1 00:00:03,160 --> 00:00:07,960 Speaker 1: This is Bloomberg Law with June Brusso from Bloomberg Radio. 2 00:00:10,160 --> 00:00:13,680 Speaker 1: Saudi Arabia financed Live Golf, and its feud with the 3 00:00:13,720 --> 00:00:18,680 Speaker 1: PGA tour has divided fans, tested players, allegiances, and sparked 4 00:00:18,760 --> 00:00:22,720 Speaker 1: legal battles. Live critics have argued that Saudi Arabia is 5 00:00:22,840 --> 00:00:27,000 Speaker 1: using its splashy golf events to sportswash the Kingdom's human 6 00:00:27,080 --> 00:00:31,040 Speaker 1: rights abuses. Phil Nicholson addressed the media about his decision 7 00:00:31,080 --> 00:00:34,320 Speaker 1: to join Live Golf at a press conference in June. 8 00:00:35,000 --> 00:00:37,800 Speaker 1: I don't condone human rights violations. I don't know how 9 00:00:37,840 --> 00:00:44,240 Speaker 1: I can be anymore clear. I understand your question, um, 10 00:00:44,280 --> 00:00:48,000 Speaker 1: but again, I love this game of golf. I've seen 11 00:00:48,120 --> 00:00:51,640 Speaker 1: the good that it's done, and I see the opportunity 12 00:00:51,880 --> 00:00:54,960 Speaker 1: for live golf too, do a lot of good for 13 00:00:54,960 --> 00:00:56,720 Speaker 1: the game throughout the world, and I'm excited to be 14 00:00:56,760 --> 00:00:59,840 Speaker 1: about a part of this opportunity. And the antitrust clash 15 00:01:00,080 --> 00:01:02,600 Speaker 1: between Live and the p G A is a long 16 00:01:02,640 --> 00:01:06,200 Speaker 1: way from resolution. Joining me is Martini dal co chair 17 00:01:06,240 --> 00:01:09,360 Speaker 1: of the Sports law practice at Gholston and Stores, an 18 00:01:09,440 --> 00:01:12,600 Speaker 1: instructor at Columbia Law School, is at the stage for 19 00:01:12,720 --> 00:01:15,360 Speaker 1: us Marty about the clash between the l I V 20 00:01:15,680 --> 00:01:18,360 Speaker 1: and the p g A. For years, the p g 21 00:01:18,560 --> 00:01:25,080 Speaker 1: A has been the principal golfing association among golf professionals. 22 00:01:25,640 --> 00:01:29,200 Speaker 1: There are satellite groups such as a European Tour and 23 00:01:29,280 --> 00:01:34,120 Speaker 1: an Asian Tour, which commands some attention, but the big 24 00:01:34,160 --> 00:01:36,720 Speaker 1: dollars are in the p g A and the tournaments 25 00:01:36,760 --> 00:01:42,399 Speaker 1: that its sponsors and tends to co host. More recently, 26 00:01:43,360 --> 00:01:48,480 Speaker 1: a Saudi wealth fund formed a new tour called Live 27 00:01:48,640 --> 00:01:52,560 Speaker 1: or l i V, in which it paid, in some 28 00:01:52,640 --> 00:01:56,120 Speaker 1: cases tens of millions of dollars to particular golfers to 29 00:01:56,240 --> 00:01:59,280 Speaker 1: join the tour and give it publicity. The p g 30 00:01:59,440 --> 00:02:02,520 Speaker 1: A found this to be an existential threat to the 31 00:02:02,560 --> 00:02:09,480 Speaker 1: p PA's existence and initially banned golfers who signed up 32 00:02:09,560 --> 00:02:13,960 Speaker 1: for the Live tour from participating in the PGA tours, 33 00:02:14,040 --> 00:02:18,760 Speaker 1: and then was able to talk to some of its associates, 34 00:02:18,760 --> 00:02:21,720 Speaker 1: such as the Master's Committee. PGA does not run the 35 00:02:21,760 --> 00:02:25,959 Speaker 1: Master's event that's run by the Master's Group in Georgia 36 00:02:26,600 --> 00:02:33,440 Speaker 1: about also banning lived golfers live licensed golfers from participating 37 00:02:33,480 --> 00:02:36,720 Speaker 1: in the Masters. This came to a head I guess 38 00:02:36,760 --> 00:02:40,200 Speaker 1: who was in August of this year, where a number 39 00:02:40,200 --> 00:02:42,480 Speaker 1: of the golfers who signed up for the Live Tour, 40 00:02:42,560 --> 00:02:47,320 Speaker 1: Phil Nicholson, Brian de Shambro, and several others commenced an 41 00:02:47,360 --> 00:02:52,040 Speaker 1: action in California and Federal Court in California to enjoin 42 00:02:52,160 --> 00:02:57,000 Speaker 1: the PGA from its practices using the cudgel of the 43 00:02:57,080 --> 00:03:00,840 Speaker 1: United States anti trust laws and sort of ainary injunction. 44 00:03:01,160 --> 00:03:06,520 Speaker 1: The court in August denied the Live golfers the preliminary injunction, 45 00:03:06,880 --> 00:03:10,799 Speaker 1: finding plausibly on the record. I might add that there 46 00:03:10,880 --> 00:03:15,200 Speaker 1: was no irreparable harm to those golfers for not participating 47 00:03:15,600 --> 00:03:18,240 Speaker 1: or from being barred from participating in the PGA Tour, 48 00:03:18,240 --> 00:03:21,000 Speaker 1: because they were making more than enough money from the 49 00:03:21,160 --> 00:03:25,000 Speaker 1: Live Tour to more than compensate them for potential loss 50 00:03:25,000 --> 00:03:28,920 Speaker 1: of earnings from the PGA Tour. Since that time, most 51 00:03:29,080 --> 00:03:32,679 Speaker 1: of the individual golfers have dropped out of the lawsuit, 52 00:03:32,880 --> 00:03:37,680 Speaker 1: including Michelson. The Live Tour itself has joined in the lawsuit, 53 00:03:37,920 --> 00:03:42,040 Speaker 1: and it's tending to now to become a battle of 54 00:03:42,560 --> 00:03:47,160 Speaker 1: the p G A against the Live Tour. Possibly the 55 00:03:47,200 --> 00:03:50,000 Speaker 1: Saudi Wealth Fund will be drawn into it as a 56 00:03:50,120 --> 00:03:54,600 Speaker 1: direct party, but that's not clear yet, and it's challenging 57 00:03:54,640 --> 00:03:57,600 Speaker 1: the rules. Whether the p g A is a monopoly 58 00:03:58,560 --> 00:04:04,760 Speaker 1: which dictates membership and the ability to participate, and going 59 00:04:04,760 --> 00:04:07,440 Speaker 1: against that is whether or not it's reasonable what the 60 00:04:07,520 --> 00:04:11,760 Speaker 1: PA does. One of the objections to the Live Tour 61 00:04:12,240 --> 00:04:16,040 Speaker 1: is that it's under the auspices sponsored however you want 62 00:04:16,040 --> 00:04:19,600 Speaker 1: to say it, by the saudiast and there is a 63 00:04:19,680 --> 00:04:24,840 Speaker 1: demonstrated history of human rights abuses by Saudi Arabia that 64 00:04:24,920 --> 00:04:28,839 Speaker 1: doesn't enter into the legal analysis, does it the background 65 00:04:29,120 --> 00:04:32,520 Speaker 1: of you know where the money comes from? Well, it 66 00:04:32,600 --> 00:04:36,680 Speaker 1: does in the following way June. So most of the 67 00:04:36,720 --> 00:04:41,840 Speaker 1: anti trust law claims right now are adjudicated under what's 68 00:04:41,880 --> 00:04:46,120 Speaker 1: called a rule of reason. That is, you balance the 69 00:04:46,200 --> 00:04:50,960 Speaker 1: pro competitive benefits against the anti competitive harm in a 70 00:04:51,040 --> 00:04:54,479 Speaker 1: relevant market and determine whether or not there's a violation 71 00:04:54,480 --> 00:04:57,640 Speaker 1: of the anti trust laws. So if the p g 72 00:04:57,880 --> 00:05:04,640 Speaker 1: A successful, you can claim that they will lose viewers, 73 00:05:04,720 --> 00:05:12,800 Speaker 1: they will lose sponsors by enabling golfers who participate in 74 00:05:12,839 --> 00:05:17,159 Speaker 1: a tour that is sponsored by Saudi Arabia. That may 75 00:05:17,200 --> 00:05:23,000 Speaker 1: become a reasonable reason for them to bar those golfers 76 00:05:23,080 --> 00:05:25,640 Speaker 1: who have signed up for the Live Tour from participating 77 00:05:26,160 --> 00:05:29,640 Speaker 1: as an antitrust matter. The fact that this is a 78 00:05:29,880 --> 00:05:34,839 Speaker 1: foreign owned enterprise, does that enter into it. Probably not, 79 00:05:35,040 --> 00:05:38,160 Speaker 1: because they're looking at the effects in the United States. 80 00:05:38,839 --> 00:05:42,440 Speaker 1: If we're solely on foreign ground, that would be a 81 00:05:42,560 --> 00:05:46,120 Speaker 1: reasonable argument for why it should not be regarded. But 82 00:05:46,279 --> 00:05:49,359 Speaker 1: since you're looking at effects in the United States or 83 00:05:49,440 --> 00:05:52,800 Speaker 1: impact in the United States, the fact that you have 84 00:05:52,839 --> 00:05:57,600 Speaker 1: a Saudi Wealth Fund funding this is probably not that 85 00:05:57,760 --> 00:06:02,680 Speaker 1: significant a factor. Aren't you allowed to have membership organizations 86 00:06:02,760 --> 00:06:05,960 Speaker 1: with rules and regulations for the people who choose to 87 00:06:06,000 --> 00:06:10,640 Speaker 1: be members. Sure you can, but the question becomes how 88 00:06:10,720 --> 00:06:17,000 Speaker 1: exclusionary is that for others who may have otherwise an 89 00:06:17,040 --> 00:06:21,400 Speaker 1: ability to participate. We have private clubs throughout America. Having 90 00:06:21,440 --> 00:06:25,440 Speaker 1: one doesn't make it an antitrust violation. But if you 91 00:06:25,520 --> 00:06:29,039 Speaker 1: had a single club which paid the ways or led 92 00:06:29,080 --> 00:06:33,359 Speaker 1: to opportunities for compensation for all, let's say members of 93 00:06:33,400 --> 00:06:37,000 Speaker 1: the ELK, then you would have the ability to claim 94 00:06:37,080 --> 00:06:39,840 Speaker 1: that that may be exclusion ary if it had rules 95 00:06:39,880 --> 00:06:44,320 Speaker 1: which precluded others from participating in a reasonable way. And 96 00:06:44,400 --> 00:06:47,680 Speaker 1: that's the argument here. Is the p g A sufficiently 97 00:06:47,839 --> 00:06:52,560 Speaker 1: large that it becomes the only real entity for professional golfers? 98 00:06:53,120 --> 00:06:58,279 Speaker 1: Are professional golfers a relevant market in the United States. 99 00:06:58,760 --> 00:07:03,520 Speaker 1: Are they being exclude it from participating unreasonably in what's 100 00:07:03,560 --> 00:07:06,359 Speaker 1: going on? Those are some of the issues that the 101 00:07:06,400 --> 00:07:08,640 Speaker 1: court is going to have to going to have to confront. 102 00:07:09,560 --> 00:07:13,760 Speaker 1: Changing topics, but still staying on sports, the Super Bowls 103 00:07:13,800 --> 00:07:17,000 Speaker 1: coming up, So let's take a legal look at football 104 00:07:17,080 --> 00:07:22,080 Speaker 1: and other team sports. The racial discrimination lawsuit by Brian 105 00:07:22,160 --> 00:07:25,480 Speaker 1: Flores after he was fired as head coach of the 106 00:07:25,520 --> 00:07:29,280 Speaker 1: Miami Dolphins is sort of is sort of a shadow 107 00:07:29,320 --> 00:07:34,840 Speaker 1: over the season. What legal issues do you see regarding discrimination, 108 00:07:35,080 --> 00:07:39,520 Speaker 1: both racial and gender in professional team sports. There have 109 00:07:39,600 --> 00:07:43,760 Speaker 1: been three real problems that have surfaced in which are 110 00:07:43,800 --> 00:07:49,080 Speaker 1: likely to recur. One is in hiring. So you had 111 00:07:49,240 --> 00:07:55,600 Speaker 1: Mr Flores in February of file a complaint against the 112 00:07:55,760 --> 00:08:00,640 Speaker 1: NFL National Football League for discrimination and hiring of coaches, 113 00:08:00,760 --> 00:08:04,480 Speaker 1: and I think it was offensive coordinators and quarterback coaches 114 00:08:04,840 --> 00:08:07,800 Speaker 1: because he was not promoted and he claimed that the 115 00:08:07,840 --> 00:08:10,440 Speaker 1: failure to promote him was because he was a victim 116 00:08:10,520 --> 00:08:14,800 Speaker 1: of discrimination. Over the last couple of years, the NFL 117 00:08:15,800 --> 00:08:20,240 Speaker 1: has not hired very many people of color as head coaches. 118 00:08:20,280 --> 00:08:22,200 Speaker 1: And I'm going to focus on the head coaches rather 119 00:08:22,240 --> 00:08:24,920 Speaker 1: than going to all the other type of coaching positions. 120 00:08:25,640 --> 00:08:28,400 Speaker 1: I think they're up to two or three out of 121 00:08:28,520 --> 00:08:32,000 Speaker 1: thirty two. By contrast, you look at the NBA, which 122 00:08:32,040 --> 00:08:34,800 Speaker 1: had of thirty teams, I believe now has either fifteen 123 00:08:34,880 --> 00:08:38,360 Speaker 1: or sixteen head coaches who are people of color, which 124 00:08:38,440 --> 00:08:43,880 Speaker 1: reflect more the demographics of who the players are. Fifty 125 00:08:43,920 --> 00:08:47,800 Speaker 1: seven and a half percent of the NFL players are 126 00:08:47,960 --> 00:08:51,400 Speaker 1: black athletes. I think he gets up to se as 127 00:08:51,480 --> 00:08:56,400 Speaker 1: people of color in the NBA. It's closer to why 128 00:08:56,440 --> 00:09:00,640 Speaker 1: wouldn't there be competent candidates for head coaches who are 129 00:09:00,640 --> 00:09:04,480 Speaker 1: people of color? And that's been a recurring problem. The 130 00:09:04,600 --> 00:09:08,000 Speaker 1: NFL adopted something called the Rooney Rule back at the 131 00:09:08,320 --> 00:09:13,280 Speaker 1: turn of this particular century, which mandated that teams had 132 00:09:13,360 --> 00:09:17,360 Speaker 1: to interview or consider for interviews people of color as 133 00:09:17,400 --> 00:09:21,400 Speaker 1: candidates for head coaching positions, but it didn't mandate that 134 00:09:21,559 --> 00:09:24,560 Speaker 1: teams had to hire people of color. And it just 135 00:09:24,640 --> 00:09:28,080 Speaker 1: seems anomalous in this day and age as to why 136 00:09:28,120 --> 00:09:30,679 Speaker 1: there aren't more candidates who are people's color who are 137 00:09:30,679 --> 00:09:33,840 Speaker 1: being hired. They're certainly competent out there, but they're not 138 00:09:33,880 --> 00:09:37,800 Speaker 1: being hired for the most part. That's one thread A 139 00:09:37,960 --> 00:09:43,040 Speaker 1: second thread is gender discrimination, which continues to rear its 140 00:09:43,120 --> 00:09:46,000 Speaker 1: ugly head in sports in two ways. One is the 141 00:09:46,080 --> 00:09:53,240 Speaker 1: lack of hiring of women in positions of authority, president, general, manager, 142 00:09:53,600 --> 00:09:59,160 Speaker 1: coaching positions, and the second is discrimination and harassment frankly 143 00:09:59,200 --> 00:10:02,680 Speaker 1: by owners. We saw the examples this past year of 144 00:10:03,480 --> 00:10:07,320 Speaker 1: Mr Snyder and the commanders in d C and the 145 00:10:07,360 --> 00:10:10,320 Speaker 1: Phoenix Suns, both of which were the subject of fairly 146 00:10:10,360 --> 00:10:14,600 Speaker 1: detailed reports which found discrimination in the back office by 147 00:10:14,679 --> 00:10:19,160 Speaker 1: the owners against employees. The third threat, of course, is 148 00:10:20,200 --> 00:10:25,040 Speaker 1: statements statements by athletes. So we had Kyrie Irving's statement 149 00:10:25,679 --> 00:10:32,120 Speaker 1: endorsing a movie which had anti semitic I was going 150 00:10:32,160 --> 00:10:34,800 Speaker 1: to say connotations, but that would probably be understating. It 151 00:10:34,840 --> 00:10:39,520 Speaker 1: was an anti semitic tract. And he was severely disciplined 152 00:10:39,640 --> 00:10:43,000 Speaker 1: by the Nets and at the end agreed he couldn't 153 00:10:43,000 --> 00:10:46,320 Speaker 1: come back until he made some reparation in that regard, 154 00:10:46,400 --> 00:10:52,319 Speaker 1: and he did, including undergoing some training and some sensitivity training, 155 00:10:52,320 --> 00:10:56,679 Speaker 1: which is frankly helpful for lots of people, not only athletes. 156 00:10:56,760 --> 00:11:01,600 Speaker 1: But those are the three threads racial lengender discrimination in 157 00:11:01,720 --> 00:11:06,679 Speaker 1: professional sports. Those seem like systemic issues that are deep 158 00:11:06,760 --> 00:11:09,240 Speaker 1: rooted and have been around for a long time. How 159 00:11:09,240 --> 00:11:13,720 Speaker 1: do you deal with that? Well, I think transparency is 160 00:11:13,840 --> 00:11:17,400 Speaker 1: a great way of resolving matters. So the more of 161 00:11:17,440 --> 00:11:21,520 Speaker 1: these things get aired by the media by people who 162 00:11:22,000 --> 00:11:25,160 Speaker 1: become whistleblowers, the more it's likely to come to light 163 00:11:25,360 --> 00:11:29,480 Speaker 1: and cause a change in actions. We don't see a 164 00:11:29,520 --> 00:11:34,360 Speaker 1: lot of statements by athletes that are discriminatory on the 165 00:11:34,360 --> 00:11:38,360 Speaker 1: base of gender, race, religion. There's an occasional one, so 166 00:11:38,400 --> 00:11:41,080 Speaker 1: the Kyrie Irving situation tends to be more of a 167 00:11:41,160 --> 00:11:43,559 Speaker 1: one off, and I think the leagues have made great 168 00:11:43,640 --> 00:11:47,440 Speaker 1: strides in that regard for educating their players that there 169 00:11:47,480 --> 00:11:52,000 Speaker 1: are problems out there. Hiring is a problem which has 170 00:11:52,120 --> 00:11:55,400 Speaker 1: gone on for a long long time. You know, we've 171 00:11:55,520 --> 00:12:00,920 Speaker 1: seen that positive action towards redressing discriminate nation and hiring 172 00:12:00,960 --> 00:12:04,360 Speaker 1: has occurred, particularly by the NBA, but we also see 173 00:12:04,400 --> 00:12:07,319 Speaker 1: it in Major League Baseball to some extent. For some 174 00:12:07,400 --> 00:12:12,120 Speaker 1: reason which I can't figure out, Football lags well behind that. 175 00:12:12,600 --> 00:12:17,080 Speaker 1: And maybe bringing to the four situations like Mr. Flores's 176 00:12:17,440 --> 00:12:21,560 Speaker 1: case will assist the owners they are in understanding what 177 00:12:21,600 --> 00:12:24,520 Speaker 1: the nature of the problem is. Boycotts are an effective 178 00:12:24,559 --> 00:12:27,079 Speaker 1: means of convincing the owners that there is a problem. 179 00:12:27,160 --> 00:12:30,720 Speaker 1: There are some companies out there, corporate sponsors who will 180 00:12:30,760 --> 00:12:35,439 Speaker 1: not support teams that discriminate where they perceive don't have 181 00:12:35,880 --> 00:12:42,120 Speaker 1: positive workplace models in effect to remediate against discrimination or 182 00:12:42,120 --> 00:12:45,440 Speaker 1: mitigate against discrimination. You know. The only way to deal 183 00:12:45,520 --> 00:12:48,400 Speaker 1: with that. You can yell and scream, but that probably 184 00:12:48,440 --> 00:12:52,120 Speaker 1: won't change it much. But if owners feel this will 185 00:12:52,160 --> 00:12:55,679 Speaker 1: have a pocketbook effect, they may be more receptive to change. 186 00:12:55,840 --> 00:12:58,800 Speaker 1: And we saw that with the examples of particularly with 187 00:12:58,880 --> 00:13:01,640 Speaker 1: the Sons, the owner what his share on the market 188 00:13:01,760 --> 00:13:04,360 Speaker 1: rather than continuing to deal with this, so it will 189 00:13:04,400 --> 00:13:07,040 Speaker 1: be purchased by a new group. Not clear what the 190 00:13:07,080 --> 00:13:10,240 Speaker 1: outcome will be with the Commanders yet, although Mr Snyder 191 00:13:10,280 --> 00:13:12,719 Speaker 1: has indicated that he may put it up he may 192 00:13:12,760 --> 00:13:15,240 Speaker 1: put his shares up for sale. I've been talking to 193 00:13:15,280 --> 00:13:18,560 Speaker 1: Martini dal of Gulston and Stores. Marty. Let's turn to 194 00:13:18,600 --> 00:13:21,720 Speaker 1: a different sports law topic. For more than a century, 195 00:13:21,960 --> 00:13:25,800 Speaker 1: plaques and trophies were the only things that college athletes 196 00:13:25,880 --> 00:13:28,560 Speaker 1: could earn from their achievements on the field and on 197 00:13:28,600 --> 00:13:33,040 Speaker 1: the court. That changed in one after a Supreme Court 198 00:13:33,160 --> 00:13:36,960 Speaker 1: decision against the n c a A. Now student athletes 199 00:13:37,000 --> 00:13:39,480 Speaker 1: have the right to make money from their names, images 200 00:13:39,480 --> 00:13:43,440 Speaker 1: and likenesses. So how is it working out? It depends 201 00:13:43,440 --> 00:13:47,400 Speaker 1: on whom you talk to. So Marty star college athletes 202 00:13:47,520 --> 00:13:51,160 Speaker 1: no longer have to leave school and become a professional 203 00:13:51,800 --> 00:13:55,120 Speaker 1: to make a living. How's it working out? Son n 204 00:13:55,160 --> 00:13:58,560 Speaker 1: I l the name, image and likeness. A number of 205 00:13:58,720 --> 00:14:04,480 Speaker 1: athletes have been able to license to third party such 206 00:14:04,520 --> 00:14:09,280 Speaker 1: as advertisers or sponsors, the use of their name, image 207 00:14:09,280 --> 00:14:12,840 Speaker 1: and likeness and make several hundred thousand dollars per year. 208 00:14:13,679 --> 00:14:17,840 Speaker 1: This is the rare athlete. It is the well known athlete, 209 00:14:18,000 --> 00:14:22,680 Speaker 1: highly publicized athlete nationwide, such as the quarterback of Alabama 210 00:14:22,840 --> 00:14:26,120 Speaker 1: or the quarterback of Georgia, who has a fair amount 211 00:14:26,120 --> 00:14:30,760 Speaker 1: of name recognition throughout the country and can license his name, 212 00:14:30,800 --> 00:14:36,560 Speaker 1: image or likeness to national sponsors for significant amounts. There 213 00:14:36,800 --> 00:14:43,520 Speaker 1: is some issue with alumni trying to pay athletes by 214 00:14:43,720 --> 00:14:47,200 Speaker 1: licensing their name, image and likeness to less than full value, 215 00:14:47,280 --> 00:14:49,200 Speaker 1: and that's an issue that the n c a A 216 00:14:49,840 --> 00:14:52,720 Speaker 1: still has to address. It's far from clear what the 217 00:14:52,720 --> 00:14:56,680 Speaker 1: outcome will be. There are recent New York Times article 218 00:14:57,520 --> 00:15:02,920 Speaker 1: pointed out that advertise just and boosters who previously supported 219 00:15:02,960 --> 00:15:06,600 Speaker 1: college athletics by giving money to the athletic department, and 220 00:15:06,640 --> 00:15:11,320 Speaker 1: those payments helped to subsidize other teams on campus are 221 00:15:11,400 --> 00:15:15,640 Speaker 1: now giving the money to the individual athlete, and so 222 00:15:15,680 --> 00:15:19,880 Speaker 1: those other less popular team sports on campus are not 223 00:15:19,960 --> 00:15:23,960 Speaker 1: getting the dollars they used to right, and that has 224 00:15:24,040 --> 00:15:28,360 Speaker 1: gone on for time immemorial. So take a classic example, 225 00:15:28,520 --> 00:15:33,960 Speaker 1: your crew team makes very little impact on alumnni for 226 00:15:34,880 --> 00:15:40,560 Speaker 1: trying to license athletes, whereas your monetary sports such as 227 00:15:40,600 --> 00:15:46,640 Speaker 1: football and basketball will have more recognition among alumni. What's 228 00:15:46,920 --> 00:15:50,200 Speaker 1: happening in this new environment, that is where athletes can 229 00:15:50,240 --> 00:15:54,440 Speaker 1: get compensated for licensing their name, image, and likeness is 230 00:15:54,680 --> 00:16:00,320 Speaker 1: we're starting to see the implementation what's called collectives. This 231 00:16:00,400 --> 00:16:04,960 Speaker 1: is not a socialist term, uh, But what collectives are? 232 00:16:04,960 --> 00:16:09,080 Speaker 1: Are there groups generally of alumni who get together and 233 00:16:09,200 --> 00:16:14,280 Speaker 1: try to market the athletes as well as the schools. 234 00:16:14,800 --> 00:16:17,800 Speaker 1: And what do I mean by that? So if a 235 00:16:17,920 --> 00:16:20,560 Speaker 1: group of athletes want to appear in an ad, the 236 00:16:20,680 --> 00:16:24,360 Speaker 1: ad will be worth much more to the sponsor if 237 00:16:24,400 --> 00:16:28,080 Speaker 1: the athletes could be wearing their let's say football jersey 238 00:16:28,200 --> 00:16:33,160 Speaker 1: or their basketball jersey, or some recognition factor for the 239 00:16:33,200 --> 00:16:36,640 Speaker 1: school such as a cap. To do that, the sponsor 240 00:16:36,720 --> 00:16:40,840 Speaker 1: needs the approval of the school as well as the athletes. 241 00:16:41,480 --> 00:16:44,800 Speaker 1: So it's a means of trying to tie together all 242 00:16:44,880 --> 00:16:52,080 Speaker 1: the various elements schools, athletes, boosters, UH and sponsors into 243 00:16:52,160 --> 00:16:55,840 Speaker 1: one package, and that's starting to gain a fair amount 244 00:16:56,560 --> 00:17:02,000 Speaker 1: of play among schools as he means or getting more 245 00:17:02,040 --> 00:17:04,399 Speaker 1: money for the school as well as for the athletes. 246 00:17:05,200 --> 00:17:10,360 Speaker 1: Let's talk about the appointment of former Massachusetts Governor Baker 247 00:17:10,440 --> 00:17:13,399 Speaker 1: to head the n c double A. What kind of 248 00:17:13,440 --> 00:17:18,080 Speaker 1: things will he be confronting during his tenure? So great questions. 249 00:17:18,880 --> 00:17:22,440 Speaker 1: As the general wisdom seems to hold, the n c 250 00:17:22,640 --> 00:17:26,920 Speaker 1: a A made an inspired choice in hiring governor former 251 00:17:26,960 --> 00:17:32,480 Speaker 1: Governor Baker as president because of his ability, at least 252 00:17:32,480 --> 00:17:35,040 Speaker 1: as governor, to reach across the aisle and get some 253 00:17:35,160 --> 00:17:40,879 Speaker 1: significant bills passed for the Commonwealth of Massachusetts with both 254 00:17:40,920 --> 00:17:46,439 Speaker 1: Democratic and Republican support. Why that becomes important here is 255 00:17:46,600 --> 00:17:50,080 Speaker 1: the n c a A is facing a crisis in 256 00:17:50,119 --> 00:17:54,200 Speaker 1: a number of areas where they are looking for federal 257 00:17:54,320 --> 00:17:58,760 Speaker 1: legislation as sort of a panacea for their ills. So, 258 00:17:59,000 --> 00:18:03,520 Speaker 1: for instance, one area is can we create a uniform 259 00:18:03,680 --> 00:18:08,360 Speaker 1: set of name, image and likeness laws? Right now, name 260 00:18:08,400 --> 00:18:11,879 Speaker 1: image and likeness is left to each state, and we 261 00:18:11,960 --> 00:18:17,040 Speaker 1: have variations among the thirty plus states that have enacted 262 00:18:17,280 --> 00:18:20,160 Speaker 1: an I L laws, some of them significant, and how 263 00:18:20,200 --> 00:18:23,919 Speaker 1: they affect athletes and how they affect the schools and 264 00:18:23,960 --> 00:18:27,280 Speaker 1: in what they mean for recruiting. A second area that 265 00:18:27,359 --> 00:18:31,520 Speaker 1: the governor is likely to face is the issue as 266 00:18:31,520 --> 00:18:35,919 Speaker 1: to whether student athletes are employees. That can have a 267 00:18:36,119 --> 00:18:42,800 Speaker 1: huge impact on college's budgets. Think, for example, if all 268 00:18:42,840 --> 00:18:46,320 Speaker 1: of a sudden, you have a thousand intercollegiate athletes at 269 00:18:46,400 --> 00:18:48,800 Speaker 1: school and you have to pay them all a minimum wage, 270 00:18:49,000 --> 00:18:51,960 Speaker 1: and let's say the minimum wages fifteen or twenty dollars 271 00:18:52,040 --> 00:18:55,560 Speaker 1: per hour in that particular state. Well, if you're paying 272 00:18:55,600 --> 00:19:00,000 Speaker 1: them for thousands of hours per semester, all of a sudden, 273 00:19:00,000 --> 00:19:02,879 Speaker 1: the school is going to have a budget hit of 274 00:19:03,160 --> 00:19:07,320 Speaker 1: upwards of ten million dollars annually. That's enormous. So what 275 00:19:07,440 --> 00:19:11,800 Speaker 1: can the n c a A do either to delay 276 00:19:12,160 --> 00:19:17,400 Speaker 1: the calling of student athletes as employees or have a 277 00:19:17,480 --> 00:19:22,280 Speaker 1: reasonable rollout for that, And how did that come into play? Well, 278 00:19:22,359 --> 00:19:25,560 Speaker 1: the National Labor Relations Board is looking for a test 279 00:19:25,640 --> 00:19:29,560 Speaker 1: case in which to hold that student athletes are subject 280 00:19:29,640 --> 00:19:32,639 Speaker 1: to the terms of the National Labor Relations Act, and 281 00:19:32,680 --> 00:19:35,439 Speaker 1: this has been announced by the General Counsel for the 282 00:19:35,520 --> 00:19:40,600 Speaker 1: National Labor Relations Board. Again, disparate impact because the National 283 00:19:40,640 --> 00:19:44,879 Speaker 1: Labor Relations Act doesn't apply to state governments that have 284 00:19:45,040 --> 00:19:49,080 Speaker 1: expressly said no, they're not going to permit unions. So 285 00:19:49,400 --> 00:19:53,000 Speaker 1: you may find, let's take Alabama a right to work state, 286 00:19:53,200 --> 00:19:56,199 Speaker 1: the University of Alabama may not be subject to the 287 00:19:56,320 --> 00:19:59,639 Speaker 1: stricters of the National Labor Relations Act. If a court 288 00:19:59,680 --> 00:20:03,040 Speaker 1: fond that student athletes are subject to the National Labor 289 00:20:03,080 --> 00:20:07,560 Speaker 1: Relations Act because Alabama is opted out, this would create 290 00:20:08,280 --> 00:20:13,720 Speaker 1: a difference between Alabama and a private university being able 291 00:20:13,760 --> 00:20:17,440 Speaker 1: to recruit and having more funds at Alabama to recruit 292 00:20:17,840 --> 00:20:22,520 Speaker 1: athletes to Alabama. A second impact the area is there 293 00:20:22,680 --> 00:20:26,359 Speaker 1: is a thread of cases right now. There's one in 294 00:20:26,400 --> 00:20:30,639 Speaker 1: the Third Circuit Court of Appeals in which student athletes 295 00:20:30,680 --> 00:20:33,160 Speaker 1: have been held to be employees for purposes of Fair 296 00:20:33,240 --> 00:20:37,280 Speaker 1: Labor Standards Act. This could mean, if it's upheld by 297 00:20:37,320 --> 00:20:40,960 Speaker 1: the Third Circuit Court of Appeals, that student athletes must 298 00:20:40,960 --> 00:20:44,800 Speaker 1: be paid a minimum wage. So lots of moving pieces 299 00:20:45,040 --> 00:20:49,600 Speaker 1: there for which the governor may look for national legislation 300 00:20:50,200 --> 00:20:53,840 Speaker 1: to exempt the n c A A such as baseball 301 00:20:53,880 --> 00:20:56,760 Speaker 1: has an exemption from the anti trust laws. The governor 302 00:20:56,840 --> 00:21:00,639 Speaker 1: may look for an exemption for college and university athletes 303 00:21:00,720 --> 00:21:04,200 Speaker 1: from the stricters of the National Labor Relations Acting, perhaps 304 00:21:04,280 --> 00:21:09,199 Speaker 1: the antitrust laws. A third area facing the governor is 305 00:21:09,600 --> 00:21:14,880 Speaker 1: gender discrimination. There have been now two reports commissioned by 306 00:21:14,880 --> 00:21:17,960 Speaker 1: the n c a A which have found systemic gender 307 00:21:18,000 --> 00:21:22,359 Speaker 1: discrimination in n ci A tournaments, and the n c 308 00:21:22,720 --> 00:21:25,920 Speaker 1: A is doing a reasonable job in trying to clean 309 00:21:26,040 --> 00:21:28,840 Speaker 1: up what's going on there. But the n c A 310 00:21:29,200 --> 00:21:34,840 Speaker 1: doesn't have the ability to make rules for the individual 311 00:21:34,920 --> 00:21:39,359 Speaker 1: colleges and universities. What are they doing to eliminate or 312 00:21:39,440 --> 00:21:43,680 Speaker 1: mitigate against gender discrimination? And not a lot right now, 313 00:21:44,080 --> 00:21:46,840 Speaker 1: is the answer. Most think it's the other school that 314 00:21:46,960 --> 00:21:50,400 Speaker 1: may discriminate, but not them. So those I think are 315 00:21:50,560 --> 00:21:54,560 Speaker 1: three principal hurdles. Of fourth will be sports gambling and 316 00:21:54,600 --> 00:21:59,520 Speaker 1: a fifth is concussion injury. So with college athletes getting 317 00:21:59,560 --> 00:22:02,960 Speaker 1: paid it and possibly being members of unions and getting 318 00:22:02,960 --> 00:22:07,920 Speaker 1: paid that, it sort of takes the emphasis off what 319 00:22:08,320 --> 00:22:12,360 Speaker 1: you think that university education is supposed to be. So 320 00:22:12,480 --> 00:22:15,040 Speaker 1: I think that's a great point and the answer is 321 00:22:15,280 --> 00:22:18,880 Speaker 1: decided yes, And to me, at least this gives colleges 322 00:22:18,920 --> 00:22:24,199 Speaker 1: and universities a unique ability to set back and reassess 323 00:22:24,440 --> 00:22:26,880 Speaker 1: what they want to be for their students. Do they 324 00:22:26,920 --> 00:22:30,440 Speaker 1: want to be academic institutions where they will give an 325 00:22:30,560 --> 00:22:33,480 Speaker 1: education to those who come there, or do they want 326 00:22:33,480 --> 00:22:38,000 Speaker 1: to be principally known as basketball and football powers and 327 00:22:38,119 --> 00:22:42,040 Speaker 1: perhaps even a minor league for those professionally. Will schools 328 00:22:42,080 --> 00:22:45,399 Speaker 1: do that? I don't know. Many schools are losing money 329 00:22:45,440 --> 00:22:49,480 Speaker 1: regularly in their football and basketball program, but it's a 330 00:22:49,480 --> 00:22:52,240 Speaker 1: big draw for alumni. So they have to balance all 331 00:22:52,240 --> 00:22:54,880 Speaker 1: those factors in determining do they want to be really 332 00:22:54,960 --> 00:22:58,240 Speaker 1: an academic institution or do they want to be a 333 00:22:58,440 --> 00:23:01,400 Speaker 1: sports power? Or is there some way of balancing and 334 00:23:01,400 --> 00:23:04,119 Speaker 1: coming out with some middle ground. Because the Supreme Court's 335 00:23:04,160 --> 00:23:08,879 Speaker 1: decision that held federal restrictions on state gambling laws unconstitutional, 336 00:23:09,320 --> 00:23:13,119 Speaker 1: states have followed different paths. Thirty one states now allows 337 00:23:13,160 --> 00:23:16,840 Speaker 1: sports betting, while others continue to hold that gambling such 338 00:23:16,880 --> 00:23:21,600 Speaker 1: as fan duel and DraftKings violate their criminal laws and constitutions. 339 00:23:22,000 --> 00:23:25,080 Speaker 1: A pupil last year found that one in five US 340 00:23:25,160 --> 00:23:29,040 Speaker 1: adults said they'd personally bet money on sports in some 341 00:23:29,119 --> 00:23:32,119 Speaker 1: way in the last year I've been talking to Martin 342 00:23:32,160 --> 00:23:36,120 Speaker 1: Yudell of Gholston Stores. It seems like gambling and sports 343 00:23:36,280 --> 00:23:39,399 Speaker 1: it's all over. Are there any restrictions on gambling and 344 00:23:39,440 --> 00:23:42,640 Speaker 1: sports at this point? So the answer is there are, 345 00:23:42,720 --> 00:23:47,080 Speaker 1: but they're rapidly disappearing. So the thread here is that 346 00:23:47,640 --> 00:23:51,960 Speaker 1: gambling has been a real issue for professional and college 347 00:23:51,960 --> 00:23:57,280 Speaker 1: sports because of the possibility of things like fixing games, 348 00:23:57,400 --> 00:24:01,720 Speaker 1: and most gambling is done toner the table, so that 349 00:24:02,280 --> 00:24:06,880 Speaker 1: officials are not able to detect gambling. And this goes 350 00:24:06,920 --> 00:24:11,720 Speaker 1: back to the tournaments, the n c a A tournaments, 351 00:24:11,880 --> 00:24:15,840 Speaker 1: the NFC tournaments, where there was fixing of games, and 352 00:24:15,920 --> 00:24:19,600 Speaker 1: so most states have outlawed gambling, not as a result 353 00:24:19,640 --> 00:24:22,680 Speaker 1: of the sports and dynamic to it, but because most 354 00:24:22,720 --> 00:24:27,359 Speaker 1: states saw that gambling was not a means socially that 355 00:24:27,400 --> 00:24:32,400 Speaker 1: they wanted to further their image. That all changed as 356 00:24:32,880 --> 00:24:39,080 Speaker 1: sports gambling became lucrative. So the Supreme Court said back 357 00:24:39,119 --> 00:24:44,159 Speaker 1: in that states can have gambling as long as the 358 00:24:44,200 --> 00:24:48,159 Speaker 1: state permitted. There would not be a federal prohibition, at 359 00:24:48,240 --> 00:24:52,720 Speaker 1: least not constitutionally couldn't exist. So a number of states 360 00:24:52,760 --> 00:24:54,960 Speaker 1: looked into this, and you have the advent now of 361 00:24:55,160 --> 00:24:58,560 Speaker 1: fan duel and draft kings and saw that these were 362 00:24:58,560 --> 00:25:02,480 Speaker 1: real opportunities to take in millions, if not tens of 363 00:25:02,520 --> 00:25:07,280 Speaker 1: millions of dollars in annual revenue from taxing the winnings 364 00:25:07,320 --> 00:25:09,560 Speaker 1: of what goes on or taxing the revenues of the 365 00:25:09,600 --> 00:25:14,399 Speaker 1: company that licenses the particular sports setting game. So we 366 00:25:14,520 --> 00:25:19,680 Speaker 1: have about thirty states that have laws that permit fan 367 00:25:19,800 --> 00:25:24,160 Speaker 1: duel and draft kings to exist. They do this by 368 00:25:24,280 --> 00:25:30,440 Speaker 1: carving out what fan duel and DraftKings do from normal gambling. 369 00:25:30,720 --> 00:25:34,560 Speaker 1: Gambling is still a violation of most states criminal laws. 370 00:25:34,920 --> 00:25:36,560 Speaker 1: In the case of New York, it was also a 371 00:25:36,640 --> 00:25:40,400 Speaker 1: violation of New York State constitution. So we had this 372 00:25:40,440 --> 00:25:45,600 Speaker 1: anomalous result a few years ago where a state appellate 373 00:25:45,600 --> 00:25:50,879 Speaker 1: court held the legislature could not exempt van duel and 374 00:25:51,000 --> 00:25:57,000 Speaker 1: DraftKings because the legislature could not change the constitution, but 375 00:25:57,080 --> 00:26:00,680 Speaker 1: it could change the state criminal law. So in effect, 376 00:26:01,000 --> 00:26:05,080 Speaker 1: what vanduel and DraftKings were doing at that point violated 377 00:26:05,080 --> 00:26:07,920 Speaker 1: the constitution of New York State, but there was no 378 00:26:08,000 --> 00:26:13,080 Speaker 1: remedy because the legislature had changed the gambling law so 379 00:26:13,160 --> 00:26:16,800 Speaker 1: that there wouldn't be a criminal violation. Sounds somewhat crazy. 380 00:26:17,119 --> 00:26:19,280 Speaker 1: I think the New York Court of Appeals got it 381 00:26:19,760 --> 00:26:22,760 Speaker 1: right that it was crazy, and then had a decision 382 00:26:22,800 --> 00:26:25,879 Speaker 1: saying that what FanDuel and DraftKings do is really not 383 00:26:26,040 --> 00:26:30,120 Speaker 1: within the scope of gambling within the meaning of the 384 00:26:30,160 --> 00:26:34,440 Speaker 1: state constitution. So now fandul and DraftKings can operate in 385 00:26:34,520 --> 00:26:40,240 Speaker 1: New York State without a constitutional or state gambling violation, 386 00:26:40,320 --> 00:26:42,679 Speaker 1: and a number of states have gone in that direction 387 00:26:42,920 --> 00:26:45,719 Speaker 1: as well. But there are still some states in the 388 00:26:45,840 --> 00:26:49,399 Speaker 1: some states, particular in the Deep South and in the Midwest, 389 00:26:49,560 --> 00:26:54,720 Speaker 1: for which gambling is not permitted and they see FanDuel 390 00:26:54,800 --> 00:26:59,840 Speaker 1: and DraftKings as being gambling and not the game of skill. 391 00:27:00,280 --> 00:27:02,720 Speaker 1: Thanks so much, Marty for that toured to force on 392 00:27:03,080 --> 00:27:06,600 Speaker 1: sports law. That's Martini Dell, co chair of the sports 393 00:27:06,680 --> 00:27:13,280 Speaker 1: law practice at Gulston and Stores. A trial in federal 394 00:27:13,320 --> 00:27:16,320 Speaker 1: court in Brooklyn is part of a long running investigation 395 00:27:16,359 --> 00:27:20,560 Speaker 1: of corruption and international soccer that dates back nearly a 396 00:27:20,640 --> 00:27:25,280 Speaker 1: decade and has swept up top officials. Federal prosecutors alleged 397 00:27:25,320 --> 00:27:29,040 Speaker 1: that two former Fox executives paid millions of dollars in 398 00:27:29,119 --> 00:27:33,280 Speaker 1: bribes to win lucrative broadcast rights to soccer tournaments. The 399 00:27:33,359 --> 00:27:37,399 Speaker 1: system of bribery lasted for years through generations of leaders 400 00:27:37,440 --> 00:27:41,159 Speaker 1: who took money in exchange for secret, no bid, below 401 00:27:41,280 --> 00:27:46,000 Speaker 1: market contracts for valuable TV rights. According to the prosecution, 402 00:27:46,480 --> 00:27:50,520 Speaker 1: the defendants claimed they're being framed and retaliated against by 403 00:27:50,560 --> 00:27:54,240 Speaker 1: their one time business partner. Who's the States Star witness 404 00:27:54,720 --> 00:27:58,000 Speaker 1: joining me is Bloomberg Legal reporter Patricia Hurtado, who's covering 405 00:27:58,040 --> 00:28:01,560 Speaker 1: the trial. The prosecute and says that this is not 406 00:28:01,720 --> 00:28:05,520 Speaker 1: just about one case of bribery, but it's a system 407 00:28:05,560 --> 00:28:10,760 Speaker 1: of bribery. Yeah. But this is the second trial involving FIFA, 408 00:28:11,000 --> 00:28:16,560 Speaker 1: the governing body for international soccer, and in ten people 409 00:28:16,600 --> 00:28:20,600 Speaker 1: may remember there was this incredible raid on a five 410 00:28:20,640 --> 00:28:26,160 Speaker 1: star hotel in Switzerland where all these FIFA boxes were 411 00:28:26,160 --> 00:28:31,359 Speaker 1: having their international meetings and law enforcements swept in and 412 00:28:31,480 --> 00:28:37,160 Speaker 1: arrested them. It's set off a series of prosecution led 413 00:28:37,200 --> 00:28:43,000 Speaker 1: by the US involving the FIFA the bribery scheme and 414 00:28:43,120 --> 00:28:46,920 Speaker 1: in that part of the case, soccer boxes for local 415 00:28:47,440 --> 00:28:51,680 Speaker 1: countries they ran the soccer for their federations for their 416 00:28:51,720 --> 00:28:56,640 Speaker 1: country were it's used of taking broad and altogether, at 417 00:28:56,680 --> 00:29:00,520 Speaker 1: least twenty seven people have publicly pleaded guilty makes the 418 00:29:00,600 --> 00:29:06,360 Speaker 1: investigation in the US for companies have pled guilty and 419 00:29:06,720 --> 00:29:10,880 Speaker 1: we have had a trial and teen that resulted in 420 00:29:10,920 --> 00:29:16,000 Speaker 1: the conviction of two former soccer officials from South American countries. 421 00:29:16,880 --> 00:29:20,360 Speaker 1: So now we are having the second part of the case, 422 00:29:20,520 --> 00:29:24,240 Speaker 1: which now involves not the people who were accepting the bribe, 423 00:29:24,360 --> 00:29:27,360 Speaker 1: but the people who were paying the bribe. This now 424 00:29:27,440 --> 00:29:33,120 Speaker 1: features allegedly Fox Sports executives. There was a unit of 425 00:29:33,200 --> 00:29:37,920 Speaker 1: Fox twenty one century Fox Sports that are accused of 426 00:29:37,960 --> 00:29:42,000 Speaker 1: paying bribes to soccer bosses to get access to great 427 00:29:42,120 --> 00:29:45,360 Speaker 1: broadcasting rights which are very lucratius to be able to 428 00:29:45,440 --> 00:29:48,520 Speaker 1: broadcast the signal and everyone knows about the World Cup 429 00:29:48,720 --> 00:29:52,840 Speaker 1: and how popular soccer isn't in this and around the world. 430 00:29:53,480 --> 00:29:57,280 Speaker 1: Fox is not on trial and all this. No, Fox 431 00:29:57,440 --> 00:30:01,120 Speaker 1: is not on trial too. Former ex acutive under the 432 00:30:01,760 --> 00:30:06,080 Speaker 1: Century Fox banner r a sus uh their names Non 433 00:30:06,160 --> 00:30:10,200 Speaker 1: Lopez and Carlos Martine, and they're accused of a wire 434 00:30:10,240 --> 00:30:14,920 Speaker 1: fraud conspiracy and the money wandering conspiracy for allegedly trying 435 00:30:14,920 --> 00:30:19,680 Speaker 1: to promote Fox's interest to get access to broadcast rights 436 00:30:19,880 --> 00:30:24,400 Speaker 1: including eighteen and two World Cup tournaments. Why didn't the 437 00:30:24,440 --> 00:30:28,360 Speaker 1: prosecution charge Fox as well. If they got all this money, 438 00:30:28,440 --> 00:30:31,680 Speaker 1: they got it from somewhere. The individuals who are the 439 00:30:31,720 --> 00:30:35,160 Speaker 1: ones that allegedly corrupted the process, So they are the 440 00:30:35,240 --> 00:30:39,840 Speaker 1: individual not the company. People remember recent trial of the 441 00:30:39,840 --> 00:30:44,040 Speaker 1: Trump for organization, right a few entities the Trump Trump 442 00:30:44,120 --> 00:30:48,480 Speaker 1: Corporation and Trump Hayroll Corporation. They were the only two charged, 443 00:30:48,840 --> 00:30:51,880 Speaker 1: and everyone was shaking their heads and saying, what happened 444 00:30:51,920 --> 00:30:55,920 Speaker 1: to the fosses of the Trump org that didn't go 445 00:30:55,960 --> 00:30:59,200 Speaker 1: on trial? We had only got the CFO on that case, 446 00:30:59,280 --> 00:31:02,880 Speaker 1: Allen wissle Burke, who played guilty. Well, this case involves 447 00:31:02,880 --> 00:31:06,640 Speaker 1: the two executives who allegedly paid those brides. So they're 448 00:31:06,680 --> 00:31:10,400 Speaker 1: on trial. And there's also a company called Full Play 449 00:31:10,440 --> 00:31:13,720 Speaker 1: which is accused of paying bride. That's the third defendant 450 00:31:13,800 --> 00:31:17,560 Speaker 1: on trial and the second piefa trial. They're accused of 451 00:31:17,600 --> 00:31:22,200 Speaker 1: helping facilitate the bribes for broadcast rights. The defense, some 452 00:31:22,320 --> 00:31:26,160 Speaker 1: of the defense is revenge. They built their case on 453 00:31:26,240 --> 00:31:30,280 Speaker 1: the back of a bad guy. Tell me about that. Yeah, 454 00:31:30,360 --> 00:31:33,320 Speaker 1: the government star witnesses been on the stand and his 455 00:31:33,400 --> 00:31:38,080 Speaker 1: name is Alejandro Furzaco, and he's an Argentine businessman who 456 00:31:38,200 --> 00:31:42,120 Speaker 1: used to be a City group banker and did venture 457 00:31:42,160 --> 00:31:45,160 Speaker 1: capital deals in New York and he went home to 458 00:31:45,400 --> 00:31:50,440 Speaker 1: Argentina and started working for he deals down there for 459 00:31:50,520 --> 00:31:55,280 Speaker 1: the bank and then eventually joined a Latin American sports 460 00:31:55,320 --> 00:31:59,520 Speaker 1: marketing company called Orneos. And it turns out that the 461 00:31:59,520 --> 00:32:03,360 Speaker 1: man who working for and working with was allegedly paying 462 00:32:03,400 --> 00:32:08,160 Speaker 1: broad to soccer bosses for broadcast right, and that's how 463 00:32:08,200 --> 00:32:12,680 Speaker 1: he got embroiled in the process after his former colleague 464 00:32:12,840 --> 00:32:17,120 Speaker 1: at Stortare became ill and died. So he's on the 465 00:32:17,200 --> 00:32:20,720 Speaker 1: stand and the defense is making hay of him because 466 00:32:20,800 --> 00:32:25,240 Speaker 1: they alleged that he's only basically implicating the two defendants 467 00:32:25,400 --> 00:32:29,360 Speaker 1: from Fox as revenge. They claimed he's the mastermind of 468 00:32:29,440 --> 00:32:32,880 Speaker 1: the soccer bribery scheme, got them. They're just victims and 469 00:32:32,960 --> 00:32:36,800 Speaker 1: he's only implicating him. He's quite a witness. His fantastic 470 00:32:36,880 --> 00:32:40,120 Speaker 1: memory as very vivid in his recollections as well as 471 00:32:40,200 --> 00:32:43,920 Speaker 1: thora in his descriptions of bribes and discussions. And he 472 00:32:44,120 --> 00:32:48,280 Speaker 1: was the star witness in the last trial as well. Yeah, 473 00:32:48,480 --> 00:32:50,960 Speaker 1: he was. He was the subject of the very dramatic 474 00:32:51,120 --> 00:32:54,760 Speaker 1: incident that happened at the last trial. There were three 475 00:32:54,800 --> 00:32:59,400 Speaker 1: soccer bosses from Latin Americans, and these three defendants represented 476 00:33:00,000 --> 00:33:04,560 Speaker 1: American soccer conferences and they were accused of accepting the 477 00:33:04,680 --> 00:33:07,720 Speaker 1: broad and alahamdro Versaca was the guy that was allegedly 478 00:33:07,800 --> 00:33:12,960 Speaker 1: paying a broad through company, and he described suddenly he's 479 00:33:12,960 --> 00:33:15,320 Speaker 1: on the stand, and it was a very dramatic story 480 00:33:15,480 --> 00:33:20,520 Speaker 1: because he was at the hotel in Switzerland when they 481 00:33:20,560 --> 00:33:24,600 Speaker 1: had the raid where they arrested everybody, but he missed 482 00:33:24,640 --> 00:33:26,840 Speaker 1: the early morning breakfast. I think it founded like he 483 00:33:26,880 --> 00:33:29,880 Speaker 1: had a meeting outside of the hotel and he arrived 484 00:33:29,960 --> 00:33:34,000 Speaker 1: to the hotel dining room to find chaos and wives 485 00:33:34,080 --> 00:33:36,960 Speaker 1: crying and sobbing that their husbands had been carried away. 486 00:33:37,280 --> 00:33:42,440 Speaker 1: He eventually contacts the US law enforcement and surrendered and 487 00:33:42,480 --> 00:33:46,160 Speaker 1: began secretly cooperating. So it's quite the dramatic story as 488 00:33:46,160 --> 00:33:49,280 Speaker 1: the man who got away and d became the secret 489 00:33:49,320 --> 00:33:52,360 Speaker 1: government cooperator. He's up on the stand at the last 490 00:33:52,400 --> 00:33:57,080 Speaker 1: trial and he was very emotional because apparently there were 491 00:33:57,120 --> 00:34:00,160 Speaker 1: alleged death threats. The US government claims had had sin 492 00:34:00,240 --> 00:34:03,160 Speaker 1: against him and his family and his life had been 493 00:34:03,200 --> 00:34:05,920 Speaker 1: threatened as well as those in his family in South 494 00:34:05,960 --> 00:34:10,440 Speaker 1: America that remained there. And one of the soccer bosses 495 00:34:10,480 --> 00:34:14,120 Speaker 1: on trial, he said had made a gesture that looked 496 00:34:14,120 --> 00:34:16,560 Speaker 1: like litting his throat, like your your head's gonna get 497 00:34:16,560 --> 00:34:19,560 Speaker 1: cut off or they're gonna split your throat, and it 498 00:34:19,680 --> 00:34:22,680 Speaker 1: was a gesture. Later the disense lawyer claimed that it 499 00:34:22,719 --> 00:34:27,360 Speaker 1: was client had itchy skin and and that it hadn't 500 00:34:27,400 --> 00:34:30,239 Speaker 1: been a threat, it was only scratching his neap. The 501 00:34:30,360 --> 00:34:34,040 Speaker 1: judge had a hearing about it and the defendant was 502 00:34:34,040 --> 00:34:37,560 Speaker 1: was chaptized by the Dutch. So he came back as 503 00:34:37,560 --> 00:34:41,560 Speaker 1: a second round as a witness, and he pretty colorful. 504 00:34:41,760 --> 00:34:45,280 Speaker 1: He told us all about the chaos that ensued after 505 00:34:46,000 --> 00:34:50,560 Speaker 1: two soccer bosses. He appeal edges that he did pay 506 00:34:50,840 --> 00:34:55,080 Speaker 1: rise with these two Fox executives. And he was asked 507 00:34:55,160 --> 00:34:58,000 Speaker 1: that there kind of time when he became basically cautious 508 00:34:58,040 --> 00:35:00,920 Speaker 1: about pain. He cried and he said yeah, and around December, 509 00:35:02,000 --> 00:35:06,440 Speaker 1: what happened then, well, apparently, he said, two of the 510 00:35:06,440 --> 00:35:10,200 Speaker 1: FIFA officials that are part of the governing body got 511 00:35:10,239 --> 00:35:14,280 Speaker 1: caught on camera, excepting Drive, on a secretly recorded camera 512 00:35:14,360 --> 00:35:18,000 Speaker 1: and articles were written about that. And after that happened, 513 00:35:18,480 --> 00:35:21,720 Speaker 1: he said, there was an uproar and then the FIFA 514 00:35:21,840 --> 00:35:25,400 Speaker 1: executive how their annual meeting or their meeting to decide 515 00:35:25,520 --> 00:35:28,480 Speaker 1: who was going to be named the host country for 516 00:35:28,719 --> 00:35:34,000 Speaker 1: the World Cup. In the two World Cups, and according 517 00:35:34,040 --> 00:35:37,760 Speaker 1: to his telling, everyone had expected the US for another 518 00:35:37,800 --> 00:35:42,320 Speaker 1: country to win, anybody but basically Cutter, which was eventually 519 00:35:42,520 --> 00:35:46,239 Speaker 1: selected as the host country. And he said, here it 520 00:35:46,360 --> 00:35:49,880 Speaker 1: was World Cup suppets be that they had no stadium. 521 00:35:50,120 --> 00:35:53,200 Speaker 1: When the US had held the World Cup in ninety four, 522 00:35:53,600 --> 00:35:57,359 Speaker 1: they had had the greatest record attendants ever and they 523 00:35:57,360 --> 00:36:01,560 Speaker 1: had stadiums and capability and infrastruct her And here Cutter 524 00:36:01,680 --> 00:36:03,640 Speaker 1: was in the middle of the desert with a hundred 525 00:36:03,640 --> 00:36:07,719 Speaker 1: and twenty degrees in June and July two and they had, 526 00:36:07,880 --> 00:36:11,000 Speaker 1: you know, no infrastructure. Um, he said it was a 527 00:36:11,000 --> 00:36:13,200 Speaker 1: bit of a joke. And he said it was like 528 00:36:13,280 --> 00:36:16,560 Speaker 1: writing in the sky and in the clouds we are 529 00:36:16,560 --> 00:36:21,120 Speaker 1: open for broad that big soccer officials are broadcasting. So 530 00:36:21,320 --> 00:36:24,759 Speaker 1: it made him nervous, and he told his alleged co 531 00:36:24,760 --> 00:36:29,440 Speaker 1: conspirators where we have to be careful. It sounds from 532 00:36:29,600 --> 00:36:33,239 Speaker 1: the quotations that you have in your story that he 533 00:36:33,320 --> 00:36:39,440 Speaker 1: speaks very well and has great descriptive powers. Yeah, I 534 00:36:39,440 --> 00:36:43,280 Speaker 1: mean he's a good storyteller. The defense has just railed 535 00:36:43,280 --> 00:36:46,879 Speaker 1: at him, and they basically made sound like a sociopath, 536 00:36:47,160 --> 00:36:51,640 Speaker 1: and their opening statements they have scaled as credibility and reliability. 537 00:36:52,480 --> 00:36:55,520 Speaker 1: He has has shown what he is rare in the 538 00:36:55,520 --> 00:36:59,680 Speaker 1: courtroom of I've seen of a cooperator that appears to 539 00:36:59,800 --> 00:37:03,320 Speaker 1: how a tremendous amount of remorse for his crime. Many people, 540 00:37:03,320 --> 00:37:06,680 Speaker 1: when they described and their testimony to minimize their role 541 00:37:07,120 --> 00:37:11,440 Speaker 1: and basically blame everyone else that's not his telling. His 542 00:37:11,520 --> 00:37:16,440 Speaker 1: account is a kind of a fulsome rendition of this 543 00:37:16,560 --> 00:37:18,600 Speaker 1: is what I did, and I did this and did 544 00:37:18,680 --> 00:37:20,520 Speaker 1: the necess by the way, this is what I said 545 00:37:20,520 --> 00:37:21,800 Speaker 1: to him, and this is what he said to me, 546 00:37:22,280 --> 00:37:25,560 Speaker 1: and it's pretty thorough um to his ask about there 547 00:37:25,640 --> 00:37:29,799 Speaker 1: is these offshore vehicles that are basically passed through entities 548 00:37:30,239 --> 00:37:34,600 Speaker 1: through which bribes were being paid. And the prosecutor was asking, 549 00:37:34,600 --> 00:37:36,799 Speaker 1: you know, what's this all about? Because oh, he didn't 550 00:37:36,840 --> 00:37:39,759 Speaker 1: do anything at all. It didn't do anything else but 551 00:37:40,000 --> 00:37:42,960 Speaker 1: collect money and pay bribe and and and plus he 552 00:37:43,000 --> 00:37:47,200 Speaker 1: has the capacity because he's passionate about soccer. He's very 553 00:37:47,280 --> 00:37:50,760 Speaker 1: knowledgeable about what's in healed. He's Argentine's a great loyalty 554 00:37:50,800 --> 00:37:54,200 Speaker 1: to Argentina is very proud of the country, love soccer, 555 00:37:54,840 --> 00:37:57,439 Speaker 1: and yet you can see as a former banker, he's 556 00:37:57,480 --> 00:38:01,400 Speaker 1: got you know, an extraordinary capacity describe all these financial 557 00:38:01,400 --> 00:38:04,399 Speaker 1: transactions and maybe a little much for the jury whore 558 00:38:04,600 --> 00:38:07,479 Speaker 1: you know, every day folks, what kind of a deal 559 00:38:07,560 --> 00:38:10,480 Speaker 1: did he make? He played guilty to rapetarian and a 560 00:38:10,520 --> 00:38:14,000 Speaker 1: host of currents, so he faces some serious times. So 561 00:38:14,200 --> 00:38:15,839 Speaker 1: he's going to have to throw himself on the most 562 00:38:15,840 --> 00:38:17,879 Speaker 1: of the record and to see if he gets some way, 563 00:38:18,120 --> 00:38:20,759 Speaker 1: you know, he gets a lenient sense. Do you know 564 00:38:20,800 --> 00:38:23,600 Speaker 1: which judge is gonna you know, handle us. It's it's 565 00:38:23,640 --> 00:38:26,520 Speaker 1: the same judge who handled the case of the three 566 00:38:26,960 --> 00:38:30,640 Speaker 1: uh soccer bosses that got convicted in the seventeen trial, 567 00:38:30,760 --> 00:38:33,960 Speaker 1: and one of them is still in prison. What else 568 00:38:34,000 --> 00:38:38,200 Speaker 1: does the prosecution have. He's the star witness. What other miting. 569 00:38:38,640 --> 00:38:40,960 Speaker 1: It's a very dense case compared to the other one, 570 00:38:41,000 --> 00:38:43,360 Speaker 1: which was you know, you can tell a tale of 571 00:38:43,440 --> 00:38:47,440 Speaker 1: these guys taking the bribes and it's very colorful with 572 00:38:47,800 --> 00:38:53,759 Speaker 1: secret meetings at gas stations and back room conversations where 573 00:38:53,800 --> 00:38:57,960 Speaker 1: the soccer bosses, you know, one of them, uh, Julio Grondona, 574 00:38:58,160 --> 00:39:01,640 Speaker 1: which who is a you know soccer official and Argentina. 575 00:39:02,400 --> 00:39:05,400 Speaker 1: He was the guy that you know, was basically like 576 00:39:05,480 --> 00:39:09,200 Speaker 1: the god father and he would require people to come 577 00:39:09,239 --> 00:39:12,480 Speaker 1: and kiss his ring basically, So that's kind of got 578 00:39:12,520 --> 00:39:17,120 Speaker 1: the mafia, kind of colorful background to it. This case 579 00:39:17,440 --> 00:39:21,480 Speaker 1: is denser because it's more about the business of actually 580 00:39:21,960 --> 00:39:25,879 Speaker 1: paying the broade through these entities for a company. So 581 00:39:25,920 --> 00:39:30,479 Speaker 1: it's a lot more. You know, the other trial had 582 00:39:30,560 --> 00:39:34,760 Speaker 1: great stories of private debts and guys, you know, having 583 00:39:34,800 --> 00:39:39,680 Speaker 1: stack of cash, you know that millions of dollars in cash, 584 00:39:39,760 --> 00:39:43,440 Speaker 1: you know, when we have photographs of all this great stuff, 585 00:39:43,600 --> 00:39:46,920 Speaker 1: the way these guys lived high on high on the 586 00:39:47,000 --> 00:39:51,880 Speaker 1: Hawk with soccer. This is much denser story and trial 587 00:39:52,000 --> 00:39:55,080 Speaker 1: about the business of the fraud. So there's a lot 588 00:39:55,120 --> 00:39:59,400 Speaker 1: of papers, documents. Yeah, there's a lot of contracts and 589 00:39:59,440 --> 00:40:01,719 Speaker 1: this is a this is a shell corporation and what 590 00:40:01,880 --> 00:40:05,200 Speaker 1: is the shell corporation? During well, it's saying it's a transaction, 591 00:40:05,239 --> 00:40:08,359 Speaker 1: but it's really just paper up at an a list 592 00:40:08,400 --> 00:40:13,120 Speaker 1: a bride. So besides saying that this guy's out for revenge, 593 00:40:14,040 --> 00:40:17,480 Speaker 1: what else do you see the defense coming up with. Basically, 594 00:40:17,520 --> 00:40:22,480 Speaker 1: the defense is arguing that these transactions were all orchestrated 595 00:40:22,520 --> 00:40:27,960 Speaker 1: and conducted by Bertaco, and they really aren't responsible, and 596 00:40:28,040 --> 00:40:31,640 Speaker 1: that he's such a sophisticated guy. He hit the scheme 597 00:40:31,719 --> 00:40:34,400 Speaker 1: from them and they were just regular business partners and 598 00:40:34,520 --> 00:40:39,680 Speaker 1: poor Foxy Fox Sports and in Latin America was being 599 00:40:39,719 --> 00:40:45,600 Speaker 1: defrauded by Bursaka. So the two former Fox executives and 600 00:40:46,360 --> 00:40:50,680 Speaker 1: the sports marketing firm are on trial. But I understand 601 00:40:50,840 --> 00:40:54,960 Speaker 1: that each is being represented by more than one attorney. 602 00:40:55,080 --> 00:40:59,120 Speaker 1: Well I counted at least twenty two lawyers inside the courtroom. 603 00:40:59,200 --> 00:41:02,000 Speaker 1: Well the more Really, there are a lot of lawyer. 604 00:41:03,160 --> 00:41:07,160 Speaker 1: There are three descendants and each of them has about 605 00:41:07,400 --> 00:41:13,319 Speaker 1: six lawyers apiece. So it's gonna be with lawyering like that, 606 00:41:13,640 --> 00:41:16,719 Speaker 1: with lots of money to spend, there's going to be 607 00:41:16,920 --> 00:41:20,480 Speaker 1: anything is going to be tried, you know, and everyone's 608 00:41:20,480 --> 00:41:22,800 Speaker 1: going to get their shot at trying to go after 609 00:41:22,920 --> 00:41:27,120 Speaker 1: brusak a, you know, trying to desistate him on cross examination. 610 00:41:27,840 --> 00:41:32,520 Speaker 1: That's scary. That many lawyers, it's stunning, it's stunning. They 611 00:41:32,560 --> 00:41:35,600 Speaker 1: have to reconfigure the courtroom seating just to fit them all. 612 00:41:36,480 --> 00:41:38,719 Speaker 1: Is there a chance that any of the defendants will 613 00:41:38,760 --> 00:41:43,279 Speaker 1: take the stand. I don't think so. I've fired them. 614 00:41:43,400 --> 00:41:49,879 Speaker 1: I wouldn't. What was the highlight of Bursako's testimony so far, Well, 615 00:41:49,880 --> 00:41:55,120 Speaker 1: in the last trial, Bursacco described these wild things of 616 00:41:55,840 --> 00:42:00,200 Speaker 1: being in the hotel and money being exchanged, and he 617 00:42:00,280 --> 00:42:03,360 Speaker 1: said that one of the soccer officials that he was 618 00:42:03,400 --> 00:42:07,160 Speaker 1: close with, the guy Julio Grondona, had complained to him 619 00:42:07,760 --> 00:42:11,840 Speaker 1: that basically he claimed he was promised between fifty and 620 00:42:11,920 --> 00:42:15,800 Speaker 1: eighty million from Cutter and that he had been short changed. 621 00:42:16,239 --> 00:42:19,600 Speaker 1: So he was complaining to Bursaco that each of the 622 00:42:19,680 --> 00:42:23,080 Speaker 1: soccer of the FIFA official that had voted for Cutter 623 00:42:23,520 --> 00:42:26,360 Speaker 1: was paid more than a million dollars from Cutter sports 624 00:42:26,360 --> 00:42:29,839 Speaker 1: authorities to award the country the World Cup. And this 625 00:42:30,080 --> 00:42:32,520 Speaker 1: one boss that was the boss of all bosses, that 626 00:42:32,640 --> 00:42:36,040 Speaker 1: was really the kingpin that ran FIFA. He was complaining 627 00:42:36,120 --> 00:42:38,239 Speaker 1: that he was supposed to get more and he felt 628 00:42:38,280 --> 00:42:41,960 Speaker 1: someone had come out here the good quotes. He said, um, 629 00:42:42,000 --> 00:42:45,360 Speaker 1: the risk was much greater. After December twenty there was 630 00:42:45,400 --> 00:42:48,959 Speaker 1: a general surprise, meaning the general surprise that Cutter had won, 631 00:42:49,120 --> 00:42:52,040 Speaker 1: and I think substantially changed the risk of pain bribes 632 00:42:52,120 --> 00:42:56,040 Speaker 1: in the soccer world. He's told the jury. Many expected 633 00:42:56,080 --> 00:42:59,840 Speaker 1: the US or another country to be selected. Countries like 634 00:43:00,000 --> 00:43:04,320 Speaker 1: a Pan Australia had been in the running to host 635 00:43:04,320 --> 00:43:09,080 Speaker 1: the two World Cups, and Bill Clinton was part of 636 00:43:09,080 --> 00:43:13,400 Speaker 1: the delegation that was sent to present the US as 637 00:43:13,440 --> 00:43:18,160 Speaker 1: a potential World Cup and he said everyone was stunned. 638 00:43:19,239 --> 00:43:21,920 Speaker 1: And the reason the US was was thought to be 639 00:43:21,960 --> 00:43:24,960 Speaker 1: a favorite was because apendence records had been broken when 640 00:43:24,960 --> 00:43:28,480 Speaker 1: the country hosted the World Cup. And he goes, how 641 00:43:28,480 --> 00:43:31,320 Speaker 1: can the country compete with no stadiums in the middle 642 00:43:31,360 --> 00:43:34,400 Speaker 1: of the desert and a hundred and twenty degrees Fahrenheim. 643 00:43:34,800 --> 00:43:38,080 Speaker 1: We knew last time, but now we got a little 644 00:43:38,080 --> 00:43:40,480 Speaker 1: more color. And the color for this one was the 645 00:43:40,520 --> 00:43:43,000 Speaker 1: reason why it came up. And this child was because 646 00:43:43,000 --> 00:43:46,960 Speaker 1: he said that the controversy thatd erupted first with the 647 00:43:47,040 --> 00:43:50,680 Speaker 1: bat people getting bags of money on camera caught on camera. 648 00:43:51,160 --> 00:43:54,640 Speaker 1: Those two soccer FIFA officials were not allowed to vote 649 00:43:54,680 --> 00:43:57,359 Speaker 1: on whether or not Cutter and Russia because it also 650 00:43:57,440 --> 00:44:02,640 Speaker 1: involved the awarding of the World Cup hosts country. So 651 00:44:02,800 --> 00:44:07,600 Speaker 1: Russia got and then suddenly, which a break from tradition, 652 00:44:07,880 --> 00:44:12,279 Speaker 1: they awarded the second immediate second country. Instead of a 653 00:44:12,400 --> 00:44:14,920 Speaker 1: lapse of time to pass. They did it in the 654 00:44:15,000 --> 00:44:17,959 Speaker 1: same day, within minutes apart, which was also a break 655 00:44:18,000 --> 00:44:21,400 Speaker 1: from tradition. And then suddenly the next country, that's the 656 00:44:21,480 --> 00:44:26,840 Speaker 1: nap IS hosts country, is Cutter. So, I mean, we 657 00:44:26,920 --> 00:44:29,480 Speaker 1: knew the last time when we described that each of 658 00:44:29,520 --> 00:44:32,120 Speaker 1: these guys, these FIFA boss has got a million dollar 659 00:44:32,280 --> 00:44:36,960 Speaker 1: cut for doing this um and then he heard his 660 00:44:37,080 --> 00:44:41,000 Speaker 1: friends complain, Oh where I didn't get my either fifty 661 00:44:41,080 --> 00:44:43,760 Speaker 1: or eighty million dollars that I've been promised by Cutter. 662 00:44:44,280 --> 00:44:49,279 Speaker 1: The amount of bribery alleged here is just astonishing. Thanks 663 00:44:49,320 --> 00:44:53,480 Speaker 1: so much, Patty. That's Bloomberg Legal reporter Patricia Hurtado, and 664 00:44:53,520 --> 00:44:55,640 Speaker 1: that's it for this edition of The Bloomberg Law Show. 665 00:44:56,000 --> 00:44:58,320 Speaker 1: Remember you can always get the latest legal news on 666 00:44:58,400 --> 00:45:02,680 Speaker 1: our Bloomberg Law podcast. You can find them on Apple Podcasts, Spotify, 667 00:45:02,880 --> 00:45:07,879 Speaker 1: and at www dot Bloomberg dot com, slash podcast slash Law, 668 00:45:08,320 --> 00:45:10,920 Speaker 1: And remember to tune into The Bloomberg Law Show every 669 00:45:10,960 --> 00:45:14,080 Speaker 1: week night at ten p m. Wall Street Time. I'm 670 00:45:14,160 --> 00:45:16,600 Speaker 1: June Grossow, and you're listening to Bloomberg