Speaker 1: Charlie. Thank you from the Bloomberg news Room by Mark Crumpton.
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Speaker 1: Bloomberg Radio. A Supreme Court tie vote effectively kills President
Speaker 1: Obama's plan to shield millions of immigrants in the US
Speaker 1: illegally from deportation. What was unaffected by today's ruling or
Speaker 1: lack of a ruling, uh, is the enforcement priorities that
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Speaker 1: of Mr Obama's term. House Democrats today ended their twenty
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Speaker 1: we watched a publicity stunt, a fundraising stunt, descend an
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Speaker 1: One of the protest leaders, civil rights veteran and Georgia
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Speaker 1: is Bloomberg, Charlie, and we thank you, but again. Recapping
Speaker 1: a stock surge SMP five hundred index up twenty seven
Speaker 1: points to a gain today of one point three percent.
Speaker 1: I'm Charlie Pellett and that's a bloom Bred business flash.
Speaker 1: This is taking stock with Gathleen Hayes and Pim Box
Speaker 1: on Bloomberg Radio. The National Hockey League Las Vegas expansion
Speaker 1: filling a craving for money Gary Bettman is the commissioner
Speaker 1: of the NHL, and he brought the NHL and hockey
Speaker 1: to the Sun Belt, now offering hockey in a city
Speaker 1: at is best known for floor shows and gaming. Here
Speaker 1: to tell us more is Dave Barry, sports economist at
Speaker 1: Southern Utah University. Dave, thanks very much for being with us,
Speaker 1: Thanks for having So what kind of money are we
Speaker 1: talking about? Because attendance is not great. I was looking
Speaker 1: at the attendance numbers for the Stanley Cup finalists. They
Speaker 1: drew fewer than seventeen thousand fans per game last season. Yeah,
Speaker 1: it's well when you when you look at Vegas as
Speaker 1: a market, you can see why, you know, you can
Speaker 1: see why the NHL did this, given you know, what
Speaker 1: they're paying to join. But if you look at the
Speaker 1: viability of the franchise, of the big issues that people
Speaker 1: have raised and Bloomberg's own Kabatha Davidson racist actually years ago,
Speaker 1: is that there's so many people in Vegas who are
Speaker 1: not native to Vegas. Vegas has a huge population of
Speaker 1: people who moved there. Uh, and so unlike a city
Speaker 1: like Cleveland, where you have people who have lived there
Speaker 1: for generations and they are immensely devoted to their sports teams,
Speaker 1: even though they didn't win until this year. It's really
Speaker 1: hard to see that that's going to happen in Vegas,
Speaker 1: where you have people who moved there from someplace else.
Speaker 1: So who is going to be the fan base for
Speaker 1: this NHL team? And exactly why would somebody who really
Speaker 1: like hockey moved to a place like Vegas, So that
Speaker 1: that's it really is unclear why you why the NHL
Speaker 1: would want to do this. Well, Dave, thank you for
Speaker 1: saying that although there are like, you know, ice hockey
Speaker 1: teams in some really hot parts of the country, but
Speaker 1: I didn't have to do with tourism does have to
Speaker 1: do Oh, I can go to Las Vegas. Uh. You know,
Speaker 1: you can play blackjack, honey while I watched some hockey. Yeah,
Speaker 1: I mean there's gonna mean there's gonna be tourists there
Speaker 1: who can go see a hockey game. And that's true.
Speaker 1: My sense of it is is, you know, around the
Speaker 1: same time we're talking about this, you know, we have
Speaker 1: Vegas is also really trying very hard to get an
Speaker 1: NFL team to move to Vegas. Uh. And the NFL
Speaker 1: is is certainly a much more popular sport than than
Speaker 1: hockey is and by allowing you know, by having NHL
Speaker 1: moving to Vegas, it makes Vegas appear to be a
Speaker 1: major league city because now they're in one of the
Speaker 1: major sports, and I think it's strengthens their bid to
Speaker 1: get an NFL franchise, which is something that they also
Speaker 1: would like to do. Dave, how about five hundred million
Speaker 1: reasons to go to Vegas? Isn't that the five hundred
Speaker 1: million dollars that's the expansion fee alone to enter the
Speaker 1: league and maybe start in the season. Yeah, absolutely, I mean,
Speaker 1: you know, yeah, it is. Actually, you know, it's clear
Speaker 1: the NHL is making money on this. It's really it's
Speaker 1: really not clear that this is a long run strategy
Speaker 1: that you know, there's a lot of questions if there's
Speaker 1: gonna be a fan base that's gonna be there supporting
Speaker 1: his team ten years from now or twenty years from now.
Speaker 1: So there's again there'll be some initial excitement that they
Speaker 1: have a franchise, but that always wears off. And you know,
Speaker 1: so you think about this, five years from now, ten
Speaker 1: years from now, is there going to be a big
Speaker 1: enough fan base in Vegas to support in an NHL
Speaker 1: team down the road. Well, he's already said, for example,
Speaker 1: I guess we want to talk about billionaire businessman Bill Foley, right,
Speaker 1: because uh, he is the one who's going to be
Speaker 1: pooning up the money. He's already taken deposits, he says,
Speaker 1: for fourteen thousand, five hundred season ticket holders. Uh. And well,
Speaker 1: I mean the franchise, as I said, four be five
Speaker 1: hundred billion dollars, right, I mean the first expansion since
Speaker 1: so what when the Minnesota Wild and the Columbus Blue
Speaker 1: Jackets were admitted? Yes? Uh and and and that is
Speaker 1: typically you know, what you're saying with those numbers is
Speaker 1: typically what you see with an expansion team is that
Speaker 1: initially there's a lot of excitement and again that it
Speaker 1: does wear off. And you know, five years down the road,
Speaker 1: ten years or down the road, are those same fans
Speaker 1: going to keep renewing those season tickets? Especially if they
Speaker 1: don't if they're not successful. Day, Barry, put on your
Speaker 1: sports economist hat. That's why First Gotten started following your
Speaker 1: work how many years ago, big up in the New
Speaker 1: York Times about um, the NBA and productivity of players,
Speaker 1: right and and and people have this bad idea that
Speaker 1: if you shoot all the time and make and make
Speaker 1: lots of baskets. Your productive your work has shown not necessarily,
Speaker 1: you've got to do a lot of other things as well.
Speaker 1: The NBA Draft is tonight Again in that context, why
Speaker 1: is it's so important, Well, the NBA Draft is where
Speaker 1: the losers of the NBA have a night where they
Speaker 1: get to dream that they're going to be successful. And
Speaker 1: so what you're gonna here tonight is a lot of
Speaker 1: players will have their name called. And when they are called, uh,
Speaker 1: you will hear analysts tell you that the person as
Speaker 1: a future star. Uh. They are almost always wrong. They
Speaker 1: are not future stars. All you have to do do is
Speaker 1: look back at the history of every other draft they
Speaker 1: were not future stars. Uh. And so what typically happens
Speaker 1: is the players in the NBA in college who scored
Speaker 1: the most and played for winning teams, Uh, they will
Speaker 1: get drafted first. Uh. So studies have shown that that
Speaker 1: is typically what happens. Studies also showed those things are
Speaker 1: not related to future NBA productivity. So there will be
Speaker 1: a collection of players drafted very early on, and the
Speaker 1: fan bases are gonna be very excited about these players.
Speaker 1: And then sometime probably next January or February, it will
Speaker 1: occur to a lot of these fans that those players
Speaker 1: were not quite as good as they were advertised. And
Speaker 1: then as a question, Pim of how good your investment was? Yes.
Speaker 1: Dave Berry, Sports Economists, Southern Utah University on the expansion
Speaker 1: of the National Hockey League to Las Vegas. I wonder
Speaker 1: what their team will be called. We've got one vote
Speaker 1: for the game lurs. We'll see you're listening to Taking Stock.
Speaker 1: I'm Pim Fox, my co host Kathleen Hayes, and this
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