WEBVTT - Trump Jury Deliberates & NCAA Settles

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<v Speaker 1>You're listening to Bloomberg Law with June Grusso from Bloomberg Radio.

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<v Speaker 1>Jurors deliberated for more than four and a half hours

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<v Speaker 1>today in Donald Trump's historic hush money trial without coming

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<v Speaker 1>to a decision on whether the former president falsified his

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<v Speaker 1>company's records to hide a hush money payment to porn

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<v Speaker 1>star Stormy Daniels and influence the twenty sixteen election. Shortly

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<v Speaker 1>after the jurors got the case, Trump repeated his claim

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<v Speaker 1>that the case is rigged.

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<v Speaker 2>By the JACIC conducting those judges. But we'll see, we'll see.

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<v Speaker 1>How we do. Deliberations will resume at nine thirty tomorrow morning,

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<v Speaker 1>when the jurors will hear readbacks of testimony they've requested

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<v Speaker 1>about a Trump Tower meeting in August of twenty fifteen

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<v Speaker 1>that prosecutors say was central to a criminal conspiracy to

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<v Speaker 1>boost Trump's twenty sixteen presidential campaign. Joining me is criminal

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<v Speaker 1>defense attorney dunk and Levin, a former Manhattan prosecutor. Duncan.

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<v Speaker 1>Let's start with the defense case and how the defense

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<v Speaker 1>attorney presented that case. In closing arguments, Todd Bland seemed

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<v Speaker 1>to focus on Michael Cohen almost to the exclusion of

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<v Speaker 1>everything else, calling him the human embodiment of reasonable doubt,

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<v Speaker 1>the greatest liar of all time. What did you think

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<v Speaker 1>of the defense close?

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<v Speaker 3>I thought it was meandering. And they are clearly trying

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<v Speaker 3>to attack the credibility of Michael Cohne, because Michael Cohne

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<v Speaker 3>is the most problematic part of the case for them.

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<v Speaker 3>What Michael Cohne does is take a circumstantial case and

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<v Speaker 3>makes it a direct case. And what I mean by

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<v Speaker 3>that is that and the DA called Michael Cohne late

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<v Speaker 3>in its case to really corroborate all these other pieces

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<v Speaker 3>of evidence. At the core of the case are two

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<v Speaker 3>main things. One is that mister Trump falsified business documents.

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<v Speaker 3>He caused the falsification of business documents with the intent

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<v Speaker 3>to conceal a conspiracy between Michael Cohne, David Pecker, and

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<v Speaker 3>mister Trump to promote his election by unlawful means. That

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<v Speaker 3>unlawful means was hush money payments to Stormy Daniels, Karen McDougall,

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<v Speaker 3>and others. So the DA's office has put in a

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<v Speaker 3>lot of evidence that shows this conspiracy, that shows that

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<v Speaker 3>mister Cohne and mister Trump and the National Inquirer were

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<v Speaker 3>operating together in order to promote the election by unlawful means.

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<v Speaker 3>They put in evidence by David Pecker, who testified that

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<v Speaker 3>this went way beyond catch and kill, that in fact,

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<v Speaker 3>the National Choir was really operating as an arm of

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<v Speaker 3>the Trump campaign, that they were the eyes and ears

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<v Speaker 3>of the campaign, that they were looking for stories to

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<v Speaker 3>go out and catch and kill. There was evidence that

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<v Speaker 3>prior to twenty fifteen, when this all started happening, they

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<v Speaker 3>never worked with a presidential candidate, they'd never done anything

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<v Speaker 3>in coordination with a presidential candidate to catch and kill,

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<v Speaker 3>and that they were really operating as an arm of

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<v Speaker 3>the campaign. And where catch and kill is not illegal

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<v Speaker 3>one to itself, when they start operating in that way

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<v Speaker 3>as an arm of the campaign, it becomes illegal because

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<v Speaker 3>it's promoting an election by unlawful means. These payments to

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<v Speaker 3>women to get their silence. The CIA then called Keith Davidson,

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<v Speaker 3>who was Doormy Daniels attorney, who testified about why this

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<v Speaker 3>was about the election and not about a cover up

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<v Speaker 3>of an affair to try to keep it from millennia.

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<v Speaker 3>This was something that was about the election. Keith Davidson

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<v Speaker 3>testified that these deals were dead. Really he represents Doormy

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<v Speaker 3>Daniels and was trying to get money for her, and

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<v Speaker 3>that this deal was dead. They were trying to kick

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<v Speaker 3>it down the road till after the election, and once

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<v Speaker 3>the Access Hollywood tape came out, which was devastating to

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<v Speaker 3>the campaign. They had testimony from Hope Picks about how

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<v Speaker 3>terrible this was for the campaign. There was this increased

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<v Speaker 3>feverish peace from the Trump campaign to try to pay

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<v Speaker 3>off Stormy Daniels and Karen McDougall, who it came to

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<v Speaker 3>their attention, we're trying to sell their stories because if

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<v Speaker 3>right on that Heels On the Acts of Hollywood tape,

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<v Speaker 3>these two women's stories came out, it would have been

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<v Speaker 3>the nail in the coffin for the Trump campaign, or

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<v Speaker 3>at least they thought so. So. Davidson testified that there

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<v Speaker 3>was this feverish pace to try to get this money

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<v Speaker 3>to Stormy Daniels right after that Access Hollywood tape came

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<v Speaker 3>out because they were trying to keep it from the electorate,

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<v Speaker 3>and Michael Cone called his banker, Gary Farrow, who also

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<v Speaker 3>testified that mister Cone called him with his pass on

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<v Speaker 3>fire to try to get money through this shell company

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<v Speaker 3>called the es Central Consultants, LLC, through to Stormy Daniels.

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<v Speaker 3>So they did a very good job putting together this conspiracy,

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<v Speaker 3>and they don't really need Michael Cone's testimony for that

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<v Speaker 3>at all.

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<v Speaker 1>What about for the falsification of business records.

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<v Speaker 3>They also don't need Michael Cone's testimony really for the

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<v Speaker 3>falsification of the business documents, because on their face they

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<v Speaker 3>have this was exhibit thirty five and thirty six in

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<v Speaker 3>the trial. They have who documents, one of which is

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<v Speaker 3>on First Republic Bank letterhead which has Alan Weisselberg's handwriting

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<v Speaker 3>on it, showing that this payment one hundred and thirty

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<v Speaker 3>thousand dollars to Stormy Daniels was quote unquote grossed up,

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<v Speaker 3>which was doubled for taxes. And what that means is

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<v Speaker 3>that it wasn't legal services to Michael Cohen, as the

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<v Speaker 3>defense says it was, because if it was legal services,

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<v Speaker 3>it wouldn't be grossed up for taxes. It would just

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<v Speaker 3>be a payment. Nobody pays double knowing that the person

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<v Speaker 3>who's receiving the payment has to pay taxes on it.

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<v Speaker 3>You pay somebody and they have to pay taxes on it. Well,

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<v Speaker 3>if it's a reimbursement, you would double it so that

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<v Speaker 3>he would say it's income, and the books and records

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<v Speaker 3>would show what was income, and he would pay taxes

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<v Speaker 3>on it. And he's still wind up with the same

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<v Speaker 3>amount of one hundred and thirty thousand dollars for reimbursement.

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<v Speaker 1>So then where does the prosecution need Michael Cohen, if

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<v Speaker 1>at all?

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<v Speaker 3>So where does Michael Cohes fit into all of this? Well,

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<v Speaker 3>he's a critical witness because all of that is circumstantial

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<v Speaker 3>evidence that puts Donald Trump at the center of it.

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<v Speaker 3>And Michael Cohen basically says on the stand he authorized it,

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<v Speaker 3>he approved it. And that's what turns this case from

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<v Speaker 3>a circumstantial case where there's a lot of evidence of

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<v Speaker 3>other people saying things about, well, how is it possible

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<v Speaker 3>that mister Trump was signing these thirty five thousand dollars checks?

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<v Speaker 3>And that magic number of thirty five thousand dollars comes

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<v Speaker 3>from this grossed up figure of one hundred and thirty

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<v Speaker 3>thousand times two, and there's some other amounts of money

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<v Speaker 3>that are added into that. Divided by twelve for a

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<v Speaker 3>monthly payment, it comes to thirty five thousand. There's no

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<v Speaker 3>evidence of any retainer agreement between Michael Cohne and mister

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<v Speaker 3>Trump or the Trump organization. There's no invoices, and in fact,

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<v Speaker 3>there's some evidence that came in a trial that mister

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<v Speaker 3>Cohn actually emailed mister Weieselberg and said how much money

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<v Speaker 3>am I supposed to be billing for every month? Again,

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<v Speaker 3>which is not something.

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<v Speaker 2>A lawyer would normally say.

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<v Speaker 3>All of this is evidence that does not require Michael

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<v Speaker 3>Cohne's testimony at all, except that Michael Cohne takes it

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<v Speaker 3>from a case that's circumstantial to a case that's very strong,

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<v Speaker 3>because he says, yeah, I was in the room with

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<v Speaker 3>President Trump then when he was in the Oval office,

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<v Speaker 3>and he approved all of this. He approved the repayment scheme.

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<v Speaker 3>But the defense passd you destroy Michael Cohne. It has

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<v Speaker 3>to destroy Michael Cohene, And that's what they tried to

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<v Speaker 3>do in their closing statement. And I think it was

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<v Speaker 3>neandering and they're trying to poke holes in it, and

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<v Speaker 3>that I don't think it was effective in actually getting

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<v Speaker 3>to the heart of the matter, which is whether mister

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<v Speaker 3>Trump knew of this repayment scheme and did it in

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<v Speaker 3>order to cover up this promotion of his election by

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<v Speaker 3>unlawful meets.

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<v Speaker 1>So the defense was just poking holes in the prosecution's case.

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<v Speaker 1>And Michael Cohen, do you think it makes a difference

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<v Speaker 1>that he didn't cover whole picks, He didn't talk about

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<v Speaker 1>some of the important witnesses, He didn't cover what you

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<v Speaker 1>just mentioned that piece of paper with Alan Weiselberg's ublings

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<v Speaker 1>on it. I mean, do you think it matters that

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<v Speaker 1>he didn't do that?

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<v Speaker 3>It matters tremendously because then the prosecution gets up and

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<v Speaker 3>gave a four and a half hour closing that pointed

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<v Speaker 3>out to the jury all of the things that the

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<v Speaker 3>defense didn't actually address. You're right, he did not address

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<v Speaker 3>whole picks. He did not address the tape recorded phone

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<v Speaker 3>call that mister Cohne made with mister Trump was then

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<v Speaker 3>President Trump in the Oval office. He didn't address the

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<v Speaker 3>fact that the NDA used secret names, that the checks

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<v Speaker 3>that were sent for thirty five thousand dollars were sent

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<v Speaker 3>from mister Trump's personal accounts. The checks were physically sent

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<v Speaker 3>not to the White House, but secretly to Keith Schiller,

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<v Speaker 3>who was his body man, who was not in the

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<v Speaker 3>White House, was sent to his personal residence of off

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<v Speaker 3>site in Washington, DC and given to the then president

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<v Speaker 3>to sign in the Oval office. He didn't address a

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<v Speaker 3>lot of the context behind the call. So, for example,

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<v Speaker 3>there's a call that was made that the defense made

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<v Speaker 3>a big deal out of, and he did on closing

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<v Speaker 3>the well on October twenty fourth, twenty sixteen, which is

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<v Speaker 3>a phone call from mister Cohne, and mister Cone testified

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<v Speaker 3>to this on direct examination. There's a phone call from

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<v Speaker 3>mister Cone to Keith Schiller, who's mister Trump's body man,

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<v Speaker 3>and mister Cone said, yeah, mister Schiller was with mister Trump,

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<v Speaker 3>and that was a phone call that I made about

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<v Speaker 3>Stormy Daniel Well. The defense and cross examination brought out

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<v Speaker 3>a number of text messages that they were able to

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<v Speaker 3>find immediately preceding that phone call, in which mister Cone

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<v Speaker 3>said to mister Schiller, there's some fourteen year old girl

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<v Speaker 3>who's harassing me, and mister Shiller writes back, call me. Well.

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<v Speaker 3>The defense made a huge deal about that on cross

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<v Speaker 3>examination in the closing argument as well, saying that was

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<v Speaker 3>a lie, that was perjury. You called him back because

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<v Speaker 3>you were talking about that fourteen year old girl. You

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<v Speaker 3>were not talking about Stormy Daniels and you are lying,

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<v Speaker 3>and they can do that, and he makes a big

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<v Speaker 3>stink about it on his cross examination, but the prosecution

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<v Speaker 3>stood up and did what it did on redirect examination

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<v Speaker 3>by saying, you're not looking at the context of all

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<v Speaker 3>of this. You're not focusing on the fact that immediately

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<v Speaker 3>following that phone call on October twenty fourth, twenty sixteen,

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<v Speaker 3>there are thirty frantic messages over the messaging app called

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<v Speaker 3>Signal between you and mister Pecker at the National Inquirer

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<v Speaker 3>talking about Stormy Daniels. And it does not address the

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<v Speaker 3>fact that on the next day, on October twenty fifth,

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<v Speaker 3>twenty sixteen, there is a text message from Dylan Howard

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<v Speaker 3>over at the National in Choir to you to mister

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<v Speaker 3>Cohane that says, we better get on the same page

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<v Speaker 3>about this or we're going to look really bad. It

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<v Speaker 3>doesn't address the fact that on the following day there

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<v Speaker 3>was the wire payment to Stormy Daniels and the day

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<v Speaker 3>after that the NBA was signed. So there is context

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<v Speaker 3>about this, and so the defense is doing what it

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<v Speaker 3>needs to do, what it has to do, but ultimately

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<v Speaker 3>is not particularly effective in trying to cherry pick out

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<v Speaker 3>all of the little pieces of the case that sound

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<v Speaker 3>bad and try to confuse the jury. That is what

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<v Speaker 3>the defense needs to do, and you sort of can

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<v Speaker 3>use the jury, whereas the prosecution needs to tell a

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<v Speaker 3>narrative that starts at the beginning and goes to the

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<v Speaker 3>end and tells a story. And so that is really

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<v Speaker 3>the disconnect between what the defense is trying to do

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<v Speaker 3>and what the prosecution did in this closure.

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<v Speaker 1>Coming up next on the Bloomberg Lanchew, I'll continue this

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<v Speaker 1>conversation with Duncan Levin and we'll talk about why the

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<v Speaker 1>judge got angry during the closing arguments yesterday, as well

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<v Speaker 1>as just what the prosecution has to prove for a conviction. Here,

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<v Speaker 1>I'm June Grosso, and you're listening to Bloomberg. The Manhattan

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<v Speaker 1>jury weighing Donald Trump's hush money case ended its first

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<v Speaker 1>day of deliberations after asking to review testimony about a

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<v Speaker 1>Trump Tower meeting that prosecutors say was central to a

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<v Speaker 1>criminal conspiracy to boost his twenty sixteen presidential campaign. This afternoon,

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<v Speaker 1>the jury sent the judge a note asking for testimony

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<v Speaker 1>about an August twenty fifteen meeting at Trump Tower. Attended

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<v Speaker 1>by Trump, David Pecker, the publisher of The National Inquirer,

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<v Speaker 1>and Michael Cohen, Trump's former attorney and fixer turned star.

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<v Speaker 1>Prosecution witness. Pecker had testified that he agreed then to

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<v Speaker 1>help Trump's campaign by praising him in print, punishing his rivals,

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<v Speaker 1>and buying and burying accounts of his extramarital affairs. The

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<v Speaker 1>jury also asked to hear testimony about how Pecker's company

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<v Speaker 1>paid former Playboy playmate Karen McDougall one hundred and fifty

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<v Speaker 1>thousand dollars in twenty sixteen to buy and bury her

0:12:26.440 --> 0:12:30.120
<v Speaker 1>account of an affair with Trump a decade earlier. It's

0:12:30.160 --> 0:12:32.600
<v Speaker 1>hard to know exactly what the jurors are looking for,

0:12:32.840 --> 0:12:35.719
<v Speaker 1>but the request may suggest they are working through the

0:12:35.800 --> 0:12:40.040
<v Speaker 1>chronology laid out by the prosecutors in their case. Pecker

0:12:40.160 --> 0:12:43.000
<v Speaker 1>was the prosecution's first witness, and he served as a

0:12:43.040 --> 0:12:47.160
<v Speaker 1>sort of narrator for prosecutors in detailing the alleged scheme.

0:12:47.760 --> 0:12:50.160
<v Speaker 1>In a second note, the jurors asked to hear Judge

0:12:50.240 --> 0:12:54.679
<v Speaker 1>Mershon's instructions again, but before jurors could hear the testimony

0:12:54.840 --> 0:12:58.600
<v Speaker 1>or the judge's instructions again, Mershawn dismissed the panel for

0:12:58.640 --> 0:13:02.120
<v Speaker 1>the day, saying deliberate rations will resume tomorrow morning at

0:13:02.200 --> 0:13:05.000
<v Speaker 1>nine point thirty. I've been talking to criminal defense attorney

0:13:05.080 --> 0:13:09.480
<v Speaker 1>Duncan Levin, a former Manhattan prosecutor. One thing during closing

0:13:09.640 --> 0:13:14.200
<v Speaker 1>arguments that really angered the judge was when the defense

0:13:14.240 --> 0:13:18.880
<v Speaker 1>attorney Todd Blanche mentioned punishment in his closing arguments, said,

0:13:18.880 --> 0:13:20.960
<v Speaker 1>you don't want to send the former president or the

0:13:20.960 --> 0:13:25.199
<v Speaker 1>presidency refers to him to jail. Everyone knows who's tried

0:13:25.200 --> 0:13:27.720
<v Speaker 1>a case, so who's been in court that that's not allowed.

0:13:28.120 --> 0:13:30.560
<v Speaker 1>So Blanche must have known it. Do you think it

0:13:30.640 --> 0:13:35.880
<v Speaker 1>backfired on him because the instruction, the curative instruction, actually

0:13:35.880 --> 0:13:38.439
<v Speaker 1>told the jury, you know, even if he's found guilty,

0:13:38.480 --> 0:13:40.720
<v Speaker 1>Trump doesn't necessarily have to get prison time.

0:13:41.320 --> 0:13:44.440
<v Speaker 3>It's something that is a basic ground rule for lawyers

0:13:44.480 --> 0:13:46.760
<v Speaker 3>to know not to mention certain things. They're not to

0:13:46.880 --> 0:13:50.960
<v Speaker 3>argue impermissible things to the jury. This is plainly impermissible.

0:13:51.160 --> 0:13:55.920
<v Speaker 3>Prosecution or defense knows that you can't do that, it's impermissible.

0:13:55.960 --> 0:13:59.400
<v Speaker 3>The judge was right to fly off the handle with it.

0:13:59.559 --> 0:14:02.040
<v Speaker 3>And you know, it's one of these things that is

0:14:02.720 --> 0:14:05.960
<v Speaker 3>hard to reconcile as a fiction of what the jury

0:14:06.000 --> 0:14:08.880
<v Speaker 3>knows or doesn't know. I mean, we're to presume that

0:14:08.960 --> 0:14:12.400
<v Speaker 3>this jury is not reading any newspapers, is not aware

0:14:12.520 --> 0:14:15.600
<v Speaker 3>of the coverage of it, is not thinking about the

0:14:15.679 --> 0:14:19.800
<v Speaker 3>ramifications to them of a guilty verdict, or whether they're

0:14:19.960 --> 0:14:24.600
<v Speaker 3>doing something unprecedented in convicting and or some point of punishment,

0:14:24.560 --> 0:14:26.400
<v Speaker 3>whether it's jail or not for the former president of

0:14:26.440 --> 0:14:28.680
<v Speaker 3>the United States. These are things that you know, are

0:14:28.800 --> 0:14:30.920
<v Speaker 3>legal fictions. And then there's this other fiction of a

0:14:31.000 --> 0:14:35.160
<v Speaker 3>curative instruction or striking testimony in front of the jury.

0:14:35.200 --> 0:14:37.080
<v Speaker 3>It's sort of hard to stuff the genie back into

0:14:37.080 --> 0:14:39.200
<v Speaker 3>the bottle. You know, they hear it, they get a

0:14:39.240 --> 0:14:42.960
<v Speaker 3>curative instruction, but then they're thinking, because they're human, they're like, oh, well,

0:14:42.960 --> 0:14:45.280
<v Speaker 3>we may be sending the former president to jail. So

0:14:45.760 --> 0:14:50.280
<v Speaker 3>I think Blanche was absolutely out of bounds by mentioning it.

0:14:50.440 --> 0:14:53.000
<v Speaker 3>He clearly knew he shouldn't. The judge was right to

0:14:53.000 --> 0:14:56.680
<v Speaker 3>fly off the handle with him. And as to what

0:14:56.880 --> 0:14:58.960
<v Speaker 3>damage it did or didn't do, it's going to be

0:14:59.000 --> 0:15:00.280
<v Speaker 3>devilutely impossible to help.

0:15:00.800 --> 0:15:04.560
<v Speaker 1>And then on the other side, the prosecutors said, there's

0:15:04.560 --> 0:15:07.720
<v Speaker 1>no special standard for Donald Trump. Donald Trump can't shoot

0:15:07.720 --> 0:15:10.480
<v Speaker 1>someone on Fifth Avenue and get away with it, which

0:15:11.120 --> 0:15:14.200
<v Speaker 1>caused an objection which was sustained. But he got it in.

0:15:14.280 --> 0:15:18.040
<v Speaker 1>It's the same thing, right, you can't unring the bell, right.

0:15:18.080 --> 0:15:20.440
<v Speaker 3>I mean, this is a famous line of Donald Trump

0:15:20.560 --> 0:15:22.640
<v Speaker 3>that he could shoot somebody in the middle of Fifth

0:15:22.640 --> 0:15:25.760
<v Speaker 3>Avenue and get away with it. And it's a statement

0:15:25.840 --> 0:15:29.360
<v Speaker 3>that is not an evidence. There are rules of evidence.

0:15:29.640 --> 0:15:33.800
<v Speaker 3>Prosecution is held to a higher standard. They shouldn't have

0:15:33.840 --> 0:15:37.920
<v Speaker 3>mentioned it. This is the objection was sustained. It's a

0:15:37.960 --> 0:15:43.000
<v Speaker 3>minor point, I suppose, because it's not well, there's a

0:15:43.040 --> 0:15:47.960
<v Speaker 3>distinction to be made between argument that is impermissible because

0:15:49.040 --> 0:15:55.040
<v Speaker 3>it wrongly has the jury doing something that is beyond

0:15:55.080 --> 0:15:57.920
<v Speaker 3>the scope of what it's supposed to do, like considering punishment.

0:15:57.960 --> 0:16:00.480
<v Speaker 3>Their job is to consider the facts of it, and

0:16:00.560 --> 0:16:03.720
<v Speaker 3>mentioning something that where there are no facts and evidence.

0:16:03.720 --> 0:16:06.360
<v Speaker 3>It's sort of, in a way, a more minor transgression.

0:16:06.440 --> 0:16:09.440
<v Speaker 3>But that was an objection that was sustained, and you're right,

0:16:09.480 --> 0:16:10.440
<v Speaker 3>so the jury hears it.

0:16:10.520 --> 0:16:11.520
<v Speaker 2>What are they going to do with it?

0:16:12.080 --> 0:16:14.040
<v Speaker 3>You know? For those who know the reference, they know

0:16:14.080 --> 0:16:15.880
<v Speaker 3>the reference. For those that don't. They don't, but it's

0:16:15.920 --> 0:16:19.000
<v Speaker 3>really more a statement of what is an evidence and

0:16:19.080 --> 0:16:20.040
<v Speaker 3>what is not in evidence.

0:16:20.280 --> 0:16:22.120
<v Speaker 1>They probably have to be living in a cave for

0:16:22.200 --> 0:16:25.000
<v Speaker 1>the last eight years if they didn't know that.

0:16:25.000 --> 0:16:26.920
<v Speaker 3>That's right, And that's part of the fiction of this case.

0:16:26.920 --> 0:16:30.200
<v Speaker 3>There's so much, you know, they're supposed to have evidence

0:16:30.280 --> 0:16:33.640
<v Speaker 3>in front of them during the trial that they can consider,

0:16:33.880 --> 0:16:36.360
<v Speaker 3>and they're not supposed to consider anything outside of what

0:16:36.520 --> 0:16:39.640
<v Speaker 3>happened during the last few weeks of this trial. And

0:16:39.720 --> 0:16:43.440
<v Speaker 3>so that's why the DA introduced evidence, for example, from

0:16:43.960 --> 0:16:46.240
<v Speaker 3>mister Trump's books showing that he was a penny pincher

0:16:46.280 --> 0:16:49.520
<v Speaker 3>and that he negotiated everything down to the paper clip,

0:16:49.600 --> 0:16:52.320
<v Speaker 3>because that gets to their point that he wouldn't just

0:16:52.360 --> 0:16:56.080
<v Speaker 3>be signing thirty five thousand dollars checks for Michael Cohene

0:16:56.320 --> 0:16:58.960
<v Speaker 3>without knowing what that was for. But the jurors may

0:16:59.000 --> 0:17:01.960
<v Speaker 3>also be away or just from reading the newspapers that

0:17:02.400 --> 0:17:04.680
<v Speaker 3>their Trump is someone who famously doesn't pay his lawyers.

0:17:04.920 --> 0:17:07.240
<v Speaker 3>That didn't come into evidence, but it might be something

0:17:07.440 --> 0:17:09.760
<v Speaker 3>they know in the back of their mind that he's

0:17:09.800 --> 0:17:12.080
<v Speaker 3>somebody who has, you know, never paid his lawyers or

0:17:12.119 --> 0:17:15.560
<v Speaker 3>paid vendors, which has been widely reported on, and so

0:17:15.600 --> 0:17:17.879
<v Speaker 3>that is something that they may be using in the

0:17:17.920 --> 0:17:19.760
<v Speaker 3>back of their head, but they're not supposed to bring

0:17:19.800 --> 0:17:22.840
<v Speaker 3>it into the deliberation room because it's not evidence in

0:17:22.920 --> 0:17:24.360
<v Speaker 3>the trial that wasn't presented.

0:17:24.400 --> 0:17:25.840
<v Speaker 2>They didn't call.

0:17:25.760 --> 0:17:29.199
<v Speaker 3>Lawyers who got diffed on their legal invoices. So you know,

0:17:29.240 --> 0:17:32.520
<v Speaker 3>I think that there's this fiction about what a jury

0:17:32.520 --> 0:17:34.960
<v Speaker 3>knows and doesn't know, but they're really only supposed to

0:17:35.000 --> 0:17:39.880
<v Speaker 3>consider evidence that came in that was properly admitted into evidence,

0:17:40.000 --> 0:17:40.760
<v Speaker 3>and nothing else.

0:17:41.280 --> 0:17:44.399
<v Speaker 1>Do you think the prosecution did enough in marshaling the

0:17:44.480 --> 0:17:48.479
<v Speaker 1>evidence and presenting its case in closing arguments?

0:17:48.560 --> 0:17:52.560
<v Speaker 3>Yeah, undoubtedly, Yes, every element of the crime was put in.

0:17:52.640 --> 0:17:56.080
<v Speaker 3>I mean there's ample evidence if you credit Michael Cone,

0:17:56.359 --> 0:17:59.360
<v Speaker 3>for sure. Even without crediting Michael Cone, I think there's

0:17:59.400 --> 0:18:02.760
<v Speaker 3>ample evidence that mister Trump was aware of and approved

0:18:02.760 --> 0:18:05.880
<v Speaker 3>the repayment scheme to Michael Cone, that was a lie

0:18:05.960 --> 0:18:07.800
<v Speaker 3>on the books and records, that this was for legal

0:18:07.840 --> 0:18:10.280
<v Speaker 3>services to Michael Cone, that it was a cover up

0:18:10.320 --> 0:18:14.520
<v Speaker 3>of payments to Storm mc daniels and Karen McDougall and others,

0:18:14.640 --> 0:18:17.879
<v Speaker 3>That there was a conspiracy between David Pecker and the

0:18:17.960 --> 0:18:21.359
<v Speaker 3>National inquirer and Michael Cone to promote mister Trump's election

0:18:21.480 --> 0:18:24.800
<v Speaker 3>by unlawful means, now lawful means for the hush money

0:18:24.800 --> 0:18:29.400
<v Speaker 3>payments that violated federal campaign finance laws. Think that everything

0:18:29.480 --> 0:18:33.160
<v Speaker 3>is there. The only reason he will be acquitted or

0:18:33.200 --> 0:18:36.640
<v Speaker 3>a hung jury is if there's a juror too for

0:18:36.760 --> 0:18:39.800
<v Speaker 3>other reasons other than the evidence, decides not to convict them.

0:18:39.800 --> 0:18:42.639
<v Speaker 3>I think the evidence is beyond a reasonable doubt that

0:18:42.800 --> 0:18:44.400
<v Speaker 3>he is guilty of the crimes.

0:18:44.520 --> 0:18:46.959
<v Speaker 1>And so will you explain what the jurors have to

0:18:47.080 --> 0:18:52.240
<v Speaker 1>find in order to convict Trump the elements of the crime.

0:18:52.760 --> 0:18:54.880
<v Speaker 3>Sure, In the first instance, they have to find that

0:18:54.960 --> 0:18:59.640
<v Speaker 3>mister Trump one caused the filing of false business records

0:18:59.680 --> 0:19:03.800
<v Speaker 3>and two that he did so with the intent to

0:19:03.840 --> 0:19:08.320
<v Speaker 3>conceal another crime. And the other crime is a violation

0:19:08.400 --> 0:19:11.840
<v Speaker 3>of New York state election law and the statute that

0:19:12.119 --> 0:19:15.959
<v Speaker 3>makes it illegal to conspire to promote an election by

0:19:16.040 --> 0:19:19.400
<v Speaker 3>unlawful means. And the judge said that the jury can

0:19:19.440 --> 0:19:22.680
<v Speaker 3>differ on what the unlawful means was. So they all

0:19:22.720 --> 0:19:25.200
<v Speaker 3>have to agree that mister Trump caused the filing of

0:19:25.240 --> 0:19:28.200
<v Speaker 3>false business records. They all have to agree that mister

0:19:28.200 --> 0:19:32.119
<v Speaker 3>Trump did so with the intent to promote his election

0:19:32.240 --> 0:19:35.600
<v Speaker 3>by unlawful means, and that the jurors can disagree with

0:19:35.680 --> 0:19:38.000
<v Speaker 3>what the unlawful means were, but that's it. That's what

0:19:38.000 --> 0:19:38.639
<v Speaker 3>they have to find.

0:19:39.080 --> 0:19:41.879
<v Speaker 1>So is it an advantage to the prosecution that the

0:19:42.000 --> 0:19:44.359
<v Speaker 1>judge instructed the jury that they don't have to be

0:19:45.080 --> 0:19:49.160
<v Speaker 1>unanimous as to the unlawful means and they can each

0:19:49.280 --> 0:19:52.760
<v Speaker 1>decide whether it was state election law, federal election law,

0:19:52.920 --> 0:19:55.840
<v Speaker 1>or the falsification of other business records.

0:19:56.280 --> 0:19:59.719
<v Speaker 3>Well, there's a narrative out there, particularly in more conservative

0:19:59.720 --> 0:20:02.919
<v Speaker 3>media that I have been seeing, where there's been outrage

0:20:02.960 --> 0:20:05.359
<v Speaker 3>that the jurors don't need to be unanimous on what

0:20:05.400 --> 0:20:07.600
<v Speaker 3>the underlying crime is. Just to be more specific, they

0:20:07.640 --> 0:20:10.679
<v Speaker 3>do need to be unanimous on what the underlying crime is,

0:20:10.760 --> 0:20:14.200
<v Speaker 3>which is a conspiracy to promote his election by unlawful means.

0:20:14.320 --> 0:20:17.800
<v Speaker 3>It's another step down about it's a technical question about

0:20:17.920 --> 0:20:20.800
<v Speaker 3>what the unlawful means were. So was it the payment

0:20:20.800 --> 0:20:23.240
<v Speaker 3>to Stormy Daniels, wasn't the payment to Karen McDougal. Was

0:20:23.240 --> 0:20:25.919
<v Speaker 3>it in furtherance of a tax crime? But they do

0:20:26.040 --> 0:20:28.800
<v Speaker 3>need to be unanimous on the bump up crime, which

0:20:28.840 --> 0:20:31.760
<v Speaker 3>is this violation of New York State election law. There

0:20:31.840 --> 0:20:35.560
<v Speaker 3>is certainly an advantage to the prosecution from that jury instruction,

0:20:36.119 --> 0:20:38.960
<v Speaker 3>But there are other jury instructions which really did not

0:20:39.080 --> 0:20:42.119
<v Speaker 3>go the prosecution's way. For example, they were arguing for

0:20:42.200 --> 0:20:46.280
<v Speaker 3>an expansive definition of the word cause that mister Trump

0:20:46.359 --> 0:20:49.359
<v Speaker 3>caused the filing of false business records. The statute doesn't

0:20:49.440 --> 0:20:51.919
<v Speaker 3>lay out what it means to cause somebody to file

0:20:52.320 --> 0:20:55.560
<v Speaker 3>false business records, and the prosecution was arguing that should

0:20:55.560 --> 0:20:59.960
<v Speaker 3>be expansively read to say that it was reasonably foreseeable

0:21:00.200 --> 0:21:03.399
<v Speaker 3>from his actions that the records would be filed, and

0:21:03.480 --> 0:21:05.639
<v Speaker 3>the defense objected to it. And it looks like the

0:21:05.720 --> 0:21:10.280
<v Speaker 3>judge gives the instruction on cause just being the standard

0:21:10.359 --> 0:21:13.800
<v Speaker 3>definition of it, which is to make somebody do something,

0:21:13.800 --> 0:21:16.240
<v Speaker 3>because there's really no evidence that mister Trump picked up

0:21:16.280 --> 0:21:18.480
<v Speaker 3>the phone and said to mister Cohne, oh, you should

0:21:18.520 --> 0:21:21.840
<v Speaker 3>file these false business records. It's more nebulous than that.

0:21:21.960 --> 0:21:24.320
<v Speaker 3>And so there are some through instructions that went to

0:21:24.359 --> 0:21:27.480
<v Speaker 3>prosecution's way, and there are some that went to defense life.

0:21:27.960 --> 0:21:32.160
<v Speaker 1>Is there anything in particular in the prosecution's case, putting

0:21:32.200 --> 0:21:34.320
<v Speaker 1>aside the fact that there may be a juror who

0:21:34.359 --> 0:21:37.280
<v Speaker 1>is a hidden Trump supporter with an agenda. Is there

0:21:37.320 --> 0:21:40.879
<v Speaker 1>anything that might confuse the jury or hang the jury?

0:21:41.280 --> 0:21:43.639
<v Speaker 3>I mean, I think the weakest part of the prosecution's

0:21:43.680 --> 0:21:47.200
<v Speaker 3>case is exactly that, which is whether Trump caused the

0:21:47.240 --> 0:21:50.879
<v Speaker 3>records to be filed. And you know, I think the

0:21:50.920 --> 0:21:53.479
<v Speaker 3>rest of it is extremely strong. There's tons of evidence

0:21:53.480 --> 0:21:55.760
<v Speaker 3>putting mister Trump at the center of it. I think

0:21:55.800 --> 0:21:58.720
<v Speaker 3>they made a case that mister Trump was distracted. He

0:21:58.760 --> 0:22:02.520
<v Speaker 3>was president involved in the internal accounting of the Trump

0:22:02.640 --> 0:22:05.320
<v Speaker 3>organization and doesn't really know how these things are being

0:22:05.600 --> 0:22:08.280
<v Speaker 3>recorded in the books and records and whether they're being

0:22:08.320 --> 0:22:11.879
<v Speaker 3>recorded as legal payments or reimbursements, and he's just not

0:22:11.920 --> 0:22:13.679
<v Speaker 3>paying attention to that kind of thing and did not

0:22:13.880 --> 0:22:16.960
<v Speaker 3>cause this to happen, And that mister Cohne and mister Weifelberg,

0:22:17.200 --> 0:22:21.240
<v Speaker 3>the former CFO, were working together but not with mister Trump,

0:22:21.280 --> 0:22:23.240
<v Speaker 3>to try to distance mister Trump from that as much

0:22:23.240 --> 0:22:26.440
<v Speaker 3>as possible. I mean, that is their best defense.

0:22:26.960 --> 0:22:29.240
<v Speaker 1>On the whole. What do you think about the defense case?

0:22:30.000 --> 0:22:33.359
<v Speaker 3>Look, I think the defense overplayed its hand by arguing that,

0:22:34.119 --> 0:22:36.879
<v Speaker 3>you know, the sexual encounter with Stormy Daniels never happened.

0:22:36.920 --> 0:22:39.159
<v Speaker 3>I think they overplayed their hand by saying that this

0:22:39.359 --> 0:22:41.880
<v Speaker 3>was not a reimbursement in mister Cohne, but was really

0:22:41.920 --> 0:22:45.200
<v Speaker 3>for legitimate legal services. And at times the case they

0:22:45.520 --> 0:22:48.800
<v Speaker 3>were arguing felt much more for public consumption than for,

0:22:49.080 --> 0:22:51.920
<v Speaker 3>you know, the narrow purpose of trying to get their client.

0:22:51.720 --> 0:22:55.600
<v Speaker 1>Equitted, maybe for public consumption or for their clients' consumption.

0:22:56.400 --> 0:22:57.680
<v Speaker 3>I think that's exactly right.

0:22:57.880 --> 0:22:59.960
<v Speaker 1>Is there a conflict in the fact that they're saying

0:23:00.240 --> 0:23:04.200
<v Speaker 1>that these were payments for a legal retainer, yet they're

0:23:04.280 --> 0:23:08.719
<v Speaker 1>saying that on that document with the scribbling by Alan Weisselberg,

0:23:09.000 --> 0:23:12.640
<v Speaker 1>they're saying that Coed, you know, stole tens of thousands

0:23:12.680 --> 0:23:16.320
<v Speaker 1>of dollars from Trump. Is there any sort of disconnect there?

0:23:16.960 --> 0:23:19.119
<v Speaker 3>I don't think so. I mean, everybody knows Michael Cohene

0:23:19.119 --> 0:23:21.480
<v Speaker 3>is a liar, and the fact that he stole money

0:23:21.680 --> 0:23:25.400
<v Speaker 3>doesn't really change anything. It's a distraction from the key

0:23:25.760 --> 0:23:26.760
<v Speaker 3>issues sul case.

0:23:27.240 --> 0:23:29.879
<v Speaker 1>Thanks so much for being on the show. That's criminal

0:23:29.880 --> 0:23:33.400
<v Speaker 1>defense attorney Duncan Levin. Coming up next on the Bloomberg

0:23:33.520 --> 0:23:36.520
<v Speaker 1>Lawn Show, we're going to be talking about the settlement

0:23:36.600 --> 0:23:40.440
<v Speaker 1>that many say could change the face of US college Sports.

0:23:40.960 --> 0:23:45.800
<v Speaker 1>I'm June Grosso and you're listening to Bloomberg. The NCAA,

0:23:45.880 --> 0:23:49.439
<v Speaker 1>in the nation's five biggest conference, is announced they've agreed

0:23:49.440 --> 0:23:52.359
<v Speaker 1>to pay nearly two point eight billion dollars to settle

0:23:52.400 --> 0:23:56.040
<v Speaker 1>a host of anti trust claims. It's a monumental decision

0:23:56.080 --> 0:23:59.760
<v Speaker 1>that sets the stage for a groundbreaking revenue sharing model

0:24:00.080 --> 0:24:03.760
<v Speaker 1>that could start steering millions of dollars directly to athletes

0:24:03.800 --> 0:24:07.040
<v Speaker 1>as soon as the twenty twenty five fall semester. Joining

0:24:07.080 --> 0:24:09.440
<v Speaker 1>me is Martiny Dell, co chair of the sports law

0:24:09.480 --> 0:24:14.639
<v Speaker 1>practice at Golston and Stores. They've been fighting this for years.

0:24:14.920 --> 0:24:16.720
<v Speaker 1>Why settle now?

0:24:17.640 --> 0:24:21.119
<v Speaker 2>So that's a great question. The answer seems to be

0:24:21.320 --> 0:24:25.639
<v Speaker 2>that you have a confluence of events. You have three

0:24:25.760 --> 0:24:30.679
<v Speaker 2>antitrust lawsuits that the NCAA seems to be desirous of

0:24:30.760 --> 0:24:35.439
<v Speaker 2>cutting its attorneys' fees on. They have a legislative program

0:24:35.480 --> 0:24:39.480
<v Speaker 2>where they're lobbying Congress at this point, and the time

0:24:39.560 --> 0:24:43.000
<v Speaker 2>to lobby this session of Congress is going to expire

0:24:43.080 --> 0:24:47.440
<v Speaker 2>pretty quickly. And third is they got the Power five

0:24:47.560 --> 0:24:51.040
<v Speaker 2>on board at this point. So taking advantage of all

0:24:51.119 --> 0:24:54.840
<v Speaker 2>those things, I think means that the NCAA wanted to

0:24:54.920 --> 0:24:58.879
<v Speaker 2>resolve these issues, which it seems at least that the

0:24:59.000 --> 0:25:03.640
<v Speaker 2>NCAA wasn't willing to take the risk of going to court.

0:25:03.400 --> 0:25:05.560
<v Speaker 1>On tell us about the agreement.

0:25:05.840 --> 0:25:11.080
<v Speaker 2>Generally sure, So again, the agreement is subject to Judge

0:25:11.119 --> 0:25:15.199
<v Speaker 2>Wilkins's approval and that has not yet occurred. What it

0:25:15.240 --> 0:25:19.800
<v Speaker 2>will cover has a retrospective and prospective element to it.

0:25:19.880 --> 0:25:26.879
<v Speaker 2>The retrospective element is to pay student athletes, principally men's basketball,

0:25:26.920 --> 0:25:31.760
<v Speaker 2>women's basketball, and football athletes, two point seven to two

0:25:31.840 --> 0:25:36.640
<v Speaker 2>point eight billion dollars over ten years, and that will

0:25:36.680 --> 0:25:42.360
<v Speaker 2>compensate them sensibly for the moneies they lost in revenue

0:25:42.400 --> 0:25:46.920
<v Speaker 2>sharing and nil dollars from twenty sixteen to forward. That's

0:25:46.960 --> 0:25:53.640
<v Speaker 2>element one. Second element is the prospective that the school

0:25:53.840 --> 0:25:59.480
<v Speaker 2>subject to this agreement have agreed to revenue sharing for

0:26:00.160 --> 0:26:04.479
<v Speaker 2>media revenues up to what comes out to about twenty

0:26:04.520 --> 0:26:09.000
<v Speaker 2>million dollars a year in TOTO with their student athletes.

0:26:09.800 --> 0:26:13.000
<v Speaker 2>Those are the principal elements. It covers current and past

0:26:13.200 --> 0:26:16.960
<v Speaker 2>athletes and what the allocation format. And there are lots

0:26:17.000 --> 0:26:20.280
<v Speaker 2>of unknowns in there, but those are the principal elements. Yes,

0:26:20.440 --> 0:26:21.200
<v Speaker 2>I understand them.

0:26:21.359 --> 0:26:24.840
<v Speaker 1>Let's start with the back payments, which athletes will be

0:26:24.920 --> 0:26:27.239
<v Speaker 1>paid and how much?

0:26:27.400 --> 0:26:30.560
<v Speaker 2>So what seems to be the case is it will

0:26:30.600 --> 0:26:35.480
<v Speaker 2>cover men's basketball, women's basketball, and football, which is obviously

0:26:35.480 --> 0:26:38.440
<v Speaker 2>a male sport. That will be the two point seven

0:26:38.520 --> 0:26:43.240
<v Speaker 2>to two point eight billion, which it seems will come

0:26:43.760 --> 0:26:49.000
<v Speaker 2>forty one percent from the NCAA, thirty four percent from

0:26:49.200 --> 0:26:54.800
<v Speaker 2>the Power five and the Football Bowl Championship, and the

0:26:54.920 --> 0:26:58.960
<v Speaker 2>balance from twenty seven smaller conferences, which makes it about

0:26:59.080 --> 0:27:00.560
<v Speaker 2>I guess twenty five percent.

0:27:01.080 --> 0:27:04.400
<v Speaker 1>Let's take football. Does every football player you know within

0:27:04.480 --> 0:27:06.080
<v Speaker 1>the timeframe get money?

0:27:06.680 --> 0:27:10.240
<v Speaker 2>So that's not exactly worked out. It seems to cover

0:27:10.960 --> 0:27:14.480
<v Speaker 2>all the players going back to twenty sixteen to the

0:27:14.560 --> 0:27:17.639
<v Speaker 2>loss of dollars. How they allocate that as something else.

0:27:18.480 --> 0:27:21.679
<v Speaker 2>Somebody who sat on the bench from twenty sixteen to

0:27:21.720 --> 0:27:26.280
<v Speaker 2>twenty eighteen ostensibly wouldn't be entitled to quite the same

0:27:26.320 --> 0:27:30.439
<v Speaker 2>share as the starting quarterback or the star center for

0:27:30.640 --> 0:27:33.520
<v Speaker 2>teams should get more than somebody who wrote the bench

0:27:33.560 --> 0:27:36.720
<v Speaker 2>on the men's or women's basketball team. It would cover

0:27:36.920 --> 0:27:39.679
<v Speaker 2>about ten thousand student athletes.

0:27:40.480 --> 0:27:45.440
<v Speaker 1>As far as the upcoming payments, does each school decide

0:27:45.520 --> 0:27:46.240
<v Speaker 1>who gets what?

0:27:46.760 --> 0:27:50.600
<v Speaker 2>So the schools that buy into the program have agreed

0:27:50.640 --> 0:27:55.880
<v Speaker 2>to contribute a percentage of their media revenues going forward,

0:27:55.960 --> 0:27:58.600
<v Speaker 2>and it comes out to about the numbers I've seen,

0:27:58.960 --> 0:28:04.560
<v Speaker 2>about twenty two percent of the media revenues of an

0:28:04.560 --> 0:28:09.880
<v Speaker 2>average Power five team. Power five are essentially five conferences,

0:28:09.920 --> 0:28:13.400
<v Speaker 2>the ACC, the Big Ten, the Big twelve, the SEC,

0:28:13.640 --> 0:28:16.080
<v Speaker 2>and whatever is left of the PAC twelve, which is

0:28:16.119 --> 0:28:18.399
<v Speaker 2>now down to two teams, so I guess it's the

0:28:18.440 --> 0:28:22.159
<v Speaker 2>Pack two. There's a formula to be worked out. The

0:28:22.240 --> 0:28:25.359
<v Speaker 2>allocation is supposed to be worked out by an expert

0:28:25.440 --> 0:28:26.760
<v Speaker 2>that has not yet occurred.

0:28:27.400 --> 0:28:30.040
<v Speaker 1>Will each school do it the same way or will

0:28:30.480 --> 0:28:32.000
<v Speaker 1>schools do it different ways?

0:28:32.520 --> 0:28:35.960
<v Speaker 2>So that's not entirely clear. I mean, there's a lot

0:28:36.000 --> 0:28:39.760
<v Speaker 2>of lack of clarity, if you will. In the agreement.

0:28:39.880 --> 0:28:45.080
<v Speaker 2>It provides strong goalposts, visible ones that people could see,

0:28:45.360 --> 0:28:49.160
<v Speaker 2>such as it's approximately twenty two percent of a Power

0:28:49.280 --> 0:28:53.120
<v Speaker 2>five's media revenues. So if you're an IVY League team,

0:28:53.760 --> 0:28:57.760
<v Speaker 2>you're going to have to contribute both on the retrospective

0:28:57.880 --> 0:29:01.600
<v Speaker 2>side your share of twenty five five percent and on

0:29:01.640 --> 0:29:07.040
<v Speaker 2>the prospective side about twenty two percent of your media

0:29:07.160 --> 0:29:09.160
<v Speaker 2>revenues on an annual basis.

0:29:09.560 --> 0:29:12.960
<v Speaker 1>So let's talk about Title nine how does Title nine

0:29:13.560 --> 0:29:14.400
<v Speaker 1>work in here?

0:29:15.600 --> 0:29:17.720
<v Speaker 2>So it works in a number of ways which don't

0:29:17.760 --> 0:29:21.120
<v Speaker 2>seem to have been thought through very clearly. So because

0:29:21.200 --> 0:29:25.640
<v Speaker 2>Title nine mandates more or less gender equality, there's a

0:29:25.680 --> 0:29:29.000
<v Speaker 2>real question of how the funds will be allocated. You know,

0:29:29.080 --> 0:29:33.480
<v Speaker 2>right now you have women's basketball being covered, But will

0:29:33.480 --> 0:29:36.280
<v Speaker 2>it be covered to the same extent, for instance, as

0:29:36.400 --> 0:29:42.040
<v Speaker 2>men's basketball retrospectively and prospectively not clear because we don't

0:29:42.080 --> 0:29:46.720
<v Speaker 2>have those details yet. What will other women's teams get

0:29:46.800 --> 0:29:51.800
<v Speaker 2>in terms of dollars both nil and prospectively revenue sharing?

0:29:52.240 --> 0:29:55.000
<v Speaker 2>Title nine will have to factor in here because it's

0:29:55.040 --> 0:29:58.240
<v Speaker 2>the law, but it's not at all clear how Title

0:29:58.320 --> 0:29:59.840
<v Speaker 2>nine will factor it.

0:30:00.160 --> 0:30:04.640
<v Speaker 1>Suppose there's a school that has men's basketball, men's football,

0:30:05.120 --> 0:30:08.440
<v Speaker 1>women's basketball, but also has, let's say, a great rowing

0:30:08.520 --> 0:30:12.320
<v Speaker 1>team or something. Can they say, Okay, we're giving men's

0:30:12.320 --> 0:30:15.520
<v Speaker 1>basketball and football and women's basketball this much, and we're

0:30:15.520 --> 0:30:17.600
<v Speaker 1>going to give the rowing team this much.

0:30:18.080 --> 0:30:23.440
<v Speaker 2>So it seems that the schools can allocate the dollars

0:30:23.480 --> 0:30:26.680
<v Speaker 2>to any sport they want. The question is will they

0:30:26.720 --> 0:30:30.840
<v Speaker 2>allocate dollars to non revenue sports such as rowing. It's

0:30:30.960 --> 0:30:34.000
<v Speaker 2>curious that one of the lawsuits that's being settled. He

0:30:34.120 --> 0:30:37.280
<v Speaker 2>or one of the anti trust suits is House lawsuit.

0:30:37.640 --> 0:30:40.760
<v Speaker 2>House was a swimmer that is not a revenue sport.

0:30:41.320 --> 0:30:44.600
<v Speaker 2>He should be entitled to get a sum amount for

0:30:44.960 --> 0:30:49.120
<v Speaker 2>nil rights for gone for the period twenty sixteen until

0:30:49.400 --> 0:30:53.520
<v Speaker 2>the NCAAA changed their rules on July one, twenty twenty one.

0:30:53.840 --> 0:30:57.960
<v Speaker 2>But it's not clear again how much non revenue sports

0:30:58.040 --> 0:30:59.320
<v Speaker 2>athletes will get from this.

0:31:00.840 --> 0:31:05.760
<v Speaker 1>Does this mean the NCAA's antitrust problems are over.

0:31:07.000 --> 0:31:11.360
<v Speaker 2>Hardly No, it's the short answer for a couple of reasons.

0:31:11.400 --> 0:31:16.280
<v Speaker 2>First off, there is a fourth antitrust lawsuit hanging out there,

0:31:16.400 --> 0:31:19.320
<v Speaker 2>the Fortnate suit, which has been in the federal District

0:31:19.360 --> 0:31:24.760
<v Speaker 2>court in Colorado, and the judge there refused to consolidate

0:31:25.000 --> 0:31:29.600
<v Speaker 2>that lawsuit into the House suit at this point without prejudice,

0:31:29.960 --> 0:31:32.640
<v Speaker 2>so it could be revisited. But that lawsuit is going

0:31:32.680 --> 0:31:36.800
<v Speaker 2>forward and that deals with our athletes from the revenue

0:31:36.800 --> 0:31:40.720
<v Speaker 2>sports entitled to a share of TV rights and revenues

0:31:40.840 --> 0:31:45.320
<v Speaker 2>that go forward. Second antitrust issue that's going to come up, Well,

0:31:45.440 --> 0:31:49.320
<v Speaker 2>if the schools are camping, the amount they're going to

0:31:49.400 --> 0:31:52.400
<v Speaker 2>share in terms of revenue at twenty million dollars a year,

0:31:52.680 --> 0:31:56.640
<v Speaker 2>we're about twenty two percent. Well, that may create another

0:31:56.680 --> 0:32:00.320
<v Speaker 2>antitrust violation. Why should there be a cap on the

0:32:00.360 --> 0:32:03.880
<v Speaker 2>amount that schools are willing to share. Why wouldn't the

0:32:03.920 --> 0:32:07.000
<v Speaker 2>athletes in their free market be able to obtain a

0:32:07.080 --> 0:32:12.720
<v Speaker 2>greater percentage than that amount. So this settles three lawsuits

0:32:12.720 --> 0:32:16.680
<v Speaker 2>that are in existence. There's one in existence that's not settled,

0:32:16.840 --> 0:32:20.120
<v Speaker 2>and there may be others down the road. That leads

0:32:20.240 --> 0:32:24.400
<v Speaker 2>to the NCAA's appeal to Congress to give it an

0:32:24.480 --> 0:32:27.680
<v Speaker 2>antitrust exemption, and appeal which so far is pulling on

0:32:27.760 --> 0:32:28.360
<v Speaker 2>deaf ears.

0:32:28.760 --> 0:32:31.080
<v Speaker 1>Is baseball the only one that has anti trust exemption?

0:32:32.040 --> 0:32:32.360
<v Speaker 2>Yes?

0:32:32.640 --> 0:32:34.280
<v Speaker 1>And people question that as well.

0:32:34.760 --> 0:32:37.880
<v Speaker 2>People question that, but the Supreme Court has made clear

0:32:38.280 --> 0:32:42.240
<v Speaker 2>in the Kurt Flood case in nineteen seventy two that

0:32:42.720 --> 0:32:45.920
<v Speaker 2>it will not step into this breach here. The baseball

0:32:45.960 --> 0:32:48.040
<v Speaker 2>exemption has been in place now for one hundred and

0:32:48.080 --> 0:32:51.400
<v Speaker 2>one years. If the baseball exemption is going to change,

0:32:51.720 --> 0:32:54.120
<v Speaker 2>Supreme Court has made it clear it should come from Congress,

0:32:54.160 --> 0:32:55.200
<v Speaker 2>not from the courts.

0:32:55.720 --> 0:33:00.840
<v Speaker 1>What about name, image, and likeness rights? Does that fit

0:33:00.920 --> 0:33:02.560
<v Speaker 1>in with this? Is it separate?

0:33:03.480 --> 0:33:03.560
<v Speaker 3>So?

0:33:04.240 --> 0:33:07.600
<v Speaker 2>Yes? And yes? How's that for an under answer. So

0:33:08.080 --> 0:33:13.600
<v Speaker 2>what this settlement, if proved, does is it recompenses athletes

0:33:13.640 --> 0:33:18.120
<v Speaker 2>for lost NIL licensing for the period twenty sixteen through

0:33:18.680 --> 0:33:22.520
<v Speaker 2>until July one, twenty twenty one, when there arose a

0:33:22.560 --> 0:33:26.560
<v Speaker 2>free market for NIL licensing rights. So it shouldn't be

0:33:26.640 --> 0:33:30.480
<v Speaker 2>a problem. But what this does on the NIL front

0:33:30.560 --> 0:33:35.040
<v Speaker 2>is that the agreement would permit colleges and universities to

0:33:35.800 --> 0:33:41.040
<v Speaker 2>work directly with student athletes on licensing of their NIL rights,

0:33:41.040 --> 0:33:45.320
<v Speaker 2>something which is currently forbidden under NCAA rules. So it

0:33:45.320 --> 0:33:48.920
<v Speaker 2>would create another c change in NIL rights. Will you

0:33:49.040 --> 0:33:53.880
<v Speaker 2>have the collectives which currently exist? Will you have colleges

0:33:53.920 --> 0:33:58.000
<v Speaker 2>and universities licensing rights directly from their student athletes?

0:33:58.480 --> 0:34:02.959
<v Speaker 1>Dartmouth players recently unionized. Does that cause any conflict with this?

0:34:03.800 --> 0:34:08.480
<v Speaker 2>Probably not, but that's a great point. So this settlement

0:34:08.640 --> 0:34:12.840
<v Speaker 2>does not directly address the issue of whether a student

0:34:12.920 --> 0:34:17.279
<v Speaker 2>athlete is employee or not. That said, it becomes increasingly

0:34:17.400 --> 0:34:20.960
<v Speaker 2>difficult for the NCAA and its member schools to make

0:34:21.000 --> 0:34:24.200
<v Speaker 2>the argument that student athletes are not employees when they're

0:34:24.200 --> 0:34:29.120
<v Speaker 2>getting paid a percentage of revenues for their performance. When

0:34:29.280 --> 0:34:33.439
<v Speaker 2>schools will be licensing NIL rights directly from them, as

0:34:33.440 --> 0:34:38.960
<v Speaker 2>they would from employees that exists there so this will help.

0:34:39.280 --> 0:34:42.520
<v Speaker 2>It seems to me cement the article that student athletes

0:34:43.200 --> 0:34:46.920
<v Speaker 2>at the schools that buy into this will be treated

0:34:47.080 --> 0:34:51.839
<v Speaker 2>as employees. That has a further consequence, which I want

0:34:51.920 --> 0:34:54.120
<v Speaker 2>to go back to the anti trust point. If the

0:34:54.239 --> 0:34:59.960
<v Speaker 2>students are able to be designated as employees and unionized

0:35:00.160 --> 0:35:03.040
<v Speaker 2>so they're covered, for instance, by the National Labor Relations Act,

0:35:03.160 --> 0:35:06.200
<v Speaker 2>there will be no more anti trust issue because the

0:35:06.280 --> 0:35:10.280
<v Speaker 2>National Labor Relations Act takes precedents their rights to collective

0:35:10.320 --> 0:35:14.000
<v Speaker 2>bargain with respect to revenues, and the LIGHT takes precedents

0:35:14.040 --> 0:35:15.840
<v Speaker 2>over the antitrust laws.

0:35:16.640 --> 0:35:19.560
<v Speaker 1>So I confess I don't know all that much about

0:35:19.640 --> 0:35:24.560
<v Speaker 1>college sports, but it seems like there are so many unknowns.

0:35:25.560 --> 0:35:29.520
<v Speaker 1>Why is this being hailed as such a sea change

0:35:29.640 --> 0:35:32.120
<v Speaker 1>in college sports? Do you think it's a sea change?

0:35:32.480 --> 0:35:37.200
<v Speaker 2>Yes, I do, because it's the first time that colleges

0:35:37.320 --> 0:35:44.000
<v Speaker 2>and universities and therefore the NCAA have gotten into the business,

0:35:44.040 --> 0:35:49.000
<v Speaker 2>if you will, of paying athletes directly. That has always

0:35:49.080 --> 0:35:52.640
<v Speaker 2>been a real negative for the NCAA, and its rules

0:35:52.640 --> 0:35:57.600
<v Speaker 2>and regulations to date have prescribed colleges and universities paying

0:35:57.719 --> 0:36:01.360
<v Speaker 2>athletes directly for services other than and scholarship at grant

0:36:01.400 --> 0:36:04.719
<v Speaker 2>and aids. Now that sort of goes by the wayside.

0:36:04.840 --> 0:36:09.280
<v Speaker 2>That's the one real strong takeaway from this entire model.

0:36:09.320 --> 0:36:13.360
<v Speaker 2>It will change the model for the NCAA to do business,

0:36:13.640 --> 0:36:17.359
<v Speaker 2>for these colleges and universities to do business. What it

0:36:17.440 --> 0:36:21.520
<v Speaker 2>is in my view, likely to engender is that you

0:36:21.600 --> 0:36:25.239
<v Speaker 2>will have now a Power five grouping, which may be

0:36:25.280 --> 0:36:29.879
<v Speaker 2>the equivalent of a new minor league for professional sports.

0:36:29.920 --> 0:36:33.640
<v Speaker 2>And it gives all the other schools an opportunity to

0:36:33.680 --> 0:36:37.080
<v Speaker 2>reassess what their mission is. Is it going to be education,

0:36:37.360 --> 0:36:42.640
<v Speaker 2>Is it going to be athletics. If it's education, how

0:36:42.640 --> 0:36:46.120
<v Speaker 2>are they going to change around what they're doing with

0:36:46.239 --> 0:36:50.440
<v Speaker 2>athletics so that they don't have to spend tons of money?

0:36:50.680 --> 0:36:53.359
<v Speaker 2>You know, one of the things I, in my own

0:36:53.400 --> 0:36:57.080
<v Speaker 2>weird way, Jo and I laugh at is the Dartmouth

0:36:57.160 --> 0:37:01.880
<v Speaker 2>basketball players have sought unionization, as you mentioned, yet Dartmouth

0:37:01.920 --> 0:37:04.480
<v Speaker 2>has lost three and a half to five million dollars

0:37:04.480 --> 0:37:07.440
<v Speaker 2>over the last five years on basketball. That's not a

0:37:07.480 --> 0:37:11.759
<v Speaker 2>sustainable model. How can they change that to focus more

0:37:11.800 --> 0:37:15.440
<v Speaker 2>on the Dartmouth educational mission rather than the athletic mission.

0:37:15.960 --> 0:37:20.080
<v Speaker 2>Can't be with the athletes continuing to put in sixty

0:37:20.080 --> 0:37:23.680
<v Speaker 2>to seventy hours a week on athletics, but that needs

0:37:23.719 --> 0:37:26.960
<v Speaker 2>to be thought through. But I think this gives schools

0:37:27.000 --> 0:37:32.080
<v Speaker 2>such as Dartmouth, such as Northwestern, such as Vanderbilt, which

0:37:32.200 --> 0:37:36.080
<v Speaker 2>is the only private school in the SEC, a real

0:37:36.239 --> 0:37:39.160
<v Speaker 2>opportunity to reassess what their mission is.

0:37:39.520 --> 0:37:43.600
<v Speaker 1>Thanks so much, Marty. That's Martini Delle of Gulston and Stores.

0:37:44.239 --> 0:37:46.880
<v Speaker 1>And that's it for this edition of the Bloomberg Law Podcast.

0:37:47.200 --> 0:37:49.600
<v Speaker 1>Remember you've can always get the latest legal news by

0:37:49.640 --> 0:37:53.440
<v Speaker 1>subscribing and listening to the show on Apple Podcasts, Spotify,

0:37:53.760 --> 0:37:57.600
<v Speaker 1>and at Bloomberg dot com, slash podcast, slash Law. I'm

0:37:57.680 --> 0:38:00.279
<v Speaker 1>June Grosso and this is Bloomberg a