1 00:00:00,400 --> 00:00:03,160 Speaker 1: Hello, I'm Van and Novie Williams, and I'm Mike Lynch 2 00:00:03,240 --> 00:00:05,440 Speaker 1: and I'm Michael Barrn. This is the Bloomberg Business of 3 00:00:05,440 --> 00:00:08,159 Speaker 1: Sports podcast, where we explore the big money issues in 4 00:00:08,200 --> 00:00:11,239 Speaker 1: the world of sports today. We begin with soccer and 5 00:00:11,320 --> 00:00:14,840 Speaker 1: reports that Premier League players do not want to play 6 00:00:14,960 --> 00:00:17,599 Speaker 1: during the COVID nineteen I'll break, which could be a 7 00:00:17,800 --> 00:00:22,400 Speaker 1: major blow to the league's hopes of resuming play this year. Evan, 8 00:00:22,520 --> 00:00:25,279 Speaker 1: can you blame him? I can't blame him. And you know, 9 00:00:25,440 --> 00:00:28,880 Speaker 1: I wanted to talk about this because you know, everybody 10 00:00:28,920 --> 00:00:31,200 Speaker 1: in sports right now, us included as talking so much 11 00:00:31,240 --> 00:00:34,199 Speaker 1: about reopening when our league is gonna do it. You know, 12 00:00:34,360 --> 00:00:38,680 Speaker 1: the all the major commissioners are on various White House 13 00:00:38,720 --> 00:00:43,360 Speaker 1: reopening panels. The New York State just announced its reopening panel, 14 00:00:43,440 --> 00:00:47,560 Speaker 1: and you know, Randy Levine, Jeff Wilpon, Jim Dolan, sports 15 00:00:47,600 --> 00:00:49,960 Speaker 1: team owners are all over it. We have not heard 16 00:00:50,040 --> 00:00:53,440 Speaker 1: much from the Players Association to my knowledge. When you 17 00:00:53,479 --> 00:00:55,840 Speaker 1: know Roger Goodell or when Adam Silver is on these 18 00:00:55,840 --> 00:00:59,840 Speaker 1: conference calls with Donald Trump or with other White House personnel, uh, 19 00:01:00,000 --> 00:01:03,120 Speaker 1: the requisite union leader has has not been on those 20 00:01:03,160 --> 00:01:05,640 Speaker 1: calls as well. And as a result, you know, I 21 00:01:05,680 --> 00:01:09,240 Speaker 1: think there's maybe a little bit of of of uncertainty 22 00:01:09,640 --> 00:01:12,679 Speaker 1: among fans about where exactly players stand. And you mentioned 23 00:01:12,880 --> 00:01:16,560 Speaker 1: Michael the this Premier League pole, you know, ESPN did it. 24 00:01:16,640 --> 00:01:18,520 Speaker 1: It sounds like there's a lot of players out there 25 00:01:18,520 --> 00:01:21,560 Speaker 1: who just don't feel fully comfortable coming back. We talked 26 00:01:21,600 --> 00:01:24,200 Speaker 1: to Happy Walter's about this last week, who said that 27 00:01:24,280 --> 00:01:27,480 Speaker 1: he felt as though NBA players on the whole we're 28 00:01:27,760 --> 00:01:29,679 Speaker 1: you know, excited to get back and wanted to do 29 00:01:29,720 --> 00:01:32,039 Speaker 1: it as fast as possible in a safe way, of course. 30 00:01:32,680 --> 00:01:34,600 Speaker 1: But but Mike Lynch, you know, do you think that 31 00:01:34,680 --> 00:01:37,759 Speaker 1: you know, we're losing track of players voices in all 32 00:01:37,800 --> 00:01:40,640 Speaker 1: this conversation about when and how to get sports back 33 00:01:40,680 --> 00:01:44,399 Speaker 1: up and running well in this country. The loudest voice 34 00:01:44,440 --> 00:01:46,199 Speaker 1: in the in the most powerful voice, is the Major 35 00:01:46,240 --> 00:01:49,360 Speaker 1: League Baseball Players Association. And we already heard from Mike 36 00:01:49,400 --> 00:01:52,000 Speaker 1: Trout that he doesn't want to participate in this. He's 37 00:01:52,040 --> 00:01:54,520 Speaker 1: got a wife who's pregnant and doesn't want to be 38 00:01:54,560 --> 00:01:57,360 Speaker 1: around people who who he might have to go back 39 00:01:57,360 --> 00:02:00,600 Speaker 1: into quarantine one after have to participate ating with them. 40 00:02:00,640 --> 00:02:02,800 Speaker 1: As for the premier players, I don't blame them one 41 00:02:02,840 --> 00:02:05,480 Speaker 1: bit at all? Are they getting mixed signals? The United 42 00:02:05,520 --> 00:02:08,919 Speaker 1: Kingdoms in a lockdown right now, yet their minister who's 43 00:02:08,919 --> 00:02:11,160 Speaker 1: for the culture of of sport is trying to get 44 00:02:11,160 --> 00:02:13,280 Speaker 1: the sport back up and running by the end of 45 00:02:13,280 --> 00:02:17,200 Speaker 1: this week. And you know, Francis canceled, Belgium's canceled, the 46 00:02:17,400 --> 00:02:20,639 Speaker 1: Argentina has has canceled, and and I don't blame these 47 00:02:20,639 --> 00:02:23,760 Speaker 1: guys for not wanting to be the sacrificial lambs that 48 00:02:23,800 --> 00:02:25,520 Speaker 1: are going to go out and say, okay, let's test 49 00:02:25,560 --> 00:02:28,760 Speaker 1: this and let's hope that none of us comes down 50 00:02:28,800 --> 00:02:31,840 Speaker 1: with COVID nineteen. I do wonder if the kind of 51 00:02:31,840 --> 00:02:35,840 Speaker 1: the player reaction varies heavily by the way in which 52 00:02:35,880 --> 00:02:38,720 Speaker 1: players get paid. You know, here in the US, for 53 00:02:38,760 --> 00:02:40,960 Speaker 1: the most part, you know, all the big US leagues, 54 00:02:41,560 --> 00:02:45,920 Speaker 1: players get a set percentage of league revenue, and if 55 00:02:46,000 --> 00:02:49,480 Speaker 1: league revenue goes down, player pay goes down. So so 56 00:02:49,520 --> 00:02:51,920 Speaker 1: if I'm an NBA player sitting at home, I'm certainly 57 00:02:51,919 --> 00:02:54,560 Speaker 1: realizing that if you know, if if if league we 58 00:02:54,600 --> 00:02:56,640 Speaker 1: don't get this season back up and running, if we 59 00:02:56,639 --> 00:02:58,840 Speaker 1: don't have our playoffs, if we take a huge hit 60 00:02:58,919 --> 00:03:01,640 Speaker 1: in league revenue this year, or that just hurts my pocket. 61 00:03:01,639 --> 00:03:03,640 Speaker 1: It hurts me and my next contract, it hurts me 62 00:03:03,720 --> 00:03:07,800 Speaker 1: next year, et cetera. Soccer, especially European soccer, structured a 63 00:03:07,800 --> 00:03:10,960 Speaker 1: little bit differently. The pay structure isn't so kind of 64 00:03:11,000 --> 00:03:15,960 Speaker 1: directly tied to the annual ups and downs of league revenue. 65 00:03:16,440 --> 00:03:19,520 Speaker 1: Uh so, Michael, Yeah, I'm curious how how much we 66 00:03:19,600 --> 00:03:22,680 Speaker 1: think you know the fact that a lot of US sports, 67 00:03:22,720 --> 00:03:25,880 Speaker 1: you know, certainly the team sports, they their pay is 68 00:03:25,960 --> 00:03:28,120 Speaker 1: just so directly tied to the way that these leagues 69 00:03:28,160 --> 00:03:31,040 Speaker 1: make money that they may be more willing to I'm 70 00:03:31,040 --> 00:03:32,880 Speaker 1: not gonna say risk their own health, but they may 71 00:03:32,919 --> 00:03:35,360 Speaker 1: be more more up and eager to get things off 72 00:03:35,360 --> 00:03:38,360 Speaker 1: the ground now than maybe, you know, counterparts in other 73 00:03:38,360 --> 00:03:40,680 Speaker 1: sports around the globe, aren't. Well, you hit the nail 74 00:03:40,720 --> 00:03:43,240 Speaker 1: on the head when you said team sports. You're talking 75 00:03:43,800 --> 00:03:47,000 Speaker 1: a lot of people involved. There's a story out of 76 00:03:47,000 --> 00:03:51,760 Speaker 1: the Telegraph in Britain where they want to hold boxing 77 00:03:51,800 --> 00:03:55,120 Speaker 1: matches in a TV studio where it would just be 78 00:03:55,360 --> 00:03:58,600 Speaker 1: the two boxers and the promoters and of course the 79 00:03:58,880 --> 00:04:02,120 Speaker 1: TV crew, which is totally different than when you have 80 00:04:02,200 --> 00:04:07,120 Speaker 1: a team sport. I could see that the boxing match happening. 81 00:04:07,320 --> 00:04:09,040 Speaker 1: They want to get that around by July, and I 82 00:04:09,040 --> 00:04:12,600 Speaker 1: can see that happening, Whereas when you talk about a 83 00:04:12,640 --> 00:04:15,280 Speaker 1: big team sport, I just don't see that coming in 84 00:04:15,320 --> 00:04:17,799 Speaker 1: the future. Yeah, a lot of these individual sports boxing 85 00:04:17,839 --> 00:04:20,200 Speaker 1: A good example is is is you know, these guys 86 00:04:20,240 --> 00:04:22,120 Speaker 1: aren't fighting, they're not getting paid, right, so I can 87 00:04:22,160 --> 00:04:25,280 Speaker 1: certainly understand, you know, maybe some some desire on their 88 00:04:25,360 --> 00:04:26,880 Speaker 1: end to to get back up and in the ring 89 00:04:27,160 --> 00:04:30,120 Speaker 1: as soon as possible. I would guess that as here 90 00:04:30,160 --> 00:04:32,039 Speaker 1: in the US, as we get closer and closer to 91 00:04:32,080 --> 00:04:35,440 Speaker 1: an actual understanding of how the NBA plans to get 92 00:04:35,440 --> 00:04:38,160 Speaker 1: its season back off the ground, how the NHL plans 93 00:04:38,200 --> 00:04:40,360 Speaker 1: to get its season back off the ground, how MLB 94 00:04:40,520 --> 00:04:42,520 Speaker 1: wants to start at season, I would think at that 95 00:04:42,560 --> 00:04:44,880 Speaker 1: point we're going to start to hear a little bit 96 00:04:44,920 --> 00:04:48,080 Speaker 1: more from the players voices, the players themselves. You know, 97 00:04:48,120 --> 00:04:50,120 Speaker 1: they have a tremendous amount of leverage when they use 98 00:04:50,160 --> 00:04:52,000 Speaker 1: it properly. I think we're going to hear them more 99 00:04:52,000 --> 00:04:56,080 Speaker 1: and more. Moving forward. Up next, let's talk football rights 100 00:04:56,200 --> 00:04:59,880 Speaker 1: and media rights. With a new deal between Amazon and 101 00:05:00,040 --> 00:05:03,159 Speaker 1: the NFL, it looks like Amazon will be getting exclusive 102 00:05:03,240 --> 00:05:05,599 Speaker 1: rights to a Centerta game this season if there is 103 00:05:05,640 --> 00:05:09,640 Speaker 1: one happen. Yeah, this is I mean no kind of 104 00:05:09,720 --> 00:05:13,120 Speaker 1: big surprise here. The NFL is extending its partnership with Amazon, 105 00:05:13,200 --> 00:05:15,360 Speaker 1: which you know, for folks who don't know, they get 106 00:05:15,360 --> 00:05:19,000 Speaker 1: to simulcast a bunch of Thursday night games every year. 107 00:05:19,040 --> 00:05:21,680 Speaker 1: The big wrinkle, as you just mentioned, Amazon for the 108 00:05:21,720 --> 00:05:24,600 Speaker 1: first time is getting exclusive rights to three games, one 109 00:05:24,760 --> 00:05:27,599 Speaker 1: in each of the next three seasons. Um. You know 110 00:05:27,680 --> 00:05:31,160 Speaker 1: that this is, in my opinion, a big test from 111 00:05:31,200 --> 00:05:34,200 Speaker 1: the NFL. They want to know if streaming technology is 112 00:05:34,240 --> 00:05:36,720 Speaker 1: good enough, and I guess in this case, specifically, if 113 00:05:36,720 --> 00:05:40,200 Speaker 1: Amazon streaming technology is good enough that they can have 114 00:05:40,480 --> 00:05:43,839 Speaker 1: millions of people around the globe all watching the same 115 00:05:43,880 --> 00:05:46,919 Speaker 1: game live and not have so much of a lag 116 00:05:47,000 --> 00:05:49,200 Speaker 1: that you can't gamble on the sport live, that you 117 00:05:49,240 --> 00:05:52,279 Speaker 1: can't be on social media while you're watching because you might, 118 00:05:52,360 --> 00:05:54,520 Speaker 1: you know, get tipped off to a touchdown that's about 119 00:05:54,560 --> 00:05:57,080 Speaker 1: to happen. You know, this is all the NFL kind 120 00:05:57,080 --> 00:06:00,600 Speaker 1: of deeper dipping its toe into this idea to see 121 00:06:00,600 --> 00:06:04,000 Speaker 1: exactly where the tech can take us. Mike Lynch, how 122 00:06:04,040 --> 00:06:05,880 Speaker 1: big a deal do you think this kind of next 123 00:06:05,920 --> 00:06:09,760 Speaker 1: iteration of of NFL rights is well, a lot of people, 124 00:06:09,760 --> 00:06:12,720 Speaker 1: as we all know, are cutting cutting the cord with cable. 125 00:06:13,040 --> 00:06:15,920 Speaker 1: A lot of us find many of our entertainment shows 126 00:06:15,960 --> 00:06:19,880 Speaker 1: now on Amazon and Netflix. So this thing, this exclusive 127 00:06:19,880 --> 00:06:24,359 Speaker 1: thing on Saturday, I'm thinking, let's just hypothetically say that 128 00:06:24,480 --> 00:06:27,960 Speaker 1: Saturday game is the Tampa Bay Buccaneers against the New 129 00:06:28,080 --> 00:06:30,040 Speaker 1: Orleans Saints, and the only two markets that will get 130 00:06:30,040 --> 00:06:34,280 Speaker 1: it over the air will be the two participating teams. So, um, 131 00:06:34,360 --> 00:06:36,440 Speaker 1: if you want to watch Drew Brees and Tom Brady, 132 00:06:36,680 --> 00:06:38,920 Speaker 1: you've got to go, and you've got to subscribe to 133 00:06:38,920 --> 00:06:41,400 Speaker 1: to Amazon. And I think it's a brilliant move by 134 00:06:41,440 --> 00:06:43,839 Speaker 1: the by the NFL that the previous deal was worth 135 00:06:43,880 --> 00:06:46,520 Speaker 1: sixty million dollars and that just expired, and I can 136 00:06:46,560 --> 00:06:50,320 Speaker 1: only imagine this thing has gone exponentially higher. Yeah, the 137 00:06:50,839 --> 00:06:54,040 Speaker 1: conversations I have with folks about streaming, you know, the 138 00:06:54,080 --> 00:06:58,320 Speaker 1: big question is is this technology good enough yet? You know, 139 00:06:58,440 --> 00:07:03,080 Speaker 1: and we've seen very profile sporting events that are streaming 140 00:07:03,120 --> 00:07:07,920 Speaker 1: digitally that have pretty severe hiccups. I was very frustrated 141 00:07:07,960 --> 00:07:11,640 Speaker 1: watching the college football Playoff this year, you know, because 142 00:07:11,800 --> 00:07:14,040 Speaker 1: I was trying to watch it digitally and and ESPN 143 00:07:14,040 --> 00:07:16,680 Speaker 1: Plus just wasn't working in at least in my in 144 00:07:16,720 --> 00:07:20,000 Speaker 1: my neighborhood with my setup. Um, so, you know, nobody 145 00:07:20,080 --> 00:07:22,360 Speaker 1: is going to give and certainly not the NFL. No 146 00:07:22,520 --> 00:07:26,160 Speaker 1: big sports are gonna give Amazon or Facebook or Twitter 147 00:07:26,400 --> 00:07:29,760 Speaker 1: or Apple a big chunk of exclusive rights until they 148 00:07:29,760 --> 00:07:33,320 Speaker 1: are certain that the technology is good enough. And I 149 00:07:33,320 --> 00:07:36,720 Speaker 1: think this is gonna let us let us get there, Michael. 150 00:07:36,880 --> 00:07:39,880 Speaker 1: When we think about those bigger rights, how viable do 151 00:07:39,960 --> 00:07:42,280 Speaker 1: we think it is for you know, for those companies 152 00:07:42,320 --> 00:07:44,320 Speaker 1: once they can show, you know, hey, we can we 153 00:07:44,360 --> 00:07:45,880 Speaker 1: can do this, we can do it in a way 154 00:07:45,920 --> 00:07:49,760 Speaker 1: that that is a seamless transition from from people's TVs 155 00:07:49,840 --> 00:07:52,520 Speaker 1: to their computers. You know, do we think then immediately 156 00:07:52,560 --> 00:07:56,680 Speaker 1: we're gonna see Amazon, We're gonna see Apple start bidding 157 00:07:56,680 --> 00:07:59,160 Speaker 1: for the big, big packages. We'll see. Here's the thing. 158 00:07:59,400 --> 00:08:03,080 Speaker 1: It's for young, handsome lads like you. You will love 159 00:08:03,160 --> 00:08:05,880 Speaker 1: the streaming because that's the way you do it. Now. 160 00:08:06,320 --> 00:08:08,760 Speaker 1: I got a TV on right now that's not even 161 00:08:08,760 --> 00:08:11,880 Speaker 1: a flat screen. It's the old tube TV and it's 162 00:08:11,880 --> 00:08:15,400 Speaker 1: tuned into Hazel. So I mean, this is what old 163 00:08:15,440 --> 00:08:20,080 Speaker 1: people do. Right now, I'm still not ready to go 164 00:08:20,360 --> 00:08:24,320 Speaker 1: to streaming yet I'm just not so sure. It's I'd 165 00:08:24,360 --> 00:08:27,080 Speaker 1: like to sit down in my Marker lounge here, I'd 166 00:08:27,120 --> 00:08:30,480 Speaker 1: like to watch my TV, and then after Matt Locke 167 00:08:30,560 --> 00:08:33,319 Speaker 1: goes often I will go take a nap. So if 168 00:08:33,360 --> 00:08:36,319 Speaker 1: you're an older guy like me, I'm just trying to 169 00:08:36,360 --> 00:08:39,320 Speaker 1: see how receptive people like me are going to be 170 00:08:39,440 --> 00:08:41,920 Speaker 1: the streaming. I'm really glad you mentioned that, because that 171 00:08:42,000 --> 00:08:44,199 Speaker 1: is the other big question the NFL. The whole of 172 00:08:44,280 --> 00:08:46,640 Speaker 1: their whole thing is reach. They want to be reaching 173 00:08:46,679 --> 00:08:49,640 Speaker 1: the widest audience, and that's not just here in the US, 174 00:08:49,760 --> 00:08:52,760 Speaker 1: that's also globally, which is why I think Amazon Prime, 175 00:08:53,040 --> 00:08:55,440 Speaker 1: you know, works so well for them. But that's the 176 00:08:55,440 --> 00:08:58,400 Speaker 1: other question. As soon as the NFL gives a big 177 00:08:58,480 --> 00:09:02,040 Speaker 1: chunk of exclusive games to Amazon, uh, you're cutting off 178 00:09:02,240 --> 00:09:04,920 Speaker 1: a huge portion of the country and a huge portion 179 00:09:04,960 --> 00:09:08,120 Speaker 1: of probably your fan base by moving the games into 180 00:09:08,160 --> 00:09:11,319 Speaker 1: a platform or a technology that they're either not fully 181 00:09:11,320 --> 00:09:13,480 Speaker 1: comfortable with or or don't use or don't want to 182 00:09:13,559 --> 00:09:16,440 Speaker 1: use at all. So that's kind of the other big question. 183 00:09:16,520 --> 00:09:19,640 Speaker 1: It's is the technology good enough? And then secondly, how 184 00:09:19,679 --> 00:09:23,080 Speaker 1: many NFL fans are willing to to dip into a 185 00:09:23,120 --> 00:09:25,240 Speaker 1: technology that maybe they don't want to use as much, 186 00:09:25,280 --> 00:09:27,920 Speaker 1: they're not as comfortable with. How many how many of 187 00:09:28,000 --> 00:09:29,560 Speaker 1: them are willing to do that? So so when we 188 00:09:29,600 --> 00:09:32,760 Speaker 1: get to this Saturday exclusive game later in the year, 189 00:09:32,800 --> 00:09:36,920 Speaker 1: hopefully if the NFL season uh proceeds uninterrupted, those are 190 00:09:36,960 --> 00:09:38,640 Speaker 1: the things the NFL is going to be looking at. 191 00:09:39,000 --> 00:09:41,480 Speaker 1: How good is the tech and to how many people 192 00:09:41,800 --> 00:09:45,320 Speaker 1: decided to to migrate their way over to Twitch or 193 00:09:45,360 --> 00:09:47,440 Speaker 1: over to Amazon Prime so that they could watch it 194 00:09:47,840 --> 00:09:52,240 Speaker 1: see Hazel still a funny show anything? Uh? And finally, 195 00:09:52,679 --> 00:09:55,040 Speaker 1: let's talk college. Now, it looks like the n c 196 00:09:55,120 --> 00:09:58,000 Speaker 1: double A is considering loosening as rules for athletes to 197 00:09:58,400 --> 00:10:03,480 Speaker 1: profit from the use of their names, images, and likenesses. Now, obviously, 198 00:10:03,480 --> 00:10:06,440 Speaker 1: of course we're going through the commorded virus crisis, but 199 00:10:06,559 --> 00:10:08,960 Speaker 1: once things are up and running, this could be a 200 00:10:09,000 --> 00:10:12,480 Speaker 1: big payday for some of these college athletes. Yeah. I mean, 201 00:10:12,520 --> 00:10:14,080 Speaker 1: I've been I've been kind of waiting for this to 202 00:10:14,160 --> 00:10:17,160 Speaker 1: happen for a really long time. And you know, I 203 00:10:17,160 --> 00:10:18,640 Speaker 1: think we should say the n c A did not 204 00:10:18,720 --> 00:10:21,719 Speaker 1: get to this point necessarily really willingly. There have been 205 00:10:21,720 --> 00:10:24,640 Speaker 1: a number of state laws that have kind of pushed 206 00:10:24,640 --> 00:10:26,000 Speaker 1: them to do it. There have been a number of 207 00:10:26,040 --> 00:10:28,960 Speaker 1: lawsuits that have also pushed them to do it. But 208 00:10:29,280 --> 00:10:31,920 Speaker 1: if in January, as the n c A Board says 209 00:10:31,960 --> 00:10:34,880 Speaker 1: that it will, they approve some sort of of new 210 00:10:35,000 --> 00:10:38,600 Speaker 1: regulations for athletes to market themselves, You're looking at a 211 00:10:38,679 --> 00:10:42,280 Speaker 1: pretty big kind of tectonic shift in the way that 212 00:10:42,400 --> 00:10:45,040 Speaker 1: you know, college athletes are able to make money while 213 00:10:45,040 --> 00:10:47,600 Speaker 1: they're still in school. You know, these guys can suddenly 214 00:10:47,679 --> 00:10:51,840 Speaker 1: sign sneaker deals, They can be in advertisements for you know, 215 00:10:51,920 --> 00:10:55,079 Speaker 1: local car dealers. They can you know, be an Instagram influencer. 216 00:10:55,120 --> 00:10:57,640 Speaker 1: They can put out, you know, a live music album 217 00:10:57,920 --> 00:11:01,280 Speaker 1: with with their name and and and recognizing them as 218 00:11:01,280 --> 00:11:04,079 Speaker 1: a quarterback for the for the University of North Carolina. 219 00:11:04,120 --> 00:11:05,800 Speaker 1: They can do all those things which were they were 220 00:11:05,800 --> 00:11:08,640 Speaker 1: not allowed to do in the past. Uh So, so 221 00:11:08,720 --> 00:11:11,960 Speaker 1: a progressive move. We'll see exactly what the details look like. Um. 222 00:11:11,960 --> 00:11:13,679 Speaker 1: But but Mike Lynch, do you agree that this is 223 00:11:13,760 --> 00:11:15,920 Speaker 1: kind of a from a from a sports business standpoint, 224 00:11:16,200 --> 00:11:18,240 Speaker 1: You know, certainly a big shift in the way that 225 00:11:18,280 --> 00:11:21,160 Speaker 1: we think about the finances around college sports. This is 226 00:11:21,200 --> 00:11:23,400 Speaker 1: something that's been getting under my skin for a lot 227 00:11:23,400 --> 00:11:25,360 Speaker 1: of years, and and it It's just it's sort of 228 00:11:25,400 --> 00:11:28,959 Speaker 1: irritates me. Um, they're all going to school for nothing. 229 00:11:28,960 --> 00:11:32,160 Speaker 1: They're basically getting so let's say the average tuition and 230 00:11:32,240 --> 00:11:34,600 Speaker 1: room board now with sixty five thousand, So they're getting 231 00:11:35,080 --> 00:11:38,000 Speaker 1: two hundred and sixty thousand dollar check basically to go 232 00:11:38,080 --> 00:11:41,880 Speaker 1: to school for nothing, while many of the other students 233 00:11:42,040 --> 00:11:45,199 Speaker 1: student athletes that don't have been scholarship programs are paying 234 00:11:45,760 --> 00:11:48,199 Speaker 1: paying full full boat. So right there there there two 235 00:11:48,400 --> 00:11:52,720 Speaker 1: d sixty dollars ahead of everybody else. Um, and where 236 00:11:52,720 --> 00:11:54,600 Speaker 1: where is the I mean, do you want some kid 237 00:11:54,640 --> 00:11:57,120 Speaker 1: at school that's gonna be driving around in the Lamborghini 238 00:11:57,200 --> 00:11:59,760 Speaker 1: and and diamond ear rings and flash and you know, 239 00:11:59,760 --> 00:12:02,000 Speaker 1: hon to dollar bills in his pocket. I just I 240 00:12:02,600 --> 00:12:04,880 Speaker 1: there's got to be some type of regularity. Maybe put 241 00:12:04,960 --> 00:12:08,319 Speaker 1: the money in a trust until the person graduates from college, 242 00:12:08,600 --> 00:12:10,800 Speaker 1: if they allow them to use their likeness and their 243 00:12:10,880 --> 00:12:13,679 Speaker 1: name and go to autograph sessions. But the stuff, the 244 00:12:13,720 --> 00:12:17,080 Speaker 1: money into the bank account right now is eighteen, nineteen 245 00:12:17,120 --> 00:12:20,000 Speaker 1: twenty year old. In college, we all were that age 246 00:12:20,040 --> 00:12:21,520 Speaker 1: and that you know, if we had more than ten 247 00:12:21,559 --> 00:12:23,560 Speaker 1: bucks in our pocket, you know, we felt like we 248 00:12:23,559 --> 00:12:26,280 Speaker 1: were Joe millionaire. I think this thing has got a 249 00:12:26,280 --> 00:12:28,679 Speaker 1: lot lot more wrinkles to be I and all before 250 00:12:28,800 --> 00:12:31,839 Speaker 1: before I'm happy with it. Yeah, it's true, and that 251 00:12:32,000 --> 00:12:33,439 Speaker 1: we're gonna get all those I mean some of the 252 00:12:33,440 --> 00:12:36,240 Speaker 1: big questions that I have. Can an athlete sign a 253 00:12:36,280 --> 00:12:39,960 Speaker 1: partnership that goes kind of directly in contrast with a 254 00:12:40,000 --> 00:12:42,760 Speaker 1: partnership that it's school or team already has, right, So 255 00:12:42,800 --> 00:12:44,959 Speaker 1: if I play for University of Texas, which is a 256 00:12:45,040 --> 00:12:47,560 Speaker 1: Nike school, you know, can I sign a deal with 257 00:12:47,559 --> 00:12:49,560 Speaker 1: with under Armor? You know that those are one question. 258 00:12:49,920 --> 00:12:53,600 Speaker 1: Another question, you know, is group licensing going to be available? 259 00:12:53,679 --> 00:12:55,640 Speaker 1: You know, those are the types of deals that let 260 00:12:55,960 --> 00:12:58,839 Speaker 1: you know, the college football video game happen again or 261 00:12:58,880 --> 00:13:01,640 Speaker 1: the college basketball video game. Is that going to be allowed? 262 00:13:02,360 --> 00:13:04,360 Speaker 1: Our our kids gonna be able to work with their 263 00:13:04,400 --> 00:13:07,400 Speaker 1: schools so that they can kind of share marks. You know, 264 00:13:07,440 --> 00:13:10,560 Speaker 1: it's certainly more valuable if you're you know, the the 265 00:13:10,640 --> 00:13:13,520 Speaker 1: head the starting quarterback at Texas A and M. If 266 00:13:13,559 --> 00:13:15,520 Speaker 1: you can appear in ads wearing a Texas A and 267 00:13:15,640 --> 00:13:20,840 Speaker 1: M uniform, Uh, that probably increases your your potential marketing 268 00:13:20,920 --> 00:13:23,120 Speaker 1: value more than it does if you have to just 269 00:13:23,120 --> 00:13:26,000 Speaker 1: show up in street clothes. So a lot of questions 270 00:13:26,040 --> 00:13:27,599 Speaker 1: that the n c A needs to be answered. I 271 00:13:27,840 --> 00:13:30,400 Speaker 1: I guarantee you that they will also be kind of 272 00:13:30,440 --> 00:13:36,280 Speaker 1: pushing the preserving of amateurism in some form. Regardless of this, 273 00:13:36,400 --> 00:13:39,880 Speaker 1: they're also kind of going to Congress right now, hoping, 274 00:13:40,000 --> 00:13:43,080 Speaker 1: kind of begging, praying that that that Congress will step 275 00:13:43,120 --> 00:13:45,600 Speaker 1: in and and and protect them both from from lawsuits 276 00:13:45,640 --> 00:13:48,080 Speaker 1: and also from the kind of the more progressive state 277 00:13:48,160 --> 00:13:51,000 Speaker 1: laws that I think got us to where to where 278 00:13:51,000 --> 00:13:53,640 Speaker 1: we are right now. Uh, Michael Barr, you know, we 279 00:13:53,640 --> 00:13:55,880 Speaker 1: we spoke with Happy Walter's last week about, you know, 280 00:13:56,200 --> 00:13:59,360 Speaker 1: the financial benefits for a lot of elite high school 281 00:13:59,360 --> 00:14:02,440 Speaker 1: basketball players who, instead of going to college basketball go 282 00:14:02,559 --> 00:14:06,520 Speaker 1: and play professionally in New Zealand or in Spain. Uh. 283 00:14:06,800 --> 00:14:08,960 Speaker 1: And he mentioned one of his clients who made you know, 284 00:14:09,040 --> 00:14:13,000 Speaker 1: over a million dollars between his his his actual pay 285 00:14:13,080 --> 00:14:16,760 Speaker 1: salary and and his leaning shoe deal. Do we think 286 00:14:16,800 --> 00:14:19,440 Speaker 1: that this maybe helps the n c A tip the 287 00:14:19,480 --> 00:14:22,240 Speaker 1: scales a little bit in that, you know, as as 288 00:14:22,280 --> 00:14:24,280 Speaker 1: Mike Lynch just said, if you're an elite high school 289 00:14:24,320 --> 00:14:27,240 Speaker 1: player right now, going one year to college means that 290 00:14:27,280 --> 00:14:30,360 Speaker 1: you're essentially putting your earning potential on hold under these 291 00:14:30,360 --> 00:14:34,120 Speaker 1: new restrictions, there's at least some way out there where 292 00:14:34,160 --> 00:14:36,480 Speaker 1: you can kind of capitalize on your fame and put 293 00:14:36,520 --> 00:14:38,680 Speaker 1: some money in your in your pocket while you're playing 294 00:14:38,680 --> 00:14:42,160 Speaker 1: college basketball. Well, I agree with what was just said earlier, 295 00:14:42,160 --> 00:14:45,520 Speaker 1: what Mike said, and what you're saying is that you 296 00:14:45,720 --> 00:14:49,200 Speaker 1: at least put some money away for a young man. 297 00:14:49,320 --> 00:14:53,160 Speaker 1: I mean, and I remember when I was eighteen nineteen 298 00:14:53,240 --> 00:14:56,520 Speaker 1: years old, uh, and I had to borrow dad's car, 299 00:14:56,600 --> 00:14:59,000 Speaker 1: and after you cranked it up, I could take twenty 300 00:14:59,000 --> 00:15:01,920 Speaker 1: dollars and take a date out and have a great time, 301 00:15:01,960 --> 00:15:04,040 Speaker 1: and then go to the movies on that too. Now 302 00:15:04,080 --> 00:15:06,960 Speaker 1: can you imagine today, like you said, you have a 303 00:15:07,040 --> 00:15:10,720 Speaker 1: Lamborghini and you've got hundred dollar bills in your wallet, 304 00:15:11,240 --> 00:15:13,880 Speaker 1: and you have change after all that when you went 305 00:15:13,920 --> 00:15:17,360 Speaker 1: to the movies and and taking a date out to dinner. 306 00:15:17,480 --> 00:15:19,800 Speaker 1: May it may have been Denny's, but still I had 307 00:15:19,840 --> 00:15:24,520 Speaker 1: a great date and and and can you imagine today 308 00:15:24,680 --> 00:15:28,960 Speaker 1: with a kid who's driving a Lamborghini and hundred dollar bills, 309 00:15:29,160 --> 00:15:32,600 Speaker 1: He's gonna blow all that money and not have anything 310 00:15:32,720 --> 00:15:35,800 Speaker 1: saved away. At least this way, under this plan, you 311 00:15:35,880 --> 00:15:39,360 Speaker 1: have some money socked away and then later on in life. Uh, 312 00:15:39,400 --> 00:15:41,880 Speaker 1: if you want to invest in something, the money is 313 00:15:41,920 --> 00:15:44,400 Speaker 1: there for you, you're not going to be broken. Yeah, 314 00:15:44,680 --> 00:15:46,880 Speaker 1: we'll see exactly what the what the final you know, 315 00:15:47,000 --> 00:15:48,760 Speaker 1: ruling is in terms of what it's allowed, what the 316 00:15:48,760 --> 00:15:52,800 Speaker 1: structure looks like. Personally, I'm fine with however they want 317 00:15:52,840 --> 00:15:54,360 Speaker 1: to spend it. I mean, the fact is, you know, 318 00:15:54,400 --> 00:15:57,560 Speaker 1: they're they're college athletes right now, are generating billions and 319 00:15:57,600 --> 00:16:01,720 Speaker 1: billions of dollars and they are they're not seeing anything 320 00:16:01,720 --> 00:16:04,600 Speaker 1: close to, in my opinion, kind of the requisite amount 321 00:16:04,640 --> 00:16:08,440 Speaker 1: back for that. So yes, no question, we will be hopefully, 322 00:16:08,520 --> 00:16:10,240 Speaker 1: you know, starting you know, they're going to vote on 323 00:16:10,280 --> 00:16:13,440 Speaker 1: this finally next January. The plan is for this to 324 00:16:13,440 --> 00:16:16,480 Speaker 1: be in place for the school year that starts next summer, 325 00:16:16,920 --> 00:16:19,920 Speaker 1: so not this summer but the one after that. But hopefully, 326 00:16:20,040 --> 00:16:22,360 Speaker 1: you know, maybe a step in the right direction for 327 00:16:22,400 --> 00:16:23,880 Speaker 1: the n c a A in terms of you know, 328 00:16:24,040 --> 00:16:27,400 Speaker 1: getting getting athletes and getting students, you know, so a 329 00:16:27,440 --> 00:16:31,480 Speaker 1: little more freedom, financial freedom, especially to market themselves moving forward. 330 00:16:32,160 --> 00:16:35,240 Speaker 1: This is the Bloomberg Business of Sports podcast NOTT Michael 331 00:16:35,240 --> 00:16:38,240 Speaker 1: Barr along with Mike Lynch and Evan Nobie Williams. We're 332 00:16:38,280 --> 00:16:41,200 Speaker 1: here each and every Monday, Wednesday and Thursday exploring the 333 00:16:41,240 --> 00:16:43,040 Speaker 1: world of money in sports. Join us again at the 334 00:16:43,120 --> 00:16:45,800 Speaker 1: end of the week. We're speaking with Angela Riggierro, co 335 00:16:45,960 --> 00:16:49,880 Speaker 1: founder of the Sports Innovation Lab, former Olympic athlete, former 336 00:16:49,920 --> 00:16:51,760 Speaker 1: IOC member. It's going to be a good chat. And 337 00:16:51,840 --> 00:16:54,640 Speaker 1: don't forget to subscribe to the Bloomberg Business with Sports 338 00:16:54,680 --> 00:16:56,200 Speaker 1: Show wherever you get your podcast.