1 00:00:00,720 --> 00:00:04,600 Speaker 1: This is Bloomberg Business of Sports. The world changing and 2 00:00:04,640 --> 00:00:06,840 Speaker 1: what are things we can do to transform our business 3 00:00:06,840 --> 00:00:09,680 Speaker 1: and engage our fans globally in different ways, people are 4 00:00:09,760 --> 00:00:12,680 Speaker 1: using their name and likeness to create more opportunities, more 5 00:00:12,720 --> 00:00:15,520 Speaker 1: stakes and companies. In order to turn the organization around, 6 00:00:15,560 --> 00:00:17,279 Speaker 1: we had to turn it around not only just on 7 00:00:17,440 --> 00:00:20,959 Speaker 1: baseball operations side, but other business operations side well, and 8 00:00:21,079 --> 00:00:23,079 Speaker 1: any other sport is very difficult, but I like to 9 00:00:23,079 --> 00:00:26,560 Speaker 1: blub my horizons and be able to expand. Sports need 10 00:00:26,600 --> 00:00:29,040 Speaker 1: to be consumed a lot and not to the big 11 00:00:29,160 --> 00:00:33,440 Speaker 1: competitive advantage for in autual property holders of sports content 12 00:00:33,560 --> 00:00:37,920 Speaker 1: in the media landscape. Bloomberg Business of Sports from Bloomberg Radio. 13 00:00:38,800 --> 00:00:41,319 Speaker 1: Hi everyone, I'm Jason Kelly, and I'm Mike Link and 14 00:00:41,320 --> 00:00:44,360 Speaker 1: I'm Michael Barr. Over the next hour, we will explore 15 00:00:44,400 --> 00:00:46,760 Speaker 1: the big money issues in the world of sports and 16 00:00:47,000 --> 00:00:49,400 Speaker 1: talk to some of the biggest players in the industry. 17 00:00:49,520 --> 00:00:52,600 Speaker 1: Talk about big players and big money issues. Guys, let's 18 00:00:52,600 --> 00:00:54,640 Speaker 1: talk a little bit about what's been going on in 19 00:00:54,680 --> 00:00:58,400 Speaker 1: the world of sports and business. A very familiar name 20 00:00:58,560 --> 00:01:03,160 Speaker 1: to our audience, of course, Lebron James. He is not 21 00:01:03,280 --> 00:01:06,840 Speaker 1: playing basketball right now, as the NBA finals come to 22 00:01:06,959 --> 00:01:10,319 Speaker 1: a close, much to his chagrin. But the other side 23 00:01:10,360 --> 00:01:12,759 Speaker 1: of his house, the business side of his house, well 24 00:01:12,800 --> 00:01:16,039 Speaker 1: they may be doing some deal making. We're talking about 25 00:01:16,120 --> 00:01:20,120 Speaker 1: the spring Hill Company. And for avid and devoted listeners 26 00:01:20,160 --> 00:01:23,320 Speaker 1: of this podcast, you'll think back to a year when 27 00:01:23,360 --> 00:01:26,560 Speaker 1: I sat down with Lebron and Maverick Carter, his longtime 28 00:01:26,600 --> 00:01:31,080 Speaker 1: business partner, about the formation of spring Hill. Here's a refresher. 29 00:01:31,120 --> 00:01:33,160 Speaker 1: As a company. You know, this is a big moment 30 00:01:33,200 --> 00:01:36,080 Speaker 1: for us. You know, we worked very hard over the 31 00:01:36,160 --> 00:01:40,120 Speaker 1: last four and a half to five years really building 32 00:01:40,120 --> 00:01:42,240 Speaker 1: and shaping our company, and now we bring it to 33 00:01:42,319 --> 00:01:45,479 Speaker 1: this moment. Were able to bring our three companies together 34 00:01:45,520 --> 00:01:47,600 Speaker 1: and create the spring Hill Company. But the truth is 35 00:01:48,880 --> 00:01:52,840 Speaker 1: we weren't anticipating this moment. But but what this moment 36 00:01:52,880 --> 00:01:57,840 Speaker 1: has brought to the forefront is exactly what our mission 37 00:01:57,920 --> 00:02:01,040 Speaker 1: stands for. Our mission at our company is about empowering 38 00:02:01,080 --> 00:02:03,680 Speaker 1: greatness in every divisual. When you think about that word 39 00:02:04,200 --> 00:02:07,760 Speaker 1: empowering and you think about what black people need is 40 00:02:07,800 --> 00:02:10,880 Speaker 1: empowerment and that is Maverick Carter. He is the CEO 41 00:02:11,120 --> 00:02:14,600 Speaker 1: of the spring Hill Company. That is the media company 42 00:02:14,639 --> 00:02:17,920 Speaker 1: that he and Lebron James, his longtime friend and business partner, 43 00:02:18,000 --> 00:02:23,640 Speaker 1: created the news this week. Reportedly, spring Hill is in 44 00:02:23,760 --> 00:02:29,640 Speaker 1: discussions with a number of suitors, including Nike, of course, 45 00:02:29,639 --> 00:02:34,520 Speaker 1: a long time association. The valuation about seven fifty million dollars. This, 46 00:02:34,639 --> 00:02:37,799 Speaker 1: of course is a company, guys, spring Hill is that 47 00:02:38,040 --> 00:02:42,640 Speaker 1: essentially enables creators across all sorts of platforms and with 48 00:02:42,680 --> 00:02:45,440 Speaker 1: a focus, as you just heard Maverick talk about, with 49 00:02:45,480 --> 00:02:49,399 Speaker 1: a focus on creators who might not have platforms elsewhere, 50 00:02:49,480 --> 00:02:53,560 Speaker 1: especially people of color. Uh. This is a company that 51 00:02:53,840 --> 00:02:58,040 Speaker 1: had been built over the preceding number of years leading 52 00:02:58,120 --> 00:03:00,440 Speaker 1: up to the creation and the four nation of the 53 00:03:00,440 --> 00:03:03,280 Speaker 1: Official spring Hill Company h the combined spring Hill Company 54 00:03:03,360 --> 00:03:06,640 Speaker 1: last year. Uh, and you heard Maverick talk about. It 55 00:03:06,800 --> 00:03:09,960 Speaker 1: is a company very much that the moment has met 56 00:03:10,440 --> 00:03:13,600 Speaker 1: and a lot of demand out there, Lynchy for this 57 00:03:13,680 --> 00:03:16,880 Speaker 1: type of content. So you can see why people are 58 00:03:17,080 --> 00:03:19,480 Speaker 1: circling around spring Hill. Well, there we have the shop 59 00:03:19,560 --> 00:03:22,720 Speaker 1: out on HBO. Space Jam is just about to be released, 60 00:03:22,720 --> 00:03:25,560 Speaker 1: the sequel to Space Jam, and uh, in addition to 61 00:03:25,600 --> 00:03:29,400 Speaker 1: the Nike, there's a lot of streaming of media producers 62 00:03:29,440 --> 00:03:33,400 Speaker 1: that are interested. Technical companies are interested, and you know this. 63 00:03:33,639 --> 00:03:35,960 Speaker 1: These guys raised a hundred million dollars when they started 64 00:03:36,000 --> 00:03:38,480 Speaker 1: spring Hill, and now they're going to bump that up 65 00:03:38,480 --> 00:03:42,280 Speaker 1: to about seven million dollars. Lebron James not satisfied just 66 00:03:42,360 --> 00:03:45,960 Speaker 1: to be a spokesperson or a pitchman for some company. Uh, 67 00:03:46,000 --> 00:03:48,480 Speaker 1: sort of like Victor Kayam, I liked the company so 68 00:03:48,560 --> 00:03:50,560 Speaker 1: much I bought it. He wants to be an owner 69 00:03:50,600 --> 00:03:53,320 Speaker 1: and an active owner. Well, and that's a really good 70 00:03:53,320 --> 00:03:55,480 Speaker 1: point too. And and obviously right there in your backyard, 71 00:03:55,600 --> 00:03:58,160 Speaker 1: Lynch and Michael Barr, we've talked about this a lot 72 00:03:58,200 --> 00:04:00,640 Speaker 1: in this show, you know, between the time that that 73 00:04:00,680 --> 00:04:04,040 Speaker 1: deal was announced. Uh, and now Lebron and Maverick have, 74 00:04:04,600 --> 00:04:08,480 Speaker 1: through their work with the Fenway Sports Group become minority 75 00:04:08,520 --> 00:04:12,840 Speaker 1: owners in the Boston Red Sox. So listen, don't sleep 76 00:04:12,840 --> 00:04:16,480 Speaker 1: on Lebron. And as as you rightly point out, Lynchy, 77 00:04:16,520 --> 00:04:21,320 Speaker 1: in days, we're gonna see space Jam, the new Space Jam. 78 00:04:21,360 --> 00:04:23,880 Speaker 1: I'm going I'm telling you that right now, I'm going 79 00:04:23,920 --> 00:04:27,880 Speaker 1: to see Space Jam. I'm all over it. You know 80 00:04:28,240 --> 00:04:32,039 Speaker 1: it's you gotta think it's a long far cry. And 81 00:04:32,080 --> 00:04:34,640 Speaker 1: I'm just going back to the mid sixties when a 82 00:04:34,680 --> 00:04:37,240 Speaker 1: pro athlete for the most part uh in the off 83 00:04:37,240 --> 00:04:39,919 Speaker 1: season they had to sell insurance just to make the 84 00:04:40,040 --> 00:04:43,599 Speaker 1: ends meet. And now what we're into an error where 85 00:04:43,839 --> 00:04:48,479 Speaker 1: you have the athletes and they're making sound investments. It 86 00:04:48,600 --> 00:04:52,320 Speaker 1: is something to see. Yeah, interesting, you know, I will say, 87 00:04:52,480 --> 00:04:54,120 Speaker 1: it's funny you bring that up, you know, sort of 88 00:04:54,160 --> 00:04:58,080 Speaker 1: going back because if you check out our podcast feed, 89 00:04:58,080 --> 00:05:00,640 Speaker 1: we have a great conversation from earlier in the week 90 00:05:00,640 --> 00:05:02,760 Speaker 1: with Luke Epplin. It just puts me in the mindset 91 00:05:02,760 --> 00:05:04,760 Speaker 1: of these, you know, athletes as business people. And he 92 00:05:04,800 --> 00:05:08,080 Speaker 1: talks a lot about Bob Feller, I believe, who you know, 93 00:05:08,440 --> 00:05:11,200 Speaker 1: was kind of an o G when it comes to 94 00:05:11,240 --> 00:05:13,400 Speaker 1: all this stuff and way ahead of his time. You know, 95 00:05:13,520 --> 00:05:16,520 Speaker 1: Lebron has set a new template for a lot of 96 00:05:16,560 --> 00:05:18,799 Speaker 1: these things. But you know, keep an eye on what's 97 00:05:18,839 --> 00:05:23,000 Speaker 1: going on clearly over at spring Hill because whatever they do, 98 00:05:23,520 --> 00:05:28,400 Speaker 1: whatever platform they are going to be using Maverick and Lebron, 99 00:05:28,800 --> 00:05:32,480 Speaker 1: they're only getting bigger in in so many ways. Moving 100 00:05:32,520 --> 00:05:36,400 Speaker 1: on to elsewhere in the NBA, another owner, ted leons Is, 101 00:05:36,640 --> 00:05:40,160 Speaker 1: he caught up with our own Emily Chang the Wizards, 102 00:05:40,360 --> 00:05:43,120 Speaker 1: maybe not surprisingly giving ted leons Is his background is 103 00:05:43,160 --> 00:05:45,960 Speaker 1: one of the founders of a o L. He owns 104 00:05:45,960 --> 00:05:48,880 Speaker 1: the Wizards and the Caps the Washington Capitals over in 105 00:05:48,920 --> 00:05:51,560 Speaker 1: the NHL, they are launching some n f t s. 106 00:05:51,640 --> 00:05:54,280 Speaker 1: Check it out. I still believe very very much so 107 00:05:54,400 --> 00:06:01,680 Speaker 1: in capturing of moments and using those video assets as tradeables, 108 00:06:02,120 --> 00:06:07,640 Speaker 1: capturing memories, but they've tended to be aimed at collectors, 109 00:06:07,680 --> 00:06:11,880 Speaker 1: and and we wanted to add our teams to make 110 00:06:12,040 --> 00:06:16,120 Speaker 1: n f t s understandable and make them approachable. And 111 00:06:16,160 --> 00:06:21,239 Speaker 1: so we've launched a series of products to our customers, 112 00:06:21,279 --> 00:06:25,320 Speaker 1: to people that follow the teams on a worldwide basis. 113 00:06:25,920 --> 00:06:28,120 Speaker 1: Some of them are free, some of them are priced 114 00:06:28,240 --> 00:06:30,800 Speaker 1: very very low. And the whole idea was to get 115 00:06:30,880 --> 00:06:36,400 Speaker 1: people to trial it, to experiment, to understand what n 116 00:06:36,440 --> 00:06:39,839 Speaker 1: f t s are about. And it's really how can 117 00:06:39,960 --> 00:06:46,240 Speaker 1: you create memories and create currency so that your fans 118 00:06:46,400 --> 00:06:52,159 Speaker 1: have a more digitized, more engaged experience. I love that 119 00:06:52,240 --> 00:06:55,479 Speaker 1: notion hearing from ted Lewances they're the owner of the 120 00:06:55,520 --> 00:06:59,760 Speaker 1: Washington Capitals and the Washington Wizards. UH founder convenor of 121 00:06:59,760 --> 00:07:03,760 Speaker 1: a well of course talking about memories and currency, Lynchy, 122 00:07:03,920 --> 00:07:06,920 Speaker 1: I mean, I feel like those are two words that 123 00:07:07,000 --> 00:07:09,720 Speaker 1: are very resonant when you think about the business of 124 00:07:09,800 --> 00:07:13,240 Speaker 1: sports and and sort of feathering in the cultural, social, 125 00:07:13,360 --> 00:07:16,560 Speaker 1: and almost emotional importance of sports. They're launching it with 126 00:07:16,560 --> 00:07:20,760 Speaker 1: a pretty clever little program, a scavenger hunt where the 127 00:07:20,880 --> 00:07:24,120 Speaker 1: starting five is the pitch here at the starting five collection, 128 00:07:24,440 --> 00:07:29,320 Speaker 1: and the prices range anywhere from fortars but five hundred 129 00:07:29,360 --> 00:07:32,200 Speaker 1: lucky people are going to have something air dropped into 130 00:07:32,280 --> 00:07:35,760 Speaker 1: their crypto wallet if they for all of these clues 131 00:07:35,800 --> 00:07:38,600 Speaker 1: and go around the greater Washington, D C. Area. And 132 00:07:38,600 --> 00:07:39,920 Speaker 1: I think it's kind of cool because you know what 133 00:07:40,000 --> 00:07:42,560 Speaker 1: gives it gives the fans a little like, Hey, you 134 00:07:42,560 --> 00:07:44,600 Speaker 1: know I own a piece of this franchise right now. 135 00:07:44,640 --> 00:07:47,040 Speaker 1: You know I could talk to tell you buddies at work, Hey, 136 00:07:47,080 --> 00:07:48,760 Speaker 1: you know what, I I've got an n f T 137 00:07:48,960 --> 00:07:50,800 Speaker 1: right here, and uh, you know I don't want a 138 00:07:50,800 --> 00:07:52,560 Speaker 1: piece of the Wizards and the caps. There you go, 139 00:07:52,800 --> 00:07:54,240 Speaker 1: n f T S. You're all over it, right, Bar? 140 00:07:54,480 --> 00:07:57,400 Speaker 1: Oh yes, I am. Now. Unfortunately old man Bar the 141 00:07:57,480 --> 00:07:59,520 Speaker 1: guys he's stupid because I took a quick glance that 142 00:07:59,560 --> 00:08:03,000 Speaker 1: they hadn't wizards reveal four d MB locations? What Department 143 00:08:03,040 --> 00:08:05,520 Speaker 1: of more vehicles when they're going there? What? What the 144 00:08:05,560 --> 00:08:08,040 Speaker 1: heck is that? And then as I started reading the story, 145 00:08:08,080 --> 00:08:10,800 Speaker 1: I'm like, yeah, that is pretty clever. How they'll do it. 146 00:08:10,800 --> 00:08:13,600 Speaker 1: They're gonna have a lot of fun, and it's I 147 00:08:13,640 --> 00:08:15,480 Speaker 1: can see a lot of people picking up on this, 148 00:08:15,800 --> 00:08:19,040 Speaker 1: and like you said, Lynchy and and Jason the owner 149 00:08:19,160 --> 00:08:22,840 Speaker 1: share of it. That's gonna be kind of cool. Listener, 150 00:08:22,920 --> 00:08:28,160 Speaker 1: d m V stands for DC, Maryland and Virginia. It's 151 00:08:28,240 --> 00:08:33,319 Speaker 1: just I went to Georgetown. I know what that means exactly. 152 00:08:33,600 --> 00:08:38,520 Speaker 1: I'm familiar with inside the belt Way. Uh, well, way 153 00:08:38,559 --> 00:08:42,559 Speaker 1: outside the Beltway, going overseas. Guys, all eyes. Next week, 154 00:08:42,800 --> 00:08:52,680 Speaker 1: go to Tokyo. That's stirring music. We're gonna hear it. 155 00:08:52,679 --> 00:08:54,600 Speaker 1: It's a year late. No one's going to be in 156 00:08:54,640 --> 00:08:58,520 Speaker 1: the stands to hear it. But the Olympics. Nonetheless, let's 157 00:08:58,559 --> 00:09:02,240 Speaker 1: turn to a puld on expert on the business of 158 00:09:02,280 --> 00:09:05,040 Speaker 1: the Olympics. We're talking about Andrew Zimblis. He's a Smith 159 00:09:05,200 --> 00:09:08,960 Speaker 1: College economics professor. He's the author of the book Circus Maximus, 160 00:09:08,960 --> 00:09:12,760 Speaker 1: The Economic Gamble behind hosting the Olympics and the World Cup. 161 00:09:13,040 --> 00:09:17,360 Speaker 1: So Professor, let's start there, if we can. I mean, 162 00:09:17,440 --> 00:09:21,360 Speaker 1: this is an Olympics like none other. It's a year late, 163 00:09:21,840 --> 00:09:24,280 Speaker 1: no one's really going to be watching it in person. 164 00:09:25,000 --> 00:09:29,280 Speaker 1: What does that ultimately mean for the economics of these games. Well, 165 00:09:29,320 --> 00:09:33,840 Speaker 1: I think it's widely recognized that this is a unique experience. 166 00:09:33,960 --> 00:09:37,480 Speaker 1: Games have never been postponed before. They've been canceled during 167 00:09:37,480 --> 00:09:42,240 Speaker 1: the World Wars, but not postponed. And the postponement cost 168 00:09:42,440 --> 00:09:47,280 Speaker 1: the Tokyo Organizing Committee about three billion dollars. I think 169 00:09:47,440 --> 00:09:51,320 Speaker 1: that people are recognizing that there are some risks with 170 00:09:51,400 --> 00:09:54,760 Speaker 1: hosting the games that they didn't know about before. So 171 00:09:54,920 --> 00:09:59,160 Speaker 1: Tokyo doesn't have cancelation insurance. I think hosts going forward 172 00:09:59,200 --> 00:10:01,920 Speaker 1: will purchase can installation insurance. Of course, that will add 173 00:10:01,960 --> 00:10:06,200 Speaker 1: to the massive costs that that already exists. But look 174 00:10:06,280 --> 00:10:09,760 Speaker 1: the the IOC, the International Olympic Committee, has been suffering 175 00:10:09,760 --> 00:10:14,080 Speaker 1: a decline in its reputation and it's it's shine for 176 00:10:14,200 --> 00:10:17,400 Speaker 1: the last fifteen or twenty years. Fewer and fewer cities 177 00:10:17,440 --> 00:10:20,760 Speaker 1: are willing to host. The costs have been exploding. There 178 00:10:20,760 --> 00:10:24,600 Speaker 1: have been environmental and social disruptions connected to hosting the games, 179 00:10:25,200 --> 00:10:29,160 Speaker 1: and this is just one more instance of bad publicity. 180 00:10:29,240 --> 00:10:32,319 Speaker 1: It's bad publicity for Tokyo in Japan, it's bad publicity 181 00:10:32,360 --> 00:10:35,160 Speaker 1: for the ioc UH. There was there's been a lot 182 00:10:35,200 --> 00:10:37,880 Speaker 1: of dithering by the ioc N by Tokyo about whether 183 00:10:37,920 --> 00:10:39,880 Speaker 1: first to postpone the games or not, and then when 184 00:10:39,960 --> 00:10:42,080 Speaker 1: whether to have them or not, and then whether to 185 00:10:42,320 --> 00:10:45,480 Speaker 1: allow visitors to come to the country to watch them, 186 00:10:45,480 --> 00:10:48,000 Speaker 1: and that was that was decided against. And then they 187 00:10:48,000 --> 00:10:50,680 Speaker 1: were thinking about having fifty percent capacity but all of 188 00:10:50,760 --> 00:10:55,160 Speaker 1: Japanese residents, and that's been decided against. One of one 189 00:10:55,200 --> 00:10:58,520 Speaker 1: of the costs involved here that nobody's really talking about 190 00:10:58,520 --> 00:11:03,760 Speaker 1: a recognizing is that if the Japanese government hasn't put 191 00:11:03,800 --> 00:11:09,920 Speaker 1: in place it's emergency for the country right now because 192 00:11:10,120 --> 00:11:14,120 Speaker 1: they're hosting the games and because they're concerned about spreading 193 00:11:14,160 --> 00:11:17,240 Speaker 1: the virus and bad publicity that would come if it's 194 00:11:17,240 --> 00:11:19,840 Speaker 1: served as a super spreader event. If that's why they 195 00:11:19,880 --> 00:11:23,080 Speaker 1: have a state of emergency, well, the cost of the 196 00:11:23,120 --> 00:11:26,720 Speaker 1: games then escalates enormously because the state of emergency means 197 00:11:26,760 --> 00:11:29,760 Speaker 1: for the next month that in Tokyo and other major 198 00:11:29,920 --> 00:11:34,160 Speaker 1: areas in Japan, there's not going to be open restaurants, 199 00:11:34,200 --> 00:11:36,080 Speaker 1: that's not going to be open bars, there's not going 200 00:11:36,120 --> 00:11:38,640 Speaker 1: to be open entertainment venues. All of that will hurt 201 00:11:38,679 --> 00:11:44,040 Speaker 1: the economy much much more than the initial increase of 202 00:11:44,080 --> 00:11:48,599 Speaker 1: three billion dollars to postpone the Games. The overall costs, incidentally, 203 00:11:48,720 --> 00:11:51,079 Speaker 1: are up in the neighborhood of thirty five billion dollars 204 00:11:51,080 --> 00:11:55,839 Speaker 1: according to various Japanese audit reports, government audit reports, uh 205 00:11:56,120 --> 00:11:58,880 Speaker 1: and if if the Japanese are lucky, they'll they'll pull 206 00:11:58,920 --> 00:12:01,960 Speaker 1: in or the Okay Organizing Committee will pull in about 207 00:12:01,960 --> 00:12:04,520 Speaker 1: four and a half billion dollars from from the seventeen 208 00:12:04,600 --> 00:12:08,760 Speaker 1: days of hosting, primarily from international television and sponsorship and 209 00:12:08,800 --> 00:12:12,079 Speaker 1: domestic sponsorship revenues. But if on the one hand you've 210 00:12:12,120 --> 00:12:15,360 Speaker 1: got four and a half billion dollars of revenue and 211 00:12:15,400 --> 00:12:17,840 Speaker 1: on the other hand you've got thirty five billion dollars 212 00:12:17,840 --> 00:12:20,560 Speaker 1: of costs, not many economists will tell you that's a 213 00:12:20,559 --> 00:12:24,960 Speaker 1: good investment. Well, speaking of sponsors, they're not getting any 214 00:12:25,000 --> 00:12:28,040 Speaker 1: bang for their buck. They put all this money into 215 00:12:28,080 --> 00:12:30,559 Speaker 1: the Olympics. And because now that you're not going to 216 00:12:30,640 --> 00:12:34,400 Speaker 1: have any local fans coming to the games, or any 217 00:12:34,480 --> 00:12:37,360 Speaker 1: fans for the most part for that matter, all that 218 00:12:37,480 --> 00:12:40,480 Speaker 1: money that they put into it, it seems like now 219 00:12:40,600 --> 00:12:43,320 Speaker 1: it's it's almost a waste. Can you come? Yeah, I 220 00:12:43,320 --> 00:12:45,640 Speaker 1: think that's right. Look, I mean when when when corporate 221 00:12:45,679 --> 00:12:49,800 Speaker 1: sponsors they get on the back of sports league, sports team, 222 00:12:49,920 --> 00:12:54,520 Speaker 1: sporting events, they do it to to furnish their their reputations. 223 00:12:54,600 --> 00:12:56,960 Speaker 1: They do it to be associated with something that positive 224 00:12:57,120 --> 00:13:00,400 Speaker 1: people have positive images about. And it's very, very hard 225 00:13:00,440 --> 00:13:03,559 Speaker 1: to have a positive image connected to to the Tokyo 226 00:13:03,640 --> 00:13:07,079 Speaker 1: Games that are coming next week. Um. So the corporations 227 00:13:07,080 --> 00:13:10,840 Speaker 1: are spending tens of millions of dollars in their sponsorship 228 00:13:10,880 --> 00:13:14,040 Speaker 1: programs with the IOC or with the Japanese Organizing Committee, 229 00:13:14,520 --> 00:13:17,040 Speaker 1: and they're not only not getting something positive, they're probably 230 00:13:17,080 --> 00:13:20,600 Speaker 1: getting some negative um images and public relations from it. 231 00:13:20,720 --> 00:13:23,720 Speaker 1: So yeah, I think that corporations going forward will will 232 00:13:23,760 --> 00:13:26,760 Speaker 1: be much more cautious about the Games. And I think 233 00:13:26,760 --> 00:13:29,240 Speaker 1: frankly that you know, the Olympics needs needs a lot 234 00:13:29,280 --> 00:13:33,240 Speaker 1: of reform, and one of the major vehicles to make 235 00:13:33,320 --> 00:13:38,080 Speaker 1: that reform come to pass will be corporate sponsors. Because 236 00:13:38,240 --> 00:13:40,839 Speaker 1: the fans out there were scattered, are fan the fans 237 00:13:40,880 --> 00:13:43,720 Speaker 1: for the Olympics are scattered amongst the seven billion people 238 00:13:43,720 --> 00:13:45,440 Speaker 1: around the world. We're not we're not going to be 239 00:13:45,520 --> 00:13:49,160 Speaker 1: cohesive as an organizing group to pressure of the Olympics. 240 00:13:49,200 --> 00:13:52,280 Speaker 1: But I think the the IOC and the various Olympic 241 00:13:52,360 --> 00:13:58,000 Speaker 1: hosts are very dependent on corporate sponsorship, and corporations can 242 00:13:58,120 --> 00:14:00,760 Speaker 1: step out just like this, stepping out, walking out now 243 00:14:00,800 --> 00:14:04,080 Speaker 1: about the voter suppression issues in the United States. They 244 00:14:04,080 --> 00:14:06,199 Speaker 1: can step out around this and say, look, when our 245 00:14:06,240 --> 00:14:08,640 Speaker 1: money isn't going to be forthcoming anymore unless you guys 246 00:14:08,640 --> 00:14:10,480 Speaker 1: clean up your act. What was the last time in 247 00:14:10,520 --> 00:14:15,719 Speaker 1: Olympic Games came in at or under budget? Well, it is. 248 00:14:16,200 --> 00:14:19,760 Speaker 1: The question is much more complicated than than you might think, 249 00:14:19,840 --> 00:14:24,680 Speaker 1: because there are many budgets with regard to hosting the games. 250 00:14:24,680 --> 00:14:26,800 Speaker 1: There's there's the budgets that that's put out by the 251 00:14:27,080 --> 00:14:30,800 Speaker 1: host city or the organizing committee, and that budget includes 252 00:14:30,920 --> 00:14:34,840 Speaker 1: only the operating costs for the seventeen days of the games, 253 00:14:34,880 --> 00:14:38,000 Speaker 1: plus some temporary venues to get installed for the games. 254 00:14:38,520 --> 00:14:42,000 Speaker 1: But then there's a larger budget that also includes the 255 00:14:42,040 --> 00:14:45,400 Speaker 1: Olympic sporting venues and the Olympic Village and the International 256 00:14:45,440 --> 00:14:48,640 Speaker 1: Media Center UM and and when you when you add 257 00:14:48,720 --> 00:14:52,120 Speaker 1: those things in, and you're adding probably more than double 258 00:14:52,320 --> 00:14:54,800 Speaker 1: the cost of the operating budget. And then there's another 259 00:14:54,840 --> 00:14:57,120 Speaker 1: budget and not budget is the operating excuse me, the 260 00:14:57,160 --> 00:15:00,560 Speaker 1: infrastructure budget. So you've got to do a lot of 261 00:15:00,600 --> 00:15:05,520 Speaker 1: work on transportation infrastructure. Sometimes it's things like the trains 262 00:15:05,640 --> 00:15:09,680 Speaker 1: or UM. It could be roadways, it could be exit 263 00:15:09,760 --> 00:15:14,400 Speaker 1: and entrance ramps onto highways, it could be parking lots UM. 264 00:15:14,600 --> 00:15:19,800 Speaker 1: There's also an infrastructure budget connected to telecommunications and hospitality UM. 265 00:15:19,960 --> 00:15:22,840 Speaker 1: So you put all that together. You know, you're looking 266 00:15:22,920 --> 00:15:25,240 Speaker 1: at in the case of Japan, as I said, thirty 267 00:15:25,320 --> 00:15:28,480 Speaker 1: five billion dollars or more. But if if you if 268 00:15:28,520 --> 00:15:31,200 Speaker 1: you're just looking at the operating budget, which is the 269 00:15:31,240 --> 00:15:34,480 Speaker 1: budget that's published by the Organizing Committee for the games 270 00:15:34,480 --> 00:15:36,880 Speaker 1: in each in each host city, then many of the 271 00:15:36,920 --> 00:15:40,880 Speaker 1: city's report that that they come in with a balanced budget. 272 00:15:41,240 --> 00:15:43,680 Speaker 1: I think realistically though, when you when you add up 273 00:15:43,720 --> 00:15:46,360 Speaker 1: all of the costs that I referred to, probably the 274 00:15:46,440 --> 00:15:49,360 Speaker 1: lass cities to actually come in on budget and at 275 00:15:49,440 --> 00:15:52,360 Speaker 1: least break even overall for the Games was Los Angeles. 276 00:15:54,960 --> 00:15:58,440 Speaker 1: So it has been that long since this has really 277 00:15:58,480 --> 00:16:02,800 Speaker 1: been a going concern. Well, I think you know what 278 00:16:02,920 --> 00:16:08,400 Speaker 1: happened with Los Angeles succeeded disastrous Olympic Games. UM. From 279 00:16:08,400 --> 00:16:11,240 Speaker 1: a pr and financial point of view in Mexico and 280 00:16:11,360 --> 00:16:16,680 Speaker 1: Munich and in Montreal, and then there were games that 281 00:16:16,720 --> 00:16:18,480 Speaker 1: were kind of a big blur in Moscow in n 282 00:16:19,160 --> 00:16:22,520 Speaker 1: So the Olympics was on a very bad role back 283 00:16:22,760 --> 00:16:25,760 Speaker 1: back in the seventies and early eighties until Los Angeles 284 00:16:25,840 --> 00:16:30,120 Speaker 1: came along, and due to a number of fortuitous factors, 285 00:16:30,560 --> 00:16:34,360 Speaker 1: they were they were successful. They didn't get us in 286 00:16:34,480 --> 00:16:40,320 Speaker 1: the city from obscurity into into a great urban metropolis 287 00:16:40,600 --> 00:16:43,080 Speaker 1: in the world's image. It didn't do that, but they 288 00:16:43,120 --> 00:16:45,320 Speaker 1: did break even. They even had a surplus of about 289 00:16:45,720 --> 00:16:49,360 Speaker 1: two hundred million dollars. It was under very special circumstances. 290 00:16:49,400 --> 00:16:51,880 Speaker 1: But the fact that they had a surplus and they 291 00:16:51,920 --> 00:16:54,920 Speaker 1: disrupted this terrible trend that was existing for the Olympic 292 00:16:54,960 --> 00:16:58,680 Speaker 1: Games going back to Mexico, and meant now that other 293 00:16:58,760 --> 00:17:01,520 Speaker 1: cities faught g Look how look at how much fun 294 00:17:01,560 --> 00:17:04,119 Speaker 1: and how profitable it is to host the games. So 295 00:17:04,160 --> 00:17:06,720 Speaker 1: there's all of a suddenly great demand to host the 296 00:17:06,760 --> 00:17:10,119 Speaker 1: games after the Los Angeles and that persisted until the 297 00:17:10,119 --> 00:17:13,720 Speaker 1: early early years of this century. And since that time, 298 00:17:13,760 --> 00:17:17,840 Speaker 1: with exploding costs and a variety of other problems, the 299 00:17:17,880 --> 00:17:22,000 Speaker 1: reputation of the IOC has has has gone way down 300 00:17:22,280 --> 00:17:24,480 Speaker 1: and the number of cities willing to host the games 301 00:17:24,520 --> 00:17:26,760 Speaker 1: each each time they do the bidding, by the end 302 00:17:26,800 --> 00:17:28,560 Speaker 1: of the bidding it's one or two cities. It used 303 00:17:28,560 --> 00:17:30,960 Speaker 1: to be six or seven or eight cities were competing 304 00:17:30,960 --> 00:17:35,920 Speaker 1: against each other. But in the case of the Winter 305 00:17:36,000 --> 00:17:38,919 Speaker 1: Games that will be happening in February in Beijing and 306 00:17:38,960 --> 00:17:42,000 Speaker 1: some towns to the north of Beijing um there there 307 00:17:42,040 --> 00:17:45,359 Speaker 1: were initially seven cities bidding, and all the way up 308 00:17:45,400 --> 00:17:48,239 Speaker 1: until a year before the IOC made their choice, they 309 00:17:48,280 --> 00:17:50,800 Speaker 1: still had seven cities. And then during that year five 310 00:17:50,840 --> 00:17:54,040 Speaker 1: European cities dropped out of the bidding, and there the 311 00:17:54,040 --> 00:17:58,159 Speaker 1: IOC was left with a choice between Kazakhstan Almati, Kazakhstan 312 00:17:58,240 --> 00:18:01,240 Speaker 1: and Beijing, China. The two terrible choices because the IOC 313 00:18:01,320 --> 00:18:04,200 Speaker 1: likes to say that it promotes human rights, that's a 314 00:18:04,280 --> 00:18:08,400 Speaker 1: core value of the Olympic movement. But clearly human human 315 00:18:08,480 --> 00:18:12,360 Speaker 1: rights in both Kazakhstan and and and China have been abysmal. 316 00:18:13,240 --> 00:18:16,919 Speaker 1: So China, the IOC was stuck with a terrible choice 317 00:18:17,240 --> 00:18:20,000 Speaker 1: uh and and and they picked Beijing. Had a similar 318 00:18:20,000 --> 00:18:23,200 Speaker 1: problem with the bidding for the twenty four Summer Games, 319 00:18:23,200 --> 00:18:25,360 Speaker 1: which will be in Paris, but there too, there are 320 00:18:25,359 --> 00:18:27,480 Speaker 1: five European cities that dropped out at the end, and 321 00:18:27,480 --> 00:18:31,280 Speaker 1: they had a choice of only two cities. So the 322 00:18:31,359 --> 00:18:34,480 Speaker 1: situation has been bad for the IOC. The IOC has 323 00:18:34,520 --> 00:18:36,960 Speaker 1: tried to make a number of reforms, but they have 324 00:18:37,119 --> 00:18:40,240 Speaker 1: not been terribly successful in doing that. They finally decided 325 00:18:40,280 --> 00:18:42,720 Speaker 1: in two thousand and nineteen to put all the bidding 326 00:18:42,720 --> 00:18:45,400 Speaker 1: behind closed doors so nobody would see what was happening 327 00:18:45,720 --> 00:18:49,400 Speaker 1: and it wouldn't be the public embarrassment anymore. So, professor, 328 00:18:49,640 --> 00:18:53,040 Speaker 1: you know, we've talked a bit about this real turn 329 00:18:53,240 --> 00:18:56,800 Speaker 1: that the Olympics have taken. Uh, you know, we've also 330 00:18:56,920 --> 00:18:59,840 Speaker 1: been watching avidly, I think a lot of us for 331 00:19:00,119 --> 00:19:03,560 Speaker 1: ball soccer of late, especially with the Euros finishing up 332 00:19:03,640 --> 00:19:06,280 Speaker 1: this past weekend or or about a week ago. As 333 00:19:06,359 --> 00:19:09,760 Speaker 1: you're listening to this out there in radio land, what's 334 00:19:09,840 --> 00:19:12,800 Speaker 1: the difference when you because you've studied both and are 335 00:19:12,800 --> 00:19:15,359 Speaker 1: they on a similar trajectory or where is the World 336 00:19:15,359 --> 00:19:19,040 Speaker 1: Cup versus the Olympics here? I think the World Cup 337 00:19:19,200 --> 00:19:22,159 Speaker 1: has had a different experience over the last fifteen or 338 00:19:22,160 --> 00:19:28,639 Speaker 1: twenty years. UM. They had really awful leadership for a 339 00:19:28,760 --> 00:19:32,040 Speaker 1: long time and very corrupt leadership and all of that, 340 00:19:32,119 --> 00:19:37,040 Speaker 1: all of that got exposed and and FIFA, the World 341 00:19:37,119 --> 00:19:41,560 Speaker 1: Soccer organization, has has reformed itself to to a significant degree. 342 00:19:41,880 --> 00:19:44,800 Speaker 1: They haven't rid themselves of the problem, but they've reformed themselves. 343 00:19:44,880 --> 00:19:48,600 Speaker 1: One of the things that they've done is to establish 344 00:19:48,640 --> 00:19:52,239 Speaker 1: a new relationship with the host country with with with 345 00:19:52,359 --> 00:19:55,200 Speaker 1: the World Cup, it's a host country or even sometimes 346 00:19:55,200 --> 00:20:00,320 Speaker 1: more than one country. Um in the u US will 347 00:20:00,320 --> 00:20:04,400 Speaker 1: be co hosting the World Cup with Mexico and with Canada, 348 00:20:05,080 --> 00:20:07,719 Speaker 1: but they have a different relationship. And that relationship is 349 00:20:07,840 --> 00:20:11,560 Speaker 1: that the the FIFA says that they'll cover out of 350 00:20:11,600 --> 00:20:14,120 Speaker 1: their own money, out of their own budget, the operating 351 00:20:14,160 --> 00:20:18,320 Speaker 1: costs of the World Cup UH, and that pretty much 352 00:20:18,359 --> 00:20:23,320 Speaker 1: guarantees the host country won't won't experience a deficit from 353 00:20:23,359 --> 00:20:26,639 Speaker 1: the hosting itself. The other thing that's very different about 354 00:20:26,680 --> 00:20:31,280 Speaker 1: FIFA is that, with few with a few exceptions, most 355 00:20:31,320 --> 00:20:33,600 Speaker 1: of the countries that host the games already have the 356 00:20:33,640 --> 00:20:38,000 Speaker 1: stadiums there and available there. There's their exceptions in terms 357 00:20:38,040 --> 00:20:41,160 Speaker 1: of the they require a larger FIFA requires a larger 358 00:20:41,200 --> 00:20:44,560 Speaker 1: stadium for the opening round of matches and also for 359 00:20:44,760 --> 00:20:48,960 Speaker 1: the finals UH and sometimes cities have to our countries 360 00:20:49,000 --> 00:20:52,520 Speaker 1: have to build one or two one or two venues, um. 361 00:20:52,600 --> 00:20:55,880 Speaker 1: But most of these countries are soccer countries. Soccer, of course, 362 00:20:55,960 --> 00:20:59,480 Speaker 1: is an enormously popular game worldwide. They have the facilities 363 00:20:59,520 --> 00:21:04,440 Speaker 1: already there as as a generalization, um And therefore the 364 00:21:04,480 --> 00:21:07,080 Speaker 1: amount of building that has to be done is much less. 365 00:21:07,240 --> 00:21:09,600 Speaker 1: And also because the World Cup is spread out over 366 00:21:09,640 --> 00:21:12,040 Speaker 1: a month and over a whole country, it doesn't all 367 00:21:12,080 --> 00:21:15,520 Speaker 1: happen in a concentrated seventeen days in one city, the 368 00:21:15,760 --> 00:21:19,960 Speaker 1: logistical problems and the security problems are are diminished and 369 00:21:20,280 --> 00:21:24,520 Speaker 1: and and less costly. Um. So there are problems with 370 00:21:24,520 --> 00:21:27,760 Speaker 1: with host countries. There are issues, certainly, but they're they're 371 00:21:27,800 --> 00:21:31,520 Speaker 1: not as severe with FIFA as as they are with 372 00:21:32,200 --> 00:21:36,159 Speaker 1: with the ioc UH. And FIFA is not having a 373 00:21:36,200 --> 00:21:39,159 Speaker 1: problem with finding countries going forward that are interested in 374 00:21:39,200 --> 00:21:44,240 Speaker 1: hosting the games. FIFA is the is what you're aiming 375 00:21:44,280 --> 00:21:47,040 Speaker 1: to be. That's that's a crazy place in this world. 376 00:21:47,040 --> 00:21:52,000 Speaker 1: Michael bar Oh, gosh, yes, I was thinking about you, 377 00:21:52,160 --> 00:21:55,959 Speaker 1: and you mentioned this earlier during the interview, that especially 378 00:21:56,080 --> 00:21:59,399 Speaker 1: in the seventies on down, is that they just was 379 00:21:59,440 --> 00:22:03,000 Speaker 1: a bad run of luck. UH during the Olympics, and 380 00:22:03,200 --> 00:22:07,280 Speaker 1: I think especially of the Nine Olympics and Munich, and 381 00:22:07,680 --> 00:22:11,159 Speaker 1: I'm thinking about what happened anybody who doesn't know the 382 00:22:11,240 --> 00:22:16,000 Speaker 1: members of the Israeli team were killed in a terrorist attack, 383 00:22:16,720 --> 00:22:21,440 Speaker 1: and and I just wonder ever since then, like you said, 384 00:22:21,480 --> 00:22:25,440 Speaker 1: with bad luck, why would any city say, hey, Okay, 385 00:22:25,480 --> 00:22:27,160 Speaker 1: we're going to be the one that's going to change 386 00:22:27,160 --> 00:22:30,439 Speaker 1: this when we've had all these horrific moments. So I 387 00:22:30,480 --> 00:22:33,720 Speaker 1: think it's it's a good question, and I don't think 388 00:22:33,720 --> 00:22:37,440 Speaker 1: there's one defendative answer. But I think largely what happens, 389 00:22:37,520 --> 00:22:41,240 Speaker 1: the political dynamic that is behind cities deciding to bid 390 00:22:41,240 --> 00:22:44,719 Speaker 1: and then to host the Olympic Games fundamentally has to 391 00:22:44,760 --> 00:22:50,639 Speaker 1: do with the construction industry. Construction industries and most urban environments, 392 00:22:50,800 --> 00:22:54,040 Speaker 1: the most large cities, construction industries are the largest employer 393 00:22:54,440 --> 00:22:59,280 Speaker 1: of workers um and and they have for that reason, 394 00:22:59,480 --> 00:23:01,320 Speaker 1: they have a out of political power and they have 395 00:23:01,359 --> 00:23:04,760 Speaker 1: a lot of political connection. And of course, construction companies 396 00:23:04,960 --> 00:23:07,920 Speaker 1: love the idea of their their city hosting the Games 397 00:23:07,920 --> 00:23:11,320 Speaker 1: because there's billions of dollars of construction contracts that will 398 00:23:11,359 --> 00:23:14,840 Speaker 1: go their way, and the construction trades, the unions also 399 00:23:14,960 --> 00:23:18,600 Speaker 1: love them. And so you have a coalition of unions 400 00:23:18,680 --> 00:23:22,840 Speaker 1: and executives and owners within the construction industry who go 401 00:23:23,000 --> 00:23:25,840 Speaker 1: to the mayor, who go to the city council and 402 00:23:25,840 --> 00:23:27,520 Speaker 1: and say, hey, let's do this, or you know, we 403 00:23:27,520 --> 00:23:29,679 Speaker 1: can put our city on the map. And then they 404 00:23:29,720 --> 00:23:32,479 Speaker 1: hire they hire a consulting companies to do a report 405 00:23:32,560 --> 00:23:36,120 Speaker 1: to say this will be the cats me out, will will, 406 00:23:36,240 --> 00:23:39,880 Speaker 1: will will generate thousands and thousands of jobs and raised 407 00:23:39,920 --> 00:23:42,600 Speaker 1: per capita income and so on and so forth. Uh. 408 00:23:42,640 --> 00:23:45,080 Speaker 1: And then they pull in some some law firms who 409 00:23:45,080 --> 00:23:48,120 Speaker 1: will be involved with writing the contracts, and they pull 410 00:23:48,160 --> 00:23:50,399 Speaker 1: in some banks who will be involved in floating the 411 00:23:50,440 --> 00:23:54,320 Speaker 1: bonds to finance all of the construction um and you 412 00:23:54,400 --> 00:23:58,040 Speaker 1: have a coalition of groups that that is economically and 413 00:23:58,080 --> 00:24:01,600 Speaker 1: politically very powerful, and they pushed the bid through. That's 414 00:24:01,640 --> 00:24:04,080 Speaker 1: primarily what happens. It's it's not a bunch of city 415 00:24:04,080 --> 00:24:07,720 Speaker 1: planners sitting around and making a calculation that says, hey, 416 00:24:07,720 --> 00:24:09,679 Speaker 1: this is good for our city. We need to build 417 00:24:09,960 --> 00:24:13,160 Speaker 1: these these roadways. We we need to expand our airport, 418 00:24:13,200 --> 00:24:16,960 Speaker 1: we need to have uh twenty five new sporting venues. 419 00:24:17,400 --> 00:24:20,040 Speaker 1: You know. One of the interesting things about about the Olympics. 420 00:24:20,080 --> 00:24:22,439 Speaker 1: It does, it does not really apply at all to 421 00:24:22,600 --> 00:24:26,520 Speaker 1: the World Cup. Is that today you you need about 422 00:24:26,560 --> 00:24:29,720 Speaker 1: forty sporting venues if you're going to host the summer Games. 423 00:24:30,560 --> 00:24:33,399 Speaker 1: Um usually usually at least ten of those venues have 424 00:24:33,520 --> 00:24:35,520 Speaker 1: to be built. Sometimes it's a little less, sometimes it's 425 00:24:35,560 --> 00:24:38,320 Speaker 1: a lot more. But we have to ask yourself the question, 426 00:24:38,400 --> 00:24:41,040 Speaker 1: why why is it that a particular city didn't have 427 00:24:41,240 --> 00:24:44,320 Speaker 1: those venues before they hosted the games? And the answer 428 00:24:44,359 --> 00:24:47,840 Speaker 1: is simple. It's because there was no economically viable reason 429 00:24:47,920 --> 00:24:51,359 Speaker 1: to have those facilities. And if those facilities were not 430 00:24:51,480 --> 00:24:55,600 Speaker 1: viable economically before the seventeen days of the Olympics, they're 431 00:24:55,640 --> 00:24:58,000 Speaker 1: not going to be viable after the seventeen days of 432 00:24:58,040 --> 00:25:01,840 Speaker 1: the Olympics. Uh And and so you have all of 433 00:25:01,880 --> 00:25:04,720 Speaker 1: these facilities on which you spend hundreds of millions of 434 00:25:04,720 --> 00:25:07,200 Speaker 1: dollars it's not over a billion dollars in some cases 435 00:25:07,240 --> 00:25:11,199 Speaker 1: to build, which which have no economically viable use, and 436 00:25:11,240 --> 00:25:14,119 Speaker 1: they're taking up dozens and dozens of acres of scarce 437 00:25:14,200 --> 00:25:17,920 Speaker 1: urban real estate. They require in order from to maintain 438 00:25:17,960 --> 00:25:21,240 Speaker 1: them and operate them. It requires tens of millions of 439 00:25:21,760 --> 00:25:25,680 Speaker 1: emission additional dollars every year. So it's it's something that's 440 00:25:25,760 --> 00:25:29,000 Speaker 1: very hard to fathom as an economic proposition for a 441 00:25:29,000 --> 00:25:31,720 Speaker 1: city to do this sort of thing. But again, the 442 00:25:32,560 --> 00:25:36,960 Speaker 1: political power and connected connectedness of the construction industry and 443 00:25:37,040 --> 00:25:41,400 Speaker 1: some banks and some consulting companies they pushed this stuff through. 444 00:25:41,920 --> 00:25:44,200 Speaker 1: Why would a city actually want to make a bid 445 00:25:44,320 --> 00:25:48,400 Speaker 1: for the Olympics. It's not based on some rational view 446 00:25:48,560 --> 00:25:52,720 Speaker 1: or some rational analysis. It's based upon political and economic 447 00:25:52,800 --> 00:25:55,840 Speaker 1: forces in the city that push this through. Some people 448 00:25:56,320 --> 00:26:00,399 Speaker 1: are more powerful than others. In an hour, demork proceive 449 00:26:00,560 --> 00:26:02,840 Speaker 1: both both at a local level and the state level 450 00:26:02,880 --> 00:26:06,200 Speaker 1: and national level, and so we end up very often 451 00:26:06,280 --> 00:26:09,000 Speaker 1: making decisions that are not in the best interests of 452 00:26:09,160 --> 00:26:14,040 Speaker 1: economic development social welfare. All Right, So I'm going to 453 00:26:14,080 --> 00:26:17,400 Speaker 1: ask a question that I know Lynchy is interested in. 454 00:26:17,560 --> 00:26:21,720 Speaker 1: Let's talk a little bit about Boston not getting the Olympics. 455 00:26:21,720 --> 00:26:24,679 Speaker 1: We've talked about what a bad business, uh this could be. 456 00:26:24,800 --> 00:26:31,280 Speaker 1: You have studied this pretty intensely. Did they dodge a bullet? Oh? Yes, absolutely? Uh, 457 00:26:31,320 --> 00:26:35,360 Speaker 1: you know, I think so. The the problems that I've 458 00:26:35,400 --> 00:26:38,159 Speaker 1: been talking about with regard to hosting the Games in 459 00:26:38,200 --> 00:26:42,639 Speaker 1: general were magnified several fold with regard to Boston, and 460 00:26:43,080 --> 00:26:44,480 Speaker 1: that I had to do with a lot of things, 461 00:26:44,480 --> 00:26:46,159 Speaker 1: but the primary thing it had to do with is 462 00:26:46,160 --> 00:26:49,919 Speaker 1: that Boston is a very compact and compressed and busy city. 463 00:26:50,240 --> 00:26:54,800 Speaker 1: There's very little land available and so UM in the 464 00:26:55,040 --> 00:26:58,320 Speaker 1: in the various Olympic plans, they had to look far 465 00:26:58,359 --> 00:27:00,359 Speaker 1: and wide to find a place where a put the 466 00:27:00,359 --> 00:27:03,720 Speaker 1: Olympic village. The Olympic village is where the athletes and 467 00:27:03,840 --> 00:27:08,119 Speaker 1: trainers and coaches live. It's supposed to host to to 468 00:27:08,160 --> 00:27:11,879 Speaker 1: be able to home about sixteen thousand individuals. So you 469 00:27:11,920 --> 00:27:13,720 Speaker 1: have to you have to build a village to do 470 00:27:13,800 --> 00:27:16,680 Speaker 1: that because they need not only rooms, but they also 471 00:27:16,760 --> 00:27:19,920 Speaker 1: need rooms to live in. But they also need restaurants, 472 00:27:20,000 --> 00:27:22,879 Speaker 1: and they need entertainment venues, and they need training facilities 473 00:27:22,920 --> 00:27:27,600 Speaker 1: and tracks, and they need polyclinics for for physical problems 474 00:27:27,600 --> 00:27:31,520 Speaker 1: and health problems. So you're building a real village. And 475 00:27:31,560 --> 00:27:33,480 Speaker 1: they had no place to do that. So they came 476 00:27:33,520 --> 00:27:36,359 Speaker 1: up with this plan in Boston to UH to build 477 00:27:36,359 --> 00:27:41,320 Speaker 1: a platform, a concrete platform over the area that's current 478 00:27:41,520 --> 00:27:46,560 Speaker 1: currently in in south central Boston, UH that hosts some 479 00:27:46,640 --> 00:27:50,399 Speaker 1: railroad tracks in some warehouses. UH to do that to 480 00:27:50,480 --> 00:27:53,359 Speaker 1: build that platform was was going to cost hundreds of 481 00:27:53,359 --> 00:27:56,159 Speaker 1: millions of dollars. And on top of the platform, UM 482 00:27:56,359 --> 00:27:59,240 Speaker 1: they were going to put well and actually this platform 483 00:27:59,240 --> 00:28:00,959 Speaker 1: I'm talking about I was going to be the Olympic 484 00:28:01,000 --> 00:28:03,159 Speaker 1: Stadium because they didn't have any stadium to use. The 485 00:28:04,119 --> 00:28:06,639 Speaker 1: largest stadium that was around to use would have been 486 00:28:06,640 --> 00:28:09,520 Speaker 1: in Foxborough, but that's too far removed from where the 487 00:28:09,520 --> 00:28:12,560 Speaker 1: Olympians would be. So that's that's how they were going 488 00:28:12,600 --> 00:28:17,119 Speaker 1: to handle the problem of not having enough land for 489 00:28:17,200 --> 00:28:21,000 Speaker 1: the Olympic Olympic Stadium. With regard to the Olympic Village, 490 00:28:21,040 --> 00:28:24,760 Speaker 1: they went to the University of Massachusetts in Boston and 491 00:28:25,080 --> 00:28:27,280 Speaker 1: found some land where they thought that they could they 492 00:28:27,320 --> 00:28:31,680 Speaker 1: could build the UH the Olympic Village facilities. The problem 493 00:28:31,720 --> 00:28:35,480 Speaker 1: there is that they didn't have any construction company that 494 00:28:35,560 --> 00:28:38,560 Speaker 1: was that was willing to or developer who was willing 495 00:28:38,600 --> 00:28:41,520 Speaker 1: to to do all of that UH. And so they 496 00:28:41,560 --> 00:28:45,760 Speaker 1: started throwing out larger and larger subsidies UH situations where 497 00:28:45,800 --> 00:28:47,720 Speaker 1: they say, well, we'll get you the land for free, 498 00:28:47,800 --> 00:28:50,280 Speaker 1: or you'll get it for you from below cost. We'll 499 00:28:50,320 --> 00:28:52,720 Speaker 1: do all of the infrastructural investment around that you won't 500 00:28:52,760 --> 00:28:55,000 Speaker 1: have to pay taxes for fifteen or twenty years, and 501 00:28:55,040 --> 00:28:57,840 Speaker 1: it goes on and on. Uh So, because of the 502 00:28:58,120 --> 00:29:02,080 Speaker 1: shortage of available land, the plans that the amount of 503 00:29:02,160 --> 00:29:04,280 Speaker 1: land that they needed, which was over a thousand acres 504 00:29:04,320 --> 00:29:07,800 Speaker 1: to host the Games, wasn't available. Uh and they had 505 00:29:07,840 --> 00:29:11,400 Speaker 1: to sort of push push things aside. Now in other countries, 506 00:29:11,440 --> 00:29:13,280 Speaker 1: like in Brazil when they hosted the Games in two 507 00:29:13,320 --> 00:29:16,200 Speaker 1: thousand and sixteen, they also had a problem with with 508 00:29:16,280 --> 00:29:18,840 Speaker 1: land availability, and not nearly as severe as Boston's, but 509 00:29:18,840 --> 00:29:21,320 Speaker 1: they had their problem. So what are they doing in Rio, Well, 510 00:29:21,360 --> 00:29:24,719 Speaker 1: they they evicted seventy seven thousand people out of out 511 00:29:24,760 --> 00:29:27,040 Speaker 1: of their homes in the favelas, in the in the 512 00:29:27,080 --> 00:29:30,360 Speaker 1: shanty towns. You can't do that is easily in Boston 513 00:29:30,440 --> 00:29:34,200 Speaker 1: because it's it's a long established, more vibrant democracy. You 514 00:29:34,240 --> 00:29:36,680 Speaker 1: can't do that. So they had to concoct these other 515 00:29:36,720 --> 00:29:40,360 Speaker 1: plans that ended up escalating the costs of the Games enormously. 516 00:29:41,120 --> 00:29:43,800 Speaker 1: Uh So that was I think the main thing that 517 00:29:43,880 --> 00:29:46,320 Speaker 1: was going on in the preparation of the Boston Games. 518 00:29:46,360 --> 00:29:48,719 Speaker 1: But in order to do things like this and in 519 00:29:48,800 --> 00:29:51,800 Speaker 1: order to not get the population agitated that they were 520 00:29:51,800 --> 00:29:54,200 Speaker 1: doing the wrong thing and making the city too congested. 521 00:29:54,800 --> 00:29:56,480 Speaker 1: They ought to they had to do a lot of 522 00:29:56,520 --> 00:29:59,880 Speaker 1: things undercover. So one of the things that happened, for instance, 523 00:30:00,920 --> 00:30:05,000 Speaker 1: uh Mayor Walsh signed a deal with the IOC and 524 00:30:05,000 --> 00:30:07,600 Speaker 1: and one of the things that that deal said is 525 00:30:07,680 --> 00:30:12,320 Speaker 1: that employees of the city City of Boston couldn't say 526 00:30:12,360 --> 00:30:15,840 Speaker 1: anything negative about the IOC or the Olympic Games. Uh 527 00:30:15,920 --> 00:30:18,200 Speaker 1: and and if they did that, they would be dismissed. 528 00:30:18,880 --> 00:30:21,280 Speaker 1: We're supposed to have I think we're still supposed to 529 00:30:21,320 --> 00:30:24,280 Speaker 1: have freedom of speech in the United States, including in Boston. 530 00:30:24,680 --> 00:30:27,040 Speaker 1: And here was the mayor of Boston signing a deal 531 00:30:27,360 --> 00:30:31,400 Speaker 1: that undermined that freedom of speech for for employees of 532 00:30:31,440 --> 00:30:34,160 Speaker 1: the city. So there were a number of problems, I 533 00:30:34,160 --> 00:30:38,240 Speaker 1: think a tremendous amount of mismanagement at the very beginning 534 00:30:38,320 --> 00:30:41,280 Speaker 1: of the Games that that the city was never able 535 00:30:41,320 --> 00:30:46,240 Speaker 1: to recover from. The Governor Baker Um commissioned to study 536 00:30:46,320 --> 00:30:50,640 Speaker 1: by by Brattle Brattle Group, a consulting group in Boston, 537 00:30:51,480 --> 00:30:54,000 Speaker 1: to look at the economic feasibility of the Games. And 538 00:30:54,320 --> 00:30:56,760 Speaker 1: they came back and they said, no, this is not feasible. 539 00:30:56,840 --> 00:31:01,800 Speaker 1: It's it's irresponsible and the actual costs of hosting will 540 00:31:02,080 --> 00:31:05,000 Speaker 1: rise well above twenty billion dollars and Boston was talking 541 00:31:05,000 --> 00:31:08,360 Speaker 1: about a cost that was under ten billion dollars um. 542 00:31:08,400 --> 00:31:12,680 Speaker 1: So nothing was going right there. And I certainly think 543 00:31:12,720 --> 00:31:14,960 Speaker 1: the city dodged a bullet, you know. And you talked 544 00:31:15,000 --> 00:31:19,320 Speaker 1: about the construction companies, and John Fish of Suffolk Construction 545 00:31:19,400 --> 00:31:23,240 Speaker 1: was a big force behind trying to bring that, A big, 546 00:31:23,280 --> 00:31:25,280 Speaker 1: big player and a nice guy and has done a 547 00:31:25,280 --> 00:31:28,160 Speaker 1: lot for the city. But there was a grassroots group 548 00:31:28,320 --> 00:31:30,840 Speaker 1: that said no games in Boston. I can't remember exactly 549 00:31:30,840 --> 00:31:32,840 Speaker 1: what the slogan was, and I was like stunned how 550 00:31:33,160 --> 00:31:36,880 Speaker 1: this grassroots group with very little money behind them, just 551 00:31:37,240 --> 00:31:39,920 Speaker 1: their voice was loud enough to be heard, and how 552 00:31:39,960 --> 00:31:42,760 Speaker 1: much of an effect that they have in getting heaven 553 00:31:42,800 --> 00:31:45,480 Speaker 1: Boston say, we're not in right. So let me point 554 00:31:45,480 --> 00:31:47,800 Speaker 1: out first of all that they're actually two grassroots groups. 555 00:31:47,840 --> 00:31:51,240 Speaker 1: Grassroots groups. One was was sort of to the left 556 00:31:51,280 --> 00:31:54,640 Speaker 1: on the political spectrum, progressive group, and another was on 557 00:31:54,680 --> 00:31:58,840 Speaker 1: the right. Uh, it's that's that's a rare kind of 558 00:31:59,600 --> 00:32:04,160 Speaker 1: coal that got formed. And the people on the right. 559 00:32:04,640 --> 00:32:07,560 Speaker 1: I thought, well, there's there's too much government involvement here, 560 00:32:07,720 --> 00:32:10,200 Speaker 1: that the government is providing too many subsidies, The government 561 00:32:10,240 --> 00:32:13,840 Speaker 1: is pushing things too much, too aggressively. We don't want 562 00:32:13,880 --> 00:32:16,440 Speaker 1: the government doing those things in our city. The groups 563 00:32:16,440 --> 00:32:18,320 Speaker 1: on the left said, oh, this is benefiting all the 564 00:32:18,560 --> 00:32:21,240 Speaker 1: fat cats, the rich guys, and we shouldn't be spending 565 00:32:21,240 --> 00:32:24,920 Speaker 1: money in that way. I'm simplifying their arguments, of course, 566 00:32:24,960 --> 00:32:27,920 Speaker 1: a little bit. But both of those groups were working together. Uh. 567 00:32:28,120 --> 00:32:30,720 Speaker 1: And you're right they were doing on a shoestring budget. 568 00:32:30,800 --> 00:32:32,720 Speaker 1: On the other side, the people who were promoting the 569 00:32:32,760 --> 00:32:36,400 Speaker 1: games were investing tens of millions of dollars in their 570 00:32:36,440 --> 00:32:40,280 Speaker 1: advertising and public relations campaign. I think one of the 571 00:32:40,320 --> 00:32:44,440 Speaker 1: crucial features though, in Boston was that the media played 572 00:32:44,480 --> 00:32:47,320 Speaker 1: a very positive role in the sense that they were 573 00:32:47,320 --> 00:32:50,520 Speaker 1: willing to cover the debate fully. Uh. And it's not 574 00:32:50,680 --> 00:32:52,840 Speaker 1: that's not often the case. Usually the voices that are 575 00:32:52,920 --> 00:32:55,480 Speaker 1: loudest than the ones that are heard most in in 576 00:32:55,480 --> 00:32:57,760 Speaker 1: in the media are the ones that have the most 577 00:32:57,800 --> 00:33:01,200 Speaker 1: resources and the ones who are best can did um 578 00:33:01,600 --> 00:33:04,040 Speaker 1: and I think in this case, the Boston Globe and 579 00:33:04,040 --> 00:33:06,880 Speaker 1: the Herald and w G B H and and and 580 00:33:06,960 --> 00:33:11,320 Speaker 1: other media outlets were equally covering the arguments on both sides. 581 00:33:11,920 --> 00:33:13,760 Speaker 1: One of the things that was true until the very 582 00:33:13,880 --> 00:33:17,640 Speaker 1: end is is that the proponents for the games, we're 583 00:33:17,720 --> 00:33:21,400 Speaker 1: unwilling to debate the opponents to the games until the 584 00:33:21,520 --> 00:33:23,680 Speaker 1: very end. John Henry, who was the principal owner of 585 00:33:23,720 --> 00:33:28,840 Speaker 1: the Red Sox, organized a debate between um the the 586 00:33:28,840 --> 00:33:33,200 Speaker 1: proponents and the opponents. And I think that that's sort 587 00:33:33,240 --> 00:33:35,600 Speaker 1: of that kind of balance in the media, where you're 588 00:33:35,600 --> 00:33:39,680 Speaker 1: hearing both sides fully is something that's quite rare. So 589 00:33:40,880 --> 00:33:43,520 Speaker 1: I think in spite of what what Marty Walsh mayor 590 00:33:43,560 --> 00:33:46,320 Speaker 1: Marty Walsh did, uh, there was really quite a bit 591 00:33:46,400 --> 00:33:50,440 Speaker 1: of open, open and good democ democratic processes taking place 592 00:33:50,600 --> 00:33:53,240 Speaker 1: in Boston. That's why we count on the great journalists 593 00:33:53,240 --> 00:33:57,600 Speaker 1: of Boston like Mike Lynch. All Right, thank you so much. 594 00:33:57,640 --> 00:34:00,640 Speaker 1: That was a fascinating conversation. This is an we're all 595 00:34:00,880 --> 00:34:03,520 Speaker 1: so interested in and couldn't be more timely as we 596 00:34:03,560 --> 00:34:07,760 Speaker 1: look ahead to a very different Tokyo Olympics next week. 597 00:34:07,760 --> 00:34:10,600 Speaker 1: Andrew Zimbalis is a Smith College economics professor and author 598 00:34:10,640 --> 00:34:14,280 Speaker 1: of a fantastic book called Circus Maximus, The Economic Gamble 599 00:34:14,360 --> 00:34:16,600 Speaker 1: behind hosting the Olympics in the World Cup. Thank you 600 00:34:16,640 --> 00:34:19,160 Speaker 1: so much. It was really fun, my pleasure. Thank you 601 00:34:19,520 --> 00:34:22,160 Speaker 1: so guys. That was fascinating. I loved that conversation in 602 00:34:22,280 --> 00:34:25,600 Speaker 1: part because you know, we all love sports. The Olympics 603 00:34:25,600 --> 00:34:29,959 Speaker 1: are this thing that we look forward to every four years. 604 00:34:29,960 --> 00:34:31,799 Speaker 1: You get to do this deep dive into sports that 605 00:34:31,880 --> 00:34:34,960 Speaker 1: maybe you don't really think about in the in between times. 606 00:34:35,480 --> 00:34:38,920 Speaker 1: But as someone who you know, my first job really 607 00:34:39,080 --> 00:34:43,960 Speaker 1: was covering the Atlanta Olympics in you get swept up 608 00:34:43,960 --> 00:34:48,040 Speaker 1: in it. But you also forget there's so much economic 609 00:34:48,280 --> 00:34:53,000 Speaker 1: turmoil and you think opportunity. But that may not be 610 00:34:53,120 --> 00:34:56,000 Speaker 1: the case, Lynch. I mean, listen, you lived it, uh 611 00:34:56,160 --> 00:34:59,440 Speaker 1: in the in the prelude, the pre precursor as Boston 612 00:34:59,600 --> 00:35:02,719 Speaker 1: was debate eating this. The numbers don't lie, No, they don't. 613 00:35:02,719 --> 00:35:05,160 Speaker 1: And if you look back, as you said, the last 614 00:35:05,440 --> 00:35:08,960 Speaker 1: Olympics that came in at or under budget was four 615 00:35:09,520 --> 00:35:12,200 Speaker 1: in Los Angeles, and some could make the argument that 616 00:35:12,239 --> 00:35:14,200 Speaker 1: they have to go back to Rome in nineteen sixty 617 00:35:14,520 --> 00:35:16,560 Speaker 1: where it came in under budget. I remember when this 618 00:35:16,640 --> 00:35:19,760 Speaker 1: idea was floated around in Boston and people were saying, 619 00:35:19,760 --> 00:35:21,680 Speaker 1: you know, we don't care, well, it will raise the 620 00:35:22,400 --> 00:35:24,720 Speaker 1: stature of the city of Boston. Well, we feel pretty 621 00:35:24,719 --> 00:35:27,000 Speaker 1: good about ourselves already. We don't need the Olympics. We 622 00:35:27,000 --> 00:35:30,120 Speaker 1: don't want the traffic, and what about the white elephants 623 00:35:30,160 --> 00:35:32,080 Speaker 1: after the Olympic ends. You can look at all these 624 00:35:32,120 --> 00:35:34,960 Speaker 1: cities that have hosted the Olympics, and some of these 625 00:35:35,040 --> 00:35:38,719 Speaker 1: venues now are in decay, they're rotted, they're ignored, their 626 00:35:38,840 --> 00:35:42,239 Speaker 1: vacant and who pays for the upkeep and all kinds 627 00:35:42,280 --> 00:35:44,600 Speaker 1: of other issues. What he didn't even get on with taxes, 628 00:35:44,600 --> 00:35:47,239 Speaker 1: who pays for security? And it's a nice short term 629 00:35:47,280 --> 00:35:49,560 Speaker 1: three weeks, but it's a major disruption to a city 630 00:35:49,600 --> 00:35:53,399 Speaker 1: that really doesn't need the attention. Yeah, I mean, Michael Barr, 631 00:35:53,400 --> 00:35:55,200 Speaker 1: I've wrestled with this sever of the years because again 632 00:35:55,239 --> 00:35:58,360 Speaker 1: having seen what it did for Atlanta and listen to 633 00:35:58,360 --> 00:36:01,200 Speaker 1: the Atlanta Games were far from perfect, were very commercial 634 00:36:01,320 --> 00:36:03,719 Speaker 1: in many ways in the city, drew a lot of criticism. 635 00:36:03,719 --> 00:36:07,200 Speaker 1: Of course, there was the horrible, um you know, Centennial 636 00:36:07,200 --> 00:36:11,759 Speaker 1: Park bombing that certainly marred the the Olympics there. But 637 00:36:11,880 --> 00:36:14,759 Speaker 1: I will say there was for a city, for the 638 00:36:14,920 --> 00:36:19,759 Speaker 1: right city and the right structure, it I think can 639 00:36:19,880 --> 00:36:21,480 Speaker 1: be a good idea And I'd love to have a 640 00:36:21,480 --> 00:36:25,040 Speaker 1: follow up conversation with Professor Zemblist about this because in 641 00:36:25,080 --> 00:36:29,680 Speaker 1: Atlanta's case, it did draw a little more needed infrastructure, 642 00:36:29,840 --> 00:36:32,560 Speaker 1: but you know, as he said, Atlanta was a city 643 00:36:32,560 --> 00:36:34,719 Speaker 1: that probably needed to establish itself a little bit more. 644 00:36:35,200 --> 00:36:37,399 Speaker 1: And we don't have to tell lynch E. Everybody knows 645 00:36:37,400 --> 00:36:40,719 Speaker 1: where Boston is. You know, everybody knows the history there. 646 00:36:40,719 --> 00:36:43,239 Speaker 1: So it is interesting that it's not uh, you know, 647 00:36:43,320 --> 00:36:46,640 Speaker 1: to use a different sports metaphor a slam dunk. No, 648 00:36:47,280 --> 00:36:50,080 Speaker 1: it's but it goes back to something you just said 649 00:36:50,120 --> 00:36:52,560 Speaker 1: and kind of what we were talking about earlier about 650 00:36:53,719 --> 00:36:59,319 Speaker 1: so many of these games have a tragic moment in it, 651 00:36:59,719 --> 00:37:03,560 Speaker 1: and Atlanta obviously it's indial Park. Uh, the seventy two 652 00:37:03,560 --> 00:37:08,719 Speaker 1: Olympics with the terrorist attack. I mean, I I there's 653 00:37:08,760 --> 00:37:10,880 Speaker 1: so many things that pop in my mind, and I 654 00:37:10,880 --> 00:37:15,880 Speaker 1: guess I just wonder why what a city want to 655 00:37:15,920 --> 00:37:19,160 Speaker 1: host the games like this in the first place. But 656 00:37:19,239 --> 00:37:21,359 Speaker 1: it goes back to what you were saying. Also, isn't 657 00:37:21,360 --> 00:37:25,960 Speaker 1: that if you're trying to get notoriety. Uh, you know, 658 00:37:26,080 --> 00:37:29,479 Speaker 1: even Rio was trying to get more notoriety. They were like, Okay, 659 00:37:29,520 --> 00:37:31,320 Speaker 1: we're gonna go ahead and do it. Well, that's fine 660 00:37:31,760 --> 00:37:34,480 Speaker 1: during the games, but then afterward, when you have the 661 00:37:34,480 --> 00:37:37,000 Speaker 1: white elephants all over the place. Now look at what's 662 00:37:37,000 --> 00:37:40,719 Speaker 1: going on. Well, and also this idea I really appreciated 663 00:37:40,760 --> 00:37:45,279 Speaker 1: to what he said about, you know, the Boston saga, Lynch, 664 00:37:45,400 --> 00:37:48,040 Speaker 1: which obviously you know better than anyone, but this whole 665 00:37:48,080 --> 00:37:54,239 Speaker 1: notion that you know, Unfortunately in in Rio, um they 666 00:37:54,239 --> 00:37:57,760 Speaker 1: were able to just clear out i mean people's homes, 667 00:37:57,800 --> 00:38:01,600 Speaker 1: you know, the favelas, the slums there in Rio. I mean, 668 00:38:01,640 --> 00:38:05,560 Speaker 1: can you imagine if I mean I'm only slightly kidding, 669 00:38:05,840 --> 00:38:09,080 Speaker 1: like if you I'm probably being a little early live 670 00:38:09,160 --> 00:38:11,440 Speaker 1: it's like, you know, didn't didn't you know? Like Lynchi 671 00:38:11,520 --> 00:38:14,160 Speaker 1: goes to the door, It's like, um, we're gonna raise 672 00:38:14,280 --> 00:38:17,359 Speaker 1: your house because we need to build a nudatorium here 673 00:38:17,480 --> 00:38:22,200 Speaker 1: for the upcoming Olympic Games. But it's it's fascinating. Well, 674 00:38:22,400 --> 00:38:25,520 Speaker 1: remember this Boston came on the map in the seventeen 675 00:38:25,600 --> 00:38:28,279 Speaker 1: hundreds during the start of the Revolutionary War. Because they 676 00:38:28,280 --> 00:38:31,839 Speaker 1: said no, and they've acted. They forced the British out 677 00:38:31,880 --> 00:38:34,920 Speaker 1: of Boston in that very same place where they were 678 00:38:34,920 --> 00:38:38,319 Speaker 1: going to build the Olympic stadium. Ironically, and but what 679 00:38:38,440 --> 00:38:41,200 Speaker 1: really struck me is when Andrew totals that you need 680 00:38:41,280 --> 00:38:45,680 Speaker 1: forty different sporting venues to host the Summer Games. Zero. 681 00:38:46,440 --> 00:38:49,640 Speaker 1: Now you need to build an Olympic stadium that can 682 00:38:49,719 --> 00:38:52,120 Speaker 1: host I think can seat sixty eight thousand or I 683 00:38:52,160 --> 00:38:54,400 Speaker 1: think the number is very close to that. But you 684 00:38:54,480 --> 00:38:56,759 Speaker 1: also need a track. We don't have one of those 685 00:38:56,800 --> 00:38:59,120 Speaker 1: in Boston. You got your Letts Stadium, but there's no Windo, 686 00:38:59,320 --> 00:39:03,319 Speaker 1: there's no track. Their Harvard Stadium hosts people. So you 687 00:39:03,400 --> 00:39:05,600 Speaker 1: have to build it. What's gonna happen to it when 688 00:39:05,600 --> 00:39:08,120 Speaker 1: the game's end? What are you gonna do there? Who knows? 689 00:39:08,600 --> 00:39:10,960 Speaker 1: Maybe once every four years you might have the Olympic 690 00:39:11,000 --> 00:39:14,200 Speaker 1: Trials there, but but that's it. And then you'd have 691 00:39:14,239 --> 00:39:16,239 Speaker 1: to if you want to play baseball, do you tell 692 00:39:16,280 --> 00:39:18,640 Speaker 1: a Red Sox leave for seventeen days so we can 693 00:39:18,640 --> 00:39:22,440 Speaker 1: play baseball and softball in Fenway Park? And that's that's nothing. 694 00:39:22,760 --> 00:39:25,080 Speaker 1: The more people talked about it and examine it, the 695 00:39:25,160 --> 00:39:27,680 Speaker 1: less and less sense it made. My final takeaway is 696 00:39:27,719 --> 00:39:29,680 Speaker 1: I really liked the comparison that he made because he's 697 00:39:29,680 --> 00:39:34,279 Speaker 1: studied both the differences between the World Cup and the Olympics. 698 00:39:34,280 --> 00:39:36,080 Speaker 1: You know, where the World Cup you can have multiple 699 00:39:36,080 --> 00:39:40,239 Speaker 1: countries teaming up. It's one sport, you know, you're essentially 700 00:39:40,920 --> 00:39:43,919 Speaker 1: or you're in most cases not really building anything new, 701 00:39:43,960 --> 00:39:47,520 Speaker 1: because you can essentially say, all right, Washington, you've got 702 00:39:47,520 --> 00:39:50,000 Speaker 1: a good soccer stadium, Los Angeles, you've got a good 703 00:39:50,000 --> 00:39:52,800 Speaker 1: soccer stadium, New York. Whatever. You spread it out across 704 00:39:52,800 --> 00:39:55,480 Speaker 1: the country, and in the case of the upcoming World 705 00:39:55,520 --> 00:39:57,760 Speaker 1: Cup here and on this continent, they're going to spread 706 00:39:57,800 --> 00:40:01,920 Speaker 1: it across Canada, Mexico, in the United States and and 707 00:40:01,960 --> 00:40:04,960 Speaker 1: obviously with the focus on the United States. But um, 708 00:40:05,000 --> 00:40:08,480 Speaker 1: but really really interesting. So it is a book worth reading, 709 00:40:08,520 --> 00:40:11,000 Speaker 1: for sure. It's called Circus Maximus. The economic gamble behind 710 00:40:11,040 --> 00:40:13,560 Speaker 1: hosting the Olympics and the World Cup, and that gamble 711 00:40:13,800 --> 00:40:16,520 Speaker 1: it seems, just as anyone in Tokyo right now, not 712 00:40:16,600 --> 00:40:21,560 Speaker 1: a very good one. Kids, feels better to be than 713 00:40:21,600 --> 00:40:23,799 Speaker 1: the one, than number five, a number because of Mike, 714 00:40:23,880 --> 00:40:25,400 Speaker 1: we have a chance to go for three in a row. 715 00:40:25,480 --> 00:40:27,399 Speaker 1: Good numbers are a good time. When I first started 716 00:40:27,400 --> 00:40:29,400 Speaker 1: wearing the number, how we just have the in proud 717 00:40:29,400 --> 00:40:33,759 Speaker 1: Bloomberg Business of Sports, the number of the week. All right, 718 00:40:34,840 --> 00:40:40,600 Speaker 1: this time we're gonna have Lynch good, all right, Clay Matthews, 719 00:40:40,760 --> 00:40:45,280 Speaker 1: he has listed as Los Angeles Forever home the former 720 00:40:45,280 --> 00:40:50,360 Speaker 1: Green Bay Packers linebacker and his wife. Uh, it's a 721 00:40:50,440 --> 00:40:56,880 Speaker 1: newly completed French provincial estate in Los Angeles. How much 722 00:40:57,880 --> 00:41:01,120 Speaker 1: are they listing it for? If you have a devil 723 00:41:01,160 --> 00:41:03,279 Speaker 1: in the real estate business, because you would love to 724 00:41:03,320 --> 00:41:06,480 Speaker 1: throw these mansion prices out. I what if he's got 725 00:41:06,480 --> 00:41:12,279 Speaker 1: a side hustle selling houses. I'm gonna go by the way, 726 00:41:12,440 --> 00:41:16,440 Speaker 1: let me, let me be fair. The main house. It's 727 00:41:16,440 --> 00:41:19,320 Speaker 1: on a one point acre estate, and the main house 728 00:41:19,719 --> 00:41:22,719 Speaker 1: is about fourteen thou square feet. Okay, that means nothing 729 00:41:22,719 --> 00:41:29,080 Speaker 1: to me, So look at bambooze. Well, now he's going first. 730 00:41:29,120 --> 00:41:31,880 Speaker 1: I like it well, since the two of my daughters 731 00:41:31,880 --> 00:41:34,360 Speaker 1: are looking for homes and everything always is like in 732 00:41:34,400 --> 00:41:36,879 Speaker 1: the nine, Like, okay, it's five ninety nine, it's four 733 00:41:37,000 --> 00:41:39,560 Speaker 1: ninety nine, so it has to be nine on the 734 00:41:39,640 --> 00:41:43,520 Speaker 1: end of it. So I'm going somewhere between twenty and 735 00:41:43,640 --> 00:41:46,520 Speaker 1: thirty million. I could go twenty four nine. I'm gonna 736 00:41:46,560 --> 00:41:53,239 Speaker 1: go twenty four nine. I'm gonna take the over on 737 00:41:53,400 --> 00:41:56,719 Speaker 1: that just because the way you described I don't know, 738 00:41:56,880 --> 00:41:59,000 Speaker 1: and I don't know much more about square footage and 739 00:41:59,040 --> 00:42:04,160 Speaker 1: things like that, but I'm just gonna assume because it's 740 00:42:05,120 --> 00:42:16,840 Speaker 1: it's more. So I'll go I'll go thirty million. Alright, 741 00:42:19,680 --> 00:42:22,040 Speaker 1: I'm gonna I'm gonna give you the answer here. All 742 00:42:22,120 --> 00:42:26,040 Speaker 1: right now we're going by prices, right rules, Jason, you 743 00:42:26,040 --> 00:42:31,359 Speaker 1: you just missed it. It's nine point million. Well that's 744 00:42:31,520 --> 00:42:35,960 Speaker 1: that's thirty million, okay, But but you can't overbid. Yeah, 745 00:42:36,960 --> 00:42:39,960 Speaker 1: I'm standing. I'm standing there with the like the womp womp. No, 746 00:42:40,120 --> 00:42:42,880 Speaker 1: but but you but you're there, you're there. I gotta 747 00:42:42,920 --> 00:42:44,920 Speaker 1: give it to you on that one. Man. I was 748 00:42:45,000 --> 00:42:50,440 Speaker 1: just great to just to hear Lintie man, Oh, discombobulated. 749 00:42:50,440 --> 00:42:53,120 Speaker 1: It's like, I'm going first. The other story I was 750 00:42:53,120 --> 00:42:55,840 Speaker 1: gonna do was the one about Scottie Pippen. He is 751 00:42:55,880 --> 00:43:00,960 Speaker 1: opening up his Illinois home and Airbnb and and you 752 00:43:01,000 --> 00:43:06,720 Speaker 1: can watch the Tokyo Olympics, the us A basketball team 753 00:43:06,840 --> 00:43:11,920 Speaker 1: and fortnight it was two bucks to night. Oh all right, 754 00:43:13,320 --> 00:43:17,239 Speaker 1: that's cool. And just so you just like you sort 755 00:43:17,239 --> 00:43:20,000 Speaker 1: of bunk in there. He's not there with you. He's 756 00:43:20,000 --> 00:43:21,520 Speaker 1: going to greet you when you walk in the door. 757 00:43:23,040 --> 00:43:26,360 Speaker 1: You and you get a meal, uh, you get snacks. 758 00:43:26,600 --> 00:43:29,560 Speaker 1: You get to hang in the indoor basketball court, the theater, 759 00:43:29,719 --> 00:43:34,640 Speaker 1: the arcade room, the pool. I see a remote broadcasting 760 00:43:34,640 --> 00:43:37,399 Speaker 1: possibility here, Like that's a you know, like, let's head out, 761 00:43:37,480 --> 00:43:39,799 Speaker 1: let's set over to Scotty's house, get him on as 762 00:43:39,800 --> 00:43:42,239 Speaker 1: a guest. You know, I'll pay for I'll pay for 763 00:43:42,239 --> 00:43:44,480 Speaker 1: the house. Yeah, we can watch the guy exactly. Can 764 00:43:44,520 --> 00:43:48,640 Speaker 1: you pick up some chips, you know, Lece, you'll pay 765 00:43:48,800 --> 00:43:51,480 Speaker 1: bring you know, import some Sam Adams from Boston and 766 00:43:52,160 --> 00:43:55,080 Speaker 1: it'll be good. All right. You've been listening to Bloomberg 767 00:43:55,200 --> 00:43:57,200 Speaker 1: Business of Sports. We're here each and every week for 768 00:43:57,239 --> 00:43:59,879 Speaker 1: you at the same time, plus online wherever you get 769 00:43:59,880 --> 00:44:04,080 Speaker 1: Your podcast does drop on Monday's, Wednesdays and Thursdays, looking 770 00:44:04,160 --> 00:44:08,680 Speaker 1: forward to a very different Olympics, but Olympics nonetheless, you 771 00:44:08,800 --> 00:44:10,800 Speaker 1: just hear the music and it just, you know, it 772 00:44:10,880 --> 00:44:13,359 Speaker 1: makes you feel good about sports. I'm Jason Kelly. Find 773 00:44:13,360 --> 00:44:15,359 Speaker 1: me on Twitter at Jason Kelly News. And I'm Mike 774 00:44:15,480 --> 00:44:17,279 Speaker 1: Lynch still trying to figure out if I want or 775 00:44:17,400 --> 00:44:21,400 Speaker 1: lost number of the week I have not been officially. 776 00:44:26,320 --> 00:44:29,880 Speaker 1: You can find a confused Lynch at Lynch w cdg 777 00:44:30,200 --> 00:44:32,880 Speaker 1: AH and I'm Michael Barr on Twitter at Big Bar Sports. 778 00:44:32,880 --> 00:44:36,640 Speaker 1: You're listening to Bloomberg Buillions of Sports Bloomberg Radio around 779 00:44:36,719 --> 00:44:37,280 Speaker 1: the world,