08:49,920 Speaker 1: thing past if if I'm one of those states that 165 00:08:49,960 --> 00:08:52,480 Speaker 1: doesn't have it yet and New York wants to run 166 00:08:52,559 --> 00:08:57,120 Speaker 1: it a lot like the lottery. Instead of maybe the 167 00:08:57,200 --> 00:09:00,600 Speaker 1: online casino is making a chunk of change and paying attacks, 168 00:09:00,840 --> 00:09:03,320 Speaker 1: they want to run it like the lottery, where there's 169 00:09:03,360 --> 00:09:06,960 Speaker 1: a huge chunk that's coming out for the state and 170 00:09:07,040 --> 00:09:11,280 Speaker 1: the rest going to the casinos. Yep, and um, you 171 00:09:11,320 --> 00:09:13,880 Speaker 1: know it's a It takes all the money that's being 172 00:09:13,920 --> 00:09:16,520 Speaker 1: bet illegally out of a lot of different hands and 173 00:09:16,559 --> 00:09:19,120 Speaker 1: puts it in the conference of of of the states, 174 00:09:19,280 --> 00:09:21,640 Speaker 1: and you know it's a good move. I haven't seen 175 00:09:21,640 --> 00:09:26,120 Speaker 1: any state right now that regrets legal approving legalized sports betting. 176 00:09:26,679 --> 00:09:30,560 Speaker 1: I don't regret my state legalizing sports betting. I'm sorry 177 00:09:31,080 --> 00:09:33,640 Speaker 1: I said that out loud. That's my line. This is 178 00:09:33,679 --> 00:09:37,040 Speaker 1: the Bloomberg Business and Sports Podcast. I'm Michael Barr. By 179 00:09:37,080 --> 00:09:40,000 Speaker 1: the way, Jason will be back. He'll be back with 180 00:09:40,080 --> 00:09:41,920 Speaker 1: us later on this week. You can follow me on 181 00:09:41,920 --> 00:09:44,640 Speaker 1: Twitter at Big Bar Sports, and I'm Mike Lynch. You 182 00:09:44,640 --> 00:09:47,559 Speaker 1: can follow me at Lynch e w CVB. We're here 183 00:09:47,600 --> 00:09:50,800 Speaker 1: each and every Monday, Wednesday and Thursday exploring the world 184 00:09:50,800 --> 00:09:53,439 Speaker 1: of money and sports. You're listening to Bloomberg Business Sports 185 00:09:53,440 --> 00:09:56,280 Speaker 1: on Bloomberg Radio around the world and online wherever you 186 00:09:56,320 --> 00:09:57,280 Speaker 1: get your podcast.