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Speaker 1: This is Bloomberg Business of Sports. The world changing and

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Speaker 1: what are things we can do to transform our business

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Speaker 1: and engage our fans globally in different ways. People are

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Speaker 1: using their name and likeness to create more opportunities, more

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Speaker 1: stakes and companies in order to turn the organization around.

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Speaker 1: We had to turn it around not only just on

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Speaker 1: baseball operations side, but other business operations side well and

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Speaker 1: any other sport is very difficult, but I like to

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Speaker 1: blot my horizons and be able to expand. Sports need

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Speaker 1: to be consumed a lot and not to the big

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Speaker 1: competitive advantage for intual property holders of sports content in

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Speaker 1: the media landscape. Bloomberg Business of Sports from Bloomberg Radio.

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Speaker 1: Hi everyone, I'm Jason Kelly and Mike Lynch and Michael

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Speaker 1: Barr and this is the Bloomberg Business of Sports podcast

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Speaker 1: where we explore the big money issues in the world

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Speaker 1: of sports. And let's talk about money and sports this week,

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Speaker 1: so much slashing around. We got to head back to

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Speaker 1: last week. Late in the week, we heard, courtesy of

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Speaker 1: The Wall Street Journal about ESPN, the worldwide leader, talking

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Speaker 1: about a sports betting deal. So much to dig into here.

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Speaker 1: This is a deal potentially worth at least three billion

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Speaker 1: dollars according to this report. Michael Barr, I want to

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Speaker 1: start with you, because you know the gambling world so well,

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Speaker 1: you use some of these apps, you obviously watch ESPN.

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Speaker 1: This feels like a moment of validation. It feels like

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Speaker 1: a moment that a lot of people have been waiting

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Speaker 1: for as we really move closer and closer to sports

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Speaker 1: betting just being widely available and maybe more importantly, while

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Speaker 1: widely accepted. The line of demarcation where I always said

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Speaker 1: this is going to take off and be big was

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Speaker 1: when the NFL embraced sports betting. Remember years ago the

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Speaker 1: league said no, no, no, no, no no, no no, no,

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Speaker 1: we are no. That's that's taboo. It's like, yeah, poo ikey,

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Speaker 1: get that away. When the league endorsed it, it was on,

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Speaker 1: and it was only a matter of time before ESPN

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Speaker 1: got involved and so Lynchy. This really is a it

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Speaker 1: feels to me like a seminal moment with ESPN partially

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Speaker 1: out of necessity. I mean, they need more revenue. The

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Speaker 1: cable world, we know is decelerating, declining, how a d somethinging.

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Speaker 1: We were not sure exactly how fast it's gonna go,

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Speaker 1: where exactly it's gonna go um, but them embracing it

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Speaker 1: does feel notable, especially when you look at the broader

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Speaker 1: media landscape. Well, they've got eleven and a half million

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Speaker 1: subscribers right now. They have credibility and visibility, which is

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Speaker 1: I assumed two of the reasons that's Caesar's and um

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Speaker 1: Draft Kings are going after them. The needle moved them

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Speaker 1: both their stocks on Friday when this news broke. Um.

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Speaker 1: I think four and a quarter percent for Caesar's and

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Speaker 1: about two and a half percent for Disney. And you

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Speaker 1: know it's it's legitimate right now. I mean, this is

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Speaker 1: gonna be a big year for sports gambling, more than

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Speaker 1: four billion. I believe it's going to be. It's going

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Speaker 1: to be bet and football season is here, College football

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Speaker 1: has started, NFL is around the corner, and that is

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Speaker 1: the biggest for legalized sports gambling. And you got a

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Speaker 1: brand name right here with ESPN. The point that does

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Speaker 1: ESPN want to be associated with it and sell their

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Speaker 1: name to these two entities, And it feels like the

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Speaker 1: answer is yes. I Mean, one of the interesting things

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Speaker 1: here is ESPN has the ability, if they do one

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Speaker 1: of these partnerships, to essentially not do it. Themselves and

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Speaker 1: and Bar you understand the mechanics of this better than

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Speaker 1: than probably Lynchi and I do in terms of you know,

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Speaker 1: you have to be regulated in order to actually process

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Speaker 1: the bets. This would be a media partnership. This would

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Speaker 1: allow them to compete a little bit more head to

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Speaker 1: head with the likes of Fox. They've launched Fox bet Um.

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Speaker 1: They're trying to compete directly with DraftKings and fan Duel.

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Speaker 1: That is a platform that underneath it is the sports

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Speaker 1: betting firm Stars Group. And you have Sinclair getting together

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Speaker 1: with Valleys, you have CBS in a partnership with William Hill.

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Speaker 1: It feels like ESPN maybe a little bit behind here.

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Speaker 1: Full disclosure. I use Fox pet a lot, Okay, So

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Speaker 1: and you're exactly right ESPN. I think the lot was understood.

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Speaker 1: I think you know t M I but but yeah,

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Speaker 1: I mean ESPN and I don't want to use the

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Speaker 1: phrase coming late to the party, but that's the best

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Speaker 1: way to describe it. Uh. And there's a lot of

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Speaker 1: money in this, and you're talking about a network who

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Speaker 1: has seen a drop in revenue in the past few years.

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Speaker 1: And you said something else that was very important regulated

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Speaker 1: and anybody who used to play poker online years ago.

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Speaker 1: When it was you know, out of the Cayman Islands

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Speaker 1: or whatever this was. It wasn't regulated here in the US,

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Speaker 1: and that was one of the reasons why it lapsed

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Speaker 1: and shut down. Uh. Now it is totally regulated and

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Speaker 1: and here it is and I definitely see ESPN joining

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Speaker 1: the game. Well it's interesting too because there's a great

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Speaker 1: story on the terminal today and on Bloomberg dot com

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Speaker 1: Lynchy by our own Christopher Chris Paul Mary out in

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Speaker 1: Los Angeles, who looks after entertainment and gaming for US,

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Speaker 1: and it's talking about win resorts. They're going to spend

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Speaker 1: a hundred million dollars plus just in the football season

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Speaker 1: marketing their new sports betting app. It's called wind Bet.

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Speaker 1: It's very clever. But they've got an ad that's just

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Speaker 1: debuted with Ben Affleck of course notable actor director and

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Speaker 1: Shaquille O'Neill shack Uh, he's a brand ambassador for that app.

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Speaker 1: And so this is very competitive out there already. And

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Speaker 1: yet ESPN, even with declining subscribers, even with declining revenue,

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Speaker 1: not being the driver that it once was for the

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Speaker 1: Walt Disney come any Uh, them getting into this in

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Speaker 1: any way totally changed the landscape. And I think it's

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Speaker 1: it's safe to say it's sort of like and I

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Speaker 1: say this as the father of a three role who

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Speaker 1: is the biggest Disney Plus consumer in the on the planet.

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Speaker 1: I am confident. Uh. You know, when they got into

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Speaker 1: the streaming world Disney Plus, all of a sudden, it changed,

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Speaker 1: even when ESPN Plus debuted, especially once it got going

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Speaker 1: with the UFC underneath that ESPN getting into something changes

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Speaker 1: the landscape immediately. It does. And I wonder what the

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Speaker 1: parent company, Walt Disney thinks of being associated with gambling,

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Speaker 1: even though it's legalized gambling right now. And the other

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Speaker 1: thing I think about is ESPN has got a leg

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Speaker 1: up on everybody else no matter what type of wager

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Speaker 1: you bet, even if it's just playing in a weekly

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Speaker 1: knockout pool, you're scrambling for information, scrambling for information. And

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Speaker 1: if you hear like the majority of the people said, Okay,

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Speaker 1: I like the Packers, I'll like the Packers this week,

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Speaker 1: then you go with it. So I think, you know this,

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Speaker 1: this daily wager show that that ESPN has is going

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Speaker 1: to be I think it's I think it's a great

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Speaker 1: marriage if they can hook up with with DraftKings or

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Speaker 1: Caesar's because they have the credibility and the visibility. Those

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Speaker 1: are too words that keep coming into the front of

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Speaker 1: my mind with this. Yeah, so interesting to see where

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Speaker 1: this goes. And you know, eager to see whether if

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Speaker 1: ESPN gets into the fauld you know, maybe we see

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Speaker 1: our our in house bettor here, you know, migrate to

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Speaker 1: take his talents over to the new esp in sight.

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Speaker 1: We'll see, We'll see he votes with his feet, with

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Speaker 1: his clicks. Uh, let's go over to the world of

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Speaker 1: college sports. This is a lawsuit I've been fascinated by. Uh.

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Speaker 1: It's between u c l A and under Armour, U

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Speaker 1: c l A suing under Armour for two hundred million

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Speaker 1: dollars after under Armour said peace out during the coronavirus

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Speaker 1: pandemic over what was then the richest deal between an

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Speaker 1: apparel maker and a college. Uh. College athletic program and

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Speaker 1: U c l A and U c l A basically

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Speaker 1: saying this is bogus. A judge agreeing with them at

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Speaker 1: least so far, not dismissing the lawsuit. Lynchy, I'm fascinated

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Speaker 1: by this in part because we've been talking so much

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Speaker 1: about money and college sports. Had a long conversation with

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Speaker 1: my dad about this over the weekend and sort of

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Speaker 1: you know, looking at he he lives down south and

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Speaker 1: seeing all the realignment. That's another story to some extent.

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Speaker 1: But this is all about money. This is all about big,

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Speaker 1: big companies like under Armour getting into this. What do

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Speaker 1: you make of this lawsuit? Well, it looks like they

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Speaker 1: reneged on a deal where they had two million dollar deal.

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Speaker 1: They failed to meet payments, they failed to deliver merchandise,

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Speaker 1: while at the same time all u c l A

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Speaker 1: coaches were wearing under armour gear. Under Arma contends that

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Speaker 1: the baseball team only played half their scheduled games last

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Speaker 1: year and that gave them an out. I don't know

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Speaker 1: if they have an out for a pandemic. Um. You

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Speaker 1: know many people of now going forward will but this

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Speaker 1: is a this is a big, huge, huge deal. Um.

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Speaker 1: I know who's trying to call me arm we're calling

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Speaker 1: they're not. It's my granddaughter called me a FaceTime. Hey,

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Speaker 1: hold on, Granpy, I like under Robber, I'm wearing I'm

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Speaker 1: wearing under armor right now. And I was thinking about

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Speaker 1: going to u c l A. But but but but

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Speaker 1: at the same time, you silly has made a counter

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Speaker 1: move when they may signed a deal in December with

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Speaker 1: Nike and Air Jordan's, so they're sort of protecting themselves

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Speaker 1: while they watch this case go forward. I'm glad the

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Speaker 1: judge decided not to throw this out. Well, it's interesting

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Speaker 1: to me bar to two feather in the the n

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Speaker 1: i L element to all of this, where now we're

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Speaker 1: in this era where college players are going to be

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Speaker 1: able to cut their own deals. That does take a

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Speaker 1: little bit of the power I think, away from the

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Speaker 1: big college programs to some extent. On you could also

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Speaker 1: make an argument that makes college sports even richer over

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Speaker 1: the in the long haul. But I don't know what

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Speaker 1: do you make of this deal. Well, a couple of things. One,

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Speaker 1: you're exactly right, uh, And the n I L has

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Speaker 1: changed everything, I mean, the whole landscape just just you know,

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Speaker 1: put them out in here and and dig a hole there.

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Speaker 1: The tomography of the of n I L and the

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Speaker 1: landscape of college sports has changed. But two always wonder,

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Speaker 1: and we talked about this a bottle at least a

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Speaker 1: year ago about insurance for COVID, and I just wonder

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Speaker 1: if there was some insurance clause that was out there

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Speaker 1: in case something like this happened, And I'm wondering if

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Speaker 1: somebody is going to play that card. Yeah, yeah, interesting,

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Speaker 1: So we'll keep an eye on that one as well.

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Speaker 1: We got to talk about as we head toward the

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Speaker 1: opening of the NFL season. Exhibition play is over, and

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Speaker 1: you know, I candidly found it a little hard to

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Speaker 1: watch some of the exhibition games just because, like, who's

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Speaker 1: that guy? Where is he from? I know, you know,

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Speaker 1: I feel for the players. They're literally fighting for their careers,

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Speaker 1: playing for their careers, but you're not seeing a lot

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Speaker 1: of familiar names. But we are entering into a week

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Speaker 1: where the NFL Mike Lynch is gonna get underway. UH,

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Speaker 1: and the numbers are looking good from a vaccination perspective.

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Speaker 1: Vaccination rates nearing nine percent for the league. I have

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Speaker 1: to say I am pleasantly surprised by that. But um,

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Speaker 1: you did see some positive tests, some cases at the

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Speaker 1: Tennessee Titans. You know, these were folks who had been vaccinated.

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Speaker 1: We will see how the NFL continues to deal with this.

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Speaker 1: What the Titans did was they basically said the show

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Speaker 1: must go on. We're isolating, UH. Coach Mike Rabel as

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Speaker 1: well as quarterback Ryan Tannehill. They were coached by some

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Speaker 1: assistants and they kept playing. There's a lot more on

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Speaker 1: the line economically. We've talked a lot about this on

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Speaker 1: this show. What do you make of the start of

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Speaker 1: the season, especially when it comes to all of this

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Speaker 1: looming lynching. Well, I'm gonna keep my eye on Tuesday

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Speaker 1: at four o'clock. That's when the cuts have to be

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Speaker 1: made by teams. And I go back to Brandon being

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Speaker 1: the general manager of the Buffalo Bills, was asked back

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Speaker 1: in May if it came down to a player who

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Speaker 1: was the equal players on the bubble, one vaccinated the

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Speaker 1: other non vaccinated. He said, I'm gonna go with the

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Speaker 1: vaccinated guy. Less headaches for me and from my team,

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Speaker 1: and he immediately get a call from the National Football League.

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Speaker 1: I can guarantee you that the National Football League Players

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Speaker 1: Association is gonna be watching these cuts very very carefully

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Speaker 1: and see if how many players being that are cut

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Speaker 1: are players that are non vaccinated. Because it's a problem

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Speaker 1: for teams they have to travel separately. For instance, let's

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Speaker 1: let's let's go with Cam Newton of the New England Patriots,

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Speaker 1: last week he went off just pulling somebody out of

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Speaker 1: just making a random player go on. Well, he had to.

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Speaker 1: He went out of the area of New England for

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Speaker 1: some medical treatment. He violated NFL protocols. When he came back,

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Speaker 1: he had to miss five days of practice because he

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Speaker 1: was not vaccinated, and he went to get a test.

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Speaker 1: You have to have your HAST administered by an NFL

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Speaker 1: sanctioned person. He got attested by somebody else. So in

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Speaker 1: a big week where they we're having practices with the

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Speaker 1: New York Giants and there's a quarterback controversy going on

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Speaker 1: in New England with Mac Jones, Cam Newton missed five

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Speaker 1: days of practice, so that admitted that he was not vaccinated.

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Speaker 1: So when the quarterback meetings are going on, Bill Belichick

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Speaker 1: is sitting there with Mac Jones, He's sitting there with

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Speaker 1: Brian Hoyer and all the other quarterbacks in one room,

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Speaker 1: and Cam Newton has to sit in another room and

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Speaker 1: watch the meeting virtually until he gets vaccinated. So this

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Speaker 1: is gonna be a problem for a lot of teams,

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Speaker 1: a lot of coaches going forward. Yeah, I mean I

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Speaker 1: also think about it, Bar, I mean, we've been talking

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Speaker 1: about this a lot in terms of the players reactions

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Speaker 1: to each other, people putting their livelihoods and maybe more importantly,

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Speaker 1: other people's livelihoods at stake by not getting vaccinated. You know,

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Speaker 1: we've had the NFL take a very hard line and

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Speaker 1: essentially say, if a team has to forfeit not getting paid,

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Speaker 1: you're not getting paid and the other teams not getting paid.

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Speaker 1: And I know it's an issue that that you have

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Speaker 1: have talked about a lot. I have brought this up

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Speaker 1: many times, and Chris Collingsworth, bless his art, he said,

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Speaker 1: exactly what I was thinking. And now when you go,

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Speaker 1: you got to go down too from what was it

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Speaker 1: eight it eight down or whatever. Through an NFL team,

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Speaker 1: there are some that, yeah, they're gonna get cut because well,

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Speaker 1: this guy plays better than this guy. But I want

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Speaker 1: to keep my eye just like Lynch, he said, how

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Speaker 1: many are going to get cut because you're not vaccinated?

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Speaker 1: And it comes down to if you've got two players

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Speaker 1: and it's a tie and one is vaccinated and the

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Speaker 1: other isn't, I'm not gonna lie it. The unvaccinated one

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Speaker 1: might have to go because if I'm thinking about the team,

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Speaker 1: that I might you know, forget all the political stuff.

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Speaker 1: And then I'm talking about for the team of any

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Speaker 1: NFL team, You got to think about that franchise itself,

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Speaker 1: and the vaccinated player helps that franchise, right. And obviously

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Speaker 1: we're gonna see as the season progresses, as teams start

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Speaker 1: to move around, you know what the different rules are

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Speaker 1: going to be. It was interesting to see that the Bucks,

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Speaker 1: the Super Bowl champion, defending Super Bowl champion Bucks uh

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Speaker 1: their coach Bruce Arians saying last week he may require

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Speaker 1: mask at all times at the team facility, regardless of

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Speaker 1: vaccination status. He's already said when we're on the road,

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Speaker 1: when the Bucks are on the road, nobody's leaving their

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Speaker 1: hotel rooms while we're there, again, regardless of status. So

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Speaker 1: you've got coaches and team owners and team executives and

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Speaker 1: maybe players themselves, you know, starting to make different decisions.

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Speaker 1: This is not the season I think a lot of

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Speaker 1: people expected. I think people thought, all right, we're gonna

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Speaker 1: be back in business. We are expecting in most places

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Speaker 1: to have full stadiums of folks watching. We don't know, fully,

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Speaker 1: you know, stadium by stadium, what the mask mandates are

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Speaker 1: going to be. I think one of the interesting tests

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Speaker 1: for for big sporting events in the current environment, or

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Speaker 1: is going to be the US Open, which is starting

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Speaker 1: today as we're taping on Monday out in Flushing, Queens

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Speaker 1: and no mass required for the vaccinated in the stands.

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Speaker 1: That could change over the course of the of the tournament.

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Speaker 1: But we're going to see the NFL season get underway

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Speaker 1: this weekend. We're gonna see real college football get underway.

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Speaker 1: There are a couple of games this past weekend, but

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Speaker 1: you've got some big games coming up. I believe clubs

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Speaker 1: and in Georgia are playing this weekend. So that's going

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Speaker 1: to be one to watch, especially given the the way

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Speaker 1: that the virus is moving around the southeast. So h Lynchy,

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Speaker 1: a lot to look forward to and and a lot

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Speaker 1: of big question marks especially and even we'll close out

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Speaker 1: by saying this, still don't know who the quarterback of

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Speaker 1: the New England Patriots is gonna be right. We may

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Speaker 1: have a better idea at four o'clock tomorrow afternoon. Yeah,

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Speaker 1: so when we reconvene on Wednesday, who knows, this whole

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Speaker 1: landscape could be completely changed. This is the Bloomberg Business

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Speaker 1: of Sports podcast. I'm Michael barr Oh and Michigan One

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Speaker 1: the Little League World Series. They beat Ohio. First of all,

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Speaker 1: shout out to Michigan. Taylor North, My goodness, that's my

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Speaker 1: old neck of the woods. Yes, my goodness, that's the

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Speaker 1: Detroit area. And a salute to the team from Ohio.

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Speaker 1: You guys played well, but Michigan feel a little better

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Speaker 1: to beat Ohio to make it a little sweeter. See,

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Speaker 1: I'm not I won't see it because because everybody played hard.

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Speaker 1: And did you just see the team from Ohio they

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Speaker 1: applauded the Michigan team. Uh, it was okay. You can

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Speaker 1: find me on Twitter, Big Bart Sports. Oh, the Pistons

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Speaker 1: get the number one pick, Michigan wins the literal World Series.

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Speaker 1: All happening. It's all coming together for the Big Bar

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Speaker 1: and we're so happy for him after a long, long drilling.

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Speaker 1: I'm Mike Lynch. You can follow me at Lynch w CBB,

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Speaker 1: and I'm Jason Kelly follow me at Jason Kelly News.

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Speaker 1: Right here each and every Monday, Wednesday and Thursday talking

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Speaker 1: about the world of bunny and sports. ESPN can get

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Speaker 1: into sports budding. What more can a man ask for?

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Speaker 1: You're listening to a Bloomberg does New of Sports on

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Speaker 1: Bloomberg Radio around the world and online wherever you get

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Speaker 1: your podcast,