1 00:00:00,400 --> 00:00:03,280 Speaker 1: Hello, I'm Scott Soman, I'm Evan Nobi Williams, and I'm 2 00:00:03,279 --> 00:00:06,320 Speaker 1: Michael barn. This is the Bloomberg Business of Sports podcast, 3 00:00:06,360 --> 00:00:08,760 Speaker 1: where we explored the big money issues in the world 4 00:00:08,760 --> 00:00:12,399 Speaker 1: of sports today. We begin with Houston furniture store owner 5 00:00:12,400 --> 00:00:16,760 Speaker 1: at Jim Mattress Mac mcinvale. You just need the Mattress Mac. 6 00:00:16,880 --> 00:00:19,599 Speaker 1: Everybody knows that. We know who is. I went back 7 00:00:19,640 --> 00:00:21,400 Speaker 1: just for fun and look the other day. By the way, 8 00:00:21,720 --> 00:00:24,560 Speaker 1: we first wrote about Mattress Mac Pete coats our colleague 9 00:00:24,600 --> 00:00:28,920 Speaker 1: in two thousand when he put the Houston Furniture Gallery 10 00:00:28,920 --> 00:00:31,400 Speaker 1: furniture name on the Bowl game. It was like the 11 00:00:31,440 --> 00:00:34,680 Speaker 1: first retail store to put its name on a Bowl game. 12 00:00:34,960 --> 00:00:37,640 Speaker 1: Going back to two thousand, he realized, you know, I 13 00:00:37,640 --> 00:00:39,440 Speaker 1: think sports is a good way to get attention for 14 00:00:39,520 --> 00:00:42,239 Speaker 1: my store. Well, you know what he did something I 15 00:00:42,360 --> 00:00:44,760 Speaker 1: think it's smart. And what he did was he got 16 00:00:45,200 --> 00:00:48,400 Speaker 1: three point five million dollars for the Astros to win 17 00:00:48,440 --> 00:00:52,000 Speaker 1: the World Series. Now, why why it wasn't It wasn't 18 00:00:52,000 --> 00:00:53,400 Speaker 1: a really, I mean, yes, it's a bet. It's a 19 00:00:53,440 --> 00:00:56,320 Speaker 1: bet hedge. It was a hedge exactly. That's the key. 20 00:00:56,480 --> 00:00:59,320 Speaker 1: The wager serves as a hedge against the promotion that 21 00:00:59,560 --> 00:01:02,000 Speaker 1: he pre obviously ran in the store that calls for 22 00:01:02,040 --> 00:01:05,680 Speaker 1: customers to get refunds on purchases of three thousand dollars 23 00:01:05,880 --> 00:01:10,280 Speaker 1: or more if the Astros win Baseball's championship. So I 24 00:01:10,280 --> 00:01:12,800 Speaker 1: guess what. A lot of people took him up on that. 25 00:01:13,400 --> 00:01:15,240 Speaker 1: They liked the chances for the Astros, so they went 26 00:01:15,240 --> 00:01:18,080 Speaker 1: out and they bought lots of furniture. So he realized, 27 00:01:18,240 --> 00:01:20,480 Speaker 1: if the Astros win, I'm on the hook for a 28 00:01:20,520 --> 00:01:23,200 Speaker 1: whole lot of freebee furniture. So why don't I get 29 00:01:23,240 --> 00:01:27,040 Speaker 1: some money if they do win? It's a smart move. 30 00:01:27,360 --> 00:01:29,200 Speaker 1: I have to admit the heads works. Well, here's the 31 00:01:29,240 --> 00:01:30,800 Speaker 1: part that Evan And by the way, if he wins 32 00:01:30,840 --> 00:01:33,319 Speaker 1: that bet, he gets seven point seven million dollars. And 33 00:01:33,360 --> 00:01:35,200 Speaker 1: he only said that if he loses, he's on the 34 00:01:35,240 --> 00:01:39,559 Speaker 1: hook for like more than one fifteen at least fifteen million. Yeah, 35 00:01:39,600 --> 00:01:41,760 Speaker 1: so he'll probably make more bets. But the question I 36 00:01:41,840 --> 00:01:44,800 Speaker 1: had for Evan, and we've looked at some of these before, 37 00:01:45,000 --> 00:01:48,280 Speaker 1: is what would the insurance cost? Because a lot of promotions, 38 00:01:48,320 --> 00:01:50,000 Speaker 1: you know, like half course shots, when they give away 39 00:01:50,040 --> 00:01:52,600 Speaker 1: a car whatever, a lot of those are insured. Those 40 00:01:52,600 --> 00:01:56,840 Speaker 1: promotions are insured. What do we think the premium would 41 00:01:56,840 --> 00:02:01,200 Speaker 1: be on insurance on promotion? I guess would have you'd 42 00:02:01,240 --> 00:02:02,840 Speaker 1: have to wait and see how much you sold. But 43 00:02:03,000 --> 00:02:04,400 Speaker 1: is this a better way to go? Yeah? I mean 44 00:02:04,440 --> 00:02:07,240 Speaker 1: I think the as you know, those insurance policies are 45 00:02:07,240 --> 00:02:10,080 Speaker 1: based on the likelihood of the event happening, right, so 46 00:02:10,160 --> 00:02:13,760 Speaker 1: the the insured the insurance policy would track I think 47 00:02:13,800 --> 00:02:16,359 Speaker 1: fairly closely to the odds of of the astro's winning 48 00:02:16,400 --> 00:02:18,040 Speaker 1: the World Series. Which are the odds that he got. 49 00:02:18,600 --> 00:02:23,360 Speaker 1: My guess is that one the viig that a casino takes, 50 00:02:23,400 --> 00:02:25,920 Speaker 1: in this case DraftKings, which is the sports book that 51 00:02:25,960 --> 00:02:28,560 Speaker 1: took the bet down in Mississippi. My guess is that 52 00:02:28,600 --> 00:02:31,120 Speaker 1: the big the casino takes is not as big as 53 00:02:31,360 --> 00:02:34,400 Speaker 1: the cut that the insurance company takes, even if it 54 00:02:34,560 --> 00:02:37,560 Speaker 1: is the same or a little bit higher. How much 55 00:02:37,639 --> 00:02:41,720 Speaker 1: promotion is mattress Mac getting. That's the other part of 56 00:02:41,800 --> 00:02:44,800 Speaker 1: this bet we're talking about. Everybody is talking about it 57 00:02:44,919 --> 00:02:47,079 Speaker 1: right now. Um, it's from what it sounds like he 58 00:02:47,160 --> 00:02:49,639 Speaker 1: maybe looking to bet more. He was trying to bet 59 00:02:49,919 --> 00:02:53,000 Speaker 1: a five million dollar uh place a five million dollar 60 00:02:53,000 --> 00:02:55,200 Speaker 1: wager here in New Jersey, And there's a lot of 61 00:02:55,480 --> 00:02:57,240 Speaker 1: there's a lot going around about this, and I agree 62 00:02:57,240 --> 00:02:59,720 Speaker 1: with you Scott, if even the numbers are the same, 63 00:03:00,080 --> 00:03:02,760 Speaker 1: or even if the insurance might be a slightly better opportunity, 64 00:03:03,200 --> 00:03:05,560 Speaker 1: he's getting a lot more out of this by going 65 00:03:05,639 --> 00:03:09,040 Speaker 1: the big public, you know, three point five million dollars 66 00:03:09,040 --> 00:03:13,160 Speaker 1: in a briefcase. First you gotta find a casino that's 67 00:03:13,160 --> 00:03:15,440 Speaker 1: going to cover the bet. That's the But you're talking 68 00:03:15,480 --> 00:03:20,119 Speaker 1: to something this which is not easy. And I saw 69 00:03:20,160 --> 00:03:22,280 Speaker 1: in one of the stories the one of the bosses 70 00:03:22,280 --> 00:03:24,320 Speaker 1: at the casino said, well, we said the whole time 71 00:03:24,360 --> 00:03:25,720 Speaker 1: we were going to take big bets, and we had 72 00:03:25,720 --> 00:03:27,120 Speaker 1: to put our money wear our mouth is. We had 73 00:03:27,120 --> 00:03:29,359 Speaker 1: to actually do it. Yeah, well so they did. Also 74 00:03:29,440 --> 00:03:31,320 Speaker 1: worth noting it, Mattress Mac did this a couple of 75 00:03:31,360 --> 00:03:33,680 Speaker 1: years ago when the Astros won their first ever World Series. 76 00:03:33,880 --> 00:03:35,480 Speaker 1: I believe he was on the hook for ten million 77 00:03:35,520 --> 00:03:38,440 Speaker 1: dollars as a result of of all those givebacks for 78 00:03:38,520 --> 00:03:40,920 Speaker 1: Mattress purchases. So he might be doing things a little 79 00:03:40,960 --> 00:03:45,040 Speaker 1: differently this way. But you know, I read his gallery Furniture. 80 00:03:45,080 --> 00:03:47,240 Speaker 1: Their annual revenue is like two hundred million dollars, so 81 00:03:47,400 --> 00:03:51,440 Speaker 1: probably not a not a huge deal for him when 82 00:03:51,840 --> 00:03:55,160 Speaker 1: the Rockets were playing in the playoffs, I was in Houston. 83 00:03:55,240 --> 00:03:57,560 Speaker 1: I said, you know what I need to do. There's 84 00:03:57,560 --> 00:03:59,800 Speaker 1: a lot of things you can do in Houston. One 85 00:03:59,880 --> 00:04:01,520 Speaker 1: of them for me was I gotta go to Gallery 86 00:04:01,520 --> 00:04:06,240 Speaker 1: Furniture and check this place out. So I did. All right, 87 00:04:06,360 --> 00:04:09,560 Speaker 1: Let's shift the conversation now to M and A news 88 00:04:09,760 --> 00:04:13,640 Speaker 1: after the Stars Group signed an all stock deal to 89 00:04:13,680 --> 00:04:17,120 Speaker 1: be acquired by Flutter Entertainment, creating one of the largest 90 00:04:17,200 --> 00:04:21,040 Speaker 1: online betting and gambling companies. Maybe it wasn't ten minutes, 91 00:04:23,560 --> 00:04:26,800 Speaker 1: but there we go. Um, Evan, you've gotta it seems 92 00:04:26,800 --> 00:04:31,359 Speaker 1: to me this is about scale that in this nascent 93 00:04:31,680 --> 00:04:34,240 Speaker 1: us sports betting industry, people are trying to find their 94 00:04:34,240 --> 00:04:39,200 Speaker 1: partnerships and this one makes sense. Do I say makes sense? 95 00:04:39,240 --> 00:04:42,200 Speaker 1: I mean we're now talking about the biggest gambling company 96 00:04:42,279 --> 00:04:45,839 Speaker 1: in the world. Just to give some idea for for listeners, 97 00:04:46,240 --> 00:04:50,239 Speaker 1: Stars Group is Poker Stars, it's sky Bet, it's bet Stars, 98 00:04:50,360 --> 00:04:53,960 Speaker 1: it's fan Duel, and it's the partnership with Fox Bet, 99 00:04:54,600 --> 00:05:00,600 Speaker 1: and Flutter is Patty Power and Betfair as well. Under that, 100 00:05:01,520 --> 00:05:04,200 Speaker 1: when they were coming up with that, would you have 101 00:05:04,200 --> 00:05:07,840 Speaker 1: said Flutter, Yes, I mean I'm not gonna tell them 102 00:05:07,839 --> 00:05:13,560 Speaker 1: what they should, but you combine all those assets, Seinfeld, 103 00:05:14,120 --> 00:05:17,600 Speaker 1: you combine all those assets into into one company, right, 104 00:05:17,640 --> 00:05:19,880 Speaker 1: that is a behemoth. And and for folks here in 105 00:05:19,880 --> 00:05:23,000 Speaker 1: the US, the two brands they're gonna interact with are 106 00:05:23,000 --> 00:05:26,240 Speaker 1: obviously FanDuel and Fox Box. And in talking to the 107 00:05:26,240 --> 00:05:28,320 Speaker 1: principles on this, it sounds like they're going to keep 108 00:05:28,320 --> 00:05:31,000 Speaker 1: those separate. They believe that there is an audience for 109 00:05:31,040 --> 00:05:33,440 Speaker 1: FanDuel and an audience for Fox pet. They're kinda gonna 110 00:05:33,440 --> 00:05:38,000 Speaker 1: go after two different types of sports betting clientele. Um. 111 00:05:38,040 --> 00:05:40,400 Speaker 1: But you know, being able to share resources, being able 112 00:05:40,400 --> 00:05:43,080 Speaker 1: to share access agreements, which is a huge deal in 113 00:05:43,200 --> 00:05:45,600 Speaker 1: terms of how you get the license in each individual state. 114 00:05:45,920 --> 00:05:48,680 Speaker 1: I imagine this company and FanDuel has been, you know, 115 00:05:48,720 --> 00:05:51,400 Speaker 1: the leader in New Jersey and in Pennsylvania that they've 116 00:05:51,440 --> 00:05:54,599 Speaker 1: done very well at being nimble and dominating new states. 117 00:05:54,600 --> 00:05:56,680 Speaker 1: As they come on board, I would imagine this kind 118 00:05:56,680 --> 00:05:58,960 Speaker 1: of puts them in the driver's seat as we look 119 00:05:59,000 --> 00:06:02,799 Speaker 1: across more states in US. Well, the thing about Fan Duel, 120 00:06:03,000 --> 00:06:06,279 Speaker 1: and because I live in Pennsylvania, so I mean, yes, 121 00:06:06,640 --> 00:06:11,040 Speaker 1: they are extremely how can I say it welcoming to 122 00:06:11,560 --> 00:06:16,400 Speaker 1: when they introduced themselves in Pennsylvania. So yeah, they are 123 00:06:16,440 --> 00:06:18,680 Speaker 1: in the driver. I'm the clients they hate, you know, 124 00:06:18,880 --> 00:06:21,720 Speaker 1: like when you get a really good first bet when 125 00:06:21,760 --> 00:06:25,320 Speaker 1: you sign up, oh and then you leave. Yeah. So 126 00:06:25,400 --> 00:06:28,720 Speaker 1: I took the Patriots plus whatever it was. I don't 127 00:06:28,720 --> 00:06:30,279 Speaker 1: remember the Super Bowl and what I think it was 128 00:06:30,279 --> 00:06:32,680 Speaker 1: the Patriots getting points in the Super Bowl. So I 129 00:06:32,720 --> 00:06:35,440 Speaker 1: took it. Well, they're smart, though. You can win that money, 130 00:06:35,480 --> 00:06:38,279 Speaker 1: but to cash it out you have to then wager 131 00:06:38,279 --> 00:06:40,720 Speaker 1: it one more time. So I did what any smart 132 00:06:40,760 --> 00:06:43,720 Speaker 1: person does. I looked to my left and I said, hey, 133 00:06:43,760 --> 00:06:47,720 Speaker 1: even I've got x hundred bucks in my account and 134 00:06:47,760 --> 00:06:50,520 Speaker 1: I need to wager it one time, and you gave 135 00:06:50,600 --> 00:06:55,960 Speaker 1: me some wacko college I mean, it was almost it was. 136 00:06:56,279 --> 00:07:00,240 Speaker 1: Remember it was Wyoming against somebody. I have no idea, 137 00:07:00,240 --> 00:07:03,320 Speaker 1: but I remember checking the scores to see if Wyoming 138 00:07:03,440 --> 00:07:06,320 Speaker 1: covered like seventeen or something, and I saw the money 139 00:07:06,320 --> 00:07:08,400 Speaker 1: in my account right away. I sent Mr no Wie 140 00:07:08,400 --> 00:07:11,600 Speaker 1: Williams and Ice texting great, and then I ordered fandal, 141 00:07:11,640 --> 00:07:13,960 Speaker 1: you know, just cut me the check. You know, if 142 00:07:13,960 --> 00:07:19,840 Speaker 1: you're curious about my personal tout service, that's underscore. But 143 00:07:19,880 --> 00:07:23,400 Speaker 1: then why why instead of going for the points. Why 144 00:07:23,400 --> 00:07:26,240 Speaker 1: didn't you just go ahead and bet that hundred on 145 00:07:26,320 --> 00:07:28,800 Speaker 1: a huge favorite. You're gonna you're still putting up the 146 00:07:28,880 --> 00:07:34,040 Speaker 1: hundred dollars. That's like I went to my what to 147 00:07:34,120 --> 00:07:36,160 Speaker 1: do and I did it and I won money. Well, 148 00:07:36,200 --> 00:07:39,200 Speaker 1: Tom Hagen's right, but when I mean, I get it. 149 00:07:39,240 --> 00:07:42,160 Speaker 1: But I mean I see, first of all, there was 150 00:07:42,200 --> 00:07:44,480 Speaker 1: a name. There's a name for people like you. We're 151 00:07:44,520 --> 00:07:51,160 Speaker 1: back when yeah, smart not destitute. I still have seven 152 00:07:51,160 --> 00:07:52,400 Speaker 1: teen bucks in the account though, it was like the 153 00:07:52,440 --> 00:07:55,040 Speaker 1: little extra left. So you know what, maybe let's let's 154 00:07:55,040 --> 00:07:57,800 Speaker 1: do that. Everybody send me in the next week. We're 155 00:07:57,800 --> 00:08:01,520 Speaker 1: gonna wage of the final seventeen dollars that's in the account. 156 00:08:02,000 --> 00:08:04,600 Speaker 1: Send big bar at sash Nick. No, I underscore, it 157 00:08:04,640 --> 00:08:07,520 Speaker 1: doesn't matter. Send us all where you think I should 158 00:08:07,520 --> 00:08:12,840 Speaker 1: place that beat. I have an answer, but it's too funny. 159 00:08:12,920 --> 00:08:15,000 Speaker 1: Before we move on from from this one, if folks 160 00:08:15,000 --> 00:08:17,280 Speaker 1: may remember, may not when Fox Bet. When they made 161 00:08:17,280 --> 00:08:20,320 Speaker 1: their partnership with Stars, Fox invested in Stars. They also 162 00:08:20,360 --> 00:08:23,200 Speaker 1: had an option within the next ten years to buy 163 00:08:23,720 --> 00:08:27,640 Speaker 1: of Stars Groups US US, which is largely Fox Bet. 164 00:08:28,040 --> 00:08:30,000 Speaker 1: They still have that as part of this new deal. 165 00:08:30,040 --> 00:08:33,400 Speaker 1: But they also have the right in two years to 166 00:08:33,600 --> 00:08:38,240 Speaker 1: buy eight percent. I believe it is of flutters Us business, 167 00:08:38,240 --> 00:08:41,360 Speaker 1: which is Vandel Group. Uh So, in the next couple 168 00:08:41,360 --> 00:08:45,320 Speaker 1: of years, Fox has potentially two big investment opportunities, and 169 00:08:45,320 --> 00:08:47,800 Speaker 1: there may be some regulatory concerns whether they want to 170 00:08:47,840 --> 00:08:51,000 Speaker 1: pull the trigger on those. But Fox is already obviously 171 00:08:51,000 --> 00:08:53,120 Speaker 1: invested in this because they have a chunk of Stars Group. 172 00:08:53,600 --> 00:08:56,280 Speaker 1: But they have two more opportunities to really double down 173 00:08:56,320 --> 00:08:58,040 Speaker 1: if they think this is a huge growth opportunity. I 174 00:08:58,040 --> 00:09:00,080 Speaker 1: can tell you haven't some backstory as to when this 175 00:09:00,160 --> 00:09:06,640 Speaker 1: came about. Lachlan Murdock's instructions to his folks were I 176 00:09:06,720 --> 00:09:10,679 Speaker 1: want the maximum allowed without triggering triggering those regulatory concerns 177 00:09:10,720 --> 00:09:13,040 Speaker 1: that you're asking about, give me that number and keep 178 00:09:13,040 --> 00:09:15,240 Speaker 1: me under it by like point one, so that we 179 00:09:15,320 --> 00:09:18,280 Speaker 1: do not have to deal with these concerns. Finally, let's 180 00:09:18,320 --> 00:09:22,480 Speaker 1: talk about Nike's CEO Mark Parker firing back against the 181 00:09:22,559 --> 00:09:27,600 Speaker 1: ruling that a company backed running coach elicitly doped runners 182 00:09:27,679 --> 00:09:34,560 Speaker 1: in a Nike program. Is to unpack here, can I 183 00:09:34,600 --> 00:09:37,400 Speaker 1: just start with the simple one? Ebben, you cover Nike 184 00:09:37,720 --> 00:09:40,680 Speaker 1: closer than I do. Here's the question that I have 185 00:09:40,800 --> 00:09:44,160 Speaker 1: and this is just sort of a management even if 186 00:09:44,360 --> 00:09:47,200 Speaker 1: everything Mark Parker says is on the up and up. 187 00:09:48,080 --> 00:09:52,280 Speaker 1: There have been rumors about Alberto salos are for years 188 00:09:52,360 --> 00:09:54,960 Speaker 1: sort of the shade of character in the world. Evidence 189 00:09:55,880 --> 00:10:00,480 Speaker 1: He the CEO of the company, was like, you know what, 190 00:10:00,679 --> 00:10:04,400 Speaker 1: include me on that email chain about those tests were 191 00:10:04,440 --> 00:10:11,280 Speaker 1: doing with the testosterone cream. Really it's certainly it looks very, 192 00:10:11,400 --> 00:10:14,240 Speaker 1: very bad. And and just who else is on the 193 00:10:14,800 --> 00:10:19,160 Speaker 1: Armstrong which is too perfect? It's too amazing. Yeah, So 194 00:10:19,720 --> 00:10:23,280 Speaker 1: big news in the running community this week. Alberto Salazar, 195 00:10:23,320 --> 00:10:25,920 Speaker 1: who runs Nike's Oregon Project, which is Nike's kind of 196 00:10:25,920 --> 00:10:29,960 Speaker 1: elite running track and field team. He was banned four 197 00:10:30,040 --> 00:10:35,439 Speaker 1: years from the sport for essentially a myriad of quasi 198 00:10:35,520 --> 00:10:41,760 Speaker 1: doping violations, not necessarily giving performance enhancements to Nike athletes, 199 00:10:41,840 --> 00:10:43,719 Speaker 1: but a lot of tests he was doing and then 200 00:10:43,800 --> 00:10:47,760 Speaker 1: deliberately trying to obscure investigations into what he was doing 201 00:10:48,400 --> 00:10:50,960 Speaker 1: one of those tests, as Nike claims, and as Mark 202 00:10:51,000 --> 00:10:54,560 Speaker 1: Parker claims, Galen Rupp, who was a big American long 203 00:10:54,559 --> 00:10:57,320 Speaker 1: distance runner, he was at one point at a match, 204 00:10:57,600 --> 00:10:59,640 Speaker 1: felt as though someone walked up to him and rubbed 205 00:10:59,760 --> 00:11:02,760 Speaker 1: a cream on his back, right, and it launched. According 206 00:11:02,800 --> 00:11:05,120 Speaker 1: to Nike, a lot of paranoia within the Nike Oregon 207 00:11:05,160 --> 00:11:07,599 Speaker 1: project that hey, anyone could walk up to any of 208 00:11:07,640 --> 00:11:09,520 Speaker 1: our athletes rub something on their back. It could be 209 00:11:09,640 --> 00:11:11,840 Speaker 1: you could have something performance enhancing in it. They could 210 00:11:11,840 --> 00:11:15,040 Speaker 1: test positives. Why the Olympic athletes bring their own food exactly, Yeah, 211 00:11:15,080 --> 00:11:17,800 Speaker 1: and and and this is obviously a concern for athletes. 212 00:11:18,120 --> 00:11:21,520 Speaker 1: So according to Nike, and the aftermath of that built 213 00:11:21,559 --> 00:11:26,280 Speaker 1: are Salazar started devising an entire program of testing how 214 00:11:26,400 --> 00:11:28,400 Speaker 1: much cream you could use, how much you could could 215 00:11:28,440 --> 00:11:31,599 Speaker 1: be put on your body before you test positive, in 216 00:11:31,679 --> 00:11:35,360 Speaker 1: the interest of preventing sabotage. And this is the email 217 00:11:35,400 --> 00:11:37,120 Speaker 1: thread that Mark Parker, I'm still not sure about how 218 00:11:37,160 --> 00:11:39,160 Speaker 1: that prevents sabotage. Fine, you know the threshold, but if 219 00:11:39,200 --> 00:11:41,040 Speaker 1: somebody goes and rubs it on you, I think that 220 00:11:41,240 --> 00:11:43,640 Speaker 1: they were trying to determine. And there's an email in 221 00:11:43,720 --> 00:11:47,560 Speaker 1: there where Alberto Salazar tells, I believe Mark Parker included, Uh, 222 00:11:47,720 --> 00:11:50,199 Speaker 1: the amount needed to trigger a positive test is so 223 00:11:50,360 --> 00:11:52,920 Speaker 1: much that an athlete will know that it's on. And 224 00:11:53,480 --> 00:11:55,040 Speaker 1: even they go as far as to say a male 225 00:11:55,120 --> 00:11:59,240 Speaker 1: athlete you need, however many ounces he's gonna know? Can 226 00:11:59,240 --> 00:12:01,600 Speaker 1: you rub by shows to find my shoulder? If it's 227 00:12:01,600 --> 00:12:04,640 Speaker 1: a female, the amount needed to trigger positive test was 228 00:12:04,760 --> 00:12:06,160 Speaker 1: much lower, so they were saying that there may be 229 00:12:06,280 --> 00:12:08,760 Speaker 1: some concern for female athletes because it might not be 230 00:12:09,000 --> 00:12:12,160 Speaker 1: a recognizable amount either way. There's an email from Mark 231 00:12:12,200 --> 00:12:15,360 Speaker 1: Parker saying, really interested to find out what the maximum 232 00:12:15,360 --> 00:12:18,599 Speaker 1: allowable thing is before the positive test gets triggered. It 233 00:12:18,679 --> 00:12:20,959 Speaker 1: doesn't look good. And the argument made by USADA, the 234 00:12:21,080 --> 00:12:23,640 Speaker 1: u s Anti Doping agency was that listen, it doesn't 235 00:12:23,679 --> 00:12:26,680 Speaker 1: matter the motivation here. They were playing around with testoster 236 00:12:26,840 --> 00:12:28,440 Speaker 1: on trying to figure out how much of it triggered 237 00:12:28,440 --> 00:12:31,040 Speaker 1: a positive test or not. It's very easy to then 238 00:12:31,160 --> 00:12:34,640 Speaker 1: turn that knowledge into something that is nefarious. Um. And 239 00:12:34,760 --> 00:12:37,720 Speaker 1: that's part of the conclusion that was quote from Mark Parker. 240 00:12:37,920 --> 00:12:40,760 Speaker 1: To have my name and Nike's name linked to this 241 00:12:41,040 --> 00:12:45,680 Speaker 1: reckless mischaracterization is offensive. Yeah. So Mark Parker sent an 242 00:12:45,720 --> 00:12:51,400 Speaker 1: email out to Nike employees late on Tuesday night essentially saying, listen, 243 00:12:51,559 --> 00:12:54,000 Speaker 1: I believe I did nothing wrong here. You know, when 244 00:12:54,040 --> 00:12:55,319 Speaker 1: I ask you guys to do the right thing, I 245 00:12:55,520 --> 00:12:58,280 Speaker 1: I try to do the same for me, he didn't 246 00:12:58,320 --> 00:13:01,480 Speaker 1: think that the coverage was particularly fair in this specific case. 247 00:13:01,600 --> 00:13:04,920 Speaker 1: Nike is standing by initial reports. Didn't mention some of 248 00:13:04,960 --> 00:13:08,120 Speaker 1: the findings that cleared exactly exactly. Um, and you know, 249 00:13:08,240 --> 00:13:10,959 Speaker 1: Alberta Salazar is going to appeal this, most likely to 250 00:13:11,040 --> 00:13:14,280 Speaker 1: the court Arbitration of sports cis over in Europe. Um, 251 00:13:14,440 --> 00:13:16,839 Speaker 1: Nike is standing by him in that regard as well. 252 00:13:17,840 --> 00:13:20,240 Speaker 1: Who knows, but again it's not Nike is the dominant 253 00:13:20,280 --> 00:13:26,120 Speaker 1: corporate force within this matters because Nike sells a lot 254 00:13:26,200 --> 00:13:30,000 Speaker 1: of shoes. Fillion dollars in running shoes. Um. You know, 255 00:13:30,160 --> 00:13:31,960 Speaker 1: that's you know, about a fifth of their of their 256 00:13:32,120 --> 00:13:36,360 Speaker 1: annual revenue. Nike at its core originally Phil Knight was 257 00:13:36,400 --> 00:13:38,120 Speaker 1: a runner at the University of Oregon. He and Bill 258 00:13:38,160 --> 00:13:40,679 Speaker 1: Barroman started Nike as Blue Ribbon Sports. It was a 259 00:13:40,720 --> 00:13:44,319 Speaker 1: running company originally Nike. Running is in Nike's DNA. Nike 260 00:13:44,480 --> 00:13:46,920 Speaker 1: cares a lot about this, and and they've been for 261 00:13:47,040 --> 00:13:49,280 Speaker 1: good and bad depending on who you ask. The driver 262 00:13:49,559 --> 00:13:54,120 Speaker 1: of professional track and field cross happens the University of 263 00:13:54,160 --> 00:13:59,680 Speaker 1: Oregon so closely tied to Nike Elite track team, Yeah, 264 00:14:00,040 --> 00:14:04,400 Speaker 1: gated pretty close to Beaverton headquarters. Yeah, this has been 265 00:14:04,440 --> 00:14:07,720 Speaker 1: the Bloomberg Business of Sports podcast. I'm Michael Barr along 266 00:14:07,840 --> 00:14:11,359 Speaker 1: with Scott Please send me your seventeen dollar bet suggestions, 267 00:14:11,400 --> 00:14:14,760 Speaker 1: Snick and Evan Nobi Williams. We are here every Monday, 268 00:14:14,840 --> 00:14:17,439 Speaker 1: Wednesday and Thursday exploring the world of money and sports. 269 00:14:17,480 --> 00:14:18,720 Speaker 1: Trying us again at the end of the week when 270 00:14:18,720 --> 00:14:21,160 Speaker 1: we talked more betting. We have John Levy, the CEO 271 00:14:21,280 --> 00:14:23,720 Speaker 1: of The Score, another sports media site that launched its 272 00:14:23,760 --> 00:14:26,720 Speaker 1: own betting app in recent weeks. Oh, I got a 273 00:14:26,760 --> 00:14:29,200 Speaker 1: lot of questions. As you know, you are listening to 274 00:14:29,360 --> 00:14:32,800 Speaker 1: The Bloomberg Business of Sports on Bloomberg Radio around the 275 00:14:32,840 --> 00:14:35,359 Speaker 1: world and online wherever you get your podcasts.