1 00:00:00,720 --> 00:00:03,640 Speaker 1: This is the Bloomberg Business of Sports Show. We explore 2 00:00:03,680 --> 00:00:05,960 Speaker 1: the big money issues in the world of sports. Michael 3 00:00:05,960 --> 00:00:09,800 Speaker 1: bad I'm Scarlett seven, Damien Saso. The College Football National 4 00:00:09,880 --> 00:00:13,840 Speaker 1: Championship game between TCU and George A is on Monday, 5 00:00:14,120 --> 00:00:16,000 Speaker 1: so we're going to wrap up the season and look 6 00:00:16,040 --> 00:00:18,639 Speaker 1: ahead to what's next for the n c double A. 7 00:00:19,040 --> 00:00:22,160 Speaker 1: They're welcoming a new president and we'll talk about what 8 00:00:22,239 --> 00:00:26,040 Speaker 1: to expect with Gulston and Stores sports law practice co 9 00:00:26,200 --> 00:00:30,080 Speaker 1: chair and Columbia adjunct law professor Martin Needle. I think 10 00:00:30,240 --> 00:00:34,200 Speaker 1: the selection of Governor Baker is an inspired choice. He's 11 00:00:34,360 --> 00:00:37,720 Speaker 1: known for working across the aisle, and right now the 12 00:00:37,840 --> 00:00:42,080 Speaker 1: n c a A has a number of major issues 13 00:00:42,120 --> 00:00:47,080 Speaker 1: confronting it from which it is seeking federal assistance. That 14 00:00:47,200 --> 00:00:49,320 Speaker 1: is straight ahead on the Bloomberg Business of Sports Show. 15 00:00:49,400 --> 00:00:53,840 Speaker 1: But we start by welcoming Noel Lamtaine, who is with 16 00:00:53,920 --> 00:00:56,280 Speaker 1: the show here. He has joined us a number of times. 17 00:00:56,600 --> 00:01:00,800 Speaker 1: He's a director at Vernant's Capital Advisor, is focusing on 18 00:01:00,920 --> 00:01:04,520 Speaker 1: high net worth clients, particularly athletes and entertainers, and he 19 00:01:04,600 --> 00:01:07,440 Speaker 1: has a unique point of view on what those clients 20 00:01:07,480 --> 00:01:11,920 Speaker 1: are looking for. As a former pro NFL athlete himself, 21 00:01:12,120 --> 00:01:15,360 Speaker 1: Michael Damian Scarlett. I appreciate the time. Happy New Year 22 00:01:15,400 --> 00:01:18,200 Speaker 1: to everybody, and uh yeah looking looking forward to the 23 00:01:18,240 --> 00:01:21,640 Speaker 1: conversation as always, Happy New Year to you and and 24 00:01:21,880 --> 00:01:24,680 Speaker 1: I guess first, this is one of those weeks when 25 00:01:24,680 --> 00:01:27,559 Speaker 1: you talk about sports it's kind of with a little 26 00:01:27,600 --> 00:01:30,640 Speaker 1: bit of a heavy heart and concern because we are 27 00:01:31,800 --> 00:01:36,200 Speaker 1: very worried about what happened to Damar Hamlin, the Buffalo 28 00:01:36,280 --> 00:01:40,040 Speaker 1: Bill's safety uh suffered to a cardiac arrest on the field. 29 00:01:41,000 --> 00:01:47,080 Speaker 1: I guess your thoughts about what happened and where do 30 00:01:47,200 --> 00:01:50,360 Speaker 1: you go from here because you used to play, is like, 31 00:01:50,920 --> 00:01:54,560 Speaker 1: what do you think? The first off, it's it's the 32 00:01:54,560 --> 00:01:57,000 Speaker 1: thoughts and prayers are with you know this young man, 33 00:01:57,200 --> 00:02:01,720 Speaker 1: his family, friends, loved ones, team mates, I mean across 34 00:02:01,760 --> 00:02:05,840 Speaker 1: the board. I think when you see the the effect 35 00:02:06,320 --> 00:02:09,520 Speaker 1: really globally within the sport and within sports in general 36 00:02:09,560 --> 00:02:13,080 Speaker 1: and society when something like this happens, um you know, 37 00:02:13,160 --> 00:02:18,040 Speaker 1: these players, especially in professional football, college football, they're they're 38 00:02:18,080 --> 00:02:21,280 Speaker 1: the modern day gladiators, and any one of these games 39 00:02:21,280 --> 00:02:25,760 Speaker 1: there's millions of people watching, and when something like this happens, 40 00:02:26,000 --> 00:02:30,640 Speaker 1: it's a dose of reality and realistically a reminder of 41 00:02:30,639 --> 00:02:34,360 Speaker 1: how final things can be in any given moment. Um. 42 00:02:34,400 --> 00:02:35,799 Speaker 1: You know, it could be a torn a c l 43 00:02:35,840 --> 00:02:39,040 Speaker 1: it could be a broken leg it, God forbid, it 44 00:02:39,080 --> 00:02:42,040 Speaker 1: could be you know, paralysis or something. But in this 45 00:02:42,200 --> 00:02:46,720 Speaker 1: in this instance, everybody just saw something that has happened 46 00:02:46,760 --> 00:02:50,080 Speaker 1: so few times on a football field and that type 47 00:02:50,080 --> 00:02:53,280 Speaker 1: of environment, in that type of a moment, and you're 48 00:02:53,320 --> 00:02:55,600 Speaker 1: just you're all you can really do is just hope 49 00:02:55,600 --> 00:02:58,840 Speaker 1: and pray that um, he continues to improve and is 50 00:02:58,880 --> 00:03:03,840 Speaker 1: able to return to uh a normal functional life and 51 00:03:04,000 --> 00:03:07,120 Speaker 1: the game of football becomes secondary quite frankly in a 52 00:03:07,120 --> 00:03:10,040 Speaker 1: lot of ways in these moments as he's recovering. I 53 00:03:10,080 --> 00:03:11,920 Speaker 1: do wonder, though, if you could talk a little bit 54 00:03:11,919 --> 00:03:15,080 Speaker 1: about how for football players, um, it's a little bit 55 00:03:15,120 --> 00:03:18,520 Speaker 1: different then from other professional athletes, because the economics of 56 00:03:18,560 --> 00:03:21,560 Speaker 1: football are different from other professional sports. Right you don't 57 00:03:21,600 --> 00:03:25,640 Speaker 1: have the guaranteed contracts, and the violence and the collision 58 00:03:26,040 --> 00:03:28,960 Speaker 1: that you have in professional football is different from say 59 00:03:29,000 --> 00:03:32,000 Speaker 1: soccer or even hockey. Certainly, Scarlett is a great it's 60 00:03:32,040 --> 00:03:35,200 Speaker 1: a great point. Certainly, the guarantees are much more limited, 61 00:03:35,520 --> 00:03:39,160 Speaker 1: um and much less common. They're becoming more and more common, 62 00:03:39,200 --> 00:03:41,480 Speaker 1: but not to the degree of other sports, whether it's 63 00:03:41,480 --> 00:03:46,440 Speaker 1: be hockey or baseball, basketball, soccer. They it makes you. 64 00:03:47,640 --> 00:03:50,440 Speaker 1: It makes you realize as a as a player, as 65 00:03:50,480 --> 00:03:53,800 Speaker 1: somebody advising a player, that you really do have to 66 00:03:54,160 --> 00:03:55,800 Speaker 1: you have to live in that moment. You have to 67 00:03:55,840 --> 00:03:59,720 Speaker 1: look long term and understand that the game can legitimately 68 00:03:59,800 --> 00:04:01,720 Speaker 1: come to an end for you at any given time. 69 00:04:02,000 --> 00:04:04,800 Speaker 1: And what have you been able to take from the game, 70 00:04:05,000 --> 00:04:08,160 Speaker 1: What are you able to carry forward from the game 71 00:04:08,680 --> 00:04:11,640 Speaker 1: at any given moment. I think it requires a lot 72 00:04:11,720 --> 00:04:15,960 Speaker 1: more planning um and honestly a lot more of a 73 00:04:16,080 --> 00:04:20,080 Speaker 1: business sense, because you're you're not always going to have 74 00:04:20,160 --> 00:04:23,520 Speaker 1: access to that fifty million dollar lump sum that you 75 00:04:23,560 --> 00:04:25,880 Speaker 1: can that you can pass on to the rest of 76 00:04:25,880 --> 00:04:28,800 Speaker 1: your family, you can, you know, pass on to your kids. 77 00:04:29,240 --> 00:04:31,400 Speaker 1: You can take care of yourself and invest for life 78 00:04:31,440 --> 00:04:34,320 Speaker 1: that in some cases you might you might make a 79 00:04:34,360 --> 00:04:37,120 Speaker 1: few thousand dollars, you might make ten or a hundred 80 00:04:37,120 --> 00:04:40,240 Speaker 1: thousand dollars, and and that might be the experience that 81 00:04:40,279 --> 00:04:42,240 Speaker 1: you get from the game of football. And as horrific 82 00:04:42,279 --> 00:04:46,000 Speaker 1: as it is to think in those terms, given the 83 00:04:46,080 --> 00:04:50,600 Speaker 1: circumstance like this, it does make you realize all these 84 00:04:50,640 --> 00:04:53,320 Speaker 1: other all these other factors that are playing in, whether 85 00:04:53,320 --> 00:04:56,880 Speaker 1: it be the gambling aspect of fantasy football, aspect of playoffs, 86 00:04:56,880 --> 00:05:02,120 Speaker 1: other teams. There's this giant bubble that these players operate 87 00:05:02,320 --> 00:05:05,760 Speaker 1: in playing and they're just there's such an essential component, 88 00:05:05,800 --> 00:05:08,120 Speaker 1: but at the same time, there's such a small component, 89 00:05:08,520 --> 00:05:11,839 Speaker 1: and even the biggest salary in the game is really 90 00:05:11,880 --> 00:05:15,159 Speaker 1: just such a small component of this multi billion dollar machine. 91 00:05:15,960 --> 00:05:21,719 Speaker 1: And that's where I think the concept of mortality, um, 92 00:05:21,760 --> 00:05:24,880 Speaker 1: not to the extreme degree always, but just the mortality 93 00:05:24,960 --> 00:05:27,200 Speaker 1: of your your life within the game and what you 94 00:05:27,200 --> 00:05:31,000 Speaker 1: can take from it. Uh, you really need not just 95 00:05:31,120 --> 00:05:33,360 Speaker 1: from yourself but the people around you. You have to 96 00:05:33,440 --> 00:05:35,880 Speaker 1: appreciate that, and you just have to understand that if 97 00:05:35,920 --> 00:05:38,919 Speaker 1: you're involved in the game of football, it's it's different 98 00:05:39,160 --> 00:05:41,600 Speaker 1: than a lot of these other sports. Um. It's not 99 00:05:41,680 --> 00:05:43,920 Speaker 1: to say that all these other sports aren't aren't as 100 00:05:43,960 --> 00:05:48,000 Speaker 1: difficult to succeed in and there aren't risks involved, but 101 00:05:48,600 --> 00:05:51,479 Speaker 1: with the game of football, there are just some variables 102 00:05:51,480 --> 00:05:53,880 Speaker 1: I think that that that do not exist in some 103 00:05:53,920 --> 00:05:57,080 Speaker 1: of the other sports. And um, if you if you 104 00:05:57,160 --> 00:05:59,600 Speaker 1: hide from them and you don't face them on a 105 00:05:59,680 --> 00:06:03,320 Speaker 1: dated basis, it can really cause a lot of problems 106 00:06:03,400 --> 00:06:06,240 Speaker 1: down the road. So no, let's put our portfolio management 107 00:06:06,240 --> 00:06:07,800 Speaker 1: hats on for just a minute here. You're gonna have 108 00:06:07,839 --> 00:06:10,880 Speaker 1: a lot of clients, you know, former NFL athletes, former 109 00:06:10,880 --> 00:06:12,360 Speaker 1: athletes in general, who are going to come to you 110 00:06:12,440 --> 00:06:15,120 Speaker 1: in the wake of this, and they're gonna say, my goodness. 111 00:06:15,160 --> 00:06:18,640 Speaker 1: You know, emergency fund planning, you know, goal targeting in 112 00:06:18,680 --> 00:06:20,960 Speaker 1: today's day and age, in this environment which is so 113 00:06:21,080 --> 00:06:24,279 Speaker 1: highly uncertain, these financial markets are volatile, what do you 114 00:06:24,360 --> 00:06:25,920 Speaker 1: how do you respond to that? What do you tell 115 00:06:26,120 --> 00:06:29,280 Speaker 1: your clients to do? Where do they hide? Where? Where? 116 00:06:29,320 --> 00:06:32,360 Speaker 1: Where do they get safety from? Well, you know, it's 117 00:06:32,440 --> 00:06:35,800 Speaker 1: it's interesting in another great question because I think with 118 00:06:35,920 --> 00:06:39,400 Speaker 1: a lot of clients and this really, this really should 119 00:06:39,440 --> 00:06:42,599 Speaker 1: be throughout all sports. It's not, it's not just unique 120 00:06:42,600 --> 00:06:46,880 Speaker 1: to football. But we speak to our clients at Verdens 121 00:06:46,880 --> 00:06:50,680 Speaker 1: and Burdens Pro a lot about understanding the efficiency and 122 00:06:50,720 --> 00:06:54,240 Speaker 1: paying yourself first. You need to invest, You need to 123 00:06:54,240 --> 00:06:57,280 Speaker 1: have strategies that are efficient in everything you're doing with 124 00:06:57,279 --> 00:07:00,280 Speaker 1: every dollar that you're making, because you just never really 125 00:07:00,320 --> 00:07:03,960 Speaker 1: know how many more paychecks you're going to get within 126 00:07:04,000 --> 00:07:06,920 Speaker 1: the sport, how young you're gonna be when you finish 127 00:07:06,960 --> 00:07:10,000 Speaker 1: playing and when you have to, um get to the 128 00:07:10,000 --> 00:07:13,680 Speaker 1: next phase of your life. And I think what ends 129 00:07:13,760 --> 00:07:17,960 Speaker 1: up happening is is the the expectation that has been 130 00:07:18,440 --> 00:07:20,560 Speaker 1: spun around sports for so long as oh, well, just 131 00:07:21,120 --> 00:07:23,320 Speaker 1: work with people that don't cont your money stole or 132 00:07:23,360 --> 00:07:26,240 Speaker 1: don't steal your money. Well, it's really bigger than that. 133 00:07:26,240 --> 00:07:28,720 Speaker 1: That's that's everybody who has ever made a dollar and 134 00:07:28,800 --> 00:07:32,119 Speaker 1: has decided to invest it or look long term. Nobody 135 00:07:32,120 --> 00:07:33,760 Speaker 1: wants to get there might stole And why is that 136 00:07:33,840 --> 00:07:37,120 Speaker 1: the baseline for professional athletes? It should really be how 137 00:07:37,160 --> 00:07:40,280 Speaker 1: do I preserve and grow this wealth over time? I 138 00:07:40,360 --> 00:07:44,119 Speaker 1: need to look at strategies that mimic the complexity of 139 00:07:44,440 --> 00:07:47,560 Speaker 1: the asset level UM that I possess and how do 140 00:07:47,640 --> 00:07:49,800 Speaker 1: I protect these What are the different ways that I 141 00:07:49,840 --> 00:07:53,720 Speaker 1: can do that, both structurally, um in some cases it 142 00:07:53,800 --> 00:07:57,160 Speaker 1: might be risk management. Uh you know that emergency fund 143 00:07:57,160 --> 00:08:00,840 Speaker 1: that you mentioned, It's it's really just bigger than and 144 00:08:01,000 --> 00:08:05,440 Speaker 1: it's not always looking for the worst case scenario. It's 145 00:08:05,560 --> 00:08:09,320 Speaker 1: it's planning beyond all of those scenarios and really looking 146 00:08:09,320 --> 00:08:12,680 Speaker 1: at how, um, you know, how my fee structure is 147 00:08:12,720 --> 00:08:14,920 Speaker 1: set up, what are the what are the consequences of 148 00:08:14,920 --> 00:08:17,680 Speaker 1: the investments that I'm getting in? How liquid am I? 149 00:08:17,680 --> 00:08:21,840 Speaker 1: I really think that from an educational standpoint, this your 150 00:08:21,920 --> 00:08:25,920 Speaker 1: question can be attacked best by helping these young men 151 00:08:25,960 --> 00:08:29,200 Speaker 1: and women understand what the true value of the dollars 152 00:08:29,200 --> 00:08:31,560 Speaker 1: that they're making is and how that how that value 153 00:08:31,560 --> 00:08:34,720 Speaker 1: can be preserved and built over time. You bring up 154 00:08:34,720 --> 00:08:38,800 Speaker 1: a question to young athletes, and when I saw it, 155 00:08:38,800 --> 00:08:42,800 Speaker 1: it made me really want to just sit back and 156 00:08:43,000 --> 00:08:46,600 Speaker 1: meditate on this question. Why is it important to understand 157 00:08:46,600 --> 00:08:51,840 Speaker 1: the concept between life changing money versus life altering money? 158 00:08:52,080 --> 00:08:54,920 Speaker 1: And when I first read that, I'm like, well, what's 159 00:08:54,960 --> 00:08:58,800 Speaker 1: the difference? But of course, you know, I'm a I'm 160 00:08:58,840 --> 00:09:02,200 Speaker 1: a dull man a couple of million bucks. Yeah, it 161 00:09:02,280 --> 00:09:07,440 Speaker 1: really is, and it's you know, there is a difference. 162 00:09:07,480 --> 00:09:11,360 Speaker 1: Can you take us through that? Yeah? And you know, honestly, 163 00:09:11,480 --> 00:09:13,960 Speaker 1: Michael is going to be different for everyone. And that's 164 00:09:14,160 --> 00:09:16,760 Speaker 1: again where you you have to look at the concept 165 00:09:16,800 --> 00:09:19,480 Speaker 1: of the individuality, look at the look at the person, 166 00:09:19,600 --> 00:09:22,160 Speaker 1: look at the client, find out what they need, find 167 00:09:22,160 --> 00:09:24,719 Speaker 1: out what they want, what are they trying to accomplish, 168 00:09:24,880 --> 00:09:27,080 Speaker 1: not just what are they trying to accomplish in and 169 00:09:27,120 --> 00:09:30,320 Speaker 1: around the game that they're playing in this in this context, 170 00:09:30,760 --> 00:09:33,360 Speaker 1: but what they're trying to accomplish in their life. And 171 00:09:33,760 --> 00:09:37,520 Speaker 1: anytime you start focusing on life, and again, we're long 172 00:09:37,600 --> 00:09:40,440 Speaker 1: term thinkers in our offices and when we when we 173 00:09:40,480 --> 00:09:44,079 Speaker 1: sit down with clients. So, yes, these people are doing 174 00:09:44,320 --> 00:09:47,000 Speaker 1: tremendous things in their careers. Maybe they're a business owner, 175 00:09:47,080 --> 00:09:49,400 Speaker 1: maybe they're working towards a liquidity event. We look at 176 00:09:49,440 --> 00:09:52,080 Speaker 1: athletes and entertainers in that same exact life that they 177 00:09:52,120 --> 00:09:56,480 Speaker 1: are entrepreneurs, they are business owners. But once they go 178 00:09:56,600 --> 00:10:00,360 Speaker 1: through those events, what comes next? And we're are lists 179 00:10:00,400 --> 00:10:03,520 Speaker 1: of the size of those events. How does that pool 180 00:10:03,600 --> 00:10:06,040 Speaker 1: of money that you have made, whether it be in 181 00:10:06,040 --> 00:10:08,760 Speaker 1: a moment or over time, how does that project into 182 00:10:08,760 --> 00:10:11,679 Speaker 1: the future based on what your goals and what your 183 00:10:11,720 --> 00:10:14,560 Speaker 1: plans are? And and really it's the concept of being 184 00:10:14,640 --> 00:10:17,280 Speaker 1: rich versus being wealthy. That's that's what you're speaking to. 185 00:10:17,800 --> 00:10:20,280 Speaker 1: I make this decision because I have a pool of 186 00:10:20,320 --> 00:10:22,080 Speaker 1: money in my bank account and I decided to buy 187 00:10:22,120 --> 00:10:25,080 Speaker 1: this car, or I decided to jump into this alternative 188 00:10:25,120 --> 00:10:27,240 Speaker 1: investment because I trust my buddy and it and it 189 00:10:27,320 --> 00:10:28,880 Speaker 1: makes sense. I mean, look at the look at the 190 00:10:28,880 --> 00:10:32,200 Speaker 1: crypto bubble for goodness sakes. I mean these guys that 191 00:10:32,280 --> 00:10:37,319 Speaker 1: were taking salaries in cryptocurrency and in the moment, they 192 00:10:37,320 --> 00:10:39,280 Speaker 1: were riding the way of the future, but they were 193 00:10:39,320 --> 00:10:44,239 Speaker 1: doing it from really uh, they didn't have the education 194 00:10:44,520 --> 00:10:47,480 Speaker 1: to make that decision. I don't mean that they weren't 195 00:10:47,640 --> 00:10:50,559 Speaker 1: smart people. I'm saying that they didn't have the education 196 00:10:51,360 --> 00:10:55,880 Speaker 1: into the financial vehicle that they were investing in. And 197 00:10:55,920 --> 00:10:58,600 Speaker 1: what are those long term consequences. In the moment, it 198 00:10:58,640 --> 00:11:01,280 Speaker 1: feels great, it feels sex. See somebody sold it to me, 199 00:11:01,360 --> 00:11:03,440 Speaker 1: and oh this, You know, I don't want to miss 200 00:11:03,480 --> 00:11:06,040 Speaker 1: this wave, you know, the whole yolo you only live 201 00:11:06,120 --> 00:11:09,800 Speaker 1: one type of concept. Well, all of those things add 202 00:11:09,880 --> 00:11:13,280 Speaker 1: up over time, and when you're done playing, when you're done. 203 00:11:13,800 --> 00:11:16,120 Speaker 1: You know, in the entertainment space, if you're a business 204 00:11:16,160 --> 00:11:17,920 Speaker 1: owner and you sold your company and you want to 205 00:11:17,960 --> 00:11:22,120 Speaker 1: go into retirement, all you have is what you've made, 206 00:11:22,920 --> 00:11:25,719 Speaker 1: and in some cases you've got to understand that it's 207 00:11:25,760 --> 00:11:28,160 Speaker 1: not enough. It's not enough. Where along the way you 208 00:11:28,160 --> 00:11:32,240 Speaker 1: could spend all these different frivolous ways you could You 209 00:11:32,240 --> 00:11:36,320 Speaker 1: could lock up your money in these certain products or 210 00:11:36,400 --> 00:11:40,280 Speaker 1: vehicles that that really pay everybody else first and you last, 211 00:11:40,960 --> 00:11:44,480 Speaker 1: and you don't get the growth that you could if 212 00:11:44,520 --> 00:11:47,720 Speaker 1: it was something that was more efficiently structured or maybe 213 00:11:47,760 --> 00:11:52,600 Speaker 1: structured more towards helping you and benefiting you versus benefiting 214 00:11:52,640 --> 00:11:56,760 Speaker 1: somebody else. And I think really again that falls back 215 00:11:56,880 --> 00:12:00,679 Speaker 1: on the the character and the approach of the advisor 216 00:12:01,160 --> 00:12:03,840 Speaker 1: and the people that that all of these individuals are 217 00:12:03,840 --> 00:12:07,560 Speaker 1: surrounding themselves with. And again we're speaking specifically to athletes 218 00:12:07,600 --> 00:12:11,480 Speaker 1: and entertainers. This is this is a comprehensive global concept. 219 00:12:11,520 --> 00:12:14,760 Speaker 1: Everybody could benefit from getting great advice. I mean, I 220 00:12:14,760 --> 00:12:19,079 Speaker 1: don't think I'm reinventing the wheel and making that statement, um, 221 00:12:19,120 --> 00:12:22,080 Speaker 1: but that is something that's lost in the sports and 222 00:12:22,200 --> 00:12:27,120 Speaker 1: entertainment world because they spend so much time focusing on 223 00:12:27,120 --> 00:12:29,800 Speaker 1: on being the best that they can be on the 224 00:12:29,840 --> 00:12:33,200 Speaker 1: field or in their arena that they lose sight of 225 00:12:33,800 --> 00:12:36,920 Speaker 1: what long term benefits they could gain or they are 226 00:12:37,000 --> 00:12:40,559 Speaker 1: trying to gain. You know, it's about visibility versus substance. 227 00:12:41,080 --> 00:12:45,080 Speaker 1: And I think if the focus was really more on substance, um, 228 00:12:45,160 --> 00:12:49,760 Speaker 1: and you know, honestly being able to see exactly the 229 00:12:49,840 --> 00:12:52,920 Speaker 1: situation that you are in financially in a very very 230 00:12:52,920 --> 00:12:56,000 Speaker 1: transparent way, so that you understand all the investments, You 231 00:12:56,080 --> 00:12:59,640 Speaker 1: understand the rampifications of putting a dollar here versus putting 232 00:12:59,640 --> 00:13:02,880 Speaker 1: a dollar there, Who's getting paid, who's making money off 233 00:13:02,960 --> 00:13:06,440 Speaker 1: of this investment in what way? Those those are the 234 00:13:06,440 --> 00:13:08,839 Speaker 1: things that really need to be harped on. And it 235 00:13:09,200 --> 00:13:12,280 Speaker 1: is moments, you know, it is moments like this that 236 00:13:12,880 --> 00:13:16,080 Speaker 1: really need to ripple forward, not just in that in 237 00:13:16,120 --> 00:13:18,680 Speaker 1: that horrific moment where people are worried about not just 238 00:13:18,800 --> 00:13:22,680 Speaker 1: the life and career of this young man, uh and 239 00:13:22,760 --> 00:13:24,599 Speaker 1: others are worried about, oh, how is this going to 240 00:13:24,640 --> 00:13:27,600 Speaker 1: affect my fantasy football championship game? They need to they 241 00:13:27,640 --> 00:13:30,440 Speaker 1: need to worry about, well, what happens if this is it, 242 00:13:31,040 --> 00:13:34,920 Speaker 1: What happens, what happens to kids, what happens to significant others, 243 00:13:35,000 --> 00:13:41,160 Speaker 1: what happens to you know, that long term generational wealth concept? Um. 244 00:13:41,200 --> 00:13:44,800 Speaker 1: And that's that's I think something that all of the good, 245 00:13:44,880 --> 00:13:48,560 Speaker 1: the most immediate good would be health and recovery and 246 00:13:48,640 --> 00:13:50,800 Speaker 1: maybe God willing being able to get back on the 247 00:13:51,240 --> 00:13:53,679 Speaker 1: on the field and playing again, and how tremendous that 248 00:13:53,840 --> 00:13:56,520 Speaker 1: could be. But maybe this is a moment where everybody 249 00:13:56,559 --> 00:13:58,720 Speaker 1: else can take a step back and look and say, hey, 250 00:13:58,880 --> 00:14:03,080 Speaker 1: it's not just about me potentially getting injured, it's me 251 00:14:03,240 --> 00:14:06,200 Speaker 1: losing everything. And why should I only look at losing 252 00:14:06,240 --> 00:14:08,800 Speaker 1: everything in a moment where I get injured. I shouldn't 253 00:14:08,840 --> 00:14:12,560 Speaker 1: look at losing everything every every single day. Let me 254 00:14:12,640 --> 00:14:14,200 Speaker 1: just jump in here for a moment. You make some 255 00:14:14,280 --> 00:14:17,160 Speaker 1: really good points, and I wonder, by the time these 256 00:14:17,280 --> 00:14:20,840 Speaker 1: professional athletes are asking these questions and looking to advisors 257 00:14:20,840 --> 00:14:25,480 Speaker 1: like you to help them um formulate some structure in 258 00:14:25,880 --> 00:14:29,640 Speaker 1: their perspective and their investment perspective, I'm curious about what 259 00:14:29,760 --> 00:14:32,920 Speaker 1: the level of financial literacy they come into you before 260 00:14:32,960 --> 00:14:35,520 Speaker 1: they get to you. What does that look like? What 261 00:14:35,640 --> 00:14:38,640 Speaker 1: level of financial literacy have they achieved already before they 262 00:14:38,720 --> 00:14:41,560 Speaker 1: come over and start talking to an advisor like you? 263 00:14:41,880 --> 00:14:44,720 Speaker 1: What does the league and players Union's efforts look like 264 00:14:45,080 --> 00:14:48,800 Speaker 1: to give them that base uh level of understanding now 265 00:14:48,960 --> 00:14:52,040 Speaker 1: versus what should it look like? Scarlett? You could you 266 00:14:52,120 --> 00:14:55,600 Speaker 1: could put me on a very high soapbox with this question, um, 267 00:14:55,880 --> 00:14:58,400 Speaker 1: but uh and I could, we could, We can set 268 00:14:58,440 --> 00:15:01,560 Speaker 1: up the whole podcast series on it. But honestly, the 269 00:15:01,640 --> 00:15:05,080 Speaker 1: simple answer is not enough. There's not enough. It is 270 00:15:05,200 --> 00:15:08,960 Speaker 1: very individualized you do have. You do have people who 271 00:15:09,000 --> 00:15:14,200 Speaker 1: come into these relationships more sophisticated than others. However, there 272 00:15:14,320 --> 00:15:18,920 Speaker 1: is such a learning curve to go from uh, working 273 00:15:19,000 --> 00:15:22,200 Speaker 1: your butt off from whatever your circumstances were, going through 274 00:15:22,280 --> 00:15:24,560 Speaker 1: high school, college and now you're now you're in the 275 00:15:24,560 --> 00:15:27,960 Speaker 1: pros or or in Hollywood and you're and you're making 276 00:15:28,000 --> 00:15:32,000 Speaker 1: it big. Two. This isn't just about budgeting. It's not 277 00:15:32,080 --> 00:15:36,560 Speaker 1: just about you know, investing in an IRA and savings retirement. 278 00:15:37,160 --> 00:15:41,240 Speaker 1: This is this is about investing in businesses. This is 279 00:15:41,280 --> 00:15:45,360 Speaker 1: about investing in all different types of financial products. It's 280 00:15:45,360 --> 00:15:48,920 Speaker 1: about analyzing fee structures. It's there is a lot that 281 00:15:48,960 --> 00:15:52,240 Speaker 1: goes into this, and there are very very successful business 282 00:15:52,280 --> 00:15:54,720 Speaker 1: people that all they do or look at numbers and 283 00:15:54,720 --> 00:15:57,480 Speaker 1: look at spreadsheets and look at p and l's, and 284 00:15:57,720 --> 00:16:01,080 Speaker 1: they don't get it right. So if that's their world 285 00:16:01,520 --> 00:16:04,120 Speaker 1: and they're not getting it right in a lot of cases, 286 00:16:04,600 --> 00:16:08,560 Speaker 1: imagine if this is just secondary at best to what 287 00:16:08,720 --> 00:16:11,200 Speaker 1: you do. Even if you're an econ major in college, 288 00:16:11,280 --> 00:16:15,520 Speaker 1: or or you you study finance, you still only learn 289 00:16:16,400 --> 00:16:20,640 Speaker 1: the textbook concepts. You know, the things that are able 290 00:16:20,680 --> 00:16:22,920 Speaker 1: to be absorbed in them, regurgitated in the in the 291 00:16:22,960 --> 00:16:27,280 Speaker 1: academic environment. In college, you're not learning real world contractual 292 00:16:27,400 --> 00:16:30,760 Speaker 1: concepts and what language does and how it affects you know, 293 00:16:31,240 --> 00:16:36,200 Speaker 1: your money. So unfortunately start that it's it's not enough education. Uh. 294 00:16:36,440 --> 00:16:39,200 Speaker 1: The league and the players Union, I think they're honestly 295 00:16:39,680 --> 00:16:42,840 Speaker 1: in a lot of in almost all cases across professional sports, 296 00:16:42,920 --> 00:16:45,760 Speaker 1: they're operating to a to a baseline a C y A. 297 00:16:46,080 --> 00:16:49,200 Speaker 1: They're trying to make sure, Hey, these individuals, as far 298 00:16:49,240 --> 00:16:52,280 Speaker 1: as we're aware, they're not criminals. We're not telling you 299 00:16:52,280 --> 00:16:54,760 Speaker 1: to work with them, but we're not telling you not 300 00:16:54,880 --> 00:16:57,239 Speaker 1: to work with them. If you do, it's at your discretion. 301 00:16:58,000 --> 00:17:00,320 Speaker 1: They're paying us a fee, you know it, or for 302 00:17:00,400 --> 00:17:03,520 Speaker 1: us to go through this process of verifying them, and 303 00:17:03,760 --> 00:17:05,600 Speaker 1: what does that even mean? What does that even do? 304 00:17:05,720 --> 00:17:09,040 Speaker 1: Every single year we have these stories about these these 305 00:17:09,080 --> 00:17:13,960 Speaker 1: professionals who do all these malicious things to these athletes 306 00:17:13,960 --> 00:17:18,720 Speaker 1: and entertainers, and the system doesn't change. And that can 307 00:17:18,760 --> 00:17:22,240 Speaker 1: be a financial advisor, it can be an agent who's 308 00:17:22,280 --> 00:17:25,240 Speaker 1: negotiating contracts. It can be a business manager who is 309 00:17:25,280 --> 00:17:29,440 Speaker 1: attaching a player to a to a financial person, to 310 00:17:29,560 --> 00:17:34,399 Speaker 1: an insurance salesman. The system is nowhere near as a 311 00:17:34,560 --> 00:17:37,840 Speaker 1: specific as it needs to be. And the problem I 312 00:17:37,880 --> 00:17:40,240 Speaker 1: think in a lot of ways is it's not just that. 313 00:17:40,760 --> 00:17:43,480 Speaker 1: It's not just that it's difficult for for general public 314 00:17:43,560 --> 00:17:46,600 Speaker 1: to find good advice. It's difficult for these players, unions 315 00:17:46,640 --> 00:17:49,560 Speaker 1: to come together, the you know, these sports organizations to 316 00:17:49,600 --> 00:17:52,680 Speaker 1: come together and say, hey, listen, these people are really 317 00:17:52,680 --> 00:17:55,560 Speaker 1: really good at what they do because they don't even 318 00:17:55,640 --> 00:17:58,000 Speaker 1: know in a lot of cases who's really good at 319 00:17:58,200 --> 00:18:00,480 Speaker 1: at what they're doing within that stay and so no, 320 00:18:00,640 --> 00:18:02,679 Speaker 1: I take that really kind of takes me full circle 321 00:18:02,720 --> 00:18:05,919 Speaker 1: back to my original question. You know, Verdon's Capital Visors, 322 00:18:06,000 --> 00:18:08,359 Speaker 1: you know what you would wealth management O c i 323 00:18:08,480 --> 00:18:10,920 Speaker 1: O all that stuff. I mean, what is Megan Horneman, 324 00:18:11,320 --> 00:18:14,600 Speaker 1: your c i O telling your clients to do from 325 00:18:14,600 --> 00:18:17,399 Speaker 1: a strategic asset allocation decision? I mean, is now the 326 00:18:17,440 --> 00:18:20,800 Speaker 1: time to buy bonds? Are you going to be overweight equities? 327 00:18:20,840 --> 00:18:22,920 Speaker 1: Do you want to take more risk in this environment? 328 00:18:22,920 --> 00:18:24,560 Speaker 1: Do you want to peel back? I mean, what do 329 00:18:24,600 --> 00:18:28,080 Speaker 1: you what's your gut tell you? Well, getting into I 330 00:18:28,080 --> 00:18:32,560 Speaker 1: mean getting into specifics is obviously, uh, you know, a 331 00:18:32,560 --> 00:18:35,600 Speaker 1: little bit promoting. But what I can say is is 332 00:18:35,680 --> 00:18:38,920 Speaker 1: that in those in those instances, it's about sitting down 333 00:18:38,960 --> 00:18:43,639 Speaker 1: with the client individually and helping them understand exactly the 334 00:18:43,680 --> 00:18:46,800 Speaker 1: situation there is. It's about looking at the investments that 335 00:18:46,880 --> 00:18:49,680 Speaker 1: they're in, how are they performing, Why are they performing 336 00:18:49,680 --> 00:18:53,240 Speaker 1: in that manner? When you're taking a three to five 337 00:18:53,480 --> 00:18:58,440 Speaker 1: and fifteen year type uh look horizon on the investments 338 00:18:58,440 --> 00:19:02,560 Speaker 1: and the strategies, you're looking beyond these athletic careers. In 339 00:19:02,600 --> 00:19:06,360 Speaker 1: most cases, you know, unless you're talking to a very 340 00:19:06,440 --> 00:19:12,119 Speaker 1: very gifted, uh young player, that's you're looking at time horizons, 341 00:19:12,200 --> 00:19:15,840 Speaker 1: well beyond career. So you're already talking about long term concepts. 342 00:19:15,840 --> 00:19:18,520 Speaker 1: And that's that's where I think, you know, the idea 343 00:19:18,600 --> 00:19:21,840 Speaker 1: of you know, if I spend fifty dollars on a 344 00:19:21,880 --> 00:19:25,879 Speaker 1: car right now, look at that fifty cash allotment me 345 00:19:26,119 --> 00:19:28,720 Speaker 1: to myself and my family in five years, ten years, 346 00:19:28,720 --> 00:19:31,000 Speaker 1: fifteen years. If I didn't buy this car because I 347 00:19:31,040 --> 00:19:33,679 Speaker 1: really need this, you know, how do I protect it 348 00:19:33,720 --> 00:19:36,840 Speaker 1: and grow it and build it. And I think it 349 00:19:36,920 --> 00:19:39,320 Speaker 1: is dangerous to to look at to look at any 350 00:19:39,359 --> 00:19:42,240 Speaker 1: one specific situation to say well, this is gonna work 351 00:19:42,280 --> 00:19:45,800 Speaker 1: for everybody. And that's where again I think the transparency 352 00:19:45,840 --> 00:19:48,119 Speaker 1: comes in is that you have to and this is 353 00:19:48,119 --> 00:19:50,440 Speaker 1: something that you know, Megan and all of us at 354 00:19:50,520 --> 00:19:54,040 Speaker 1: Verdon's parton is that you have to show the client everything. 355 00:19:54,160 --> 00:19:58,520 Speaker 1: You can't leave them in the dark. That's the educational process. 356 00:19:58,640 --> 00:20:02,480 Speaker 1: And if you do that, you can help them ask 357 00:20:02,560 --> 00:20:05,920 Speaker 1: the question that might prevent them from making a mistake 358 00:20:05,960 --> 00:20:08,440 Speaker 1: in the future. You know, they might not know exactly 359 00:20:08,440 --> 00:20:10,159 Speaker 1: what to do, and they might know that they have 360 00:20:10,280 --> 00:20:12,280 Speaker 1: to come to you in order to get more clarity 361 00:20:12,400 --> 00:20:16,879 Speaker 1: or more details on anyone given thing. But at least 362 00:20:16,880 --> 00:20:21,360 Speaker 1: if they're equipped with some defense mechanisms that that can 363 00:20:21,440 --> 00:20:25,080 Speaker 1: prevent them from committing to something or or god forbid, 364 00:20:25,200 --> 00:20:29,920 Speaker 1: having actually a transfer. I mean, listen, professional sports. If 365 00:20:29,920 --> 00:20:32,800 Speaker 1: you want to tie the two together, it says risky, 366 00:20:32,920 --> 00:20:36,280 Speaker 1: if not dramatically more risky than than any market or 367 00:20:36,280 --> 00:20:38,840 Speaker 1: any investment out there. You know, the potential for loss 368 00:20:38,920 --> 00:20:41,439 Speaker 1: as we learned, you know with with the Monday night 369 00:20:41,480 --> 00:20:46,800 Speaker 1: football game, the risk can be absolute. Um, So why 370 00:20:46,840 --> 00:20:50,520 Speaker 1: would you ever couple that with the way that you're 371 00:20:50,560 --> 00:20:54,159 Speaker 1: investing money. Why would you put yourself into a situation 372 00:20:54,160 --> 00:20:55,959 Speaker 1: where there is a high degree of risk, where there 373 00:20:56,040 --> 00:21:00,240 Speaker 1: is the potential to lose that money. So that's I say, 374 00:21:00,000 --> 00:21:03,919 Speaker 1: a very non committal way of trying to answer your 375 00:21:04,000 --> 00:21:06,959 Speaker 1: question is that you really do have to. You have 376 00:21:07,080 --> 00:21:09,960 Speaker 1: to be specific, you have to be deliberate, you have 377 00:21:10,160 --> 00:21:12,880 Speaker 1: to you have to speak to the client in such 378 00:21:12,920 --> 00:21:15,639 Speaker 1: a way where they understand the long term value of 379 00:21:15,680 --> 00:21:18,280 Speaker 1: the advice that you're giving, to help them understand the 380 00:21:18,400 --> 00:21:21,840 Speaker 1: questions to ask and the things to do to put 381 00:21:21,840 --> 00:21:25,520 Speaker 1: those walls up around the money that they are making 382 00:21:26,040 --> 00:21:28,399 Speaker 1: so that they can build that wealth long term. In 383 00:21:28,440 --> 00:21:33,400 Speaker 1: our experience, that's what very successful individuals do. They surround themselves, 384 00:21:33,960 --> 00:21:36,359 Speaker 1: not with people that they can just go and say, oh, 385 00:21:36,400 --> 00:21:38,280 Speaker 1: you know, I trust this person, I trust this person. 386 00:21:38,359 --> 00:21:42,200 Speaker 1: It's it's not about trust, it's about imparting knowledge. It's 387 00:21:42,240 --> 00:21:47,639 Speaker 1: about always trying to make sure that every single stone 388 00:21:48,000 --> 00:21:51,240 Speaker 1: is on you know, is turned up and looked under. 389 00:21:51,880 --> 00:21:55,000 Speaker 1: And you know, if if we can start to help 390 00:21:55,040 --> 00:21:57,639 Speaker 1: these athletes understand the value of that and not just 391 00:21:57,760 --> 00:22:01,040 Speaker 1: taking advice on the surface, to ask those more in 392 00:22:01,080 --> 00:22:05,080 Speaker 1: depth questions and demand more education, demand more knowledge on 393 00:22:05,119 --> 00:22:09,000 Speaker 1: the subject, I think that that's a big start, um 394 00:22:09,119 --> 00:22:11,879 Speaker 1: And and really, you know, I I do think it 395 00:22:12,200 --> 00:22:15,600 Speaker 1: requires more than just a baseline sending a fee, sending 396 00:22:15,600 --> 00:22:19,119 Speaker 1: an application, Okay, you've never been arrested for securities fraud. 397 00:22:19,680 --> 00:22:22,439 Speaker 1: You're good. You must be really really good, because that 398 00:22:22,680 --> 00:22:25,920 Speaker 1: that just isn't cutting it anymore. And unfortunately, that's really 399 00:22:25,920 --> 00:22:27,760 Speaker 1: where we're at. We're just a you know, it's just 400 00:22:27,800 --> 00:22:30,520 Speaker 1: a it's just a fee based certification, and you know 401 00:22:30,560 --> 00:22:33,159 Speaker 1: what that fee does and where that feeven goes. I 402 00:22:33,200 --> 00:22:38,240 Speaker 1: don't nobody even knows. And again, that's that's a very frustrating. Uh, 403 00:22:38,280 --> 00:22:40,760 Speaker 1: that's a very frustrating topic for us, because you know, 404 00:22:40,800 --> 00:22:42,679 Speaker 1: we see it, we see the ramifications of a lot 405 00:22:42,760 --> 00:22:46,280 Speaker 1: of these decisions that are being made, and when we 406 00:22:46,359 --> 00:22:48,679 Speaker 1: might get involved with the client, we we have to 407 00:22:48,720 --> 00:22:50,840 Speaker 1: help unwind these things that you have to have the 408 00:22:50,920 --> 00:22:54,480 Speaker 1: hard conversation then explain, hey, this is what risk is. 409 00:22:54,520 --> 00:22:57,320 Speaker 1: You're not getting that money back because of what what 410 00:22:57,400 --> 00:23:00,920 Speaker 1: this person puts you into. And those sometimes be harder, 411 00:23:01,000 --> 00:23:04,199 Speaker 1: just harder conversations than your career is coming to an 412 00:23:04,320 --> 00:23:06,320 Speaker 1: end or your career is over and this is this 413 00:23:06,400 --> 00:23:08,920 Speaker 1: is what you've got, I mean, because there you're dealing 414 00:23:09,000 --> 00:23:11,720 Speaker 1: with the career coming to an end. But well, the 415 00:23:11,760 --> 00:23:15,439 Speaker 1: fruits of my labor I've lost that too, and you know, 416 00:23:15,520 --> 00:23:19,760 Speaker 1: the emotional and mental strain that comes from that. Um, 417 00:23:19,800 --> 00:23:22,000 Speaker 1: you know, that's that's again, that's a whole another topic, 418 00:23:22,040 --> 00:23:25,080 Speaker 1: but equally as difficult. No A Lah Mountane. He is 419 00:23:25,160 --> 00:23:29,760 Speaker 1: the director at Dance Capital Advisors. And again that life 420 00:23:29,840 --> 00:23:33,239 Speaker 1: changing money versus live altering money. You gave me so 421 00:23:33,320 --> 00:23:36,439 Speaker 1: much to to school my eighteen year old son about 422 00:23:36,920 --> 00:23:40,320 Speaker 1: live altering money. You can trade that rusty Mustang of 423 00:23:40,400 --> 00:23:44,200 Speaker 1: yours and get a brand new Subar. Up life changing money. 424 00:23:44,240 --> 00:23:47,960 Speaker 1: You can park that Subaru in your mansion garage. So 425 00:23:48,880 --> 00:23:52,880 Speaker 1: I hope I got the order right. So they both 426 00:23:52,920 --> 00:23:56,600 Speaker 1: require they both require a tremendous amount of work. Yeah, 427 00:23:56,640 --> 00:23:59,360 Speaker 1: that's that's the other key. And um, you know it's 428 00:23:59,359 --> 00:24:01,359 Speaker 1: not just work on the field or in the classroom. 429 00:24:01,359 --> 00:24:03,840 Speaker 1: It's it's it's work on yourself and it's work on 430 00:24:03,880 --> 00:24:08,120 Speaker 1: the people around you. And um, it's definitely, uh, definitely 431 00:24:08,160 --> 00:24:11,080 Speaker 1: something that we need to continue to work to change. Michael, No, 432 00:24:11,320 --> 00:24:13,399 Speaker 1: thank you again, and thank you for being part of 433 00:24:13,440 --> 00:24:16,200 Speaker 1: the Bloomberg business of sports. We appreciate it. Up next 434 00:24:16,240 --> 00:24:18,399 Speaker 1: on the show, we catch up with a long time 435 00:24:18,480 --> 00:24:22,400 Speaker 1: friend of the show, Marty Eedle, co chair of Goolston 436 00:24:22,520 --> 00:24:25,520 Speaker 1: and Stores Sports Law practice. We're going to talk to 437 00:24:25,600 --> 00:24:28,920 Speaker 1: him about some of the major sports headlines, including NFL 438 00:24:29,000 --> 00:24:32,480 Speaker 1: player safety, the new n C double A president and more. 439 00:24:32,800 --> 00:24:35,679 Speaker 1: That's straight ahead on Bloomberg Business of Sports. Michael bar 440 00:24:35,760 --> 00:24:37,760 Speaker 1: You can follow me on Twitter at Big Bar Sports 441 00:24:37,800 --> 00:24:39,760 Speaker 1: and I'm on Twitter at Scarlett Filth. Then you can 442 00:24:39,760 --> 00:24:42,080 Speaker 1: follow me at Deep Sass Hour. And don't forget to 443 00:24:42,119 --> 00:24:44,800 Speaker 1: catch our podcast that's Monday's, Wednesdays and Thursdays and all 444 00:24:44,800 --> 00:24:47,600 Speaker 1: your podcast platforms and right here on Bloomberg Business of 445 00:24:47,640 --> 00:24:58,080 Speaker 1: Sports Bloomberg Radio. This is the Bloomberg Business of Sports show. 446 00:24:58,160 --> 00:25:00,439 Speaker 1: We explore the big money issues in the world sports. 447 00:25:00,440 --> 00:25:04,520 Speaker 1: I'm Michael Barn, I'm Scarlett Fou and that's welcome our 448 00:25:04,560 --> 00:25:07,639 Speaker 1: next guest. He's a longtime friend of the show, Marty Eatle. 449 00:25:08,080 --> 00:25:11,760 Speaker 1: He's co chair of Goldston and Stores Sports Law Practice, 450 00:25:11,760 --> 00:25:14,959 Speaker 1: a firm recognized as one of the very best in 451 00:25:15,040 --> 00:25:18,040 Speaker 1: the US. He's also an adjunct professor of law at 452 00:25:18,119 --> 00:25:21,040 Speaker 1: Columbia University. So we've got a ton to talk about 453 00:25:21,080 --> 00:25:23,480 Speaker 1: with Marty. We're gonna throw a lot of hypotheticals this way. 454 00:25:23,680 --> 00:25:26,320 Speaker 1: We know that the college football Championship game is Monday, 455 00:25:26,520 --> 00:25:28,840 Speaker 1: and it wraps up their season. So now we really 456 00:25:28,840 --> 00:25:30,840 Speaker 1: start looking forward to the future for the n C 457 00:25:31,000 --> 00:25:33,680 Speaker 1: Double A, especially as they now welcome a new president, 458 00:25:34,040 --> 00:25:37,359 Speaker 1: the Governor of Massachusetts, Charlie Baker. The challenge is significant, 459 00:25:37,440 --> 00:25:40,480 Speaker 1: but the possibilities and the opportunities if we are successful 460 00:25:40,520 --> 00:25:43,520 Speaker 1: are enormous, and I'm very honored and grateful for this 461 00:25:43,600 --> 00:25:46,919 Speaker 1: chance to serve Governor Baker speaking at his virtual introductory 462 00:25:46,920 --> 00:25:49,720 Speaker 1: press conference as the next n Double A president. We 463 00:25:49,800 --> 00:25:53,280 Speaker 1: also want Marty's perspective on some big sports headlines recently, 464 00:25:53,359 --> 00:25:57,000 Speaker 1: from athletes involved in the ft X fallout to player 465 00:25:57,000 --> 00:25:59,919 Speaker 1: safety in the NFL. So let's dive right in. Marty, 466 00:26:00,240 --> 00:26:03,120 Speaker 1: welcome back to the Bloomberg Business of sports. Well, it's 467 00:26:03,280 --> 00:26:05,600 Speaker 1: it's great to be with all of you again, Happy 468 00:26:05,640 --> 00:26:09,720 Speaker 1: New Year, and I look forward to talking about top 469 00:26:09,760 --> 00:26:12,399 Speaker 1: of mind issues. Well, we've got We've got a lot 470 00:26:12,480 --> 00:26:15,720 Speaker 1: of issues to talk about. I don't know where to start. 471 00:26:15,960 --> 00:26:19,400 Speaker 1: Let's let's start. First of all, we got a brand 472 00:26:19,480 --> 00:26:24,120 Speaker 1: new president of the n C Double A coming in Massachusetts, 473 00:26:24,160 --> 00:26:27,680 Speaker 1: Governor Charlie Baker. What do you think he will bring 474 00:26:27,720 --> 00:26:32,920 Speaker 1: to the table. Well, I think the selection of Governor 475 00:26:32,920 --> 00:26:36,400 Speaker 1: Baker is an inspired choice. He's known for working across 476 00:26:36,440 --> 00:26:39,439 Speaker 1: the aisle, and right now, the n c a A 477 00:26:39,720 --> 00:26:45,000 Speaker 1: has a number of major issues confronting it from which 478 00:26:45,000 --> 00:26:51,359 Speaker 1: it is seeking federal assistance by Congress. So, assuming the 479 00:26:51,440 --> 00:27:00,440 Speaker 1: House selects a speaker by March right, right right, UH, 480 00:27:00,720 --> 00:27:05,200 Speaker 1: Governor Baker will be there talking about such things as 481 00:27:05,920 --> 00:27:11,919 Speaker 1: the distinction between amateur and professionalism in amateurism and professionalism 482 00:27:12,000 --> 00:27:16,159 Speaker 1: in college sports, and the recurring issue of n I 483 00:27:16,359 --> 00:27:21,000 Speaker 1: L name, image and likeness UH in college sports. Um, 484 00:27:21,840 --> 00:27:25,200 Speaker 1: in particular, if if I can just go on till 485 00:27:25,320 --> 00:27:28,880 Speaker 1: you want to cut me off or pepper me with questions, 486 00:27:29,040 --> 00:27:35,240 Speaker 1: so on the first one, amateurism versus professionalism. What we 487 00:27:35,400 --> 00:27:40,119 Speaker 1: know from the Supreme Court decision a little over a 488 00:27:40,200 --> 00:27:44,560 Speaker 1: year and a half ago in Bolston is that the 489 00:27:44,640 --> 00:27:49,560 Speaker 1: court agreed with the argument of the n A presented 490 00:27:49,600 --> 00:27:55,119 Speaker 1: that the A is an amateur athletic grouping that this 491 00:27:55,280 --> 00:27:58,399 Speaker 1: is important for its fan base, this is important for 492 00:27:58,480 --> 00:28:01,760 Speaker 1: its sponsors, this is importan and for it to receive 493 00:28:01,880 --> 00:28:08,399 Speaker 1: broadcasting revenue. But now this is being turned on its head, UM, 494 00:28:08,480 --> 00:28:11,920 Speaker 1: what are you going to do about paying college athletes 495 00:28:11,960 --> 00:28:18,600 Speaker 1: beyond the educational stipend, beyond other educational benefits? UH? We 496 00:28:18,720 --> 00:28:24,160 Speaker 1: see the National Labor Relations Board now seeking to say 497 00:28:24,200 --> 00:28:28,120 Speaker 1: that maybe college athletes should be subject to its jurisdiction. 498 00:28:28,880 --> 00:28:32,520 Speaker 1: We have a case um in what's called the Third Circuit, 499 00:28:32,640 --> 00:28:35,920 Speaker 1: which is Pennsylvania and some of the surrounding states there 500 00:28:37,200 --> 00:28:41,240 Speaker 1: which say that maybe college athletes should be paid a 501 00:28:41,360 --> 00:28:45,120 Speaker 1: fair wage as other employees. Once they become employees, did 502 00:28:45,160 --> 00:28:49,240 Speaker 1: they lose their amateur status? And what happens then to 503 00:28:49,360 --> 00:28:56,640 Speaker 1: this whole argument about college athletes being distinct from professional athletes. Uh, 504 00:28:56,800 --> 00:28:58,880 Speaker 1: sort of turns the world on its head. And I 505 00:28:58,920 --> 00:29:02,040 Speaker 1: think this is a may your major issue for Governor 506 00:29:02,080 --> 00:29:07,080 Speaker 1: Baker to confront um. The second one is is we 507 00:29:07,160 --> 00:29:11,120 Speaker 1: have discussed many times before, is name, image and likeness. 508 00:29:11,400 --> 00:29:14,840 Speaker 1: It's still a wild wild West out there. The n 509 00:29:14,960 --> 00:29:18,080 Speaker 1: c a A has said, has and has in its 510 00:29:18,080 --> 00:29:23,560 Speaker 1: constitution that colleges and universities cannot get involved in the 511 00:29:23,680 --> 00:29:29,120 Speaker 1: endorsement contracts. Yet we see headline saying certain college athletes 512 00:29:29,160 --> 00:29:33,080 Speaker 1: are getting endorsement contracts through their schools. Where is that 513 00:29:33,200 --> 00:29:38,280 Speaker 1: line being drawn? You have fifty states, fifty different n 514 00:29:38,280 --> 00:29:42,760 Speaker 1: I L laws, um, And one of the challenges for 515 00:29:42,840 --> 00:29:45,040 Speaker 1: Governor Baker will be to see if we can get 516 00:29:45,080 --> 00:29:48,440 Speaker 1: a uniform set of laws, perhaps enacted by the federal 517 00:29:48,480 --> 00:29:53,040 Speaker 1: government if Congress ever gets together again. Okay, and I 518 00:29:53,040 --> 00:29:55,960 Speaker 1: think that's an important point because the reality is that 519 00:29:56,040 --> 00:29:58,280 Speaker 1: it's very likely Congress will end up doing nothing when 520 00:29:58,280 --> 00:30:00,440 Speaker 1: it comes to these issues. There's a big two lists, 521 00:30:00,600 --> 00:30:03,320 Speaker 1: so the status quo will likely prevail for a while. 522 00:30:03,800 --> 00:30:06,480 Speaker 1: What does that status quo look like in six months, 523 00:30:06,560 --> 00:30:10,440 Speaker 1: in one year time? So a great question, scarlet Um. 524 00:30:11,400 --> 00:30:15,880 Speaker 1: Right now, you have Division one schools all over the 525 00:30:15,920 --> 00:30:20,000 Speaker 1: place in terms of what they're doing that they've gone 526 00:30:20,080 --> 00:30:24,000 Speaker 1: to a system of what they call collectives as I'm 527 00:30:24,000 --> 00:30:28,280 Speaker 1: seeing out there, and what collectives are are either for 528 00:30:28,520 --> 00:30:33,600 Speaker 1: profit or not for profit entities that will assist college 529 00:30:33,680 --> 00:30:40,000 Speaker 1: athletes in getting endorsement deals. Uh, but nobody knows what 530 00:30:40,160 --> 00:30:46,240 Speaker 1: this looks like. And sometimes these collectives are so poorly 531 00:30:46,360 --> 00:30:50,560 Speaker 1: structured that if they're lucky, they return a couple of 532 00:30:50,600 --> 00:30:55,800 Speaker 1: hundred dollars to a football athlete or a basketball player, 533 00:30:57,040 --> 00:31:02,360 Speaker 1: which is well below what the expectational value was. Uh. 534 00:31:02,640 --> 00:31:05,000 Speaker 1: How are you going to get the colleges and universities 535 00:31:05,080 --> 00:31:09,440 Speaker 1: involved without violating n c a A rules. There are 536 00:31:09,480 --> 00:31:13,480 Speaker 1: ways to do this, but most of these collectives are 537 00:31:13,520 --> 00:31:17,400 Speaker 1: fairly shortsighted and how they look at it. Marty, I 538 00:31:17,600 --> 00:31:19,080 Speaker 1: want to switch gears a little bit here. I have 539 00:31:19,160 --> 00:31:21,320 Speaker 1: to ask you about this. It's been all over the news. 540 00:31:21,440 --> 00:31:23,680 Speaker 1: I don't know how closely you're following at Sam Bankman 541 00:31:23,760 --> 00:31:26,400 Speaker 1: Free at the end of Crypto f t X. You know, 542 00:31:26,480 --> 00:31:29,840 Speaker 1: we've had athletes like Tom Brady and Steph Curry who 543 00:31:29,920 --> 00:31:32,400 Speaker 1: have been paid by f t X to market for them. 544 00:31:32,600 --> 00:31:36,200 Speaker 1: We've had athletes like Patrick Mahomes who have listed n 545 00:31:36,240 --> 00:31:38,280 Speaker 1: f t s you know, out there for all the 546 00:31:38,320 --> 00:31:41,040 Speaker 1: world to buy and sell and you know, made however 547 00:31:41,080 --> 00:31:44,120 Speaker 1: many millions, maybe placing it in the pocket of somebody 548 00:31:44,120 --> 00:31:46,320 Speaker 1: like Sam Bateman Free who may have been manipulating who knows. 549 00:31:46,320 --> 00:31:48,280 Speaker 1: So my question to you is how, I mean, what 550 00:31:48,480 --> 00:31:52,200 Speaker 1: comes next with you know, athletes who are you know, 551 00:31:52,240 --> 00:31:55,680 Speaker 1: their brands and how they can get involved with something 552 00:31:55,760 --> 00:31:58,840 Speaker 1: like this like crypto and unknown entity. I mean, where 553 00:31:58,840 --> 00:32:03,560 Speaker 1: does it end and what sort liabilities are there? So 554 00:32:03,800 --> 00:32:07,720 Speaker 1: a great question, Damian Elm which I don't know that much, 555 00:32:08,400 --> 00:32:10,160 Speaker 1: but let me tell you at least the bounds of 556 00:32:10,200 --> 00:32:15,360 Speaker 1: what I do understand their um It's really going to 557 00:32:15,400 --> 00:32:20,440 Speaker 1: be difficult to tell a professional athlete in particular, Hey, 558 00:32:20,560 --> 00:32:23,800 Speaker 1: don't go forward with a potential opportunity that's going to 559 00:32:23,880 --> 00:32:27,560 Speaker 1: pay you potentially hundreds of thousands, if not millions of 560 00:32:27,600 --> 00:32:32,400 Speaker 1: dollars just because there may be some liability down the 561 00:32:32,480 --> 00:32:34,800 Speaker 1: road or we don't know what the contours of this 562 00:32:35,000 --> 00:32:38,800 Speaker 1: may be. UM, you know, n f P s are 563 00:32:39,120 --> 00:32:41,920 Speaker 1: n f T s are one great example as opposed 564 00:32:42,000 --> 00:32:45,200 Speaker 1: to crypto, which I think there have been For crypto, 565 00:32:45,280 --> 00:32:49,760 Speaker 1: at least there have been sufficient warnings out there about 566 00:32:49,800 --> 00:32:53,600 Speaker 1: getting involved. But n f T s are things that 567 00:32:54,160 --> 00:32:58,640 Speaker 1: athletes have embraced. Do they understand the risk? Did their 568 00:32:58,720 --> 00:33:02,760 Speaker 1: agents understand the do they care about the risks? I 569 00:33:02,800 --> 00:33:06,560 Speaker 1: haven't seen a lot of understanding out there. You know, 570 00:33:06,680 --> 00:33:09,920 Speaker 1: our n f T securities and governed by the federal 571 00:33:09,960 --> 00:33:17,200 Speaker 1: securities laws. This is a constantly evolving area where to 572 00:33:17,280 --> 00:33:21,560 Speaker 1: the extent athletes see a or their agency a get 573 00:33:21,680 --> 00:33:24,440 Speaker 1: rich quick scheme, they're going to jump into it, and 574 00:33:25,440 --> 00:33:30,280 Speaker 1: they're going to find potential liability there. Uh As we're 575 00:33:30,280 --> 00:33:35,320 Speaker 1: now seeing with potentially Tom Brady and Steph Curry and 576 00:33:36,400 --> 00:33:41,640 Speaker 1: somehow this their image may be tarnished as a result. Uh. 577 00:33:41,840 --> 00:33:45,480 Speaker 1: I don't see legislation coming down here. But I do 578 00:33:45,600 --> 00:33:50,680 Speaker 1: see potential court cases which will impact these athletes in 579 00:33:50,720 --> 00:33:55,080 Speaker 1: ways they hadn't foreseen before. There is a topic, of course, 580 00:33:55,160 --> 00:33:59,120 Speaker 1: that is rather somber. And it happened in the Monday 581 00:33:59,200 --> 00:34:03,720 Speaker 1: night football game, and uh, Tomar Hamlin, he was on 582 00:34:03,800 --> 00:34:08,279 Speaker 1: a tackle and it was a normal tackle from te Higgins. 583 00:34:08,320 --> 00:34:11,680 Speaker 1: I mean, it wasn't anything dirty about it. Uh. And 584 00:34:11,719 --> 00:34:17,760 Speaker 1: then Hamlin stood up and then he collapsed on the field. Uh. 585 00:34:17,800 --> 00:34:23,040 Speaker 1: And he's trying to recover right now. First your thoughts 586 00:34:23,040 --> 00:34:26,000 Speaker 1: about that, And second, I guess this is a little 587 00:34:26,040 --> 00:34:30,200 Speaker 1: hard now about any players legal rights in the NFL 588 00:34:30,800 --> 00:34:33,640 Speaker 1: about something like this, not only this, but about concussions 589 00:34:33,680 --> 00:34:36,840 Speaker 1: as well. Good question. Yeah, So those those are wonderful, 590 00:34:36,880 --> 00:34:40,920 Speaker 1: wonderful questions. And you know, first for DeMar Hamlin, just 591 00:34:41,480 --> 00:34:44,319 Speaker 1: everyone's heart has to go out to him. That's what 592 00:34:44,440 --> 00:34:49,759 Speaker 1: a tragedy this is. Could it have been avoided? I 593 00:34:49,800 --> 00:34:54,839 Speaker 1: don't know. Football is a violent game, and no matter 594 00:34:54,880 --> 00:34:57,960 Speaker 1: how much others may say we've we've taken all the 595 00:34:58,080 --> 00:35:02,719 Speaker 1: necessary precautions, it's still is violent. Um. I mean, I'm 596 00:35:02,719 --> 00:35:05,239 Speaker 1: old enough to remember. I guess it was when Joe 597 00:35:05,280 --> 00:35:08,320 Speaker 1: Sisman's leg was broken in a game with the Giants, 598 00:35:09,160 --> 00:35:12,520 Speaker 1: and the game wasn't stopped as it was appropriately here 599 00:35:12,560 --> 00:35:16,000 Speaker 1: with Damar Hamlin. Well, I remember the game, forgive me. 600 00:35:16,040 --> 00:35:20,160 Speaker 1: I remember the game and it involved Detroit Lions player 601 00:35:20,320 --> 00:35:22,960 Speaker 1: Chuck Hughes. And this was back in like the early 602 00:35:23,040 --> 00:35:25,080 Speaker 1: seventies when they used to play at the old Tiger 603 00:35:25,160 --> 00:35:29,320 Speaker 1: Stadium and he was just simply running a pass route 604 00:35:29,719 --> 00:35:33,000 Speaker 1: and collapsed and he died and they continued on with 605 00:35:33,040 --> 00:35:35,160 Speaker 1: the game. Now, I don't know if you want to say, well, 606 00:35:35,200 --> 00:35:37,680 Speaker 1: it was a different time and this that whatever, But 607 00:35:38,000 --> 00:35:42,080 Speaker 1: I mean, it's thank goodness. I think things have changed, Marty. Yeah. 608 00:35:42,120 --> 00:35:45,200 Speaker 1: I think that's right, Michael, Thank goodness, they have changed, 609 00:35:45,640 --> 00:35:50,480 Speaker 1: and the NFL has tried to be proactive in doing things. 610 00:35:50,520 --> 00:35:54,839 Speaker 1: And let's segue over from a one off situation like 611 00:35:55,000 --> 00:35:58,000 Speaker 1: what happened with Damar Hamlin. You know, I don't know 612 00:35:58,200 --> 00:36:03,840 Speaker 1: that that's readly recognizable before. Uh you know, did he 613 00:36:03,920 --> 00:36:07,480 Speaker 1: have a pre existing heart condition? I don't know. Should 614 00:36:07,560 --> 00:36:10,520 Speaker 1: that have been you know, could that have been disclosed? 615 00:36:10,520 --> 00:36:13,920 Speaker 1: Could that have been discovered? Again? I don't know. But 616 00:36:14,480 --> 00:36:18,120 Speaker 1: the other point that you raise about the concussion, the 617 00:36:18,239 --> 00:36:20,759 Speaker 1: NFL has taken a lot of steps. They have their 618 00:36:20,760 --> 00:36:24,880 Speaker 1: five step protocol. Now, according to the NFL, this has 619 00:36:25,880 --> 00:36:31,160 Speaker 1: resulted in mitigating the severity of concussions. Uh. If not 620 00:36:31,320 --> 00:36:34,120 Speaker 1: the number, it doesn't seem to The numbers seem to 621 00:36:34,120 --> 00:36:37,360 Speaker 1: be rather high. I think it's well over a hundred 622 00:36:37,800 --> 00:36:44,120 Speaker 1: concussion injuries this season. Um, but that doesn't get rid 623 00:36:44,160 --> 00:36:48,000 Speaker 1: of the problem. That just treats the problem that currently exists. 624 00:36:49,120 --> 00:36:52,480 Speaker 1: People get hit with helmets. Okay, so you say, now 625 00:36:52,520 --> 00:36:56,400 Speaker 1: you can't hit a player below a certain part of 626 00:36:56,440 --> 00:37:02,279 Speaker 1: his body with your helmet. Uh. That can't be observed 627 00:37:02,640 --> 00:37:05,200 Speaker 1: except in the breach. You know, if you're running down 628 00:37:05,239 --> 00:37:07,960 Speaker 1: the field and you see another player there and you 629 00:37:08,000 --> 00:37:10,239 Speaker 1: want to tackle them, you're going to go out and 630 00:37:10,320 --> 00:37:12,560 Speaker 1: tackle them. Sometimes your helmet is going to get in 631 00:37:12,560 --> 00:37:17,040 Speaker 1: the way. So what I don't know. But an area 632 00:37:17,239 --> 00:37:23,000 Speaker 1: for inquiry here is what is the NFL and and 633 00:37:23,120 --> 00:37:29,960 Speaker 1: the teams doing to improve the safety of the equipment? Uh? 634 00:37:30,080 --> 00:37:34,520 Speaker 1: You know, are the is the padding sufficient? Um? You know, 635 00:37:34,640 --> 00:37:38,440 Speaker 1: when do you call a player down? Uh? You know, 636 00:37:38,480 --> 00:37:41,759 Speaker 1: we see these tackles where suddenly it's sort of a 637 00:37:41,840 --> 00:37:45,160 Speaker 1: free fall and you have seven eight players in on 638 00:37:45,280 --> 00:37:49,640 Speaker 1: the tackle. Does that increase the risk of injury of 639 00:37:49,760 --> 00:37:55,640 Speaker 1: the problem. Here is also the question of insurance. You know, 640 00:37:55,719 --> 00:37:59,640 Speaker 1: it seems that at least from a thirty feet up perspective, 641 00:38:00,320 --> 00:38:04,240 Speaker 1: if the league and the teams can ensure their players 642 00:38:04,400 --> 00:38:09,800 Speaker 1: against lots of services, um, they're going to have less 643 00:38:10,040 --> 00:38:17,520 Speaker 1: incentives to create better defensive mechanisms to prevent the problem 644 00:38:17,680 --> 00:38:20,279 Speaker 1: rather than just to ameliorate it. Marty, I'm gonna step 645 00:38:20,320 --> 00:38:22,640 Speaker 1: in here and ask the question that Scarlett has been 646 00:38:22,760 --> 00:38:25,200 Speaker 1: dying to ask you. Um, you know, it has to 647 00:38:25,200 --> 00:38:26,840 Speaker 1: do with the New York mets. Here, it has to 648 00:38:26,880 --> 00:38:31,279 Speaker 1: do with Carlos Krea. Um. You know, I need you 649 00:38:31,320 --> 00:38:35,400 Speaker 1: to draw in your experience in employment disputes and remediation 650 00:38:35,480 --> 00:38:38,600 Speaker 1: and protections for injury, because I think it's the surgically 651 00:38:38,600 --> 00:38:41,879 Speaker 1: repaired ankle of Carlos that's kind of holding things up here. 652 00:38:41,880 --> 00:38:43,600 Speaker 1: And when I say holding things up, we're talking through 653 00:38:43,920 --> 00:38:46,080 Speaker 1: fifty million over twelve years. I mean, what are your 654 00:38:46,120 --> 00:38:49,680 Speaker 1: thoughts here? I mean, nonetheless, what you know and can 655 00:38:49,719 --> 00:38:52,319 Speaker 1: paying by the way, Um, except Stevie, So what are 656 00:38:52,360 --> 00:38:54,279 Speaker 1: your thoughts here? Where are we in that process? In 657 00:38:54,320 --> 00:38:56,480 Speaker 1: your opinion, you're not being in you know, the bedroom 658 00:38:56,520 --> 00:38:58,600 Speaker 1: with with obviously all parties. You know, where do you 659 00:38:58,640 --> 00:39:01,320 Speaker 1: think we are? My knowledge is what I read in 660 00:39:01,440 --> 00:39:05,480 Speaker 1: the papers here Carlos Correa had a deal with the Giants. 661 00:39:05,520 --> 00:39:09,640 Speaker 1: It was subject to a medical examination. He flunked it 662 00:39:10,120 --> 00:39:13,560 Speaker 1: because of this preexisting injury. The Giants did not seem 663 00:39:13,600 --> 00:39:16,080 Speaker 1: to want to go forward with I think it was 664 00:39:16,200 --> 00:39:20,960 Speaker 1: three D fifty million over thirteen years, and Steve Cohen 665 00:39:21,040 --> 00:39:26,279 Speaker 1: and the Mets jumped into the fray uh potentially wonderfully 666 00:39:26,360 --> 00:39:29,120 Speaker 1: for all Mets fans, uh, saying you know, we'll give 667 00:39:29,120 --> 00:39:33,680 Speaker 1: you twelve years at three D fifteen million, but again 668 00:39:33,800 --> 00:39:37,840 Speaker 1: subject to a medical exam, which they probably knew that 669 00:39:37,960 --> 00:39:40,520 Speaker 1: the outcome would be at the times they wrote this 670 00:39:40,640 --> 00:39:43,600 Speaker 1: in he seems to have flunked the medical exam with 671 00:39:43,640 --> 00:39:46,840 Speaker 1: the Mets also. And then for what I read is 672 00:39:46,880 --> 00:39:50,080 Speaker 1: there the contract will be done, but there'll be lots 673 00:39:50,120 --> 00:39:53,640 Speaker 1: of bells and whistles. Well, all those bells and whistles 674 00:39:53,680 --> 00:39:57,920 Speaker 1: will go towards who's going to assume the risk of injury, 675 00:39:58,480 --> 00:40:02,520 Speaker 1: how much if there is a subsequent injury, how much 676 00:40:02,520 --> 00:40:05,680 Speaker 1: of that will be covered by insurance? So the Mets 677 00:40:05,840 --> 00:40:09,759 Speaker 1: won't take a hit on three hundred fifteen million dollars 678 00:40:09,760 --> 00:40:12,600 Speaker 1: over twelve years. You know, I can go into the 679 00:40:12,640 --> 00:40:15,600 Speaker 1: insurance question a bit more, but it seems to me 680 00:40:15,719 --> 00:40:20,040 Speaker 1: that's really what's guiding this discussion. I'd like to get 681 00:40:20,040 --> 00:40:22,480 Speaker 1: your take also on why you think we've seen so 682 00:40:22,520 --> 00:40:28,000 Speaker 1: many long term contracts. I mean, years ago people would 683 00:40:28,000 --> 00:40:31,880 Speaker 1: be a guess at the possibility of nine eleven year contracts. 684 00:40:31,960 --> 00:40:35,080 Speaker 1: Now these seem to be the norm. What's what's driving 685 00:40:35,080 --> 00:40:36,840 Speaker 1: it in your mind? And how tied is it to 686 00:40:37,080 --> 00:40:39,920 Speaker 1: what we're seeing in the economy with inflation rising? So 687 00:40:40,239 --> 00:40:44,040 Speaker 1: great questions, Scarlett, But we have different timelines, you and I. 688 00:40:44,520 --> 00:40:49,359 Speaker 1: So years ago when I was young, um, players were 689 00:40:49,880 --> 00:40:54,000 Speaker 1: players were reserved to their team for life, and then 690 00:40:54,040 --> 00:40:56,879 Speaker 1: we had this wonderful thing called free agency, which came 691 00:40:56,920 --> 00:41:02,279 Speaker 1: about in the in baseball, and now players can negotiate deals. 692 00:41:02,320 --> 00:41:06,200 Speaker 1: So if that focusing on the timeline that we now have, 693 00:41:06,880 --> 00:41:09,600 Speaker 1: why are they getting more ones? I it seems to 694 00:41:09,640 --> 00:41:13,600 Speaker 1: me it's an inflation driven phenomenon. You know, a Rod 695 00:41:13,760 --> 00:41:16,680 Speaker 1: signed a long term deal at twenty seven and a 696 00:41:16,719 --> 00:41:20,080 Speaker 1: half million dollars per year. Well, by the end of 697 00:41:20,120 --> 00:41:23,960 Speaker 1: his career, twenty seven and a half million was a 698 00:41:24,160 --> 00:41:28,640 Speaker 1: large amount for a baseball player, but wasn't the top amount. 699 00:41:29,320 --> 00:41:33,279 Speaker 1: So in a sense, what owners are doing are saying is, look, 700 00:41:33,400 --> 00:41:35,160 Speaker 1: if we go out to the end of a long 701 00:41:35,280 --> 00:41:39,440 Speaker 1: term deal, maybe we can have a couple of phenomenon happened. 702 00:41:39,440 --> 00:41:43,439 Speaker 1: One is, inflation will catch up and salary inflation will 703 00:41:43,480 --> 00:41:47,560 Speaker 1: also catch up, so we're not gonna be overpaying. Second is, 704 00:41:47,600 --> 00:41:50,480 Speaker 1: there's the possibility that the player won't laugh that long 705 00:41:50,600 --> 00:41:54,160 Speaker 1: because of the injuries, and then we get insurance recoveries 706 00:41:54,200 --> 00:41:58,279 Speaker 1: as well, which will mitigate the amount. Uh. And there is, 707 00:41:58,320 --> 00:42:01,200 Speaker 1: of course, they could see about trade the player if 708 00:42:01,200 --> 00:42:03,960 Speaker 1: the player is performing at at particular level and another 709 00:42:04,000 --> 00:42:06,399 Speaker 1: team wants that player. Doesn't seem to be the case 710 00:42:06,400 --> 00:42:09,480 Speaker 1: with the Yankees and standing though. We're gonna have the 711 00:42:09,560 --> 00:42:12,160 Speaker 1: NT double A college football championship coming up, gonna have 712 00:42:12,160 --> 00:42:14,080 Speaker 1: the horn Frogs, We're gonna have the Bulldogs. We're gonna 713 00:42:14,120 --> 00:42:15,800 Speaker 1: have minus twelve and a half, a sixty two and 714 00:42:15,800 --> 00:42:17,759 Speaker 1: a half over under. We're gonna have sports betting. It's 715 00:42:17,800 --> 00:42:20,160 Speaker 1: one of the biggest events in sports gambling each and 716 00:42:20,200 --> 00:42:23,120 Speaker 1: every year. Curious to hear your thoughts on the evolution 717 00:42:23,440 --> 00:42:26,120 Speaker 1: of the sports betting market. You know where we're at 718 00:42:26,200 --> 00:42:30,040 Speaker 1: and quite frankly, if you see going forward some fift however, 719 00:42:30,120 --> 00:42:32,000 Speaker 1: many years, and what do you see. Do you see 720 00:42:32,000 --> 00:42:35,440 Speaker 1: any lasting damages, any any potential for litigation down the 721 00:42:35,520 --> 00:42:38,120 Speaker 1: road against some of these sports books. Yes, and yes, 722 00:42:38,920 --> 00:42:42,440 Speaker 1: so this is another big ticket issue for Governor Baker. 723 00:42:43,320 --> 00:42:47,960 Speaker 1: Most schools outlaw betting, and that doesn't stop most students 724 00:42:48,040 --> 00:42:51,720 Speaker 1: from engaging in fan duels and draft kings and participating 725 00:42:52,120 --> 00:42:58,439 Speaker 1: and that like, does that violate most schools anti gambling rules? Yes, 726 00:42:58,840 --> 00:43:02,120 Speaker 1: it does. So we're going to have to come to 727 00:43:02,200 --> 00:43:05,360 Speaker 1: some accommodation sort of to bring this out of the 728 00:43:05,440 --> 00:43:12,600 Speaker 1: closet um and have open I think open betting, uh 729 00:43:12,800 --> 00:43:14,640 Speaker 1: you know, be it through a lottery, and there are 730 00:43:14,640 --> 00:43:18,480 Speaker 1: a number of lotteries that have what I would call 731 00:43:18,560 --> 00:43:23,520 Speaker 1: gambling on outcomes. You could have the current system Vanduel's 732 00:43:23,600 --> 00:43:28,560 Speaker 1: draft kings with students participating, which of course raises the 733 00:43:28,680 --> 00:43:34,239 Speaker 1: level of interest in the sport. But gambling being in 734 00:43:34,280 --> 00:43:39,880 Speaker 1: the closet, if you will, creates a terrible problem under 735 00:43:39,920 --> 00:43:44,040 Speaker 1: most states laws which prohibit gambling, creates a problem for 736 00:43:44,080 --> 00:43:49,400 Speaker 1: a lot of schools which prohibit gambling. Vice and as always, 737 00:43:49,440 --> 00:43:54,520 Speaker 1: the possibility of taking us back into the early days 738 00:43:54,520 --> 00:43:59,840 Speaker 1: of sports where gambling created enormous problems. Go back to 739 00:44:00,160 --> 00:44:03,000 Speaker 1: the what was it the n in c A A 740 00:44:03,200 --> 00:44:07,160 Speaker 1: Finals where there was gambling on was it l I 741 00:44:07,320 --> 00:44:14,200 Speaker 1: use um or CCN wise outcome um. Jack Molinas, a 742 00:44:14,320 --> 00:44:18,360 Speaker 1: star player for Columbia in the early fifties, started throwing 743 00:44:18,480 --> 00:44:22,520 Speaker 1: games when he got into the pro shape by shaving points. 744 00:44:22,960 --> 00:44:27,160 Speaker 1: You can't have those phenomenon continues. So the question is 745 00:44:27,160 --> 00:44:29,320 Speaker 1: how do we create a system to deal with it, 746 00:44:29,400 --> 00:44:34,279 Speaker 1: and will there be potential liability sure from students who 747 00:44:34,360 --> 00:44:38,279 Speaker 1: want to participate, by colleges who want to prohibit, and 748 00:44:38,400 --> 00:44:43,400 Speaker 1: will need some type of jurisdictional evaluation, either by state 749 00:44:43,520 --> 00:44:47,640 Speaker 1: legislatures or the federal legislature. Well, now that brings up 750 00:44:48,120 --> 00:44:51,239 Speaker 1: I'm going totally off the board here, But you it 751 00:44:51,360 --> 00:44:55,480 Speaker 1: comes back to what what I'm getting at, uh, and 752 00:44:55,600 --> 00:44:58,040 Speaker 1: you said back in the day when you talked about 753 00:44:58,080 --> 00:45:01,480 Speaker 1: gambling in sports, you know, p fol did not like it. 754 00:45:01,760 --> 00:45:04,960 Speaker 1: Pete Rose, he's not in the Hall of Fame today 755 00:45:05,040 --> 00:45:10,440 Speaker 1: because he gambled on baseball. But this was before you 756 00:45:10,600 --> 00:45:14,359 Speaker 1: had all the online sites and and all this, and that. 757 00:45:15,120 --> 00:45:19,160 Speaker 1: I just wonder, now, have we hit a point with 758 00:45:19,280 --> 00:45:23,320 Speaker 1: a Pete rose where it's like, Okay, let's let's forgive 759 00:45:23,360 --> 00:45:26,879 Speaker 1: the guy because he didn't bet against his team. Oh, 760 00:45:26,920 --> 00:45:28,920 Speaker 1: I think the jury is out as to whether or 761 00:45:28,960 --> 00:45:33,160 Speaker 1: not he bet against his team on that, but putting 762 00:45:33,160 --> 00:45:37,439 Speaker 1: that aside for a moment at least. Uh, as long 763 00:45:37,480 --> 00:45:42,680 Speaker 1: as you have the athletes actively engaged in gambling. We're 764 00:45:42,760 --> 00:45:47,320 Speaker 1: engaged in gambling, you have the possibility of games being raped. 765 00:45:47,800 --> 00:45:52,320 Speaker 1: That can't be the outcome. So how do you devise 766 00:45:52,480 --> 00:45:58,160 Speaker 1: a system where you allow the athletes to engage in 767 00:45:58,200 --> 00:46:03,600 Speaker 1: these public phenomena ban duels, draft kings, and not worry 768 00:46:03,640 --> 00:46:08,200 Speaker 1: about the outcome of their particular match or game. You know, 769 00:46:08,239 --> 00:46:11,240 Speaker 1: can you have a rule, for example, that says athletes, 770 00:46:11,320 --> 00:46:14,640 Speaker 1: you can bet on an outcome, but it can't involve 771 00:46:14,719 --> 00:46:17,960 Speaker 1: your team. Doesn't go a hundred percent because everybody is 772 00:46:18,000 --> 00:46:20,280 Speaker 1: looking at standing and saying, well, if this team wins 773 00:46:20,320 --> 00:46:24,320 Speaker 1: by this much, then maybe we qualify or don't qualify 774 00:46:24,640 --> 00:46:27,799 Speaker 1: for a playoff. But you can get closer to a 775 00:46:27,920 --> 00:46:30,759 Speaker 1: better result. See this is where we just need to 776 00:46:30,800 --> 00:46:34,480 Speaker 1: sit down with some martinis and talk with Marty about 777 00:46:34,560 --> 00:46:36,799 Speaker 1: just because we could just we could go on and 778 00:46:36,960 --> 00:46:40,440 Speaker 1: on and on. Marty you are the man. You always 779 00:46:40,960 --> 00:46:44,640 Speaker 1: put the knowledge on us and we so much appreciate it. 780 00:46:45,320 --> 00:46:48,919 Speaker 1: Marty Etle, friend of the show. He is co chair 781 00:46:48,960 --> 00:46:53,200 Speaker 1: of Golston the Store's sports law practice, also adjunct Professor 782 00:46:53,320 --> 00:46:56,960 Speaker 1: of Law at Columbia University. Marty, you are the man. 783 00:46:57,120 --> 00:46:59,160 Speaker 1: Thank you so much for joining us on the Bloombery 784 00:46:59,160 --> 00:47:01,560 Speaker 1: Business of Sports. It's been a pleasure. Thank you for 785 00:47:01,640 --> 00:47:04,120 Speaker 1: having me. A Happy New Year to all three of you. 786 00:47:04,480 --> 00:47:07,080 Speaker 1: This has been the Bloomberg Business of Sports podcast on 787 00:47:07,200 --> 00:47:10,320 Speaker 1: Michael Barrn along with Scarlet Fou and Damien Sasaur catches 788 00:47:10,360 --> 00:47:13,120 Speaker 1: here each and every Monday, Wednesday and Thursday exploring the 789 00:47:13,160 --> 00:47:14,879 Speaker 1: world of money in sports. And catch me on Twitter 790 00:47:14,960 --> 00:47:17,440 Speaker 1: at Big Bar Sports and you can find me on 791 00:47:17,440 --> 00:47:21,080 Speaker 1: Twitter at Scarlett Fool. Friends, I'm on Twitter at You're 792 00:47:21,080 --> 00:47:23,720 Speaker 1: listening to The Bloomberg Business of Sports on Bloomberg Radio 793 00:47:23,840 --> 00:47:25,360 Speaker 1: around the world.