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Speaker 1: Hello, I'm Scott, I'm Evie Williams and Michael barn This

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Speaker 1: is the Bloomberg Business of Sports podcast where okay, we

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Speaker 1: explored the big money is she was in the world

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Speaker 1: of sports. I gotta handle something right quick. You're gonna

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Speaker 1: get to this first. I was going to jump in.

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Speaker 1: If you didn't do it, I made an egregious error.

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Speaker 1: Let me explain what happened, folks. I went to I

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Speaker 1: don't even know, and I had to deal with the Yeah.

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Speaker 1: I went to Hershey Park in Hershey, Pennsylvania, and of

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Speaker 1: course you know, the home of the land of Chocolate.

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Speaker 1: And I went to Chocolate World and and brought in

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Speaker 1: a whole bunch of chocolate bars from Hershey, and I

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Speaker 1: gave Scott and Jackson you handed me to her, and

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Speaker 1: I gave Evan a Hershey bar and then take it

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Speaker 1: up from there. I went home and in front of

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Speaker 1: my wife, took out the candy bars and said, look

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Speaker 1: at what bar brought. Jackson, here's one for you, and

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Speaker 1: he brought one for me and Ms. Plumbo was not happy.

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Speaker 1: Did you tell bar? I can't even say what she

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Speaker 1: said to miss Why wouldn't you tell her that the

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Speaker 1: other one was for you and her to share because

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Speaker 1: she knows that's not true. So I don't lie to

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Speaker 1: my wife. Evan. I want living girlfriend is listening to this.

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Speaker 1: I want him to hear this right now. Okay, he

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Speaker 1: dipped in. There are two cookies and cream hershey bars

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Speaker 1: for Kim. Wait wait, wait, but I want on the

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Speaker 1: record one of them might be damaged. Well, but you

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Speaker 1: can see one might be. It might be. And Evan,

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Speaker 1: I forgot that's that's for you, that's for your girls.

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Speaker 1: So I needed to clean that up. Yes, speaking of

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Speaker 1: cleaning things up, Dallas Cowboys need to clean some stuff up.

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Speaker 1: Oh boy, go ahead. Zeke is older. He's messing up

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Speaker 1: my my fantasy draft. I didn't. I didn't. That's the

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Speaker 1: real tragic. Zek Yes, he is Ezekiel Alliott. He is

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Speaker 1: holding out. Uh, and I get it. If you're gonna

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Speaker 1: do it, do it now, don't don't do it in

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Speaker 1: the middle of the season and then decide, Hey, I'm

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Speaker 1: gonna go sit down anyway. The problem is a he's

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Speaker 1: holding out of training. Well, the problem is he's incredibly good.

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Speaker 1: He's at a position running back where you get beaten

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Speaker 1: up more than anybody else in the game. Like your

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Speaker 1: career span is even less than the other players. And

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Speaker 1: he's playing for Jerry Jones and we know that the

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Speaker 1: cash is there. So Zeke has just taking a Levian

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Speaker 1: Bell page here and saying I will not play unless

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Speaker 1: you give me a new deal, because Evan, he's It's

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Speaker 1: not like he doesn't have a contract. He's got a

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Speaker 1: couple of years left on the deal. He just wants

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Speaker 1: more money. Zeke is still on his rookie deal. It's

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Speaker 1: three three and three million and change for this year.

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Speaker 1: The Cowboys picked up his option for next year. That's

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Speaker 1: nine million dollars, which for running back numbers is I

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Speaker 1: think that would make him the fourth highest paid running

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Speaker 1: back this year at that salary, so that that is

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Speaker 1: a huge amount of money. He obviously wants it now.

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Speaker 1: And you're right, Scott the way, especially for running backs

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Speaker 1: for whom you know you probably peak in college and

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Speaker 1: maybe in your first couple of years. I really I

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Speaker 1: can't wait to see the star running back in college

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Speaker 1: that places freshman year, gets all the accolades, and that

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Speaker 1: says I'm done. I'm just gonna wait until a Miljo.

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Speaker 1: I'll train, I'll get like draft prep, I'll watch film

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Speaker 1: I'll intern with an NFL team and learn on the

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Speaker 1: side whatever I need to do. But I'm not giving

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Speaker 1: away three years of my body or two years on

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Speaker 1: my body to some college. Yeah, and I'm not even

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Speaker 1: sure if that would help. I mean, over at five

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Speaker 1: thirty eight Josh herms Meyer. I hope I pronounced that right.

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Speaker 1: He did a detailed look at at why paying running

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Speaker 1: backs is not worth it, and I recommend people who

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Speaker 1: want to dive into the numbers to look at it.

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Speaker 1: He kind of goes through each situation, running to kill

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Speaker 1: out the clock, running in the red zone, etcetera. Um,

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Speaker 1: it's kind of a crapshoot. The quote unquote bad running

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Speaker 1: backs in the league are pretty much just like the

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Speaker 1: really good ones. I mean, we saw this last year

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Speaker 1: with the Ams, right, Todd Gurley one of the highest

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Speaker 1: paid running backs in the league. He was kind of

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Speaker 1: absent at the end of their season. They pulled a

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Speaker 1: guy off his couch and they went to the Super Bowl. Well,

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Speaker 1: you know what the Denver Broncos would say, you all

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Speaker 1: those years when when they had thousand yard runners every

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Speaker 1: single season and it didn't matter whether it was David,

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Speaker 1: it didn't matter who was back there you have the

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Speaker 1: horses up front opening the holes. Guys can run for

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Speaker 1: a thousand. Yeah, we'll remember Philip Lindsay. He went in

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Speaker 1: terms of fantasy folks, he went undrafted and then all

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Speaker 1: of a sudden, bam, here comes Phillip Lindsay for Denver,

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Speaker 1: and uh, he looked great. But you have to have

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Speaker 1: a running back in the position for the game. But

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Speaker 1: in the NFL, where it is a hard cap, you

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Speaker 1: can only spend so much, so how you allocate those

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Speaker 1: dollars matters. And Jerry Jones Shirley knows this is Jerry

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Speaker 1: Jones gonna risk having his star running back sit out

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Speaker 1: the season or is he going to give him a

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Speaker 1: huge raise and try to advertise this thing. But either

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Speaker 1: way going to take a bigger cap pit, less money

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Speaker 1: for other people. And just to talk about at that

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Speaker 1: allocation real quick. In two, almost seven percent of NFL

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Speaker 1: salaries went to running backs. Right now, that's down to

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Speaker 1: four and a half percent, and I would imagine it's

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Speaker 1: gonna go even even lower. And for the Cowboys specifically,

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Speaker 1: you know you have a side negotiations also happening with

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Speaker 1: Dak Prescott the quarterback and Amarko. You need to be

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Speaker 1: a star wide receiver. Um. And if you think Ezekiel

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Speaker 1: Elliott is underpaid at three and a half million dollars,

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Speaker 1: I think Dak Prescott got paid seven hundred thousand dollars

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Speaker 1: last year. My non professional analytics draft pick always do

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Speaker 1: not pay big money to skill positions, running back to

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Speaker 1: wide receivers. You can find them anywhere. Build build your

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Speaker 1: offensive defensive line, You need your quarterback. That's how you

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Speaker 1: wouldn't the end. I'm sure John, I'm sure Jerry Jones

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Speaker 1: looks at this trio and sees a potential Aikman, Emmett Smith,

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Speaker 1: Michael Irvin. Kind of kind of trio. But again, you

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Speaker 1: have to manage all that happened because of Yes, you

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Speaker 1: can name those three, but do people remember leon Let

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Speaker 1: and the guy's up front and who were doing the blood.

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Speaker 1: That's why they I mean, I don't care who the

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Speaker 1: quarterback is. If he doesn't have some time to throw,

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Speaker 1: he's gonna be on his back and up winning. And

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Speaker 1: it does make you wonder if, I mean, how much

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Speaker 1: leverage Zeke actually has here. Reportedly he's willing to sit

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Speaker 1: out the entire year without a deal. Um, there's a

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Speaker 1: chance this ends up with a kind of hefty signing bonus,

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Speaker 1: but on a on a on an actual deal that

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Speaker 1: is very team friendly, which we saw with Michael Thomas,

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Speaker 1: the wide receiver and and and the and the Saints

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Speaker 1: a couple of weeks ago, where he got a big

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Speaker 1: number guaranteed number was one of the biggest ever given

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Speaker 1: to a wide receiver. But if you actually break down

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Speaker 1: the deal, it's actually pretty team friendly in terms of

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Speaker 1: what's available to him. So so that may be the

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Speaker 1: end result with Zeke and Melvin Gordon, the running back

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Speaker 1: in l A who's also holding out up. Next, we

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Speaker 1: turn to the high profile defection in the world of

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Speaker 1: e sports. I'm gonna channel my inner Larry King, Ninja Twitch,

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Speaker 1: Microsoft Go. I hope you some some pretty huge news

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Speaker 1: last week in the world of But people who don't understand,

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Speaker 1: I mean, we can say pretty huge news. Let's put

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Speaker 1: it in terms if you can for a traditional sports

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Speaker 1: fan who may not follow the sports, can you tell

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Speaker 1: me this would be like, ex, Yeah, I'm trying to

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Speaker 1: think of a good because it's a it's an individual essentially,

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Speaker 1: This would, I guess kind of be like if if

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Speaker 1: you could watch Tiger Woods play for free, whenever you

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Speaker 1: wanted to, and suddenly he was moving to a place

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Speaker 1: where you needed to pay to see him away from

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Speaker 1: everything else when Tiger was everything. Yeah. So yeah, if

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Speaker 1: Tiger kind of started Tiger cast, right and I needed

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Speaker 1: to pay, the only way you could see Tiger do

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Speaker 1: his thing was to do it on Tiger Cast. UM.

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Speaker 1: The streaming world, the sports, you know, people are used

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Speaker 1: to it being free. YouTube and Twitch. Those are names

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Speaker 1: out there that I assume people know. You know, owned

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Speaker 1: by by Google, owned by Amazon. UM Ninja has become

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Speaker 1: the most famous gamer in the world right now, UM

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Speaker 1: largely because of his popularity on those two platforms. When

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Speaker 1: he streams, and he does so almost every day, you know,

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Speaker 1: millions of people tune in. UM. He was on Monday

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Speaker 1: night football promos. I was shocked. Yeah, I think it

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Speaker 1: was whatever he was on the NFL promos. He is

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Speaker 1: a bona fide star. And the news that happened last

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Speaker 1: week he announced that instead of he was leaving both

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Speaker 1: Twitch and YouTube places where you could watch him for

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Speaker 1: free very easily, and was going to Mixer, which is

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Speaker 1: a Microsoft owned platform, which is nowhere near as popular

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Speaker 1: as those other two. Uh, we don't know the terms

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Speaker 1: of the deal. I assume he's being paid a lot.

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Speaker 1: But the only way to see Ninja do his thing

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Speaker 1: now is to sign up for Mixer. The way I

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Speaker 1: would say it is and putting it in perspective, remember

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Speaker 1: when the NFL went to Fox, I mean probably does

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Speaker 1: it legitimized Fox as a network? It was more than

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Speaker 1: just the Simpsons. Oh yeah, yeah, it made Fox. That

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Speaker 1: I'm guessing is what Mixer is hoping the impact will

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Speaker 1: be from Ninja moving. I think that's a good way

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Speaker 1: to put right now. Mixer is I think it's less

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Speaker 1: than three percent of all the gaming that's watched online,

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Speaker 1: whereas twitches se right. So, just to give you a

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Speaker 1: sense there, Uh so, so the big question here is

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Speaker 1: Ninja's fame big enough that a lot of people are

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Speaker 1: going to follow him onto this platform that they're probably

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Speaker 1: not using already. I'm gonna go with my focus group

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Speaker 1: of one at home and the answers no, no, yeah.

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Speaker 1: So so Ninja right now, five days after the announcement,

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Speaker 1: has a million subscribers on Mixer. Um. The big caveat

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Speaker 1: there is that they all got it for free. Mixer

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Speaker 1: offered two months free of Ninja as a reward for

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Speaker 1: So the big question, the big number what people are

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Speaker 1: gonna wait for is after that two month window, how

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Speaker 1: many people are going to sign up for the six

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Speaker 1: dollar or more monthly fee to remain watching Ninja. Before

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Speaker 1: we move on right quick, I gotta mention about Fortnite,

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Speaker 1: and now all of a sudden there is a resurgence

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Speaker 1: back into it. Because I was worried about it waning.

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Speaker 1: A four jeen year old son says, you know what, Dad,

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Speaker 1: after they sixteen year old kid one money is going

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Speaker 1: to be the money, and now he's back into it

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Speaker 1: all over again, and all your money on chocolate. Epic Games,

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Speaker 1: which makes Fortnite, has done a tremendous job of refreshing

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Speaker 1: the game and the news trying because the plot that

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Speaker 1: every year they've done marketing pieces, they've done you know,

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Speaker 1: integrating you know, movies and other brands within the game.

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Speaker 1: I think they've done a very good job of keeping

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Speaker 1: it relevant. Finally, it looks like we have some big

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Speaker 1: sponsorships and naming deals for the stadium coming to not

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Speaker 1: only just Las Vegas, but there's also a deal involved

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Speaker 1: and you talked about it involving the Cronky family. Yeah,

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Speaker 1: they don't have the naming rights deal. It's reported out

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Speaker 1: there that so far is going to pay between five

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Speaker 1: million a year for that, but it has not been

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Speaker 1: announced yet. But American Airlines stepped up and they're paying

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Speaker 1: ninety million over ten years. You can do that math right,

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Speaker 1: ninety million over ten years. That's nine nine mill per

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Speaker 1: year to sponsor the plaza out front, so it'll be

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Speaker 1: the america An Airlines Plaza. And the question I had

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Speaker 1: for the company, and they try their best to answers,

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Speaker 1: how do you measure the return on investment? How do

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Speaker 1: you come up with what this is worth? How do

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Speaker 1: you plan on capitalist how do you turn people walking

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Speaker 1: into a football stadium into flyers of your airline? And

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Speaker 1: I was very surprised to learn that American is the

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Speaker 1: number one airline at l a X of takeoff in

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Speaker 1: the landings at l a X or American, that's not

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Speaker 1: not neither did I'm like, okay, so but then you

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Speaker 1: move from there? Okay, then what will They're embarking on

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Speaker 1: a one and a half billion with a B one

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Speaker 1: and a half billion dollar renovation of their terminals at

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Speaker 1: l a X. So clearly Americans sees Los Angeles as

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Speaker 1: a vital hub of the future. So are they ingraining

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Speaker 1: themselves further in the community in the mindset of visitors.

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Speaker 1: How many people to be talking about this stadium? How

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Speaker 1: many mentioned the stadium is gonna have we have what

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Speaker 1: the super Bowl? You have the Olympics, you have a

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Speaker 1: college championship game. So l A American l A American.

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Speaker 1: But they're not just gonna say that, you know, the

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Speaker 1: stadium naming rights? This again, this is the plaza, So

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Speaker 1: how do you turn that into customers? It's gonna be

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Speaker 1: interesting to watch. And it's the same thing moving to

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Speaker 1: Vegas with Allegiance, which by the way, is a Vegas

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Speaker 1: based company putting its name on the Vegas stadium of

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Speaker 1: the Raider. Yeah, the thing about the L A and

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Speaker 1: then the number in that L A thing is shocked,

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Speaker 1: I mean shocking to me. Right, this is not a

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Speaker 1: naming rights deal. They're paying nine million dollars a year.

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Speaker 1: That's significantly more than almost any other NFL team games

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Speaker 1: for its actual stadium name. So do I get a

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Speaker 1: deal if I'm so fie, I do wind up paying

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Speaker 1: between do I look back and say, yeah, it's a

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Speaker 1: good deal? Maybe? Yeah? I mean the estimates and you

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Speaker 1: mentioned Allegiance in in Las Vegas and estimates that they're

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Speaker 1: paying roughly that same amount, right, that million dollar number. Um.

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Speaker 1: But yeah, that that is the that's the crown jewel

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Speaker 1: of the sponsorships, right, that is the thing that stadium

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Speaker 1: is going to be called. I mean the American airlines.

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Speaker 1: You it's only for people who are there, right, there's

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Speaker 1: no benefit on TV's also norm in space there, so

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Speaker 1: it will be used almost three But still is it

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Speaker 1: Is it enough to draw people to your airline when

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Speaker 1: they're making their decision or is it just flat out

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Speaker 1: you know, when I go to orbits Her and I'm

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Speaker 1: looking around, I need to go to l A. I'm

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Speaker 1: gonna take the cheapest flight. I don't know the answer.

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Speaker 1: Let me let me break it down right quick. Some

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Speaker 1: of the top naming rights the leaders here h Raiders

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Speaker 1: with Allegiance at millions. Oh, Michael Barr was some serious

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Speaker 1: value act. I know it's scared you better listen up.

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Speaker 1: I'm scared too, folks. Cowboys A, D and T nineteen

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Speaker 1: point five and Patriots Gillette at fourteen million. That shows

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Speaker 1: you how that quick drop the different I would stay

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Speaker 1: here with with Vegas n L a more than Dallas

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Speaker 1: is that those are global destinations, like you get people

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Speaker 1: from all over the world going to Vegas for whatever,

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Speaker 1: as well as l A. These are global as the nations.

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Speaker 1: So I'm curious, I really curiously can we revisit this

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Speaker 1: in six months a year? And asked the companies, and

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Speaker 1: I plan on doing it if they can show me

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Speaker 1: the r o I on this investment. How has it

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Speaker 1: worked out? What's the increase in number of passengers at

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Speaker 1: l A, X, etcetera. Well, the I mean the as

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Speaker 1: you know, because we talked to these guys a lot.

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Speaker 1: The spending for things like naming, Right's usually kind of

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Speaker 1: falls into two buckets, right, It's either like a big

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Speaker 1: customer acquisition move or it's a move just to get

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Speaker 1: people to know what the heck your company is and

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Speaker 1: what it does. It's not brand associate. Brand awareness is

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Speaker 1: not American area exactly. But for Allegiance, that seems to

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Speaker 1: be more of the thing, right. I think there are

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Speaker 1: a lot of people out there and I was one

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Speaker 1: of I wasn't even fully sure what Allegiance was. Um,

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Speaker 1: this is a money spend my guess, just to make

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Speaker 1: it more in the lexicon of people and and have

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Speaker 1: the understand what it is is. Yeah, I think that

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Speaker 1: that's more the motivation for a brand like Allegiance versus

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Speaker 1: American Airlines, which obviously doesn't have that problem. Well, were

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Speaker 1: on a newsie sense, Allegiance. I think they're gonna be

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Speaker 1: happy to pay this because about a year ago, uh,

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Speaker 1: there was a sixty minutes report on Allegian and it

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Speaker 1: wasn't really happy press on it. So this will help

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Speaker 1: Allegiance get back in the good graces and help it's marketing.

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Speaker 1: They're always in good graces. Yeah, bring chalkolate, you're in

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Speaker 1: great crazies. I'm not sure I'm want to say. I

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Speaker 1: don't know what kind of graces this will be received by.

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Speaker 1: I do not know, you know, because this is like,

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Speaker 1: you know, a little bit too late. And she she's

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Speaker 1: an afterthought. She wasn't a forethought. She and it's a

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Speaker 1: double bar. Our family is happy. You understand you made

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Speaker 1: a mistake, So it's a double bar. I understand. I

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Speaker 1: just don't know. I will I will have her record

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Speaker 1: a message with her feelings for you, bark, thank you.

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Speaker 1: We'll see if it was a seventh second delay. This

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Speaker 1: is the bloomberg business of Sports podcast at Michael Bar

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Speaker 1: along with Scott Sasnak but nobody will MS. We are

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Speaker 1: here every Monday, Wednesday and Thursday exploring the world of

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Speaker 1: money in sports. Join us again at the end of

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Speaker 1: the week when we speak with investor Markin, who's big

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Speaker 1: into both tennis and esport. How's that for a combination

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