1 00:00:01,080 --> 00:00:04,320 Speaker 1: Hello, and welcome to the Bloomberg Business of Sports podcast, 2 00:00:04,360 --> 00:00:06,280 Speaker 1: where we explore some of the big money issues in 3 00:00:06,320 --> 00:00:08,840 Speaker 1: the world of sports. I'm Michael barn I'm Scarlett Foo. 4 00:00:09,360 --> 00:00:12,360 Speaker 1: We have to talk about one of the goats hanging 5 00:00:12,400 --> 00:00:15,280 Speaker 1: it up. Yeah, the goat of goats, right, Tom Brady 6 00:00:15,360 --> 00:00:19,439 Speaker 1: officially retiring from the NFL. He announced the decision on 7 00:00:19,520 --> 00:00:22,960 Speaker 1: social media. Another process was a pretty big deal last time. 8 00:00:23,040 --> 00:00:25,279 Speaker 1: So when I woke up this morning, I figured I 9 00:00:25,440 --> 00:00:28,560 Speaker 1: just pressed record. I'll let you guys know first, so 10 00:00:29,480 --> 00:00:32,519 Speaker 1: I won't be long winded. You only get one super 11 00:00:33,120 --> 00:00:37,040 Speaker 1: emotional retirement essay, and I used my note last year. Really, 12 00:00:37,080 --> 00:00:39,720 Speaker 1: thank you guys so much to every single one of 13 00:00:39,760 --> 00:00:44,640 Speaker 1: you for supporting me. Let's review why Brady is goat. 14 00:00:44,920 --> 00:00:47,720 Speaker 1: He is a seven times Super Bowl champion. He earned 15 00:00:47,720 --> 00:00:50,640 Speaker 1: more than three thirty million dollars across this twenty three 16 00:00:50,760 --> 00:00:54,080 Speaker 1: NFL seasons according to spot rack, and he had a 17 00:00:54,080 --> 00:00:57,600 Speaker 1: ton of different big brand endorsement deals. That's close to 18 00:00:57,640 --> 00:01:02,520 Speaker 1: you to take through the legacy in the NFL. And 19 00:01:02,640 --> 00:01:05,640 Speaker 1: in Business, we bring in Andrew Zimblis. He is Professor 20 00:01:05,640 --> 00:01:10,240 Speaker 1: and Merriages of Economics at Smith College. Andrew Professor welcome 21 00:01:10,240 --> 00:01:12,399 Speaker 1: to the Bloomberg business with sports. Thank you, good to 22 00:01:12,400 --> 00:01:15,600 Speaker 1: be with you. Well, first of all, yes, he means 23 00:01:15,640 --> 00:01:19,320 Speaker 1: it this time, but it's way more than the impact 24 00:01:19,440 --> 00:01:22,200 Speaker 1: of what it means just simply for the league and 25 00:01:22,280 --> 00:01:29,240 Speaker 1: football fans. There's a definite economic impact involved in this. Yeah. 26 00:01:29,280 --> 00:01:32,759 Speaker 1: I think when when any sport, a particularly football, which 27 00:01:32,800 --> 00:01:36,119 Speaker 1: is the most popular sport in the United States, has 28 00:01:36,200 --> 00:01:39,440 Speaker 1: a spectacular athlete who has set all time records. In 29 00:01:39,440 --> 00:01:42,200 Speaker 1: the case of Tom Brady, basically he holds every single 30 00:01:42,240 --> 00:01:46,440 Speaker 1: meaningful quarterback record in the history of the sports. He's 31 00:01:46,480 --> 00:01:50,480 Speaker 1: won seven Super Bowls, and he has more passing yardage 32 00:01:50,480 --> 00:01:52,400 Speaker 1: and more touchdown yards and so on. And so when 33 00:01:52,480 --> 00:01:56,600 Speaker 1: somebody like that who's extraordinary as an athlete, also happens 34 00:01:56,600 --> 00:02:00,200 Speaker 1: to be good looking, smart, and articulate and mary to 35 00:02:00,880 --> 00:02:05,560 Speaker 1: at this point two different female models. Um, you know, 36 00:02:05,600 --> 00:02:08,280 Speaker 1: when all of that is going on, then it creates 37 00:02:08,280 --> 00:02:10,360 Speaker 1: a lot of buzz. It creates a lot of excitement. 38 00:02:11,000 --> 00:02:15,359 Speaker 1: And uh, he probably increased football ratings. I don't know 39 00:02:15,560 --> 00:02:18,400 Speaker 1: by what what percent. It wasn't a massive percent, but 40 00:02:18,840 --> 00:02:22,200 Speaker 1: he contributed more in that way to the growth of 41 00:02:22,240 --> 00:02:25,240 Speaker 1: football as a sport and his business than really anybody 42 00:02:25,280 --> 00:02:28,200 Speaker 1: else since he's been around, which dates back to two 43 00:02:28,280 --> 00:02:31,399 Speaker 1: thousand and one. It's interesting, by the way, that here 44 00:02:31,480 --> 00:02:34,480 Speaker 1: here's a fellow out of the University of Michigan who 45 00:02:34,520 --> 00:02:38,640 Speaker 1: was drafted a hundred back in the year two thousand 46 00:02:38,760 --> 00:02:41,799 Speaker 1: draft h and he he was drafted behind six other 47 00:02:41,880 --> 00:02:44,720 Speaker 1: quarterbacks in that year. You're talking to an old You 48 00:02:44,880 --> 00:02:48,120 Speaker 1: have him, guy who loves it, and he was born 49 00:02:48,160 --> 00:02:51,040 Speaker 1: and raised in Detroit. And yes, we loved Tom Brady 50 00:02:51,080 --> 00:02:53,720 Speaker 1: back in the day. And when he when he went on, 51 00:02:54,520 --> 00:02:57,680 Speaker 1: I'm like, well, okay, that that's nice. And then you know, 52 00:02:57,800 --> 00:03:00,120 Speaker 1: Drew Bledsoe gets hurt, and then all of us and 53 00:03:00,160 --> 00:03:04,120 Speaker 1: here's Tom Brady, Andrew bledso is on the sideline. Tom 54 00:03:04,160 --> 00:03:07,919 Speaker 1: Brady the second year quarterback from the University of Michigan. 55 00:03:08,680 --> 00:03:11,520 Speaker 1: Through only three passes in his rookie year last year, 56 00:03:11,600 --> 00:03:13,800 Speaker 1: one for three a six yard completion, and this is 57 00:03:13,840 --> 00:03:17,160 Speaker 1: his first duty of two thousand and one. So apparently, 58 00:03:17,480 --> 00:03:20,000 Speaker 1: let's so knocked around a little more than it appears. 59 00:03:20,120 --> 00:03:23,160 Speaker 1: Wasn't the greatest start for the New England Patriots for 60 00:03:23,280 --> 00:03:27,160 Speaker 1: his career, but my goodness, after seven Super Bowl rings, 61 00:03:27,600 --> 00:03:30,440 Speaker 1: he's something else. He is the goat. Yes. Indeed, so 62 00:03:30,760 --> 00:03:33,400 Speaker 1: now that Tom Brady is retiring for good, we believe 63 00:03:33,440 --> 00:03:36,600 Speaker 1: in So he says, Um, do we need or does 64 00:03:36,600 --> 00:03:41,240 Speaker 1: the NFL need another high profile, good looking quarterback who 65 00:03:41,320 --> 00:03:45,000 Speaker 1: may or may not be married to a supermodel to 66 00:03:45,080 --> 00:03:48,640 Speaker 1: keep its prominence or are we past that? You know? 67 00:03:48,720 --> 00:03:51,000 Speaker 1: I look, first of all, there are such quarterbacks around. 68 00:03:51,160 --> 00:03:54,680 Speaker 1: Mahomes is one. Maybe he doesn't quite live up to 69 00:03:55,640 --> 00:03:58,120 Speaker 1: all of the different features that that Brady brought to 70 00:03:58,160 --> 00:04:00,640 Speaker 1: the game, but they have great year's out there, and 71 00:04:00,680 --> 00:04:03,520 Speaker 1: the game will continue to be exciting. Uh. And what 72 00:04:03,680 --> 00:04:06,240 Speaker 1: somebody that when when when the next Tom Brady comes along, 73 00:04:06,480 --> 00:04:08,600 Speaker 1: what'll will be as a small fill up, a small 74 00:04:08,600 --> 00:04:12,000 Speaker 1: boost to the overall weight ratings and popularity of the game. 75 00:04:12,080 --> 00:04:14,880 Speaker 1: But there are many, so many other factors that are 76 00:04:15,040 --> 00:04:19,400 Speaker 1: behind right now the growth and popularity of football. Uh 77 00:04:19,600 --> 00:04:22,000 Speaker 1: that you know, whether it's this year or in two 78 00:04:22,080 --> 00:04:24,440 Speaker 1: years or five years that we get the next time Brady. 79 00:04:24,440 --> 00:04:26,240 Speaker 1: I don't think it makes a great deal of difference 80 00:04:26,279 --> 00:04:28,280 Speaker 1: to the business of football. I don't think it means 81 00:04:28,320 --> 00:04:31,880 Speaker 1: any difference either for his big sponsorships. I'm thinking of 82 00:04:31,960 --> 00:04:35,000 Speaker 1: Herds and under Armor. They're still going to keep him, 83 00:04:35,000 --> 00:04:39,120 Speaker 1: are they? Well, I believe so. And you know, this 84 00:04:39,200 --> 00:04:42,039 Speaker 1: is a whole other issue. Tom Brady retires now and 85 00:04:42,120 --> 00:04:45,160 Speaker 1: he enters into a ten year contract with with Fox 86 00:04:45,960 --> 00:04:48,799 Speaker 1: which pays him three hundred and seventy five million dollars. 87 00:04:48,960 --> 00:04:52,280 Speaker 1: I'll say that again, three d seventy five million dollars, 88 00:04:52,279 --> 00:04:54,800 Speaker 1: So it's average of thirty seven point five million dollars 89 00:04:54,800 --> 00:04:58,279 Speaker 1: a year to be an assistant on their broadcasting. That's 90 00:04:58,279 --> 00:05:00,960 Speaker 1: a heck of a lot of money. Man also, of course, 91 00:05:01,000 --> 00:05:03,279 Speaker 1: has a clothing line, he has a wellness brand, he 92 00:05:03,320 --> 00:05:06,520 Speaker 1: has a production company, and he has a bunch of 93 00:05:06,640 --> 00:05:10,599 Speaker 1: lawsuits right now against because of his role in promoting FDx. Yeah, 94 00:05:10,680 --> 00:05:14,400 Speaker 1: and that's definitely a stain on his reputation, I guess. 95 00:05:14,400 --> 00:05:16,760 Speaker 1: But he's not the only one insofar as getting caught 96 00:05:16,839 --> 00:05:19,120 Speaker 1: up in in the ft X drama. I have a 97 00:05:19,200 --> 00:05:21,520 Speaker 1: question about the overall appeal of the NFL. We know 98 00:05:21,680 --> 00:05:24,840 Speaker 1: it's the biggest money making sport in the US, but 99 00:05:25,040 --> 00:05:28,760 Speaker 1: you go beyond North America, and yes they've played some 100 00:05:28,800 --> 00:05:32,000 Speaker 1: games overseas, but it doesn't carry quite the same cloud 101 00:05:32,120 --> 00:05:35,880 Speaker 1: as say international football. I know that the NFL is 102 00:05:35,920 --> 00:05:39,040 Speaker 1: making um taking steps to try to broaden the appeal. 103 00:05:39,440 --> 00:05:43,200 Speaker 1: Do you see football, American football expanding to a point 104 00:05:43,200 --> 00:05:46,720 Speaker 1: where it could really rival international football doesn't seem like 105 00:05:46,760 --> 00:05:50,000 Speaker 1: it's on a trajectory to do that. There are some 106 00:05:50,160 --> 00:05:53,159 Speaker 1: small leagues around, and there are, as you point out, 107 00:05:54,040 --> 00:05:56,880 Speaker 1: games that are being played by of the NFL teams 108 00:05:57,000 --> 00:06:00,719 Speaker 1: in Europe. Um, but it hasn't called on. The NFL 109 00:06:00,720 --> 00:06:02,440 Speaker 1: has been trying to do this for quite some time. 110 00:06:03,440 --> 00:06:08,200 Speaker 1: Perhaps the logical, most logical market would would be China. 111 00:06:08,400 --> 00:06:12,560 Speaker 1: Basketball was very successful of course, and seating itself and 112 00:06:12,640 --> 00:06:17,919 Speaker 1: developing UH in China football hasn't been that. Part of 113 00:06:17,920 --> 00:06:20,760 Speaker 1: the problem. Well, it seems to me that major part 114 00:06:20,800 --> 00:06:24,120 Speaker 1: of the problem is that these countries are attached to 115 00:06:24,120 --> 00:06:27,680 Speaker 1: a different brand of football, which which we call soccer. UH. 116 00:06:27,839 --> 00:06:31,360 Speaker 1: Soccer is, as you and your listeners know, is immensely 117 00:06:31,440 --> 00:06:34,799 Speaker 1: popular and in spite of all the scandals that racked 118 00:06:34,839 --> 00:06:38,240 Speaker 1: that sport, on a yearly basis, UH, it just seems 119 00:06:38,279 --> 00:06:40,640 Speaker 1: to get more and more popular. One of the great 120 00:06:40,680 --> 00:06:43,799 Speaker 1: things about soccer, of course, is that for youth around 121 00:06:43,839 --> 00:06:45,800 Speaker 1: the world who want to play it, really all they 122 00:06:45,839 --> 00:06:49,840 Speaker 1: need is a little space and around ball. Um. You know, 123 00:06:49,960 --> 00:06:52,000 Speaker 1: they don't need sholder plants, they don't need helmets, they 124 00:06:52,000 --> 00:06:57,479 Speaker 1: don't need gold posts. It's it's it's much easier sport 125 00:06:57,560 --> 00:07:00,400 Speaker 1: to catch on. And you know, once, once it has 126 00:07:01,120 --> 00:07:04,320 Speaker 1: the following and the popularity that that soccer has right now, 127 00:07:04,600 --> 00:07:07,640 Speaker 1: it's very hard for for football, American football to push 128 00:07:07,680 --> 00:07:10,040 Speaker 1: that to the side. I'm gonna piggyback off of that 129 00:07:10,080 --> 00:07:12,600 Speaker 1: because I was surprised when I read this about Tom 130 00:07:12,640 --> 00:07:18,400 Speaker 1: Brady and on social media it is relatively but not relatively, 131 00:07:18,440 --> 00:07:21,040 Speaker 1: it is low compared to some of the other superstars. 132 00:07:21,040 --> 00:07:25,880 Speaker 1: And you talk about uh soccer superstars, Christiano Ronaldo, he 133 00:07:26,000 --> 00:07:32,240 Speaker 1: has over eight hundred million following between Instagram, Twitter and Facebook, 134 00:07:32,600 --> 00:07:35,480 Speaker 1: and Tom Brady, I mean it is just barely moving 135 00:07:35,520 --> 00:07:39,480 Speaker 1: the needle. Uh Serena Williams has more of a following 136 00:07:39,640 --> 00:07:43,160 Speaker 1: than Tom Brady. Did that really surprised me? Yeah, Well, 137 00:07:43,160 --> 00:07:46,360 Speaker 1: first of all, the population of the world is pushing 138 00:07:46,680 --> 00:07:50,160 Speaker 1: pushing eight billion right now. The population in the United States, 139 00:07:50,320 --> 00:07:52,880 Speaker 1: which is basically the market for US football, is three 140 00:07:53,280 --> 00:07:57,760 Speaker 1: and thirty million. So there's a tremendous disparity there that 141 00:07:57,760 --> 00:08:00,800 Speaker 1: that you know, Tom Brady or other football players have 142 00:08:00,640 --> 00:08:05,520 Speaker 1: to have to work against. Uh Serena Williams of course 143 00:08:05,560 --> 00:08:08,440 Speaker 1: a tennis player, and tennis is an internationally popular sport, 144 00:08:08,520 --> 00:08:11,400 Speaker 1: not as popular, of course as soccer, but still it 145 00:08:11,520 --> 00:08:14,920 Speaker 1: does access the world the world market that as as 146 00:08:14,960 --> 00:08:17,960 Speaker 1: American football does not. So I think we'll always see 147 00:08:17,960 --> 00:08:21,440 Speaker 1: those kinds of disparities. But we shouldn't feel too bad 148 00:08:21,480 --> 00:08:24,520 Speaker 1: about Tom Brady because he's going to be earning hundreds 149 00:08:24,520 --> 00:08:26,560 Speaker 1: of millions of dollars in the years to cut, much 150 00:08:26,560 --> 00:08:28,160 Speaker 1: more than he earned it in his career as a 151 00:08:28,160 --> 00:08:31,040 Speaker 1: football player. He earned something like three thirty million dollars 152 00:08:31,080 --> 00:08:34,560 Speaker 1: over his twenty three years, and during his years with 153 00:08:34,720 --> 00:08:37,520 Speaker 1: the Patriots, which were the first twenty he he was 154 00:08:37,559 --> 00:08:40,000 Speaker 1: learning about on average of eleven million a year. Wasn't 155 00:08:40,080 --> 00:08:41,839 Speaker 1: until he played with the Bucks in the last three 156 00:08:41,920 --> 00:08:43,959 Speaker 1: years that he was earning thirty million a year. Yeah, 157 00:08:44,000 --> 00:08:47,080 Speaker 1: he'll be the world's most highly paid sports broadcaster, if 158 00:08:47,120 --> 00:08:50,560 Speaker 1: not broadcaster in general. Um Andrew, while we have you, 159 00:08:50,600 --> 00:08:53,720 Speaker 1: I want to get your take on a different uh 160 00:08:53,960 --> 00:08:57,800 Speaker 1: transaction in the NFL, which is the Broncos agreeing to 161 00:08:57,920 --> 00:09:00,679 Speaker 1: trade with the Saints to make Sean In the nineteenth 162 00:09:00,760 --> 00:09:03,840 Speaker 1: head coach in franchise history. This is according to ESPN, 163 00:09:03,920 --> 00:09:06,840 Speaker 1: UM It hasn't necessarily been confirmed, but the details are 164 00:09:06,880 --> 00:09:10,400 Speaker 1: that the Saints would receive the Broncos first round draft 165 00:09:10,440 --> 00:09:14,480 Speaker 1: pick um second second round pick for Peyton and the 166 00:09:14,520 --> 00:09:18,160 Speaker 1: Saints is third round selection. I feel like we've moved 167 00:09:18,160 --> 00:09:22,559 Speaker 1: into new territory here with UH teams trading coaches or 168 00:09:22,600 --> 00:09:26,439 Speaker 1: trading four coaches. Yes, I think that that's right. I 169 00:09:26,440 --> 00:09:30,120 Speaker 1: mean there have been efforts in the past, but I 170 00:09:30,440 --> 00:09:35,520 Speaker 1: think there's there's an increasing appreciation of the importance of 171 00:09:35,840 --> 00:09:39,800 Speaker 1: a motivating the players, be keeping the players healthy, sea 172 00:09:40,280 --> 00:09:45,760 Speaker 1: designing game plans, UH that that are effective. So you know, 173 00:09:46,040 --> 00:09:49,120 Speaker 1: when when when somebody like Brady elevates the status of 174 00:09:49,160 --> 00:09:52,160 Speaker 1: somebody like Belichick, all of a sudden, people are thinking 175 00:09:52,320 --> 00:09:55,040 Speaker 1: Belichick is a genius, and then to some extent he is. 176 00:09:55,840 --> 00:09:58,720 Speaker 1: But I think there's a new appreciation of the mental 177 00:09:58,880 --> 00:10:02,600 Speaker 1: and the emotional compon to success in football and and 178 00:10:02,600 --> 00:10:05,240 Speaker 1: and that's that's pointing at the coaches. And you know, 179 00:10:05,320 --> 00:10:08,560 Speaker 1: when when players are being paid thirty thirty million dollars 180 00:10:08,559 --> 00:10:11,720 Speaker 1: a year, uh, why why not pay a coach ten 181 00:10:11,760 --> 00:10:14,360 Speaker 1: million dollars a year or even fifteen million dollars a 182 00:10:14,400 --> 00:10:17,520 Speaker 1: year if he's going to be in charge of managing 183 00:10:17,559 --> 00:10:19,880 Speaker 1: all fifty five players who are on the field. Sean 184 00:10:19,960 --> 00:10:22,280 Speaker 1: Bayden made a smart move because he took a year 185 00:10:22,320 --> 00:10:24,640 Speaker 1: off after, you know, coaching the Saints, and then he 186 00:10:24,720 --> 00:10:26,600 Speaker 1: took a year off and they need decided, well, I'm 187 00:10:26,600 --> 00:10:29,800 Speaker 1: gonna go do a little television keep my name out there. 188 00:10:30,280 --> 00:10:34,080 Speaker 1: And it worked because, like you said, Scarlett, he looks 189 00:10:34,120 --> 00:10:36,600 Speaker 1: like he's going to the Denver Broncos. Professor, I guess 190 00:10:36,800 --> 00:10:39,119 Speaker 1: I ask you the same thing. A lot of athletes 191 00:10:39,200 --> 00:10:41,760 Speaker 1: do that. It's like, well, in the meantime, I keep 192 00:10:41,800 --> 00:10:44,040 Speaker 1: your name out there. There are numerous examples of that 193 00:10:44,280 --> 00:10:47,800 Speaker 1: in other sports as well. That you buys your time. 194 00:10:48,000 --> 00:10:53,839 Speaker 1: You increase your your popularity, your notoriety um and your exposure. 195 00:10:54,120 --> 00:10:56,240 Speaker 1: At the same time, you buy yourself from some time 196 00:10:56,520 --> 00:10:58,720 Speaker 1: so you don't have to sell your services right away. 197 00:10:58,840 --> 00:11:00,600 Speaker 1: You know, if you want to put your your house 198 00:11:00,640 --> 00:11:02,920 Speaker 1: on the marketplace and you have to sell it in 199 00:11:02,960 --> 00:11:04,880 Speaker 1: two weeks, you're not gonna get probably you're not going 200 00:11:04,920 --> 00:11:06,400 Speaker 1: to get as good a prices if you can wait 201 00:11:06,440 --> 00:11:09,760 Speaker 1: two years before you find the right buyer. And that's 202 00:11:09,800 --> 00:11:11,880 Speaker 1: one of the things that coaches are doing when when 203 00:11:11,920 --> 00:11:15,599 Speaker 1: they do a media gap. Here smart, smart man. I 204 00:11:16,240 --> 00:11:19,240 Speaker 1: wish I had them. I wish forget about the money 205 00:11:19,280 --> 00:11:24,240 Speaker 1: that Tom Yeah right. If I had the looks that 206 00:11:24,280 --> 00:11:29,920 Speaker 1: Tom Brady had, I could bag grocery. Yeah yeah, okay whatever. 207 00:11:32,320 --> 00:11:36,120 Speaker 1: Professor andrews. Embolis, you are so kind with Smith College. 208 00:11:36,440 --> 00:11:39,120 Speaker 1: You came to join us here on the Bloomberg Business 209 00:11:39,120 --> 00:11:43,240 Speaker 1: of Sports and educate me and well, Scarlett was already 210 00:11:43,320 --> 00:11:45,880 Speaker 1: educated big time. I just know we've learned something new 211 00:11:45,920 --> 00:11:50,360 Speaker 1: from you every time. Professor. Thank you so much, sir, 212 00:11:50,720 --> 00:11:52,800 Speaker 1: Thank you pleasure to be with you. This has been 213 00:11:52,880 --> 00:11:55,640 Speaker 1: the Bloomberg Business of Sports podcast where we explore some 214 00:11:55,679 --> 00:11:57,360 Speaker 1: of the big money issues in the world of sports 215 00:11:57,400 --> 00:11:59,679 Speaker 1: on Michael Barr By the way, you can follow me 216 00:11:59,760 --> 00:12:01,440 Speaker 1: onto it are in Big Bar Sports and you can 217 00:12:01,480 --> 00:12:04,160 Speaker 1: follow me on Twitter at Scarlett Foo. Hey. This show. 218 00:12:04,760 --> 00:12:09,800 Speaker 1: It is downloaded every Monday, Wednesday and Thursday. Download this 219 00:12:09,960 --> 00:12:12,320 Speaker 1: show wherever you get your podcast.