1 00:00:02,560 --> 00:00:06,160 Speaker 1: Hello, I'm like and I'm Scott Sashnik. On this weekly podcast, 2 00:00:06,240 --> 00:00:08,119 Speaker 1: we explore the big money issues in the world of 3 00:00:08,119 --> 00:00:09,959 Speaker 1: sports and talked to some of the biggest players in 4 00:00:09,960 --> 00:00:12,440 Speaker 1: the industry. On this week's show, we speak to College 5 00:00:12,440 --> 00:00:16,440 Speaker 1: Football Playoff executive director Bill Hancock. But first, let's look 6 00:00:16,440 --> 00:00:18,599 Speaker 1: at the top stories of the week. Joining us is 7 00:00:18,600 --> 00:00:22,799 Speaker 1: Bloomberg Business of Sports reporter Evan Nobi Williams. Let's start 8 00:00:22,840 --> 00:00:26,480 Speaker 1: all this talk about the problems that ESPN has had, 9 00:00:27,000 --> 00:00:30,160 Speaker 1: but they still have strong ratings. What if we always 10 00:00:30,200 --> 00:00:34,400 Speaker 1: said they may not be the eight hundred pound guerrilla anymore, 11 00:00:34,840 --> 00:00:37,600 Speaker 1: but they're the seven hundred and fifty pound guerrilla these days. 12 00:00:37,600 --> 00:00:41,879 Speaker 1: They reclaimed the spot number one top cable network and 13 00:00:41,920 --> 00:00:43,720 Speaker 1: a bit of an anomaly list year. Does it happen 14 00:00:43,760 --> 00:00:46,840 Speaker 1: without the election? They lost the spot to Fox News, 15 00:00:46,880 --> 00:00:49,639 Speaker 1: so that that really shows that people were tuning in 16 00:00:49,680 --> 00:00:51,800 Speaker 1: for the election coverage. But if it was a non 17 00:00:51,840 --> 00:00:54,680 Speaker 1: election year, does that happen here? They are back on top. Yeah. 18 00:00:54,720 --> 00:00:56,480 Speaker 1: I don't this, I don't read much into this. I 19 00:00:56,480 --> 00:01:01,360 Speaker 1: mean they were number one from fifteen. The election cycle happened, 20 00:01:01,360 --> 00:01:04,040 Speaker 1: Fox News took over, and now two thousand seventeen, they're 21 00:01:04,080 --> 00:01:06,800 Speaker 1: back at number one. But but this doesn't hide the 22 00:01:06,840 --> 00:01:10,000 Speaker 1: fact that the viewership numbers are dropping. They are below 23 00:01:10,160 --> 00:01:13,679 Speaker 1: what they were in prime time two years ago. Uh 24 00:01:13,800 --> 00:01:16,400 Speaker 1: So the trend is happening downward. It's not like there's 25 00:01:16,440 --> 00:01:19,000 Speaker 1: other people that are shooting up to take their place. 26 00:01:19,280 --> 00:01:22,000 Speaker 1: They're still the top dog, but the size of the 27 00:01:22,000 --> 00:01:24,080 Speaker 1: pie is getting a little smaller, and their margin, by 28 00:01:24,080 --> 00:01:26,520 Speaker 1: the way, between one and two, even though everything's coming 29 00:01:26,600 --> 00:01:29,800 Speaker 1: down the ratings, the margin between number one ESPN and 30 00:01:29,880 --> 00:01:32,120 Speaker 1: number two is getting wider. So there's still in a 31 00:01:32,120 --> 00:01:34,520 Speaker 1: good position to have a wide array of live rights. 32 00:01:34,720 --> 00:01:37,360 Speaker 1: And let's not forget here with the Disney deal with 33 00:01:37,680 --> 00:01:42,759 Speaker 1: twenty century Fox, of sports programming was consumed on ESPN 34 00:01:42,800 --> 00:01:46,240 Speaker 1: platforms was on Fox platforms, and much of that's the 35 00:01:46,360 --> 00:01:47,960 Speaker 1: rs N s. They're getting the rs N s and 36 00:01:48,000 --> 00:01:52,320 Speaker 1: the deal of sports programming now belongs to this Disney entity. 37 00:01:52,480 --> 00:01:54,920 Speaker 1: But is this part of also the human nature When 38 00:01:55,000 --> 00:01:57,600 Speaker 1: you're on top, people love to sling the arrows to 39 00:01:57,680 --> 00:02:00,000 Speaker 1: take it down. Yeah, look at the NFL right now. 40 00:02:00,040 --> 00:02:02,520 Speaker 1: You know they're they're they're the biggest, the biggest sports 41 00:02:02,600 --> 00:02:05,480 Speaker 1: league in revenue, in TV ratings, etcetera. And and yeah, 42 00:02:05,480 --> 00:02:08,760 Speaker 1: they consistently. The storyline is what's happening in the NFL. 43 00:02:08,800 --> 00:02:11,359 Speaker 1: What's the future? Are they going down? Uh? Yeah, I 44 00:02:11,400 --> 00:02:13,560 Speaker 1: think this is a ESPN has some parallels there. When 45 00:02:13,560 --> 00:02:16,160 Speaker 1: we discuss the ESPN. The only thing that's important, Yes, 46 00:02:16,240 --> 00:02:19,760 Speaker 1: you can give number here, number there, just provide context. Michael, 47 00:02:19,960 --> 00:02:24,600 Speaker 1: speaking of the NFL. Alan and Company they're involved now 48 00:02:25,000 --> 00:02:28,280 Speaker 1: in the sale of the Carolina Panthers. What's up? Yes, 49 00:02:28,280 --> 00:02:30,240 Speaker 1: step one, pick a banker. I mean, if you're going 50 00:02:30,280 --> 00:02:32,440 Speaker 1: to use a banker. The Houston Rockets did not less 51 00:02:32,440 --> 00:02:35,880 Speaker 1: Alexander in that work. But yeah, the Richardson family hired 52 00:02:35,960 --> 00:02:38,800 Speaker 1: Alan and Company, which means you get Steve Greenberg, who 53 00:02:38,919 --> 00:02:41,760 Speaker 1: recently sold the Brooklyn Nets to Joe Psi for record 54 00:02:41,840 --> 00:02:44,840 Speaker 1: NBA price of two point three billion dollars. Uh. This 55 00:02:44,919 --> 00:02:48,040 Speaker 1: is a book take bank that has lots of ties 56 00:02:48,080 --> 00:02:51,480 Speaker 1: to wealthy individuals. So you wonder will this be one 57 00:02:51,480 --> 00:02:53,320 Speaker 1: of those groups sales or is this going to be 58 00:02:53,400 --> 00:02:57,040 Speaker 1: somebody coming in with a billion dollar net worth plus 59 00:02:57,440 --> 00:02:59,720 Speaker 1: and cutting a check. That's the kind of thing Steve 60 00:02:59,720 --> 00:03:01,800 Speaker 1: green does. I don't want to get two into the weeds, 61 00:03:01,880 --> 00:03:04,280 Speaker 1: the Wall Street weeds here, But no surprise here that 62 00:03:04,280 --> 00:03:06,120 Speaker 1: that Alan and Company is doing this. They seem to 63 00:03:06,160 --> 00:03:08,400 Speaker 1: be one of the biggest, if not the biggest, in 64 00:03:08,520 --> 00:03:11,639 Speaker 1: terms of handling sales of sports franchises. Scott, are you 65 00:03:11,720 --> 00:03:15,080 Speaker 1: surprised that Bank of America didn't get this business based 66 00:03:15,120 --> 00:03:18,360 Speaker 1: in Charlotte? Yeah? This is is on the stadium. Yeah, 67 00:03:18,360 --> 00:03:20,400 Speaker 1: this is the one that surprised us that Bank of America, 68 00:03:20,400 --> 00:03:22,360 Speaker 1: as he just said, based in Charlotte. Name on stadium, 69 00:03:22,400 --> 00:03:25,840 Speaker 1: team sponsor. You wonder if Hugh McCall, the former CEO, 70 00:03:26,080 --> 00:03:28,160 Speaker 1: is rumored to be one of the bidders for the team. 71 00:03:28,560 --> 00:03:32,480 Speaker 1: Did they conflict themselves out here? However, the team could 72 00:03:32,480 --> 00:03:35,000 Speaker 1: always waive the conflict as long as they're aware of it. 73 00:03:35,440 --> 00:03:38,880 Speaker 1: I'm surprised that, at least right now, it doesn't seem 74 00:03:38,920 --> 00:03:41,120 Speaker 1: as a Bank of America has a role in this sale, 75 00:03:41,400 --> 00:03:43,480 Speaker 1: but I wouldn't be surprised at the end if they do. 76 00:03:43,680 --> 00:03:48,040 Speaker 1: And let's clarify something, they can't do Diddley Boo until 77 00:03:48,280 --> 00:03:51,760 Speaker 1: the Panthers are done with their season. Well, they could 78 00:03:51,840 --> 00:03:53,920 Speaker 1: do Diddley Boo, as you say, if they wanted to, 79 00:03:54,000 --> 00:03:56,080 Speaker 1: but that's Jerry Richardson's choice. He said, we will not 80 00:03:56,120 --> 00:03:59,000 Speaker 1: accept offers. We will not do anything until our season 81 00:03:59,080 --> 00:04:02,200 Speaker 1: is over. And the topic University of Arizona football coach 82 00:04:02,280 --> 00:04:06,560 Speaker 1: Rich Rodriguez, He's mad no bonus. Why this is one 83 00:04:06,560 --> 00:04:10,920 Speaker 1: of my favorite college football bonus stories. Arizona put securities 84 00:04:10,920 --> 00:04:14,600 Speaker 1: in Rich Rodriguez contract. There their shares in a master 85 00:04:14,680 --> 00:04:18,200 Speaker 1: limited partnership and an oil company um and his longevity 86 00:04:18,200 --> 00:04:21,160 Speaker 1: bonus was tied to those shares. So the longer he 87 00:04:21,200 --> 00:04:24,360 Speaker 1: was at the program, at certain increments, Arizona would sell 88 00:04:24,400 --> 00:04:27,159 Speaker 1: off that stock and they would pay him the money 89 00:04:27,240 --> 00:04:30,200 Speaker 1: they got from the stock. Uh. He was fired this 90 00:04:30,200 --> 00:04:32,760 Speaker 1: this week. If he had been fired three months later, 91 00:04:32,839 --> 00:04:35,400 Speaker 1: there was an extra three point two four million dollars 92 00:04:35,400 --> 00:04:37,440 Speaker 1: on his contract that he would have received had he 93 00:04:37,480 --> 00:04:41,560 Speaker 1: made it three more three more months. I would love it. 94 00:04:41,600 --> 00:04:44,320 Speaker 1: I would just I wish Rich Rod had a Bloomberg terminal, 95 00:04:44,400 --> 00:04:46,919 Speaker 1: and then you know, somehow we could track or have 96 00:04:47,080 --> 00:04:49,520 Speaker 1: him tell us what his best functions are, like message 97 00:04:49,520 --> 00:04:51,480 Speaker 1: would be one of them, and then he's looking at 98 00:04:51,480 --> 00:04:53,240 Speaker 1: the price of oil and be like, what are you doing, 99 00:04:53,360 --> 00:04:55,880 Speaker 1: rich Rod? You know, it's just fun to see what's next. 100 00:04:55,920 --> 00:04:57,760 Speaker 1: We're really gonna have to comb that when I say we. 101 00:04:57,880 --> 00:04:59,679 Speaker 1: I mean, like I been. In the future, you're gonna 102 00:04:59,720 --> 00:05:04,279 Speaker 1: have to go through these coaching contracts to see what's next. 103 00:05:04,920 --> 00:05:08,560 Speaker 1: More commodities side are Are they gonna be stocks given 104 00:05:08,600 --> 00:05:11,680 Speaker 1: as possible bonuses? Is the next football coach gonna be 105 00:05:11,680 --> 00:05:14,120 Speaker 1: watching the price of Apple? It's gonna be fun. It's yeah, 106 00:05:14,120 --> 00:05:16,120 Speaker 1: And I've talked to a number of athletic directors about 107 00:05:16,120 --> 00:05:18,640 Speaker 1: whether they would consider doing something similar. You can see 108 00:05:18,640 --> 00:05:21,440 Speaker 1: the benefits because they get to sound they get to 109 00:05:21,520 --> 00:05:24,560 Speaker 1: keep the profits from the stock until they sell them off. Um. 110 00:05:24,560 --> 00:05:27,400 Speaker 1: It's risky, obviously, and if you're rich, Rod, you were 111 00:05:27,400 --> 00:05:30,040 Speaker 1: three months away from from getting this huge bonus and 112 00:05:30,120 --> 00:05:32,719 Speaker 1: ends up you're not gonna get it. Um, But we'll see. 113 00:05:32,720 --> 00:05:34,480 Speaker 1: We'll see what happens in the future. Michael, we've heard 114 00:05:34,520 --> 00:05:36,279 Speaker 1: enough from you. I think you can go because the 115 00:05:36,360 --> 00:05:39,120 Speaker 1: resident college football expert Aby Novin Williams and I can 116 00:05:39,160 --> 00:05:42,000 Speaker 1: take it from here. As we get into our interview 117 00:05:42,000 --> 00:05:45,080 Speaker 1: with Bill Hancock, he was the first executive director of 118 00:05:45,120 --> 00:05:48,159 Speaker 1: the Final Four That's Basketball, the first executive director of 119 00:05:48,240 --> 00:05:51,640 Speaker 1: the BCS, and now the first executive director of the 120 00:05:51,680 --> 00:05:55,960 Speaker 1: College Football Playoff. Bill Hancock, thanks for joining us. Bill, 121 00:05:56,000 --> 00:05:59,760 Speaker 1: We're always selling the future of whatever product we have 122 00:05:59,839 --> 00:06:02,880 Speaker 1: for you. It's college football. So if I've got Georgia 123 00:06:03,040 --> 00:06:06,800 Speaker 1: and Alabama in the championship game, which you do, what 124 00:06:06,920 --> 00:06:09,640 Speaker 1: does that mean for the business of college football? Moving forward? 125 00:06:09,920 --> 00:06:16,160 Speaker 1: Two giants of college football? And uh, everything about to 126 00:06:16,200 --> 00:06:19,000 Speaker 1: college football playoffs has been and will be good for 127 00:06:19,040 --> 00:06:23,760 Speaker 1: college football. So um, this, this whole weekend will line 128 00:06:23,839 --> 00:06:26,520 Speaker 1: up great for the sport. Is there anything to the 129 00:06:26,560 --> 00:06:30,440 Speaker 1: notion that in all SEC affair sort of regionalizes the 130 00:06:30,520 --> 00:06:32,800 Speaker 1: interest Like when we had the Yankees and the Mets 131 00:06:32,839 --> 00:06:34,920 Speaker 1: in the World Series. Yes, the number one media market, 132 00:06:35,120 --> 00:06:36,480 Speaker 1: but a lot of the rest of the country didn't 133 00:06:36,480 --> 00:06:38,720 Speaker 1: really care. Is that true of college football? Or is 134 00:06:38,920 --> 00:06:41,479 Speaker 1: are the fans even in California and other parts still 135 00:06:41,520 --> 00:06:43,359 Speaker 1: interested in what's going on? You know? I think that 136 00:06:43,440 --> 00:06:46,440 Speaker 1: remains to be seen. I suppose. I suppose there there 137 00:06:46,480 --> 00:06:49,599 Speaker 1: will be. There would be a greater focus of interest 138 00:06:49,880 --> 00:06:53,040 Speaker 1: in the Southeastern quadrant, but I think it remains to 139 00:06:53,080 --> 00:06:55,040 Speaker 1: be seen what the interest is around the rest of 140 00:06:55,080 --> 00:06:58,360 Speaker 1: the country. It'll be high, But so for us, it's 141 00:06:58,360 --> 00:07:02,159 Speaker 1: a question of how I and the fact is we 142 00:07:02,160 --> 00:07:05,839 Speaker 1: we have a playoff and so whoever wins the semifinals 143 00:07:05,920 --> 00:07:08,760 Speaker 1: is who wins the semifinals, And again, it's just going 144 00:07:08,800 --> 00:07:11,800 Speaker 1: to be a great weekend in Atlanta. Talking to Bill Hancock, 145 00:07:11,800 --> 00:07:15,200 Speaker 1: the executive director of the College Football Playoff. College football 146 00:07:15,240 --> 00:07:17,640 Speaker 1: fans out there obviously know that that you guys took 147 00:07:17,640 --> 00:07:21,160 Speaker 1: over for the bcs a number of years ago. Uh, 148 00:07:21,200 --> 00:07:23,520 Speaker 1: you're four years in right now. How does how how 149 00:07:23,520 --> 00:07:25,000 Speaker 1: has it been? Can you give us kind of a 150 00:07:25,080 --> 00:07:28,280 Speaker 1: rough breakdown of expectation versus versus kind of how it's 151 00:07:28,280 --> 00:07:31,080 Speaker 1: played out in the first couple of years. Yeah, it's 152 00:07:31,080 --> 00:07:35,280 Speaker 1: stacked up very well. Um, amazingly the playoffs created now 153 00:07:35,320 --> 00:07:38,680 Speaker 1: five and a half years ago. It was June when 154 00:07:38,720 --> 00:07:44,000 Speaker 1: the bcs UH leadership decided to do something different and 155 00:07:44,120 --> 00:07:49,800 Speaker 1: created this playoff, and fans, coaches, even even I dare 156 00:07:49,800 --> 00:07:55,400 Speaker 1: say even some reporters really like it. Actually most reporters. 157 00:07:55,920 --> 00:07:59,920 Speaker 1: It's it's been successful beyond our dreams. I think I 158 00:08:00,120 --> 00:08:02,880 Speaker 1: knew it would be, you know, a quality event that 159 00:08:02,920 --> 00:08:05,560 Speaker 1: people would really enjoy, But I think I think I 160 00:08:05,640 --> 00:08:09,720 Speaker 1: underestimated just exactly how much passion there would be and 161 00:08:09,760 --> 00:08:11,680 Speaker 1: how much focus there would be on the playoffs and 162 00:08:11,960 --> 00:08:14,239 Speaker 1: the good things that it would do. For the game. 163 00:08:14,880 --> 00:08:18,480 Speaker 1: College football fans are nothing if not super passionate. Obviously, 164 00:08:18,520 --> 00:08:20,800 Speaker 1: there were there were concerns that the BCS wasn't good 165 00:08:20,880 --> 00:08:23,360 Speaker 1: enough in Chane crowning a champion. Moving to a a 166 00:08:23,400 --> 00:08:26,640 Speaker 1: semifinal and a final seems better. There's also people, as 167 00:08:26,880 --> 00:08:28,960 Speaker 1: I know you know that I would like to see 168 00:08:28,960 --> 00:08:31,680 Speaker 1: the playoff expanded. Is that something that we may be 169 00:08:31,760 --> 00:08:34,240 Speaker 1: seeing in the future. What are those talks? How are 170 00:08:34,240 --> 00:08:37,839 Speaker 1: they happening. It's it's not in the cards. There's no 171 00:08:37,920 --> 00:08:43,040 Speaker 1: conversation among our board members about doing anything different. They're 172 00:08:43,080 --> 00:08:45,760 Speaker 1: they're quite happy with the playoff that we have. We 173 00:08:45,960 --> 00:08:47,880 Speaker 1: have a twelve year contract, of course, so we're on 174 00:08:48,000 --> 00:08:50,800 Speaker 1: year four of that. But I think more importantly, I 175 00:08:50,840 --> 00:08:53,560 Speaker 1: think people are just really really happy with what's happening. 176 00:08:54,120 --> 00:08:58,160 Speaker 1: We have preserved the regular season. College football's regular season 177 00:08:58,320 --> 00:09:01,360 Speaker 1: is the best one in sports, most compelling, most interesting, 178 00:09:01,720 --> 00:09:03,800 Speaker 1: the one the one that where the where the teams 179 00:09:03,840 --> 00:09:06,160 Speaker 1: have to be on their toes for three and a 180 00:09:06,200 --> 00:09:10,680 Speaker 1: half months, and and and fans attention is riveted on 181 00:09:10,720 --> 00:09:13,040 Speaker 1: the game for three and a half months. So just 182 00:09:13,320 --> 00:09:17,199 Speaker 1: just not any interest in expanding. I hear that occasionally 183 00:09:17,240 --> 00:09:21,160 Speaker 1: from reporters and fans. Um. But when I asked them why, 184 00:09:21,200 --> 00:09:24,000 Speaker 1: they generally say, well, I want I want more football. 185 00:09:24,400 --> 00:09:26,520 Speaker 1: That's not a bad problem. If you were making widgets, 186 00:09:26,880 --> 00:09:29,280 Speaker 1: you'd want people want more to buy more of your widgets. 187 00:09:29,320 --> 00:09:30,680 Speaker 1: But the other thing I hear is well, it would 188 00:09:30,679 --> 00:09:33,800 Speaker 1: be easier for the selection committee, and it wouldn't. The 189 00:09:33,840 --> 00:09:37,040 Speaker 1: difference between team four and five is the same or 190 00:09:37,080 --> 00:09:40,600 Speaker 1: magnified when you compare teams eight and nine, teams sixteen 191 00:09:40,600 --> 00:09:44,280 Speaker 1: and seventeen and whatever. And I saw that when I 192 00:09:44,320 --> 00:09:46,360 Speaker 1: was director of the NC Tournament and we had the 193 00:09:46,400 --> 00:09:49,880 Speaker 1: same kind of heartburn about choosing those sixty four teams 194 00:09:50,280 --> 00:09:52,680 Speaker 1: back in my day. Bill, I think our phone lines 195 00:09:52,720 --> 00:09:55,400 Speaker 1: are lighting up with the people in Columbus, Ohio right now. 196 00:09:55,440 --> 00:09:58,760 Speaker 1: They'd like to have a word with you. Oh my goodness. 197 00:09:59,679 --> 00:10:01,200 Speaker 1: I I'd want to talk to me too if I 198 00:10:01,240 --> 00:10:04,000 Speaker 1: were the people in Columbas, Ohio. Um, they had a 199 00:10:04,000 --> 00:10:07,080 Speaker 1: great season, and UM. The fact of the matter is 200 00:10:07,120 --> 00:10:10,239 Speaker 1: that they the committee looked at it, and the comparison 201 00:10:10,240 --> 00:10:14,200 Speaker 1: obviously was Alabama and Ohio State, and the committee just said, 202 00:10:14,240 --> 00:10:16,760 Speaker 1: you know what, based on what we've seen, based on 203 00:10:16,800 --> 00:10:20,600 Speaker 1: their season performance, Alabama is a better team. How important 204 00:10:20,720 --> 00:10:25,920 Speaker 1: is branding to solidifying the success of a playoff of 205 00:10:25,960 --> 00:10:29,559 Speaker 1: a sport, of particularly the selling of it all. Well, 206 00:10:29,600 --> 00:10:32,200 Speaker 1: I can speak for college football and say that branding 207 00:10:32,280 --> 00:10:35,400 Speaker 1: from a selection committee standpoint is is not important at all, 208 00:10:35,920 --> 00:10:38,599 Speaker 1: not a factor. Of course, the interesting thing about the 209 00:10:38,640 --> 00:10:41,959 Speaker 1: Alabama Ohio State comparison is both of those two are 210 00:10:42,000 --> 00:10:46,040 Speaker 1: colossal brands in college football. So no, just not a 211 00:10:46,080 --> 00:10:47,760 Speaker 1: factor at all. And I'm going to give you a 212 00:10:47,880 --> 00:10:50,000 Speaker 1: chance to make one of your sponsors very happy. We'll 213 00:10:50,040 --> 00:10:52,640 Speaker 1: talk about more of in a minute. But this isn't 214 00:10:52,679 --> 00:10:55,520 Speaker 1: just the college football Playoff. It's the college football Playoff 215 00:10:55,720 --> 00:11:01,080 Speaker 1: presented by a T and T. What do answers look for? 216 00:11:01,320 --> 00:11:03,440 Speaker 1: What do they get out of? How do you explain 217 00:11:03,520 --> 00:11:05,720 Speaker 1: to them that there will be r o I return 218 00:11:05,800 --> 00:11:08,920 Speaker 1: on investment of their dollar for an association with this event. 219 00:11:09,240 --> 00:11:13,679 Speaker 1: First of all, sponsors get a connection with a respected, 220 00:11:14,040 --> 00:11:18,839 Speaker 1: high demographic events that college graduates are passionate about. From 221 00:11:18,840 --> 00:11:23,160 Speaker 1: a business perspective, the audience for college football is unmatched. 222 00:11:23,960 --> 00:11:26,280 Speaker 1: And uh, there's a lot of customers out there, a 223 00:11:26,320 --> 00:11:29,320 Speaker 1: lot of customers in college football, and that that that 224 00:11:29,440 --> 00:11:32,880 Speaker 1: those customers pay attention to who the sponsors are we 225 00:11:32,960 --> 00:11:35,680 Speaker 1: have a really great product to sell and a great 226 00:11:35,679 --> 00:11:38,319 Speaker 1: product that the sponsors want to be associated with. When 227 00:11:38,360 --> 00:11:40,880 Speaker 1: you say demographic, you're talking about age, income. Can you 228 00:11:40,920 --> 00:11:43,800 Speaker 1: explain what is the demo that they're getting all of 229 00:11:43,800 --> 00:11:47,280 Speaker 1: the above that they're getting. They're getting high educated people, Uh, 230 00:11:47,320 --> 00:11:50,840 Speaker 1: they're getting generally, Uh, they're getting good a good pustle 231 00:11:50,920 --> 00:11:53,679 Speaker 1: of young people, but also a very nice passle of 232 00:11:53,760 --> 00:11:57,520 Speaker 1: high earning UH, people in middle age and above that 233 00:11:57,559 --> 00:12:00,920 Speaker 1: are that are very very passionate about their gay and 234 00:12:01,120 --> 00:12:03,960 Speaker 1: UH and passionate been about the products they're associated with 235 00:12:04,000 --> 00:12:07,360 Speaker 1: the game. We've seen the the NFL have some pretty 236 00:12:07,480 --> 00:12:13,640 Speaker 1: high profile audience TV ratings dips this year. Speaking about sponsors, 237 00:12:13,640 --> 00:12:16,280 Speaker 1: obviously there have been some sponsors of the NFL that 238 00:12:16,280 --> 00:12:19,240 Speaker 1: have that have been pretty public in their displeasure about 239 00:12:19,600 --> 00:12:22,200 Speaker 1: the league this season. Have you guys seen any of 240 00:12:22,240 --> 00:12:24,880 Speaker 1: that trickled down to where you guys are. I mean, 241 00:12:24,880 --> 00:12:28,240 Speaker 1: there's obviously concerns about head injuries, for example, in both 242 00:12:28,240 --> 00:12:31,240 Speaker 1: the professional and the collegiate game. Well, we we have 243 00:12:31,360 --> 00:12:35,160 Speaker 1: not seen that, but all of us in the business 244 00:12:35,200 --> 00:12:39,960 Speaker 1: of television have seen the decline and television ratings across 245 00:12:40,000 --> 00:12:43,680 Speaker 1: the board. So the NFL experienced that we will we 246 00:12:43,720 --> 00:12:46,439 Speaker 1: will probably experience that. If we don't this year, we're 247 00:12:46,440 --> 00:12:48,839 Speaker 1: going to be in the years to come. As the 248 00:12:48,920 --> 00:12:50,920 Speaker 1: lake goes down, all the boats will go down just 249 00:12:50,960 --> 00:12:54,120 Speaker 1: a little bit. But our viewers is still very strong 250 00:12:54,400 --> 00:12:57,880 Speaker 1: by comparison to all other all other sporting events, and 251 00:12:58,000 --> 00:13:01,200 Speaker 1: we just have a very popular product. The ratings were 252 00:13:01,200 --> 00:13:04,720 Speaker 1: pretty good on a New Year's Day this year, million 253 00:13:04,800 --> 00:13:08,319 Speaker 1: for for Oklahoma and Georgia. Yeah, you better a rock 254 00:13:08,400 --> 00:13:11,160 Speaker 1: solid rating a Rose Bowl rate. Most Bowl always draws 255 00:13:11,160 --> 00:13:13,920 Speaker 1: a lot of viewers anyway, and that that game just 256 00:13:14,040 --> 00:13:17,920 Speaker 1: added some uh some some icing on the cake. There 257 00:13:18,640 --> 00:13:20,600 Speaker 1: one of the great games of all time that either 258 00:13:20,640 --> 00:13:23,720 Speaker 1: team could have won, and I was just proud of 259 00:13:23,720 --> 00:13:26,360 Speaker 1: both teams effort. But from a business perspective, yeah, it 260 00:13:26,679 --> 00:13:30,040 Speaker 1: was a very good day for us in terms of viewership. 261 00:13:30,520 --> 00:13:33,480 Speaker 1: In your infancy, you've experimented with semifinal games on New 262 00:13:33,520 --> 00:13:37,040 Speaker 1: Year's Eve, and you've experimented with semifinal games on New 263 00:13:37,120 --> 00:13:40,600 Speaker 1: Year's Day. From a TVs perspective, New Year's Day is 264 00:13:40,679 --> 00:13:44,400 Speaker 1: a better day. From an overall holistic business perspective, how 265 00:13:44,480 --> 00:13:46,560 Speaker 1: much better is it for you guys to have the 266 00:13:46,600 --> 00:13:48,720 Speaker 1: semifinals on New Year's Day versus New Year's Eve. We 267 00:13:48,800 --> 00:13:51,680 Speaker 1: tried to do something special on New Year's Eve and 268 00:13:51,760 --> 00:13:54,280 Speaker 1: discovered early on. For the first year, I actually that 269 00:13:54,400 --> 00:13:57,080 Speaker 1: the viewers had plenty of other things to do, and 270 00:13:57,160 --> 00:13:59,679 Speaker 1: our goal was to play the games when the most 271 00:13:59,679 --> 00:14:02,839 Speaker 1: people could watch. And so after that first year of 272 00:14:03,240 --> 00:14:06,480 Speaker 1: non New Year's Eve games, we played on Thursday, New 273 00:14:06,520 --> 00:14:09,880 Speaker 1: Year's Eve none Year's Day. That is, Thursday was New 274 00:14:09,920 --> 00:14:12,320 Speaker 1: Year's Eve when we played. We decided to make a 275 00:14:12,400 --> 00:14:15,839 Speaker 1: change and so from now on the semi finals will 276 00:14:15,880 --> 00:14:19,840 Speaker 1: either be on a Saturday or national holiday, and that's 277 00:14:19,840 --> 00:14:22,800 Speaker 1: when the most people can watch, which is what we wanted. 278 00:14:23,000 --> 00:14:27,160 Speaker 1: The game's rotate, as you know, among six bowls, and 279 00:14:27,280 --> 00:14:30,040 Speaker 1: in this year they happen to be in the Sugar 280 00:14:30,080 --> 00:14:32,520 Speaker 1: and Rose Bowls, which will are played on New Year's Day. 281 00:14:32,720 --> 00:14:34,800 Speaker 1: Next year they will be in the Cotton and Orange Bowls. 282 00:14:35,200 --> 00:14:37,720 Speaker 1: Those games will be back on a Saturday. You know, 283 00:14:37,760 --> 00:14:40,480 Speaker 1: your sports executives make yourselves out to be geniuses. Bill, 284 00:14:40,480 --> 00:14:42,680 Speaker 1: It's all very simple. All you need is a Heisman 285 00:14:42,720 --> 00:14:46,040 Speaker 1: Trophy winner to Marquee brands, a Marquee Bowl game, and 286 00:14:46,080 --> 00:14:48,600 Speaker 1: a couple of overtimes and there's your audience. What's so 287 00:14:48,680 --> 00:14:55,040 Speaker 1: hard about that? We understand that we were we're fully 288 00:14:55,040 --> 00:14:57,000 Speaker 1: aware that all we need is a great game and 289 00:14:57,160 --> 00:14:59,480 Speaker 1: uh and we're sure had in the rose ball. Well, 290 00:14:59,520 --> 00:15:02,520 Speaker 1: you said some thing interesting earlier, you said the business 291 00:15:02,560 --> 00:15:05,800 Speaker 1: of television. How long until this is so much more? 292 00:15:05,840 --> 00:15:08,400 Speaker 1: I think we're there in the professional ranks. Uh. You 293 00:15:08,440 --> 00:15:11,800 Speaker 1: know from the n c A championship in basketball, Turner 294 00:15:12,200 --> 00:15:16,400 Speaker 1: turned that into a wonderful digital property. It seems as 295 00:15:16,400 --> 00:15:19,160 Speaker 1: if the future of college sports, especially with the demo 296 00:15:19,200 --> 00:15:21,360 Speaker 1: who's right there with their cell phones everywhere there go 297 00:15:22,280 --> 00:15:27,160 Speaker 1: rife with opportunities for a digital expansion of college football. 298 00:15:27,160 --> 00:15:29,880 Speaker 1: In the media world, Yeah, we're gonna We're absolutely going 299 00:15:29,880 --> 00:15:33,200 Speaker 1: to see a digital expansion. We're not going to see 300 00:15:33,960 --> 00:15:37,120 Speaker 1: a wholesale move away from home, but there there will 301 00:15:37,160 --> 00:15:40,000 Speaker 1: be a digital expansion for all of us in the future. 302 00:15:40,360 --> 00:15:41,720 Speaker 1: I think all of us means are just going to 303 00:15:41,800 --> 00:15:46,040 Speaker 1: have to keep eyes on the digital revolution to see 304 00:15:46,080 --> 00:15:47,480 Speaker 1: how it all plays out in terms of how to 305 00:15:47,520 --> 00:15:49,840 Speaker 1: monetize it. Who has already been in touch with you 306 00:15:49,840 --> 00:15:52,840 Speaker 1: guys saying we're interested, We have some ideas. Let's discuss 307 00:15:52,880 --> 00:15:55,520 Speaker 1: what can we create, what kind of companies have been 308 00:15:55,560 --> 00:15:58,960 Speaker 1: involved in at least early discussions on wanting to be 309 00:15:59,000 --> 00:16:01,200 Speaker 1: a player in this industry. We really haven't had a 310 00:16:01,200 --> 00:16:03,480 Speaker 1: lot of that because people understand that we still have 311 00:16:03,560 --> 00:16:05,960 Speaker 1: eight more years to go with our agreement with ESPN, 312 00:16:06,320 --> 00:16:08,520 Speaker 1: so we that we you know, I talked to people 313 00:16:08,560 --> 00:16:12,480 Speaker 1: in the trades and around, but were not people are 314 00:16:12,520 --> 00:16:14,480 Speaker 1: not reaching out to us. Tell us a bit more 315 00:16:14,520 --> 00:16:17,560 Speaker 1: about the media strategy for you. I mean, we talk 316 00:16:17,640 --> 00:16:21,320 Speaker 1: a lot on this podcast about changes in digital Amazon 317 00:16:21,360 --> 00:16:23,760 Speaker 1: getting in, Facebook getting in. We saw this year with 318 00:16:23,800 --> 00:16:26,880 Speaker 1: the NFL broadcast that Amazon had multiple streams at once, 319 00:16:27,160 --> 00:16:28,960 Speaker 1: which is something that you guys have also been doing 320 00:16:29,000 --> 00:16:31,480 Speaker 1: for a while with your coaches stream, which I love, 321 00:16:31,600 --> 00:16:36,800 Speaker 1: the celebrity stream, the Homer broadcasts, et cetera. College football playoff. 322 00:16:36,840 --> 00:16:39,360 Speaker 1: More so than anything else in the sports world right now, 323 00:16:39,360 --> 00:16:42,240 Speaker 1: on TV seems to be experimenting with a lot of 324 00:16:42,280 --> 00:16:45,920 Speaker 1: different possibilities and types of broadcasts. Fans want to be 325 00:16:46,000 --> 00:16:51,080 Speaker 1: inside and our television rights old ESPN certainly is aware 326 00:16:51,080 --> 00:16:53,680 Speaker 1: of that, and we are so fortunate to be with 327 00:16:53,920 --> 00:16:57,320 Speaker 1: ESPN that has so many platforms so they can provide 328 00:16:57,320 --> 00:17:01,520 Speaker 1: those different views home term where the announcers just gives 329 00:17:01,560 --> 00:17:05,520 Speaker 1: the fans so many ways to get inside, and we're 330 00:17:05,560 --> 00:17:08,920 Speaker 1: obviously going to see that continue over the next well 331 00:17:09,560 --> 00:17:11,959 Speaker 1: in the future, definitely. So how many years are we 332 00:17:12,040 --> 00:17:18,480 Speaker 1: from the broadcast? That's just Nick Saban's headset. I want 333 00:17:18,520 --> 00:17:20,720 Speaker 1: to see a podcast that is taken from the piccolo 334 00:17:20,800 --> 00:17:23,399 Speaker 1: players seat in the marching band. Haven't that be cool? 335 00:17:23,640 --> 00:17:28,160 Speaker 1: Was that Villanova? Was that the Villanova? That's the point 336 00:17:28,160 --> 00:17:31,040 Speaker 1: that I mean, you do understand obviously that people want 337 00:17:31,200 --> 00:17:33,679 Speaker 1: what they want, when they want it, where they want it, 338 00:17:34,000 --> 00:17:37,239 Speaker 1: how they want it, and that the one broadcast for 339 00:17:37,400 --> 00:17:40,639 Speaker 1: all does not work anymore. It's going too far to 340 00:17:40,640 --> 00:17:43,639 Speaker 1: say it doesn't work anymore. I totally agree with your 341 00:17:43,680 --> 00:17:45,600 Speaker 1: statement about people want what they want, they want, when 342 00:17:45,720 --> 00:17:48,040 Speaker 1: they want it, and where they want it. Totally get that. 343 00:17:48,240 --> 00:17:51,200 Speaker 1: But let's remember that there's still a lot of people 344 00:17:51,240 --> 00:17:52,840 Speaker 1: that want to be able to stay home and watch 345 00:17:52,880 --> 00:17:54,520 Speaker 1: you and eat their pizza and drink their beer and 346 00:17:54,600 --> 00:17:56,800 Speaker 1: max ball game well. Mark Cuban has said of the 347 00:17:56,920 --> 00:18:00,080 Speaker 1: US Sports League, particularly the NBA in the NFL, that 348 00:18:00,119 --> 00:18:04,440 Speaker 1: they've done a terrible job at reinforcing the message that 349 00:18:04,600 --> 00:18:07,640 Speaker 1: TV is still the best way to watch sports. They've 350 00:18:07,720 --> 00:18:10,600 Speaker 1: kind of allowed it to get off the rails with mobile. 351 00:18:10,800 --> 00:18:13,800 Speaker 1: Do you agree that the message from sports leagues and 352 00:18:14,080 --> 00:18:16,159 Speaker 1: I'm gonna, for lack of better going to consider the 353 00:18:16,240 --> 00:18:18,760 Speaker 1: n C in college football, a major sports league, that 354 00:18:18,840 --> 00:18:21,359 Speaker 1: the message is and the broadcasting would love it to 355 00:18:21,440 --> 00:18:24,160 Speaker 1: be that TV is still king and the best way 356 00:18:24,160 --> 00:18:25,920 Speaker 1: to do it well, well, not none of us. I 357 00:18:25,920 --> 00:18:28,040 Speaker 1: don't think any of us are trying to send any messages. 358 00:18:28,200 --> 00:18:30,680 Speaker 1: The factor is TV is still is still king, and 359 00:18:31,359 --> 00:18:33,280 Speaker 1: it's still the way that the bad number of people 360 00:18:33,359 --> 00:18:36,359 Speaker 1: are able to connect with events like ours. How that 361 00:18:36,400 --> 00:18:39,000 Speaker 1: will change over the next generation, We're all we're all 362 00:18:39,000 --> 00:18:41,400 Speaker 1: gonna have to sit back and watching and see what happens. 363 00:18:41,800 --> 00:18:44,080 Speaker 1: We're chatting with Bill Hancock, the executive director of the 364 00:18:44,080 --> 00:18:47,560 Speaker 1: College Football Playoff, and Bill, when did this sea change occur? 365 00:18:48,000 --> 00:18:50,280 Speaker 1: Maybe it was i MG, maybe it was lear Field 366 00:18:50,280 --> 00:18:53,960 Speaker 1: and now they're coming together. But college athletics became a 367 00:18:54,080 --> 00:18:58,119 Speaker 1: national buy that changed everything. It wasn't one team, it 368 00:18:58,240 --> 00:19:01,879 Speaker 1: wasn't one conference. Everybody who wanted in on the sport 369 00:19:01,920 --> 00:19:05,119 Speaker 1: could do so on a national basis. That that's a 370 00:19:05,160 --> 00:19:07,520 Speaker 1: big deal, isn't it. Well, there's more ways to buy 371 00:19:07,560 --> 00:19:10,520 Speaker 1: into college football, But You have to remember that the 372 00:19:10,640 --> 00:19:15,680 Speaker 1: Chevrolet sponsorship of the old ABC NSA football series forty 373 00:19:15,760 --> 00:19:19,640 Speaker 1: years ago was a national buy and was a tremendous 374 00:19:19,640 --> 00:19:24,199 Speaker 1: buy for for Chevrolet, and and they were so delighted 375 00:19:24,240 --> 00:19:27,040 Speaker 1: to have that little not little, have that giant footprint. 376 00:19:27,119 --> 00:19:29,040 Speaker 1: But there are You're right, there are more ways to 377 00:19:29,080 --> 00:19:32,800 Speaker 1: buy into the game nationally now. I think everybody's challenge 378 00:19:32,880 --> 00:19:36,879 Speaker 1: is to allow the buyers into that, but also to 379 00:19:37,000 --> 00:19:42,080 Speaker 1: maintain the exclusivity in the special nature of the company's buy. 380 00:19:43,160 --> 00:19:46,479 Speaker 1: You don't want six hundred national sponsors, and we certainly 381 00:19:46,520 --> 00:19:50,760 Speaker 1: don't have that nowhere near that with the ESPN. ESPN 382 00:19:50,800 --> 00:19:53,119 Speaker 1: is really good managing that, as are the people from 383 00:19:53,160 --> 00:19:56,520 Speaker 1: all the other networks. Let's talk about revenue distribution. You 384 00:19:56,520 --> 00:19:59,960 Speaker 1: guys give out over three hundred million dollars UH distribute 385 00:20:00,000 --> 00:20:02,880 Speaker 1: to the conferences, the big conferences. The Power five get 386 00:20:03,000 --> 00:20:06,320 Speaker 1: get about fifty four million each, the Group of five 387 00:20:06,359 --> 00:20:08,879 Speaker 1: the other five and they split about eighty one million. 388 00:20:09,280 --> 00:20:11,359 Speaker 1: Talked us through how you guys came up with with 389 00:20:11,440 --> 00:20:13,920 Speaker 1: that number that kind of distribution. Yes, it was all 390 00:20:13,960 --> 00:20:16,600 Speaker 1: negotiated back at the time five and a half years 391 00:20:16,600 --> 00:20:20,320 Speaker 1: ago when we created the playoff We maintained some of 392 00:20:20,359 --> 00:20:24,480 Speaker 1: the principles from the BCS, which was a small payout 393 00:20:24,640 --> 00:20:28,240 Speaker 1: for the conferences whose teams are in the game. Uh. 394 00:20:28,240 --> 00:20:30,720 Speaker 1: And then we added a new component, which was a 395 00:20:30,760 --> 00:20:33,760 Speaker 1: component based on academic performance by all the schools in 396 00:20:33,800 --> 00:20:37,000 Speaker 1: the conference. And I say conference because as you know, 397 00:20:37,320 --> 00:20:39,920 Speaker 1: the revenue from see if P goes to the conferences 398 00:20:40,080 --> 00:20:43,159 Speaker 1: and then it is divided by the conferences among the schools. 399 00:20:43,200 --> 00:20:46,560 Speaker 1: But kept the BCS principles to some extent. Really wanted 400 00:20:46,600 --> 00:20:50,719 Speaker 1: to have a small percentage wise payout for participating. We 401 00:20:50,760 --> 00:20:53,199 Speaker 1: wanted to pay the school's expenses. We've added in the 402 00:20:53,280 --> 00:20:56,080 Speaker 1: last three years or since the playoffs started a really 403 00:20:56,119 --> 00:20:59,520 Speaker 1: neat component, which is paying expenses of parents to travel 404 00:21:00,000 --> 00:21:03,399 Speaker 1: to attend their their son's games. We're so happy to 405 00:21:03,400 --> 00:21:06,280 Speaker 1: be able to do that. Uh. And then I think 406 00:21:06,280 --> 00:21:08,600 Speaker 1: a lot of people out away this. But there's no 407 00:21:08,680 --> 00:21:12,080 Speaker 1: extra payment for Georgia and Alabama for winning the semiphiles. 408 00:21:12,440 --> 00:21:15,320 Speaker 1: They receive six million, which is the same as Crimson 409 00:21:15,400 --> 00:21:17,520 Speaker 1: and Oklahoma. You like that you don't have to put 410 00:21:17,520 --> 00:21:21,320 Speaker 1: a premium on participation. Everybody shares in the revenue from 411 00:21:21,440 --> 00:21:26,320 Speaker 1: CFPEDS and everybody is doing all conferences. We're doing much 412 00:21:26,359 --> 00:21:28,639 Speaker 1: better than they did in the BCS days. Do you 413 00:21:28,680 --> 00:21:31,760 Speaker 1: worry that the payouts kind of helped separate the haves 414 00:21:31,760 --> 00:21:33,320 Speaker 1: and the have nots a bit? I mean, the difference 415 00:21:33,359 --> 00:21:36,520 Speaker 1: between the Big ten payout and and Conference usas pay 416 00:21:36,520 --> 00:21:39,080 Speaker 1: out now is about forty million dollars, and under the 417 00:21:39,080 --> 00:21:42,080 Speaker 1: BCS it was it was twenty something million dollars. I mean, 418 00:21:42,160 --> 00:21:44,879 Speaker 1: the schism between the schools that are in those power 419 00:21:44,960 --> 00:21:48,399 Speaker 1: conferences seems to be getting wider between them and some 420 00:21:48,520 --> 00:21:51,680 Speaker 1: of the schools in smaller conferences like Conference USA or 421 00:21:51,760 --> 00:21:54,600 Speaker 1: the Sun Belts. There's some nuances relative to the paid outs. 422 00:21:55,000 --> 00:21:58,119 Speaker 1: I suppose it could be said that the gap is widening. 423 00:21:58,640 --> 00:22:01,480 Speaker 1: There's always been a gap, but I suppose it could 424 00:22:01,520 --> 00:22:03,880 Speaker 1: be said that it's widening. I'm I'm I'm not sure 425 00:22:03,920 --> 00:22:05,800 Speaker 1: which side of that spens. I'm on. I think about 426 00:22:05,840 --> 00:22:08,640 Speaker 1: that a lot, because the so called Group of five 427 00:22:08,720 --> 00:22:14,320 Speaker 1: conferences received much more revenue than they did from the BCS, 428 00:22:14,440 --> 00:22:18,560 Speaker 1: and I believe more revenue than then if they had 429 00:22:18,600 --> 00:22:21,360 Speaker 1: decided to go off and have their own playoff, which 430 00:22:21,359 --> 00:22:24,960 Speaker 1: of course was suggested um but then was quickly kind 431 00:22:24,960 --> 00:22:28,119 Speaker 1: of shouted down by everybody else in that group. The payouts, 432 00:22:28,160 --> 00:22:31,119 Speaker 1: the BCS payment philosophy and our payment philosophy and CFP 433 00:22:31,680 --> 00:22:34,320 Speaker 1: is based in large part on the marketplace. We know 434 00:22:34,640 --> 00:22:38,240 Speaker 1: what conferences are driving the market here, and the payoff 435 00:22:38,520 --> 00:22:42,720 Speaker 1: doesn't exactly reflect that, because the share to the group 436 00:22:42,720 --> 00:22:46,080 Speaker 1: of five conferences is probably more than the market would 437 00:22:46,400 --> 00:22:48,679 Speaker 1: would provide them otherwise. And the four teams you have 438 00:22:48,760 --> 00:22:51,840 Speaker 1: this year are all top twenty five in in overall revenue. 439 00:22:51,880 --> 00:22:54,360 Speaker 1: Alabama a hundred and sixty four million dollars a year, 440 00:22:54,680 --> 00:22:58,639 Speaker 1: Oklahoma hundred and fifty million dollars a year, Georges a million. 441 00:22:59,359 --> 00:23:01,840 Speaker 1: Is there any certain that you guys just eventually start 442 00:23:01,920 --> 00:23:04,920 Speaker 1: drawing from the same smaller and smaller pool of schools. 443 00:23:05,200 --> 00:23:07,760 Speaker 1: Is it better to have Alabama and Oklahoma and this 444 00:23:07,800 --> 00:23:10,439 Speaker 1: thing every year? Or would you rather have a bigger, 445 00:23:10,480 --> 00:23:13,439 Speaker 1: wider assortment of teams that have the possibility of getting 446 00:23:13,440 --> 00:23:16,520 Speaker 1: in you know? Frankly, to me, it doesn't matter. Let 447 00:23:16,520 --> 00:23:19,719 Speaker 1: me let me say this about like Alabama. Alabama's been 448 00:23:19,760 --> 00:23:22,840 Speaker 1: in there, we know that. But this group of kids 449 00:23:22,840 --> 00:23:26,040 Speaker 1: has not been awful of those games. This group of players, 450 00:23:26,080 --> 00:23:28,160 Speaker 1: these freshman, the sophomores that they might have been once. 451 00:23:28,200 --> 00:23:30,359 Speaker 1: They might have been twice. Many of them haven't been 452 00:23:30,400 --> 00:23:33,399 Speaker 1: at all. So from a from a perspective of people 453 00:23:33,440 --> 00:23:35,960 Speaker 1: who run a game and really try to have the 454 00:23:35,960 --> 00:23:39,119 Speaker 1: best experience for the athletes, UH, these are new people. 455 00:23:39,440 --> 00:23:43,160 Speaker 1: And it is is a tournament and whoever gets into 456 00:23:43,160 --> 00:23:45,400 Speaker 1: it and whoever wins it is who wins it. And 457 00:23:45,440 --> 00:23:48,000 Speaker 1: that's the way a playoffs should be. Chatting with Bill Hancock, 458 00:23:48,040 --> 00:23:51,639 Speaker 1: executive director of the College Football Playoff and Bill looking forward, 459 00:23:51,640 --> 00:23:54,240 Speaker 1: what are some of the new revenue streams that might 460 00:23:54,720 --> 00:23:59,040 Speaker 1: flow into college athletics, particularly something that garners so many 461 00:23:59,080 --> 00:24:01,800 Speaker 1: eyeballs like the call it's football playoffs. I should probably 462 00:24:01,800 --> 00:24:06,520 Speaker 1: speak to the playoff. Our marginal revenue streams are in 463 00:24:06,720 --> 00:24:11,399 Speaker 1: sponsorships and hospitality packages at the championship game. Ticket sales 464 00:24:11,440 --> 00:24:14,960 Speaker 1: at the championship game, which have been all full games 465 00:24:14,960 --> 00:24:18,479 Speaker 1: obviously have been tremendous sellout and have been a very 466 00:24:18,520 --> 00:24:21,119 Speaker 1: difficult ticket and then how we how we do at 467 00:24:21,200 --> 00:24:24,159 Speaker 1: the at the semi final bowl games. Those are the 468 00:24:24,160 --> 00:24:28,119 Speaker 1: marginal marginal revenue sources. Because our revenue from our television 469 00:24:28,119 --> 00:24:31,160 Speaker 1: contract is UH is constant and it's spelled out over 470 00:24:31,200 --> 00:24:33,720 Speaker 1: the twelve years. Do you see the day coming where 471 00:24:33,840 --> 00:24:36,199 Speaker 1: the n c a A and the universities and the 472 00:24:36,240 --> 00:24:38,000 Speaker 1: conferences and the presidents are going to have to get 473 00:24:38,000 --> 00:24:41,200 Speaker 1: together and say, what do we do with all this 474 00:24:41,280 --> 00:24:44,600 Speaker 1: money that people might, I say, might want to wager 475 00:24:45,080 --> 00:24:48,280 Speaker 1: on the outcome of these athletic events. Boy or boy. 476 00:24:48,359 --> 00:24:52,199 Speaker 1: The whole thing on wagering is delicate topics, certainly a 477 00:24:52,280 --> 00:24:55,800 Speaker 1: delicate for someone like me. I graduated from college in 478 00:24:55,800 --> 00:25:00,960 Speaker 1: the unteen seventy two, and I remember the wagering scandals 479 00:25:01,000 --> 00:25:04,879 Speaker 1: that happened in the fifties, and we cannot afford that 480 00:25:05,000 --> 00:25:09,960 Speaker 1: to happen again. So I my mindset on wagering is, oh, boy, 481 00:25:10,000 --> 00:25:11,840 Speaker 1: we really need to be careful with this. And I 482 00:25:11,960 --> 00:25:15,159 Speaker 1: understand the laws, and I see and hear that this 483 00:25:15,240 --> 00:25:19,400 Speaker 1: may be loosening up, but this is this is pure sport, 484 00:25:20,160 --> 00:25:22,760 Speaker 1: and we really, we really have to do everything we 485 00:25:22,880 --> 00:25:26,240 Speaker 1: can to maintain that if we ever lose, that we 486 00:25:26,280 --> 00:25:29,040 Speaker 1: will have lost something precious. The question I happened. Do 487 00:25:29,119 --> 00:25:31,760 Speaker 1: you buy the argument then, whether it's Adam Silver or 488 00:25:31,800 --> 00:25:35,440 Speaker 1: somebody else who says that it's happening anyway, and that 489 00:25:35,520 --> 00:25:39,520 Speaker 1: by regulating it at a federal level, and by illuminating 490 00:25:39,920 --> 00:25:42,840 Speaker 1: what's going on that that's the best way to ensure 491 00:25:42,880 --> 00:25:46,960 Speaker 1: the integrity of the events. I understand Adam's comments, and uh, 492 00:25:47,040 --> 00:25:49,520 Speaker 1: he has a great product with the NBA, A different 493 00:25:49,520 --> 00:25:53,399 Speaker 1: type of a product then college football, college sports, and 494 00:25:53,440 --> 00:25:56,119 Speaker 1: all across the board. I don't want us to lose 495 00:25:56,359 --> 00:26:03,320 Speaker 1: our pure intercollegiate athletics, college sports, higher education nature, and 496 00:26:03,400 --> 00:26:06,720 Speaker 1: anything that moved us away from that would certainly raise 497 00:26:07,000 --> 00:26:10,399 Speaker 1: eyebrows in our camp and certainly mine also does paying 498 00:26:10,440 --> 00:26:12,960 Speaker 1: players move you away from that camp? Yeah, it moves 499 00:26:13,000 --> 00:26:15,280 Speaker 1: me away. And as a father who sent two sons 500 00:26:15,280 --> 00:26:19,320 Speaker 1: through college, I certainly understand the value of a college education, 501 00:26:19,680 --> 00:26:22,240 Speaker 1: as does any parents who has been in my shoes 502 00:26:22,600 --> 00:26:25,280 Speaker 1: be to college students. And there's plenty of time to 503 00:26:25,320 --> 00:26:28,840 Speaker 1: go be professionals later on with their college students right now. 504 00:26:29,200 --> 00:26:31,440 Speaker 1: But would a major shake up in in the way 505 00:26:31,680 --> 00:26:34,720 Speaker 1: student athletes are treated at the collegiate level, whether they're 506 00:26:35,000 --> 00:26:38,000 Speaker 1: paid outright like Jeff Kessler and some of these lawsuits 507 00:26:38,040 --> 00:26:40,760 Speaker 1: are arguing, or whether there is some kind of middle ground, 508 00:26:41,000 --> 00:26:44,119 Speaker 1: would that change business for you guys? I mean, it 509 00:26:44,200 --> 00:26:46,679 Speaker 1: still stands to reason that the best colleges and and 510 00:26:46,720 --> 00:26:48,600 Speaker 1: the best programs are going to continue to get the 511 00:26:48,600 --> 00:26:50,760 Speaker 1: best players and the product on the field will be 512 00:26:50,800 --> 00:26:52,240 Speaker 1: just as good. Do you do you worry that the 513 00:26:52,359 --> 00:26:55,720 Speaker 1: fans would turn turn away in that situation. I don't 514 00:26:55,720 --> 00:26:59,320 Speaker 1: think anyone knows what fans reaction would be. UM it's 515 00:26:59,359 --> 00:27:02,919 Speaker 1: almost a move point because I don't hear any talk 516 00:27:02,960 --> 00:27:07,200 Speaker 1: from within the leadership of higher education about doing that. 517 00:27:07,840 --> 00:27:12,760 Speaker 1: But I do know that the Texas Longhorns are would 518 00:27:12,800 --> 00:27:17,920 Speaker 1: be a much, much, much more significant brand than the 519 00:27:18,040 --> 00:27:22,679 Speaker 1: NFL Triple A Texas Mavericks. We are based on the 520 00:27:22,800 --> 00:27:27,400 Speaker 1: passion of people who have a strong connection with our universities, 521 00:27:27,640 --> 00:27:30,480 Speaker 1: and anything we do to jeopardize that would be a 522 00:27:30,480 --> 00:27:32,679 Speaker 1: big mistake. But I want to ask you about the 523 00:27:32,840 --> 00:27:36,760 Speaker 1: value of the brand of the uniform of the university. 524 00:27:37,040 --> 00:27:39,159 Speaker 1: And this is just a hypothetical, but how many people 525 00:27:39,200 --> 00:27:43,159 Speaker 1: would show up if you took these exact players, the 526 00:27:43,280 --> 00:27:47,480 Speaker 1: players from Alabama and the players from Georgia, and called 527 00:27:47,560 --> 00:27:51,240 Speaker 1: one team Team Blue and the other team Team Read, 528 00:27:51,520 --> 00:27:53,639 Speaker 1: and you put them in an eighty thousand seat stadium, 529 00:27:53,680 --> 00:27:57,119 Speaker 1: but they were it was not Alabama playing Georgia, it 530 00:27:57,240 --> 00:27:59,880 Speaker 1: was Team Blue versus Team Read. How many people show 531 00:28:00,320 --> 00:28:04,320 Speaker 1: Probably so that you're talking about them. The value of 532 00:28:04,359 --> 00:28:08,480 Speaker 1: the institution and the uniform that's that's the fans. Yeah, 533 00:28:08,560 --> 00:28:11,560 Speaker 1: and not as much, not as much a uniform, but 534 00:28:11,920 --> 00:28:14,679 Speaker 1: in the institution gets to where I'm gonna go. But 535 00:28:14,880 --> 00:28:18,520 Speaker 1: it is the emotional connection that people have with their school. 536 00:28:18,760 --> 00:28:21,639 Speaker 1: That's my school. I sat in that stadium, I played 537 00:28:21,680 --> 00:28:24,040 Speaker 1: in the band, I went to chemistry class in that 538 00:28:24,280 --> 00:28:26,199 Speaker 1: very hall, and I want to go back here on 539 00:28:26,240 --> 00:28:28,720 Speaker 1: Saturday and show my grandson where I went to chemistry 540 00:28:28,760 --> 00:28:31,320 Speaker 1: class and where I should have studied in the library 541 00:28:31,320 --> 00:28:35,240 Speaker 1: if I hadn't been out drinking beer. So it's that 542 00:28:35,359 --> 00:28:40,600 Speaker 1: emotional connection that is the basis for everything that's successful 543 00:28:40,640 --> 00:28:45,800 Speaker 1: about college sports. We've seen in college basketball a pretty 544 00:28:45,840 --> 00:28:50,680 Speaker 1: far reaching Department of Justice investigation into into bribery and 545 00:28:50,920 --> 00:28:54,280 Speaker 1: some recruiting violations. We obviously haven't seen the end of that. 546 00:28:54,640 --> 00:28:58,840 Speaker 1: There have been questions about whether that extends into college football. 547 00:28:59,120 --> 00:29:01,000 Speaker 1: Does that keep you u at night at all? I mean, 548 00:29:01,360 --> 00:29:03,960 Speaker 1: are you worried about about what what might be found 549 00:29:03,960 --> 00:29:06,760 Speaker 1: if if the Department of Justice turns an eye to 550 00:29:06,840 --> 00:29:09,200 Speaker 1: college football as well? You know, I'm as much worried 551 00:29:09,240 --> 00:29:13,200 Speaker 1: about what might be found as I'm worried about what's there. 552 00:29:13,680 --> 00:29:17,840 Speaker 1: It's bothers something, and I frankly think it it might 553 00:29:17,960 --> 00:29:20,280 Speaker 1: lead us to a course correction that could be healthy 554 00:29:20,640 --> 00:29:23,440 Speaker 1: four college basketball. I was as shocked as anybody else 555 00:29:23,440 --> 00:29:26,160 Speaker 1: to have heard about what when the when when the 556 00:29:26,240 --> 00:29:27,959 Speaker 1: d o J in the FBI came down when what 557 00:29:28,000 --> 00:29:30,160 Speaker 1: they came down with. But after I got over my shock, 558 00:29:30,280 --> 00:29:32,080 Speaker 1: I thought, you know what this is? My point is 559 00:29:32,120 --> 00:29:34,640 Speaker 1: in a in a nice, nice new direction, And what 560 00:29:34,680 --> 00:29:36,920 Speaker 1: does that course correction look like in your mind? I 561 00:29:36,920 --> 00:29:39,360 Speaker 1: don't think anybody knows. I don't think I think anybody 562 00:29:39,360 --> 00:29:42,160 Speaker 1: who speculates it doesn't. It isn't he is only doing 563 00:29:42,160 --> 00:29:44,880 Speaker 1: that as only speculating. We're gonna have to see. Can 564 00:29:44,920 --> 00:29:48,640 Speaker 1: you look forward for me in the landscape of major 565 00:29:48,880 --> 00:29:54,360 Speaker 1: college sports and these brands and these coaches and these universities, 566 00:29:54,680 --> 00:29:57,080 Speaker 1: where does the power lie? Is it in the coach's 567 00:29:57,120 --> 00:29:59,320 Speaker 1: office or is it in the president's office? Because I 568 00:29:59,320 --> 00:30:01,800 Speaker 1: remember remember what Gordon Geese said that one time ago 569 00:30:01,840 --> 00:30:03,280 Speaker 1: when somebody asked if he was going to fire the 570 00:30:03,280 --> 00:30:05,360 Speaker 1: football coach, and he said, I hope it doesn't fire me. 571 00:30:05,440 --> 00:30:08,560 Speaker 1: Where does the power? Where does the power lie? Well, 572 00:30:08,600 --> 00:30:11,760 Speaker 1: the power is still with the with the presidents and 573 00:30:11,800 --> 00:30:15,479 Speaker 1: with the boards of regents. The coaches are providing a 574 00:30:15,520 --> 00:30:18,640 Speaker 1: great service for the universities and for the young people. 575 00:30:18,920 --> 00:30:21,480 Speaker 1: Doug on it. Let's not lose sight of the value 576 00:30:21,480 --> 00:30:25,040 Speaker 1: of this education and the value of participating for the 577 00:30:25,120 --> 00:30:27,720 Speaker 1: young people, not only the players, but but all the students. 578 00:30:27,880 --> 00:30:29,840 Speaker 1: For me, that for me, the power lies with the students. 579 00:30:30,120 --> 00:30:33,360 Speaker 1: The coaches are orchestrating it, all are directing it, uh, 580 00:30:33,360 --> 00:30:36,280 Speaker 1: and the presidents are reaching and the regents are keeping 581 00:30:36,280 --> 00:30:39,120 Speaker 1: a close eye on everything. Well. Bill Hancock, the executive 582 00:30:39,160 --> 00:30:41,360 Speaker 1: director of the College Football Playoff, thank you for making 583 00:30:41,360 --> 00:30:43,680 Speaker 1: me harken back to Keith Jackson with one dog on it. 584 00:30:44,800 --> 00:30:48,960 Speaker 1: Thank you for taking some time. Whoa nellie, oh nellie. 585 00:30:49,240 --> 00:30:51,440 Speaker 1: We might hear a few of those in the championship game. Hey, 586 00:30:51,480 --> 00:30:53,880 Speaker 1: it's been fun, guys. Thank you all right. I've been 587 00:30:53,960 --> 00:30:58,600 Speaker 1: takeaways from Bill Hancock. There's a lot of money college 588 00:30:58,640 --> 00:31:03,200 Speaker 1: football end. He's he's already thinking of ways to get 589 00:31:03,240 --> 00:31:06,240 Speaker 1: more sports betting. While he's not sure how that's gonna 590 00:31:06,240 --> 00:31:09,040 Speaker 1: work in the college environment. It's on the radar screen, 591 00:31:09,280 --> 00:31:12,000 Speaker 1: digital on the radar screen. And he's got a lot 592 00:31:12,440 --> 00:31:14,760 Speaker 1: a lot of knowledge because of what Turner did at 593 00:31:14,760 --> 00:31:18,640 Speaker 1: the College Basketball Championships. He brings an interesting perspective of 594 00:31:18,760 --> 00:31:21,840 Speaker 1: multi sport. It's been around the Olympics, so he gets 595 00:31:21,840 --> 00:31:25,960 Speaker 1: how the whole world fits together, and he's really looking 596 00:31:26,000 --> 00:31:30,560 Speaker 1: at how can I take this platform of all these 597 00:31:30,640 --> 00:31:33,520 Speaker 1: college games of college football, the top brands out there, 598 00:31:34,160 --> 00:31:36,600 Speaker 1: and put some more money into the sports. I was 599 00:31:36,640 --> 00:31:39,000 Speaker 1: also interested to hear how aligned he is with the 600 00:31:39,120 --> 00:31:41,640 Speaker 1: n c a A in terms of amateurism and the 601 00:31:41,640 --> 00:31:45,240 Speaker 1: importance of preserving that. There's obviously a huge movement among 602 00:31:45,360 --> 00:31:48,959 Speaker 1: fans among media to pay players, to give the athletes 603 00:31:49,000 --> 00:31:52,880 Speaker 1: who are generating those dollars a chance to earn a 604 00:31:52,920 --> 00:31:55,200 Speaker 1: little bit of that while they're doing it. Um and 605 00:31:55,240 --> 00:31:57,800 Speaker 1: you heard Bill Hancock say that he does not want 606 00:31:57,840 --> 00:32:00,640 Speaker 1: that to happen. He's concerned about what that would for 607 00:32:00,840 --> 00:32:04,080 Speaker 1: for college sports in general, and theoretically his business isn't 608 00:32:04,080 --> 00:32:07,560 Speaker 1: affected by that, whether Alabama is openly paying players or not. 609 00:32:08,320 --> 00:32:10,480 Speaker 1: The four best teams in the country are going to 610 00:32:10,600 --> 00:32:12,959 Speaker 1: come and join him in the playoff and people are 611 00:32:12,960 --> 00:32:15,080 Speaker 1: gonna come and watch them. But you said he heard 612 00:32:15,120 --> 00:32:17,920 Speaker 1: you heard him say that there are less people interested 613 00:32:18,560 --> 00:32:24,480 Speaker 1: if people are paid and I think that's interesting. Feels 614 00:32:24,480 --> 00:32:26,320 Speaker 1: better to be number one than number five. I'll wear 615 00:32:26,400 --> 00:32:28,120 Speaker 1: a number because of Mike. We have a chance to 616 00:32:28,120 --> 00:32:29,720 Speaker 1: go for three in a row. Good numbers in a 617 00:32:29,760 --> 00:32:31,920 Speaker 1: good time. And i'd first started wearing the number. How 618 00:32:31,920 --> 00:32:35,800 Speaker 1: would just have the bloomberg business of sports? The number 619 00:32:35,800 --> 00:32:39,160 Speaker 1: of the week, our number of the week. We go 620 00:32:39,240 --> 00:32:41,480 Speaker 1: from the high of all the money coming into the low. 621 00:32:42,080 --> 00:32:47,320 Speaker 1: This week's number is zero, zilch, nada. Imagine this. You 622 00:32:47,400 --> 00:32:52,480 Speaker 1: get to go to a sporting event for free. Nothing. 623 00:32:52,640 --> 00:32:55,560 Speaker 1: Who does this? Evan Nobile. The Oakland Athletics are doing 624 00:32:55,560 --> 00:32:59,120 Speaker 1: it for the fiftieth anniversary of their playing in the Coliseum. 625 00:32:59,120 --> 00:33:01,640 Speaker 1: It's a day game in April. Maybe not the most 626 00:33:01,680 --> 00:33:05,720 Speaker 1: popular game, ever, however, they are letting fans go for free. 627 00:33:05,760 --> 00:33:08,240 Speaker 1: I believe it's the first time that a sporting event 628 00:33:08,280 --> 00:33:11,440 Speaker 1: has ever been entirely free. That's that's what they say. Um, 629 00:33:11,520 --> 00:33:13,080 Speaker 1: and I think it's a great idea. I mean, you're 630 00:33:13,400 --> 00:33:16,600 Speaker 1: obviously you're struggling to get folks into the games in April. 631 00:33:16,680 --> 00:33:18,680 Speaker 1: You know, attendance isn't great in the early part of 632 00:33:18,680 --> 00:33:21,240 Speaker 1: the baseball season. You're trying to drum up some kind 633 00:33:21,280 --> 00:33:24,760 Speaker 1: of affinity and less celebrate a building we disparage every 634 00:33:24,800 --> 00:33:28,200 Speaker 1: other day of the season, right, so on this one day, 635 00:33:28,400 --> 00:33:32,480 Speaker 1: let us celebrate a facility that well really needs to 636 00:33:32,480 --> 00:33:34,480 Speaker 1: be raised. They say they need a new building, but 637 00:33:34,720 --> 00:33:37,880 Speaker 1: that's another thing largest from pro sports teams, not something 638 00:33:37,920 --> 00:33:39,560 Speaker 1: we see every day. No, and I wonder if this 639 00:33:39,600 --> 00:33:41,600 Speaker 1: is going to be the first of many more teams. 640 00:33:41,640 --> 00:33:44,080 Speaker 1: Baseball obviously makes the most sense, but we'll see if 641 00:33:44,080 --> 00:33:46,880 Speaker 1: others follow suit. Let's watch for the millennial turnout. You've 642 00:33:46,920 --> 00:33:49,360 Speaker 1: been listening to Bloomberg Business of Sports. We're here each 643 00:33:49,400 --> 00:33:51,480 Speaker 1: and every week at the same time, exploring the world 644 00:33:51,560 --> 00:33:54,160 Speaker 1: of money in sports. I'm Evan Novie Williams and I'm 645 00:33:54,160 --> 00:33:56,360 Speaker 1: Scott Sashnik. Thanks for joining us, and please tune in 646 00:33:56,400 --> 00:33:58,320 Speaker 1: next week when we speak with the biggest and brightest 647 00:33:58,320 --> 00:34:00,960 Speaker 1: in the sports industry. You're listening to Bloomberg Business of 648 00:34:01,000 --> 00:34:04,080 Speaker 1: Sports on Bloomberg Radio around the world and online as 649 00:34:04,120 --> 00:34:05,720 Speaker 1: an Apple podcast on iTunes.