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Speaker 1: Hello, I'm Scott, I'm Novie Williams and Michael Barr. This

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Speaker 1: is the Bloomberg Business of Sports podcast, where we all

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Speaker 1: because you're back from vacation staycation. I missed guy. What

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Speaker 1: did you say you were out back night? Yeah, to

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Speaker 1: make coke rum and coke is listening to Summer Madness.

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Speaker 1: Oh man, it was great. It's a nice thing. Batteries

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Speaker 1: look recharded. I missed you, guys, welcome back. Did you

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Speaker 1: listen to the show? I'm being honest. We asked for

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Speaker 1: nothing more than honest. I get a lot of topics

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Speaker 1: to talk about. Let's start. Oh, we had a big

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Speaker 1: old trade that took place between the Los Angeles Lakers

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Speaker 1: and now missed the unit brow is heading to the Lakers. Yes,

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Speaker 1: I mean one year of suffering for the Lakers. Lebron

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Speaker 1: missed the playoff for the first time. All of a sudden,

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Speaker 1: the Lakers ends star power with more money to spend.

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Speaker 1: By the way, so who's it going to be that

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Speaker 1: joins Lebron and Anthony Davis in l A But they,

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Speaker 1: in a blink of an eye are the have been

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Speaker 1: the betting favorite to win the championship. According to some

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Speaker 1: bookman Yeah, certainly, what a wild you know, two weeks

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Speaker 1: in terms of betting on the future NBA champions right,

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Speaker 1: everything that's going on with the Warriors, the last couple

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Speaker 1: you know last week in terms of injuries, and now

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Speaker 1: suddenly you know, you pair Anthony Davis with Lebron James

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Speaker 1: and probably you know, a couple more pieces coming. Um. Yeah,

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Speaker 1: the Lakers certainly feel like a favorite. Now we should

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Speaker 1: add that in that trade, a Lonzo Ball was shipped

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Speaker 1: so and I always wonder what LaVar Ball was thinking,

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Speaker 1: because he was talking about it. He didn't really want

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Speaker 1: to go to New Orleans. It'll be the worst thing,

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Speaker 1: They'll never win, what whatever. But I gotta tell you now,

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Speaker 1: if you're a New Orleans basketball fan, you have got

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Speaker 1: a Even if they don't win, I mean maybe they will,

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Speaker 1: who care. You want to be entertained. That's gonna be

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Speaker 1: one entertaining team. That's sort of like the New Jersey

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Speaker 1: Boston Herschel Walker Minnesota draft pick trade Hall. What a

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Speaker 1: what a nice job by by the Pelicans and David

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Speaker 1: Griffin sort of revamping that roster. Very in a tough

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Speaker 1: spot when your star player comes out and says I'm

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Speaker 1: gonna be here. I don't want to do it. You

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Speaker 1: know that's tough. You you now are making it difficult.

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Speaker 1: But injuries to the Warriors spurred things on Kyrie Irving,

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Speaker 1: making it clear he's probably gonna head to Brooklyn. Things

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Speaker 1: fell in place quickly. The Pelicans. Part of that deal

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Speaker 1: is is trade rite swap for NBA draft, which feels

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Speaker 1: so far away right now. That could be Lebron James

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Speaker 1: kid right, Yeah, a draft, a first round draft pick

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Speaker 1: in the NBA, and he'll pull an Eli Manning. He'd

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Speaker 1: be like, I'm not going like Rich Paul will represent

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Speaker 1: him to kill where he doesn't want to go. And

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Speaker 1: that that really, I mean, if you think about all

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Speaker 1: of this, I mean, that is that third component. Now

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Speaker 1: do you go now, do you just trying to like

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Speaker 1: bust up the cap so then you get medium range components,

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Speaker 1: or do you go for that that big maybe Kawai

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Speaker 1: Leonard style kind of the Lakers. You go and get

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Speaker 1: the biggest best player you can. This is that The

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Speaker 1: point is, like we're here with the business of sports,

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Speaker 1: winning is not enough in l A. You gotta win

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Speaker 1: with sizzle and and pat Riley knew that when he

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Speaker 1: was in Miami. It wasn't enough to remember Shaq came

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Speaker 1: in in the big eighteen wheeler and then Lebron. People

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Speaker 1: want to go to the beach, the club dinner. You

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Speaker 1: aren't competing for a lot of things in Miami and

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Speaker 1: just putting together a good team. I'm not sure the

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Speaker 1: Toronto Raptors roster as is as good as it was

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Speaker 1: is drawing sellout crowds to American airlines in Miami. But

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Speaker 1: you bring Shack, you bring Lebron, suddenly it's the place

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Speaker 1: to be. They make it cool. That's what you need

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Speaker 1: in places like l A and Miami. And talking more broadly,

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Speaker 1: the Lakers being good obviously is a good thing for

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Speaker 1: the NBA, right Getting one of their two premier possibly

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Speaker 1: even the premier franchise in the league back into the

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Speaker 1: playoffs seems like a good thing. However, um one caveat

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Speaker 1: to that. We saw there was a big ratings dip

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Speaker 1: for the NBA this year. A lot of people attributed

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Speaker 1: that to the fact that Lebron James, the biggest star,

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Speaker 1: moved from the East Coast, where he was playing at

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Speaker 1: seven pm on the East Coast, over to the West Coast,

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Speaker 1: where you know where his games typically the home game

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Speaker 1: started much later. Um, this is another shift of a

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Speaker 1: of a star player from you know, the Eastern time zone.

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Speaker 1: The plans, and they weren't on national TV. There's a

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Speaker 1: chance that, you know, given the injury to Kevin Durant,

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Speaker 1: he may choose to stick around for another year in Oakland,

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Speaker 1: whereas there was maybe a higher likelihood he would end

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Speaker 1: up on the East Coast, possibly in the next Jersey.

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Speaker 1: I can guarantee he will not stick around for another

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Speaker 1: year in Oakland. Thank you, Michael, were picking on the

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Speaker 1: mony morning, picking baby. But either way, guess the point

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Speaker 1: I'm trying to make. I do wonder if this, this

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Speaker 1: increased shift of talent towards the West Coast is also

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Speaker 1: maybe a little dangerous for them. You make it seem

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Speaker 1: as if the New York Knicks and Nets are not

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Speaker 1: going to be resurgent franchises. Look the who were the

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Speaker 1: top two people on on the Knicks Works wish list?

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Speaker 1: You had to assume it was Durant and and Davis

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Speaker 1: number two? Right of course, So Davis is no longer coming,

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Speaker 1: and there's an increasing chance that that Kevin Durant might

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Speaker 1: not even be available this year. Uh, it certainly seems

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Speaker 1: as though you know that this is not this is

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Speaker 1: not the offseason that everyone was thinking it might shape up.

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Speaker 1: Right now, those that injury to Kevin Durant, man that

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Speaker 1: was changed everything. I gotta I gotta bring that up

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Speaker 1: right quick before we move on to the next topic.

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Speaker 1: Because Charles Barkley and I heard this last week. I mean,

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Speaker 1: he went off, you know when Durant was hurt and

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Speaker 1: he tried to come back. Now you know when you

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Speaker 1: you tore that, Come on that this happened. Come on,

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Speaker 1: bar listen. I love Chuck, but I've already said no

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Speaker 1: story should ever be written that starts with the words

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Speaker 1: Barkley says anymore, because frankly, this happens all the time,

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Speaker 1: this kind of thing. You get your team, you get

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Speaker 1: your doctor, you get your player, you get your personal doctor,

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Speaker 1: you get your agent. Everybody gets together, and if one

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Speaker 1: person in that group says no, one person says no,

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Speaker 1: that player is not on the floor. So this happens

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Speaker 1: all the time. May not be of the star magnitude

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Speaker 1: of Kevin Durant and in the platform of the NBA Championship,

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Speaker 1: but these decisions and these conversations happen all the time.

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Speaker 1: Throughout sports. They all said, yes, unfortunate to happen, Unfortunately,

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Speaker 1: gotta hurt. Yes, but it's not like the Golden State

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Speaker 1: Warriors forced Kevin Durant, so you better play. That's not

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Speaker 1: how this happens. So, but you knew that Durant was

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Speaker 1: going to play regardless. You can't stop a player from

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Speaker 1: It's like I'm gonna you know, actually you can stop

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Speaker 1: a player. No, I'm not. The player is not gonna

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Speaker 1: stop himself. Some will look at Kauai Kaua I didn't

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Speaker 1: play at all with that with the Spurs. He said,

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Speaker 1: I'm not right, I'm not ready, ain't gonna happen. There

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Speaker 1: was a lot there was a lot of acrimony between

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Speaker 1: Kauai and the Spurs. Your doctor said something misdiagnoseda but

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Speaker 1: Kawai Leonard sure said I'm not playing. I'm not risking

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Speaker 1: my my career. How did that work out for him? Well,

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Speaker 1: unless that's a good but I tried to go. Kauai.

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Speaker 1: I was just gonna say, there's a lot of speculation

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Speaker 1: going on here. We have no idea what those conversations

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Speaker 1: were like. But you know what the conversations are. Everybody

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Speaker 1: does have to agree or else it's not. I imagine

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Speaker 1: Kevin Durant was not forced to against his will take

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Speaker 1: the court. Um. But yeah, I think that we will

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Speaker 1: learn more and more about, you know, the decision making

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Speaker 1: in that week leading up to Kevin Durant taking the court.

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Speaker 1: I look forward to the TikTok congratulations Toronto Raptors, and

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Speaker 1: uh parade day, Yes, Today's parade day? And uh money money, money, money, money, money,

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Speaker 1: what are we looking at? Money money, mondy money. Well.

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Speaker 1: I spoke to Richard Petty, who was the CEO of

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Speaker 1: Maple Leaf Sports a while back. Awful, awful, I knew

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Speaker 1: he was. I had a funny feeling he would do that.

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Speaker 1: I had a funny feeling he would do that. But

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Speaker 1: you know, Richard told me this, He's if you look

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Speaker 1: who bought Maple Leaf Sports, and it's Bell and Rogers

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Speaker 1: in Canada, two biggest communications firm in Canada, and they

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Speaker 1: bought the teams for one reason. Content content content. So

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Speaker 1: if more people around the entire country are interested in

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Speaker 1: the Raptors, they are looking at, how do we distribute

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Speaker 1: more things about this team to more people? How do

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Speaker 1: we charge whatever it is subscription you're looking at sponsorship money,

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Speaker 1: they stagger or ladder sponsorships. Obviously they don't all come

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Speaker 1: do at the same time. That would be bad business.

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Speaker 1: But the ones that are due now or coming do

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Speaker 1: in the near future, you could expect to pay a

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Speaker 1: lot more than you did before. Funny enough, tickets, not

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Speaker 1: a lot of money coming in tickets because they've already

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Speaker 1: hyped the prices and they've already sold them. So for

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Speaker 1: folks who don't know, the group that owns the Raptors

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Speaker 1: also owns Toronto Maple and Toronto FC, the MLS team.

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Speaker 1: Um goes without saying, I think that you know, the

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Speaker 1: Maple Liefs have been the dominant sports brand, not just

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Speaker 1: in Toronto but across Canada. Richard said, when he was

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Speaker 1: very sponsorship yeah, he would have to tie the Raptors

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Speaker 1: to the Leaf. So if you wanted a Leaf sponsorship,

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Speaker 1: you had to buy the Raptors to sort of like alright,

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Speaker 1: Bard rudgingly will take exactly So now, Richards said, if

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Speaker 1: the Raptors brand can stand on its own, that will

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Speaker 1: lead to a significant boost of revenue for the basketball.

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Speaker 1: One other thing we've seen I imagine Richard touched on

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Speaker 1: this as well. Um, there are seven eight and NHL

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Speaker 1: teams in Canada. There's only one basketball team, and it

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Speaker 1: did feel as though, at least when the team was

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Speaker 1: good this year, going through this NBA title run um,

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Speaker 1: there was a lot of support across the country for

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Speaker 1: the Raptors. I'd imagine from a business standpoint being Canada's team,

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Speaker 1: which not even the Maple Leafs can really say, but

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Speaker 1: there are is a tremendous business but the funding. There

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Speaker 1: are territorial right issues too that the end they are

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Speaker 1: restricted what they can do in some other places. So

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Speaker 1: did every time by the Great Sports Business story bar.

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Speaker 1: You'll love this just this could not happen today because

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Speaker 1: of the communications technology. But there was a league meeting

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Speaker 1: in Vancouver. I don't even know what year. This was,

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Speaker 1: years and years and years ago, and I happened to

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Speaker 1: be sitting right with David Stern and Russ Grantic and

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Speaker 1: their whole team. So we get off the plane in

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Speaker 1: Vancouver and we're walking to customs and I'm maybe like

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Speaker 1: a person or two behind David Stern, and the customs

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Speaker 1: agent was the person who informed David Stern, the commissioner

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Speaker 1: of the NBA at the time, that Michael heistly had

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Speaker 1: just disclosed that the team was leaving Vancouver. They didn't.

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Speaker 1: The commissioner, the deputy, the whole hierarchy of the NBA

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Speaker 1: was right in front of me and I found out

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Speaker 1: with them through a border agent that the team was leaving.

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Speaker 1: That's when they yeah, and like my Michael Hasli decided

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Speaker 1: enough we're done here. And then I mean you saw

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Speaker 1: the immediate huddle of the top rest of the NBA,

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Speaker 1: followed by the email from the NBA saying we will

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Speaker 1: have a press conference in two hours, you know, at

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Speaker 1: the whatever hotel, and like that could just it was

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Speaker 1: so great because it just couldn't happen today that have WiFi.

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Speaker 1: They'd be emailing, No, don't announced this, were on the way.

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Speaker 1: So what about a fun sports business story that's impressive

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Speaker 1: than you you know, and ontould add to the round Raptors.

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Speaker 1: The Raptors, Uh, they were founded and I remember back

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Speaker 1: then people were saying, I don't know, it's like you know,

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Speaker 1: even back then also when we went also in Vancouver,

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Speaker 1: is like I don't know on the NBA team that's

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Speaker 1: gonna take place in Canada. Now they're talking about not

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Speaker 1: only in Toronto, maybe Mexico City as well well. It

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Speaker 1: certainly worked in basketball in Canada is growing lots and

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Speaker 1: lots of good players coming out of Canada. So the

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Speaker 1: Raptors there's gonna be a money boost obviously, and winning

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Speaker 1: the NBA title if they could, I think they would

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Speaker 1: give a lot of that money directly to Coi Leonard

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Speaker 1: for him to say, how important is is Kauai deciding

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Speaker 1: to stay in Toronto to kind of continuing this this

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Speaker 1: business push for the Richard and I talked about again,

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Speaker 1: that's Richard Petty, former CEO of maple Le Sports and Entertainment.

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Speaker 1: He said, with him their championship contender. Without them, they're

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Speaker 1: probably a top four or five team. So again it's

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Speaker 1: what's the staying power of what you created? What's the halo. Certainly,

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Speaker 1: more eyeballs, more at tension are now placed on the

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Speaker 1: Raptors and if their kids who are still going to

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Speaker 1: be fans and watch on TV and again bar here

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Speaker 1: we go. You don't need to be the person living

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Speaker 1: in Toronto or near Toronto who's going to go to

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Speaker 1: the game. It's that scalable nature of what can Bell

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Speaker 1: and Rogers deliver to the iPhones and the iPads. That's

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Speaker 1: how they're going to make their money. So, I mean,

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Speaker 1: you know they have new fans, but what's the staying

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Speaker 1: power of those fans that will determine how much more

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Speaker 1: money they have? One other edem I think worth mentioning

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Speaker 1: as as we discussed kind of the comparison and the

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Speaker 1: business differences between the Raptors and the maple Leaves, the Raptors,

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Speaker 1: by at you being in the NBA, are worth more

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Speaker 1: a lot more money. Yeah. The Raptors are one point

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Speaker 1: six billion according to Forbes. The maple Leafs are one

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Speaker 1: point four billion. I think so even though there is

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Speaker 1: you know, tremendous difference in the in some of the

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Speaker 1: business opportunities locally in Canada, the Raptors are still a

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Speaker 1: much more valuable asset. Yeah. You wonder should Bell and

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Speaker 1: Rodgers want to sell? You wonder what the enterprise value

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Speaker 1: is of MLS. I mean, I think you're looking at

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Speaker 1: five billion dollars the entities, and I think you're looking

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Speaker 1: at about five billion and probably four on paper with

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Speaker 1: that added bonus of Halo and scarcity and people wanting,

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Speaker 1: you're looking at a five billion dollar operation. It's three

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Speaker 1: the three teams hockey, basketball, soccer building as well. Okay,

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Speaker 1: but both the soccer and the arena. By the way,

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Speaker 1: in Toronto, if you want to keep Kauai and give

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Speaker 1: them that free food and that penthouse, will be all set.

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Speaker 1: And call it Toronto, not Toronto. I'm sorry, Toronto, Toronto.

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Speaker 1: Now you sound like it all right, I'll get it right. Uh.

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Speaker 1: Florida State privatizing athletic department. What yeah, this is This

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Speaker 1: happened a week and a half ago. We didn't talk

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Speaker 1: about it, but we should have. So we're doing it now. Um.

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Speaker 1: Florida State, like a number of of universities have in

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Speaker 1: Florida already, is privatizing its athletic department. It will shield

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Speaker 1: the school or the athletic department specifically from a lot

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Speaker 1: of open records requests, which is how journalists like myself

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Speaker 1: and Scot and you, Michael, how we get a lot

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Speaker 1: of information about you know, payments to what a coach

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Speaker 1: gets paid, what Nike pays to these um to to

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Speaker 1: these schools, you know, conversations or emails between administrators when

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Speaker 1: there's a scandal, things like that. This will shield Florida

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Speaker 1: State from that and allow its athletic department essentially to

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Speaker 1: act like a corporation, you know, so instead of being

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Speaker 1: a state entity, Uh, Florida State Athletics is now the

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Speaker 1: Florida State University Athletics Association, a private entity that can

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Speaker 1: deal with boosters in a much more shielded way. Okay,

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Speaker 1: it's a good thing. Nothing affair has ever happened. Nothing

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Speaker 1: ever happened. And the second of all, I mean, come on,

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Speaker 1: it is now. Look if you want to shield how

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Speaker 1: much somebody makes you want to say, hey, we don't

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Speaker 1: discuss business at the dinner table. Okay, that's your thing.

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Speaker 1: But it's like, I go back to what the original

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Speaker 1: argument about the NC double A and the kids playing.

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Speaker 1: Now you've privatized the A D and the whole department,

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Speaker 1: and and I'm just wondering if there's gonna be a

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Speaker 1: lot of problems with this. Yeah, this kind of continues

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Speaker 1: a trend that we've seen. Yeah, I mean, the Pennsylvania

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Speaker 1: schools technically are not under you can't you know, use

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Speaker 1: the Freedom of Information Act to get information from them.

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Speaker 1: It was obviously a problem when when the Joe Paterno

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Speaker 1: and Jerry Sandusky UH scandal happened at penn State, A

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Speaker 1: couple of years ago, University of the Georgia head coach Kirby.

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Speaker 1: He essentially spearheaded a bill that was signed by the

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Speaker 1: governor that essentially allowed Georgia to delay open records requests,

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Speaker 1: you know, way longer than almost any other institution in

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Speaker 1: the country. It's fun to see who bends how far

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Speaker 1: to make it difficult to get information. Like Eben Evan

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Speaker 1: knows better better than I do because he files the

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Speaker 1: way more than I do. But it's like some schools,

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Speaker 1: you have to have a local address, Like yeah, in Tennessee,

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Speaker 1: you need you need to have a low you need

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Speaker 1: to be a Tennessee resident to request. So we need

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Speaker 1: to find a Tennessee resident to actually put the request in.

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Speaker 1: When when that Georgia bill passed, by the way, the

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Speaker 1: Lieutenant governor said, I hope it wins US a national championship,

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Speaker 1: which is pretty much all you need to know about

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Speaker 1: about the motivations. Here one other crazy thing about this

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Speaker 1: this Florida State Uh, and it's not again, it's not

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Speaker 1: just Florida State University. Uh. The University of Central Florida

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Speaker 1: has has a similar setup. I believe the University of

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Speaker 1: Florida the Gators do as well, UM, it essentially makes

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Speaker 1: the Athletic Department of corporation, but it retains one pretty

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Speaker 1: critical piece that private corporations you not have a right,

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Speaker 1: and that is, you know, they cannot be any jury

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Speaker 1: judgments or settlements against Florida State Athletics are essentially capped

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Speaker 1: right now at two hundred thousand dollars. And that's a

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Speaker 1: that's a thing for state or for for state organizations,

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Speaker 1: so that there's no like un new burden on taxpayers,

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Speaker 1: right because if Florida State University has to pay out

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Speaker 1: a ten million dollar settlement, a lot of that money

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Speaker 1: is going to be paid by the residents of Florida. UM.

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Speaker 1: But Florida State, the Athletic Department retains that right. And

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Speaker 1: this has come into play recently. If you remember, about

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Speaker 1: a decade ago, a UCF football player died on the

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Speaker 1: football field. UM, and I believe the original settlement was

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Speaker 1: for u C I believe it was a ten million

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Speaker 1: dollar settlement, and then u CEF appealed it all the

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Speaker 1: way up to to the Supreme Court and ended up

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Speaker 1: only having to pay I think the two hundred thousand

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Speaker 1: dollar cap. Uh. So, despite the fact that Florida State

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Speaker 1: Athletics is now going private. Essentially, it is retaining this cap,

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Speaker 1: this two D dollar cap on jury judgments and settlements.

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Speaker 1: That is a tremendous benefit to hold him. Michael Barr

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Speaker 1: and this has been the Bloomberg Business of Sports podcast.

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Speaker 1: We're here for you for the podcast every Monday, Wednesday

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Speaker 1: and Thursday. Join us at the end of the week.

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Speaker 1: You know who we got ready for the Michael Eisner,

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Speaker 1: former CEO of Disney owned Sports Smith lower division team

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Speaker 1: in English soccer. His company's investment company owns the Tops

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Speaker 1: trading card. Does anybody collect baseball cards in our trading cards?

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Speaker 1: I don't know. There's a big score. I want to

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Speaker 1: ask him about it. So Michael Eisner, and you can

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Speaker 1: follow me on Twitter at big Bar Sports. I want

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Speaker 1: you to follow him on Twitter at big bar Sports.

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Speaker 1: Not even promoting myself. No no, no, no, no no

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Speaker 1: no no at sash Nick, no Underscore, no anything. And

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Speaker 1: I'm at NOVI Underscore Williams and you can follow while

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Speaker 1: we show where you getting the podcasts.