1 00:00:00,280 --> 00:00:03,560 Speaker 1: This is the business of sports where in the situation 2 00:00:03,640 --> 00:00:06,400 Speaker 1: that we haven't dealt with in modern times, pandemic here 3 00:00:06,440 --> 00:00:10,479 Speaker 1: has really accelerated the investments that we've been advocating for 4 00:00:10,480 --> 00:00:13,280 Speaker 1: for years. Almost everyone else there is hoping that there's 5 00:00:13,320 --> 00:00:16,759 Speaker 1: some kind of return to normal by August September. In 6 00:00:16,880 --> 00:00:20,200 Speaker 1: depth conversations with the leaders in the sports industry, who 7 00:00:20,200 --> 00:00:22,800 Speaker 1: wants to be the sacrificial lambs that shows up at 8 00:00:22,840 --> 00:00:25,640 Speaker 1: the first big major sporting events. Were part of something 9 00:00:25,720 --> 00:00:28,120 Speaker 1: much bigger than the sports right now, and the health 10 00:00:28,120 --> 00:00:31,040 Speaker 1: and safety of our stakeholders is look most important every moment. 11 00:00:31,280 --> 00:00:33,760 Speaker 1: I think we're all from business respective thinking about the 12 00:00:33,800 --> 00:00:37,080 Speaker 1: impact that the virus is having across the country. Bloomberg 13 00:00:37,240 --> 00:00:40,920 Speaker 1: Business of Sports from Bloomberg Radio. Hi, I'm Jason Kelly, 14 00:00:41,200 --> 00:00:43,840 Speaker 1: Mike Blint, and I'm Michael barn This is the Bloomberg 15 00:00:43,880 --> 00:00:46,720 Speaker 1: Business of Sports podcast where we explore the big money 16 00:00:46,720 --> 00:00:49,960 Speaker 1: issues in the world of sports today. There's a little 17 00:00:50,000 --> 00:00:52,720 Speaker 1: giddiness in my voice. Will begin with Major League Baseball, 18 00:00:52,800 --> 00:00:55,400 Speaker 1: where the owners have approved a plan to start the 19 00:00:55,440 --> 00:01:00,920 Speaker 1: season now, Jason, negotiations with the players began, and that's 20 00:01:00,960 --> 00:01:03,960 Speaker 1: not so easy. It is not easy and what's so 21 00:01:04,040 --> 00:01:08,360 Speaker 1: interesting about this to me, Michael Barr is this notion 22 00:01:08,920 --> 00:01:13,479 Speaker 1: that it's really, maybe not surprisingly going to come down 23 00:01:13,480 --> 00:01:17,319 Speaker 1: to one thing, and that one thing is money. You 24 00:01:17,400 --> 00:01:20,160 Speaker 1: talked about the players, that's what's on their mind. They're 25 00:01:20,160 --> 00:01:23,000 Speaker 1: sort of good with the schedule. It looks like they're 26 00:01:23,000 --> 00:01:26,840 Speaker 1: good with the expanded playoffs, but this fifty fifty revenue 27 00:01:26,880 --> 00:01:31,560 Speaker 1: split is the thing, and that's the bone of contention. So, 28 00:01:32,000 --> 00:01:35,119 Speaker 1: Mike Clinch, I mean, is this where we expected to 29 00:01:35,120 --> 00:01:39,000 Speaker 1: to end up just talking about salaries? Absolutely. The Major 30 00:01:39,040 --> 00:01:42,440 Speaker 1: League Baseball Players Association is the most powerful of the 31 00:01:42,520 --> 00:01:45,920 Speaker 1: four major sports unions, but it's also the most selfish 32 00:01:45,920 --> 00:01:49,040 Speaker 1: as well, and the players and the owners have come 33 00:01:49,080 --> 00:01:51,920 Speaker 1: to an acrement over revenue sharing. Now the owners want 34 00:01:51,960 --> 00:01:54,760 Speaker 1: that the players to share the burden of the losses 35 00:01:54,800 --> 00:01:58,400 Speaker 1: they will incur playing in empty ballparks. Now, Major League 36 00:01:58,440 --> 00:02:01,800 Speaker 1: Baseball never releases its finances ever makes it public, but 37 00:02:02,080 --> 00:02:05,680 Speaker 1: it's pretty much common knowledge that about their revenue comes 38 00:02:05,760 --> 00:02:09,200 Speaker 1: from parking ticket sales and concessions, so those are out 39 00:02:09,200 --> 00:02:12,240 Speaker 1: the window if they're play in front of empty ballpark. So, again, 40 00:02:12,280 --> 00:02:14,840 Speaker 1: as you said, m O N E. Y want to 41 00:02:14,840 --> 00:02:17,000 Speaker 1: come down to what's going to determine this? All right? 42 00:02:17,040 --> 00:02:19,440 Speaker 1: So Lynch, stick with me here for a second, Like, 43 00:02:19,720 --> 00:02:23,760 Speaker 1: what do you think happens? Where where do they end up? Well, 44 00:02:23,919 --> 00:02:28,320 Speaker 1: the players, Uh, if they don't play, they don't get paid. 45 00:02:28,360 --> 00:02:30,320 Speaker 1: I mean, there's no games. They get a hundred fifty 46 00:02:30,680 --> 00:02:33,360 Speaker 1: dollars each. If they play these eighty two games, they 47 00:02:33,400 --> 00:02:36,280 Speaker 1: get half of their salary. They've already agreed to um 48 00:02:37,080 --> 00:02:40,000 Speaker 1: approraded to share of their salaries. So that's basically like 49 00:02:40,040 --> 00:02:42,480 Speaker 1: Mookie bets, for instance, twenty nine million with the Dodgers 50 00:02:42,760 --> 00:02:45,120 Speaker 1: fourteen and a half million dollars. If he wants to 51 00:02:45,120 --> 00:02:47,000 Speaker 1: fight and the rest of the players want to fight 52 00:02:47,040 --> 00:02:51,160 Speaker 1: over this revenue sharing and and sharing of the losses 53 00:02:51,200 --> 00:02:53,640 Speaker 1: incurred at the ballpark, they get nothing at all. So 54 00:02:53,680 --> 00:02:57,480 Speaker 1: I think it would behoove them to turn this thing down. Yeah, So, 55 00:02:57,840 --> 00:03:02,480 Speaker 1: Michael Barr, I'm fascinated by this in part because what 56 00:03:02,520 --> 00:03:05,799 Speaker 1: you're seeing sort of emerge, and we're hearing this from 57 00:03:05,800 --> 00:03:08,800 Speaker 1: the government of Illinois, We're hearing this from some ex players, 58 00:03:08,800 --> 00:03:10,880 Speaker 1: We're hearing it from a lot of the we all 59 00:03:10,919 --> 00:03:13,840 Speaker 1: know this around this virtual table very well. The chattering 60 00:03:13,880 --> 00:03:18,520 Speaker 1: class around sports of which we count ourselves apart. I mean, 61 00:03:18,560 --> 00:03:23,119 Speaker 1: there there's an argument that basically this is America's pastime, 62 00:03:23,720 --> 00:03:27,160 Speaker 1: this is good for the country. Shut up and do it. Yeah, 63 00:03:27,440 --> 00:03:30,480 Speaker 1: you hit the nail on the head. Governor Pritsker ripped 64 00:03:30,520 --> 00:03:33,200 Speaker 1: them a new one, saying, hey, it's like we got 65 00:03:33,240 --> 00:03:36,840 Speaker 1: people out here who don't even have a job and 66 00:03:36,960 --> 00:03:41,920 Speaker 1: we need sports. So all this about money, money, money, 67 00:03:42,120 --> 00:03:45,240 Speaker 1: is that we've got people dying out here, according to Pritsker, 68 00:03:45,680 --> 00:03:48,360 Speaker 1: and and he was rather upset about it. So we'll 69 00:03:48,360 --> 00:03:53,400 Speaker 1: see if that pressure will add to the players to say, okay, 70 00:03:53,640 --> 00:03:56,600 Speaker 1: we'll get it going. By the way, Um, if they 71 00:03:56,600 --> 00:03:58,640 Speaker 1: do come back, it'll be I think what about an 72 00:03:58,640 --> 00:04:02,160 Speaker 1: eighties seven games. He's in a very drunk, kidded season. 73 00:04:02,720 --> 00:04:04,680 Speaker 1: I want to sort of continue on this if we can, 74 00:04:04,720 --> 00:04:07,720 Speaker 1: Mike for just a second, because this idea of this 75 00:04:07,800 --> 00:04:09,800 Speaker 1: is good for the country. I mean, what do you 76 00:04:09,880 --> 00:04:12,000 Speaker 1: here when you when you're talking to people, you're very 77 00:04:12,000 --> 00:04:15,160 Speaker 1: well sourced in this world, Like, does that argument have merit? 78 00:04:16,520 --> 00:04:19,279 Speaker 1: It absolutely has merit. This can be a public relations 79 00:04:19,400 --> 00:04:24,560 Speaker 1: nightmare for the Players Association right now. Tony Clark yesterday 80 00:04:24,560 --> 00:04:26,920 Speaker 1: told the Athletic Quote the league is trying to take 81 00:04:26,920 --> 00:04:29,880 Speaker 1: advantage of a global health crisis to get what they 82 00:04:30,000 --> 00:04:32,320 Speaker 1: failed to achieve in the past. This is not a 83 00:04:32,360 --> 00:04:35,760 Speaker 1: time for any type of banter like that. People want baseball. 84 00:04:36,080 --> 00:04:38,599 Speaker 1: People are starving for live events, and I think people 85 00:04:38,640 --> 00:04:41,320 Speaker 1: will watch it on television. Uh, they can pump in 86 00:04:41,400 --> 00:04:45,080 Speaker 1: some fake noise in the audio booth to make a 87 00:04:45,160 --> 00:04:48,040 Speaker 1: sound like that. Yeah, go a little bit, and especially 88 00:04:48,080 --> 00:04:50,400 Speaker 1: when we're in when they're in Detroit, really really glad. 89 00:04:53,480 --> 00:04:55,800 Speaker 1: It's funny. Michael Barr has that in his kitchen when 90 00:04:55,839 --> 00:04:58,640 Speaker 1: he's cooking. He just like sort of needs he just 91 00:04:58,720 --> 00:05:01,480 Speaker 1: needs the support. It's far. There's nothing wrong with that. 92 00:05:01,960 --> 00:05:06,760 Speaker 1: He's going for the mayna aig uh. And I got 93 00:05:06,760 --> 00:05:08,120 Speaker 1: to give a shout out before we moved to the 94 00:05:08,160 --> 00:05:13,279 Speaker 1: next topic. A shout out to Amando Gallaraga. This is 95 00:05:13,320 --> 00:05:17,120 Speaker 1: the ten year anniversary where he threw a perfect game, 96 00:05:18,040 --> 00:05:23,920 Speaker 1: except Jim Joyce said no, and it was the wrong call. 97 00:05:24,080 --> 00:05:27,440 Speaker 1: Jim Joyce said it was wrong, and of course Gallaraga, 98 00:05:27,760 --> 00:05:30,520 Speaker 1: I'm amazed he didn't go ballistic. I went ballistic when 99 00:05:30,560 --> 00:05:33,479 Speaker 1: I saw it on TV because I started celebrating for 100 00:05:33,600 --> 00:05:36,440 Speaker 1: the Detroit Tigers and then it didn't happen. So yeah, 101 00:05:36,520 --> 00:05:41,160 Speaker 1: that was really really amazing. Next, we have rumors and 102 00:05:41,320 --> 00:05:44,560 Speaker 1: report swirling that one of the world's biggest talent agencies 103 00:05:44,600 --> 00:05:48,040 Speaker 1: could be in trouble. We're talking about Endeavor Group Holdings, 104 00:05:48,360 --> 00:05:52,160 Speaker 1: founded by R. A. Emmanuel, though brass at the agency 105 00:05:52,200 --> 00:05:56,360 Speaker 1: claim there are no such issues. Jason, I am fascinated 106 00:05:56,400 --> 00:05:58,480 Speaker 1: by this start. I mean, this is one of these 107 00:05:58,480 --> 00:06:02,920 Speaker 1: like collisions of so many worlds that I'm interested in, sports, 108 00:06:03,080 --> 00:06:06,919 Speaker 1: private equity, the whole business of representation, which all of 109 00:06:07,000 --> 00:06:10,279 Speaker 1: us have followed uh so closely. And you know, I 110 00:06:10,320 --> 00:06:12,839 Speaker 1: couldn't get Jerry Maguire out of my head this morning 111 00:06:12,839 --> 00:06:15,040 Speaker 1: as I was thinking about this and what he would do, 112 00:06:15,400 --> 00:06:18,039 Speaker 1: uh in this sort of situation. I know, he's a 113 00:06:18,040 --> 00:06:21,480 Speaker 1: fictional character, but that's okay. We're in a safe place here. Um, 114 00:06:21,640 --> 00:06:24,520 Speaker 1: But I mean, let's remember what Endeavor has become. This 115 00:06:24,600 --> 00:06:28,919 Speaker 1: is Ari Emmanuel. For fans of the show Entourage. He is, 116 00:06:29,320 --> 00:06:32,719 Speaker 1: by all accounts, based on Ari. Gold is based on 117 00:06:32,800 --> 00:06:38,520 Speaker 1: Ari Emmanuel. Notably, Uh, just a big thinker, a big personality, 118 00:06:38,640 --> 00:06:42,719 Speaker 1: volatile to say the least. He and Mark Shapiro have 119 00:06:42,839 --> 00:06:47,839 Speaker 1: built this unbelievable firm. They sort of stole out in 120 00:06:47,880 --> 00:06:50,520 Speaker 1: the middle of the night years ago. To create this. 121 00:06:50,640 --> 00:06:55,200 Speaker 1: They have bought twenty seven businesses everything I read in 122 00:06:55,240 --> 00:06:59,279 Speaker 1: one report, from beauty pageants to bull riding, and they're 123 00:06:59,480 --> 00:07:04,000 Speaker 1: very tested in live events. They own just a bare 124 00:07:04,120 --> 00:07:06,960 Speaker 1: majority of the UFC, so that's actually like a little 125 00:07:06,960 --> 00:07:10,680 Speaker 1: bit of good news here. But they're laying people off 126 00:07:10,840 --> 00:07:15,040 Speaker 1: their um, furloughing others, they're taking pay cuts even at 127 00:07:15,080 --> 00:07:18,240 Speaker 1: the top level, and all the way down they're borrowing 128 00:07:18,280 --> 00:07:23,400 Speaker 1: money from Wall Street. I guess, Mike Lynch, this is 129 00:07:23,560 --> 00:07:27,280 Speaker 1: a business, the representation business and certainly the live event business, 130 00:07:27,680 --> 00:07:33,000 Speaker 1: that is suffering pretty dramatically, both given its adjacency to 131 00:07:33,120 --> 00:07:37,240 Speaker 1: sports but also it's interest in sports. Well, the two 132 00:07:37,240 --> 00:07:40,200 Speaker 1: words you used right there are the key live events 133 00:07:40,360 --> 00:07:43,080 Speaker 1: of the television industry is shut down. The film production 134 00:07:43,120 --> 00:07:46,640 Speaker 1: industry is shut down. Right now, miss Universe, you won't 135 00:07:46,640 --> 00:07:49,680 Speaker 1: be seeing bull riding UFC. I would move his whole 136 00:07:49,680 --> 00:07:52,120 Speaker 1: business to Florida because the governor down there has this 137 00:07:52,320 --> 00:07:55,400 Speaker 1: has deemed that entertainment is an essential business. So he 138 00:07:55,400 --> 00:07:57,320 Speaker 1: could probably get down there and do whatever he wants. 139 00:07:57,760 --> 00:08:00,840 Speaker 1: But you know, their businesses down, and ari Emanuel is 140 00:08:00,880 --> 00:08:03,120 Speaker 1: not going to take any pay for this entire year. 141 00:08:03,520 --> 00:08:06,560 Speaker 1: It's just pretty much part of the carnage of this 142 00:08:06,600 --> 00:08:13,480 Speaker 1: whole COVID nineteen pandemic. Well, and I wonder too, Michael Barr. 143 00:08:14,040 --> 00:08:17,600 Speaker 1: You know agents, actually we know have a huge amount 144 00:08:17,600 --> 00:08:19,240 Speaker 1: of influence. And I go back to what we were 145 00:08:19,240 --> 00:08:22,840 Speaker 1: talking about a few minutes ago with Major League Baseball. 146 00:08:23,400 --> 00:08:26,440 Speaker 1: You know, I do wonder Scott Boris not surprisingly has 147 00:08:26,480 --> 00:08:29,760 Speaker 1: come to the four uh in all of these discussions 148 00:08:29,840 --> 00:08:33,239 Speaker 1: around baseball. I mean, they are sort of integral players, 149 00:08:33,880 --> 00:08:38,559 Speaker 1: uh pun intended in getting live sports back to work, 150 00:08:38,679 --> 00:08:41,080 Speaker 1: and yet their own businesses is under fire. Like, it 151 00:08:41,120 --> 00:08:44,920 Speaker 1: gets pretty complicated here. Well, Jason, even Scott Boris, you 152 00:08:44,920 --> 00:08:48,040 Speaker 1: can't squeeze blood out of a turnip. I mean, if 153 00:08:48,080 --> 00:08:51,319 Speaker 1: there's no money there, I mean nothing, I mean, and 154 00:08:51,520 --> 00:08:53,360 Speaker 1: I don't believe I'm even going to say this about 155 00:08:53,400 --> 00:08:56,839 Speaker 1: the owners, but yes, I do have a soft spot 156 00:08:56,920 --> 00:09:00,800 Speaker 1: for the owners because you are getting no revenue at all. 157 00:09:00,920 --> 00:09:04,320 Speaker 1: You're not getting any ticket sales. Uh. There there is 158 00:09:04,320 --> 00:09:07,480 Speaker 1: no television that's going to be for your games or 159 00:09:08,000 --> 00:09:12,520 Speaker 1: radio writes, nothing. So I don't see if there's no 160 00:09:12,600 --> 00:09:16,600 Speaker 1: money coming in, what are player is going to do? 161 00:09:16,800 --> 00:09:21,080 Speaker 1: I mean, it's for that, so that translates to the agent. 162 00:09:21,600 --> 00:09:24,679 Speaker 1: So I I don't see how anything can can come 163 00:09:24,679 --> 00:09:27,520 Speaker 1: out of this. But well, and Mike Lynch, I mean, 164 00:09:27,559 --> 00:09:29,360 Speaker 1: I guess I would come back to you for a second, 165 00:09:29,360 --> 00:09:32,559 Speaker 1: because you know, you mentioned the carnage, which is exactly 166 00:09:32,600 --> 00:09:34,720 Speaker 1: the right word. I think the other thing we're learning 167 00:09:34,760 --> 00:09:39,000 Speaker 1: about this at this moment, too, is that we're reminded 168 00:09:39,000 --> 00:09:42,000 Speaker 1: of the ecosystems around all of these sports. And you know, 169 00:09:42,040 --> 00:09:44,280 Speaker 1: and you put your finger on it when you were 170 00:09:44,320 --> 00:09:47,839 Speaker 1: talking about sort of the importance of baseball. There's an 171 00:09:47,840 --> 00:09:50,280 Speaker 1: economic importance too. And I know we've talked about this 172 00:09:50,400 --> 00:09:53,200 Speaker 1: on this show before, but I think it's it's really 173 00:09:53,200 --> 00:09:56,720 Speaker 1: worth mentioning that if baseball doesn't get up and running 174 00:09:56,760 --> 00:10:00,600 Speaker 1: in some former fashion, and even if or no fans 175 00:10:00,600 --> 00:10:05,040 Speaker 1: in the stands, there are economic consequences for different cities 176 00:10:05,160 --> 00:10:07,640 Speaker 1: and and and all of the things that sort of 177 00:10:07,720 --> 00:10:10,320 Speaker 1: rely on these teams. And we're not just talking about baseball, 178 00:10:10,400 --> 00:10:13,319 Speaker 1: talking about the NBA and and football come fall and 179 00:10:13,640 --> 00:10:16,480 Speaker 1: everything else. It's important to remember that so many people's 180 00:10:16,520 --> 00:10:19,320 Speaker 1: livelihoods and I'm not playing the world's smallest violent for 181 00:10:19,400 --> 00:10:22,359 Speaker 1: agents here, but you know, a lot of people's livelihoods 182 00:10:22,400 --> 00:10:26,080 Speaker 1: depend on sports. Coming back yesterday, I had a conversation 183 00:10:26,160 --> 00:10:29,240 Speaker 1: with Lee Steinberg for another show that I was doing here, 184 00:10:29,360 --> 00:10:34,240 Speaker 1: and we were talking about he represents mostly football players 185 00:10:34,280 --> 00:10:36,600 Speaker 1: and how he was quite fortunate and people in his 186 00:10:36,960 --> 00:10:40,080 Speaker 1: that represent NFL players are fortunate because none of those 187 00:10:40,120 --> 00:10:43,440 Speaker 1: games have been wiped out yet. No, no TV games 188 00:10:43,440 --> 00:10:46,520 Speaker 1: have been canceled. Money has already been paid for rights fees, 189 00:10:46,600 --> 00:10:48,760 Speaker 1: and as of right now, they're going on with business 190 00:10:48,800 --> 00:10:53,200 Speaker 1: as usually so until the preseason games come or the 191 00:10:53,240 --> 00:10:56,360 Speaker 1: first September tents comes and they cancel a National Football 192 00:10:56,400 --> 00:11:00,439 Speaker 1: League game. So far, those people that represent NFL players 193 00:11:00,440 --> 00:11:04,160 Speaker 1: have been immune to this. Interesting. That's really interesting, Michael Barr, 194 00:11:04,160 --> 00:11:07,560 Speaker 1: and I do think about the different sports here. I mean, 195 00:11:07,600 --> 00:11:10,000 Speaker 1: I was talking to somebody last night who was just 196 00:11:10,200 --> 00:11:13,480 Speaker 1: sort of opening about, you know, how poorly he felt 197 00:11:13,520 --> 00:11:17,240 Speaker 1: like all the commissioners were doing at this point. But listen, 198 00:11:17,400 --> 00:11:20,319 Speaker 1: they are in They are in a tough, tough spot, 199 00:11:20,400 --> 00:11:22,800 Speaker 1: that's for sure. And you're right, Jason, and keep in 200 00:11:22,840 --> 00:11:24,960 Speaker 1: mind too. And it kind of goes back to that 201 00:11:25,000 --> 00:11:27,680 Speaker 1: other topic we were talking about earlier, is that the 202 00:11:27,800 --> 00:11:31,600 Speaker 1: NBA players they've been paid, So that's why, and that's 203 00:11:31,600 --> 00:11:33,640 Speaker 1: another reason why they're eager. It's like, hey, let's get 204 00:11:33,679 --> 00:11:35,320 Speaker 1: on the court and let's go, man, let's do it. 205 00:11:35,440 --> 00:11:39,360 Speaker 1: So they're ready to go. And uh so, maybe agents 206 00:11:39,840 --> 00:11:43,160 Speaker 1: in one sports venue are going to do better than 207 00:11:43,240 --> 00:11:45,400 Speaker 1: what we're seeing. And that's interesting. It comes down to, 208 00:11:45,480 --> 00:11:49,760 Speaker 1: like who's in your portfolio, right exactly. Finally, we've got 209 00:11:49,800 --> 00:11:51,880 Speaker 1: news this week that one of the biggest names on 210 00:11:52,000 --> 00:11:56,560 Speaker 1: Wall Street is making a significant investment in online sports betting. 211 00:11:57,040 --> 00:12:00,360 Speaker 1: George Soros has taken a sixty six million dollar steak 212 00:12:00,440 --> 00:12:03,360 Speaker 1: in Draft Kings and Jason, Let's not forget this is 213 00:12:03,400 --> 00:12:07,040 Speaker 1: a company that just went public last month. All right, 214 00:12:07,120 --> 00:12:09,480 Speaker 1: this is another one of these collision stories, you know, 215 00:12:09,559 --> 00:12:12,200 Speaker 1: like so many great worlds colliding here. George Soris, of course, 216 00:12:12,400 --> 00:12:15,959 Speaker 1: one of the best known hedge fund investors on the planet, 217 00:12:16,000 --> 00:12:19,320 Speaker 1: the subject of many many conspiracy theories to owing to 218 00:12:19,960 --> 00:12:25,040 Speaker 1: his very generous support by all accounts of liberal causes 219 00:12:25,040 --> 00:12:29,440 Speaker 1: and democratic uh causes. You can google him and learn 220 00:12:29,520 --> 00:12:32,320 Speaker 1: more than you ever wanted to know about the deep 221 00:12:32,360 --> 00:12:34,800 Speaker 1: state and how the world works. Will set that aside 222 00:12:34,960 --> 00:12:38,400 Speaker 1: for a second, but so interesting as an investor, this 223 00:12:38,480 --> 00:12:41,959 Speaker 1: is someone who has made incredibly bold bets over time, 224 00:12:42,280 --> 00:12:46,559 Speaker 1: including on the British Pound and so many other elements 225 00:12:46,800 --> 00:12:51,240 Speaker 1: of the financial world. Taking a steak in Draft Kings 226 00:12:51,520 --> 00:12:54,640 Speaker 1: and Mike Clinch, I do wonder what do you make 227 00:12:54,720 --> 00:12:59,000 Speaker 1: of online betting and sports betting, specifically in a world 228 00:12:59,080 --> 00:13:03,440 Speaker 1: of no sports. Well, let's just fantasize for one moment 229 00:13:03,480 --> 00:13:05,960 Speaker 1: that there is sports going on out there, and I'm 230 00:13:06,000 --> 00:13:08,920 Speaker 1: gonna play the role of Don Vito Corleon and the Godfather. 231 00:13:09,600 --> 00:13:11,439 Speaker 1: And remember when they were all sitting around the table 232 00:13:11,440 --> 00:13:14,360 Speaker 1: with the heads of all the families, and there were 233 00:13:14,360 --> 00:13:18,000 Speaker 1: sources of revenue were coming from racketeering, prostitution, and gambling, 234 00:13:18,000 --> 00:13:20,080 Speaker 1: and they were trying to convince Don video cor Leon 235 00:13:20,520 --> 00:13:23,680 Speaker 1: that narcotics and drugs were the way of the future, 236 00:13:23,760 --> 00:13:26,520 Speaker 1: the great new revenue stream. And he was sitting there 237 00:13:26,600 --> 00:13:29,320 Speaker 1: rubbing his cat. I think he said, you know, he says, 238 00:13:29,880 --> 00:13:32,360 Speaker 1: he finally, he finally agreed to jump in. But I 239 00:13:32,400 --> 00:13:34,120 Speaker 1: wanted to keep it away from the kids, and I 240 00:13:34,120 --> 00:13:36,760 Speaker 1: want to keep it away from the schools. So online 241 00:13:36,800 --> 00:13:39,839 Speaker 1: gambling is you know, I mean, every high school kid 242 00:13:39,840 --> 00:13:41,560 Speaker 1: will know how to hack in and fake an I 243 00:13:41,640 --> 00:13:43,840 Speaker 1: D and get in and bet on everything. That's my 244 00:13:43,920 --> 00:13:47,680 Speaker 1: only concern. So I'm gonna be Michael Vito Vito Corleone 245 00:13:47,880 --> 00:13:49,480 Speaker 1: in this one right here. I want to keep it 246 00:13:49,520 --> 00:13:51,520 Speaker 1: away from the kids, and keep it away from the schools. 247 00:13:51,720 --> 00:13:55,920 Speaker 1: Online gambling that is, and so and yet I would 248 00:13:56,200 --> 00:13:59,160 Speaker 1: make the argument and in only eight states have it. 249 00:13:59,200 --> 00:14:02,800 Speaker 1: By the way, I believe you. You're exactly right. And 250 00:14:02,800 --> 00:14:05,960 Speaker 1: and New Jersey um has been pretty aggressive I believe 251 00:14:06,160 --> 00:14:09,760 Speaker 1: in getting that going, and DraftKings has certainly benefited from that. 252 00:14:09,800 --> 00:14:14,240 Speaker 1: But you've got some really important backers beyond George Soros 253 00:14:14,320 --> 00:14:19,720 Speaker 1: in DraftKings specifically including major League Baseball. Here, Michael Barr, 254 00:14:20,280 --> 00:14:23,720 Speaker 1: what do you make of it? Well, we must allow 255 00:14:23,720 --> 00:14:27,080 Speaker 1: everyone to drink from the well. All the fifty states 256 00:14:27,440 --> 00:14:29,560 Speaker 1: must get into this. You know, I'll know where I'm 257 00:14:29,600 --> 00:14:35,440 Speaker 1: going to here a Godfather's fan, You're gonna where I'm going. Listen. 258 00:14:36,760 --> 00:14:40,360 Speaker 1: I'm not trying to be uh, you know, the the 259 00:14:40,400 --> 00:14:42,880 Speaker 1: person that's like, come on, kids, let's go gamble. I 260 00:14:43,160 --> 00:14:46,800 Speaker 1: don't want to see that either. But kids have been 261 00:14:46,880 --> 00:14:51,880 Speaker 1: pitching quarters for years, and they'll bet a quarter on 262 00:14:52,040 --> 00:14:56,160 Speaker 1: this team or that team that's gonna stay low. What 263 00:14:56,320 --> 00:14:59,480 Speaker 1: has to be important for these sites. Is how you 264 00:14:59,560 --> 00:15:02,360 Speaker 1: keep the kids off of the sites? You know, you 265 00:15:02,400 --> 00:15:06,560 Speaker 1: just can't put up a question? Are eighteen? Okay? Go ahead? Yeah, No, 266 00:15:06,720 --> 00:15:09,520 Speaker 1: it doesn't work like that. You gotta there. There's gotta 267 00:15:09,520 --> 00:15:14,840 Speaker 1: be more extensive research and and more stop gaps to 268 00:15:14,960 --> 00:15:20,680 Speaker 1: keep kids from gambling on online sports sites. Uh. But 269 00:15:21,400 --> 00:15:26,120 Speaker 1: having said that, listen, Uh, drinking, sports and gambling are 270 00:15:26,200 --> 00:15:29,640 Speaker 1: my three favorite food groups. I'm sorry, And that's just 271 00:15:29,800 --> 00:15:33,080 Speaker 1: what I like. And you know, I'm not ashamed of it, 272 00:15:33,360 --> 00:15:35,760 Speaker 1: and and there are a lot of people out there 273 00:15:35,800 --> 00:15:38,600 Speaker 1: like me. So this is going to get over and 274 00:15:38,680 --> 00:15:42,760 Speaker 1: more states will allow this, and once sports gets back 275 00:15:42,800 --> 00:15:48,000 Speaker 1: to its normalcy, we're gonna see a huge revenue uh, 276 00:15:48,240 --> 00:15:51,240 Speaker 1: online sports. But Mike Lynch, how much does it change 277 00:15:51,240 --> 00:15:55,560 Speaker 1: the whole atmosphere as you do get the league's, the 278 00:15:55,600 --> 00:15:59,680 Speaker 1: professional leagues, especially the big ones up more deeply involved 279 00:15:59,680 --> 00:16:01,320 Speaker 1: in this. Him Silver has talked a lot about it, 280 00:16:01,320 --> 00:16:04,120 Speaker 1: I know in the NBA, and obviously Major League Baseball 281 00:16:04,160 --> 00:16:07,440 Speaker 1: has been involved as well. How critical is that setting 282 00:16:07,440 --> 00:16:11,360 Speaker 1: aside safety concerns? How critical is that to this moving forward? Well, 283 00:16:11,360 --> 00:16:15,360 Speaker 1: it gives it legitimacy, right when you have the major league's, 284 00:16:15,480 --> 00:16:19,960 Speaker 1: the team the fourth the big major league leagues behind them, 285 00:16:20,080 --> 00:16:21,960 Speaker 1: and you get some big owners. Jerry Jones is a 286 00:16:22,000 --> 00:16:25,200 Speaker 1: big investor. Robert Craft and his two sons, two of 287 00:16:25,240 --> 00:16:28,880 Speaker 1: his four sons, uh on three point five million shares. 288 00:16:29,280 --> 00:16:32,000 Speaker 1: Madison Square Garden Corporation in the Dolan family has a 289 00:16:32,040 --> 00:16:34,880 Speaker 1: million and a half shares. All reputable people and it 290 00:16:34,880 --> 00:16:37,480 Speaker 1: get it lends legitimacy to it, I think. And that's 291 00:16:37,560 --> 00:16:40,720 Speaker 1: that's the big word, credibility and legitimacy. Yeah. And when 292 00:16:40,720 --> 00:16:44,760 Speaker 1: sports comes comes back, Uh, this could take off even further. 293 00:16:44,920 --> 00:16:47,960 Speaker 1: And you know, as you say, uh, depending on how 294 00:16:48,000 --> 00:16:51,160 Speaker 1: it goes nationally. Uh, this could be an even bigger story. 295 00:16:51,240 --> 00:16:53,880 Speaker 1: Could turn out to be a very good bet for 296 00:16:53,960 --> 00:16:57,880 Speaker 1: George Soros. Michael Barr, Come on Championship Bridge. This is 297 00:16:57,920 --> 00:17:01,240 Speaker 1: the Word Businesses Sports podcast that Michael Barr along with 298 00:17:01,360 --> 00:17:04,240 Speaker 1: Jason Kelley and Mike Lynch, and we're here with you 299 00:17:04,320 --> 00:17:07,280 Speaker 1: each and every Monday, Wednesday and Thursday exploring the world 300 00:17:07,359 --> 00:17:10,919 Speaker 1: of money and sports that nexus that we find so fascinating. 301 00:17:11,000 --> 00:17:14,000 Speaker 1: Join us at the end of this week when we 302 00:17:14,040 --> 00:17:17,400 Speaker 1: speak with Professional Fighters League co founder and chairman Don Davis. 303 00:17:17,440 --> 00:17:20,560 Speaker 1: This is a guy who was a senior executive at 304 00:17:20,560 --> 00:17:23,520 Speaker 1: a o L. He's now business partners with Steve Case, 305 00:17:23,680 --> 00:17:27,560 Speaker 1: owing to that making investments across all parts of the 306 00:17:27,600 --> 00:17:30,800 Speaker 1: media and sports landscape. Can't wait for that. It's gonna 307 00:17:30,800 --> 00:17:33,399 Speaker 1: be good. You're listening to Bloomberg Business of Sports on 308 00:17:33,440 --> 00:17:36,280 Speaker 1: Bloomberg Radio around the world and online wherever you get 309 00:17:36,320 --> 00:17:37,240 Speaker 1: your podcasts.