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Speaker 1: This is the business of sports where in the situation

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Speaker 1: that we haven't dealt with in modern times, pandemic here

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Speaker 1: has really accelerated the investments that we've been advocating for

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Speaker 1: for years. Almost everyone out there is hoping that there's

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Speaker 1: some kind of return to normal by August September. In

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Speaker 1: depth conversations with the leaders in the sports industry, who

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Speaker 1: wants to be the sacrificial lambs that shows up at

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Speaker 1: the first big major sporting events were part of something

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Speaker 1: much bigger than the sports right now and the health

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Speaker 1: and safety of our stakeholders are both more important every moment.

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Speaker 1: I think we're all from business respective thinking about the

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Speaker 1: impact that the virus is having across the country. Bloomberg

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Speaker 1: Business of Sports from Bloomberg Radio. Hello, I'm Jason Kelly,

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Speaker 1: um Michael and Michael Barr. We will explore the big

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Speaker 1: money issues in the world of sports. Let's talk about sports, guys.

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Speaker 1: The governors of some very important states, they're saying that

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Speaker 1: maybe we're getting back to at least training and playing

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Speaker 1: even if there aren't gonna be spectators, including the governor

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Speaker 1: of your fair commonwealth, Mike Lynch. What are you making

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Speaker 1: is well, there's still a little bit of an equity here.

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Speaker 1: I mean, like the Portland Trailblazers have been back in

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Speaker 1: their facility for three weeks, but there's still a lot

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Speaker 1: of teams NBA teams which will be the next to

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Speaker 1: go after a hockey that's still are are shut out,

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Speaker 1: like the Celtics, the Bulls, the Pistons, the Warriors, the Spurs,

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Speaker 1: the Wizards. Um, I think the Knicks just got to

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Speaker 1: go ahead from cover Coomo and all New York teams.

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Speaker 1: So I kind of like to see everybody start, have

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Speaker 1: a fair shot and start at the same time rather

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Speaker 1: than have someone get in there. You know, we have

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Speaker 1: a two or three week advantage because you know, basketball

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Speaker 1: legs are different than legs and in other sports. Uh,

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Speaker 1: you know, it's a grueling it's a grueling toll on

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Speaker 1: the on the physical body, and and I think the

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Speaker 1: teams that are in there earlier are going to get

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Speaker 1: an edge. Michael Barr, It's interesting as you think about

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Speaker 1: that competitive edge and from a fence perspective, it could

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Speaker 1: make a difference in the in the quality of play,

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Speaker 1: especially early on because people they do need to knock

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Speaker 1: the rust off here. Well. Yeah, in fact, Governor Phil

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Speaker 1: Murphy earlier in the week, he's said, Okay, New Jersey,

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Speaker 1: go for it. You know, teams going there and and

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Speaker 1: do your thing. And I don't mean to be mean,

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Speaker 1: but there are some teams that are in the area that,

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Speaker 1: like you said, they got rusty. So it's and I

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Speaker 1: think of the Philadelphia seventies six years by the way,

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Speaker 1: who have training facilities in Camden, so they they're gonna

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Speaker 1: ben a different points. So this is this is going

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Speaker 1: to be interesting. Yeah, And I mean it also shows

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Speaker 1: the I don't know, I think a lot about this

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Speaker 1: in terms of the different states and the different sports.

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Speaker 1: You know, there was a good interview this week that

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Speaker 1: folks up your way Mike did our team, our based

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Speaker 1: business team did with the governor of Connecticut, and he

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Speaker 1: was making the point which is an obvious one, but

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Speaker 1: I think worth repeating that, you know, the virus doesn't

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Speaker 1: know borders. The virus doesn't really uh, you know, delineate

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Speaker 1: and doesn't say, oh, hold on a second, I'm at

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Speaker 1: the Massachusetts where I'm gonna stop now and just you know,

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Speaker 1: keep breaking havoc in Connecticut. And one of the things

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Speaker 1: I'm interested in here is that the governors of New

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Speaker 1: York and New Jersey and Connecticut specifically, and said we're

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Speaker 1: gonna be on the same page about everything. I'm not

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Speaker 1: sure they've totally lived up to that. And obviously sports

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Speaker 1: are a national thing in many ways, and so you know,

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Speaker 1: regions of the country matter to some extent. But Mike,

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Speaker 1: as you say, in different parts of the country, it's

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Speaker 1: been radically it's been a radically different story in terms

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Speaker 1: of how much the communities have been affected. Well, Florida

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Speaker 1: opened the doors first and they said all they're welcome,

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Speaker 1: come on down. And that's why there's been so much

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Speaker 1: talk about teams going down to Disney World, the UFC

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Speaker 1: fighting at Jacksonville. The one that surprised who was govern

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Speaker 1: at Cuomo. I thought he was the strictest, uh and

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Speaker 1: in the harshest in terms of, uh, you know, opening

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Speaker 1: the door and letting things return to normal. And he's

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Speaker 1: he was right out front saying, um, New York teams

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Speaker 1: get back on the field, started working out and start practicing.

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Speaker 1: So up here in Boston, Red Sox fans are unhappy

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Speaker 1: that they can't get back to work, but the Yankees

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Speaker 1: are already continuing to work out right now. So I

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Speaker 1: thought that they would all and then they they pretty

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Speaker 1: much have. I think the Dove governors have done a

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Speaker 1: great job. But you know, all you need is wanted

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Speaker 1: them to break and then you know, all right, who's

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Speaker 1: the first one, that next one that's going to blink

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Speaker 1: after after Governor Cuomo. Yeah, it's really interesting. Well, I'm

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Speaker 1: glad you brought up Florida because it does feel like

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Speaker 1: that's where a lot of the pro sports are gravitating too,

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Speaker 1: especially as they think about these bubble ized tournaments. Uh,

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Speaker 1: Michael Barr, we heard about soccer this week following what

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Speaker 1: feels like a playbook that we're going to see from

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Speaker 1: the NBA as well. Everybody, it seems, is going to

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Speaker 1: Disney World or nearby. Yeah, major League Soccer. They're proposing

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Speaker 1: plans to return to play a tournament in Orlando. So

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Speaker 1: but what's the unique about this is that the event

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Speaker 1: is going to fit in a short time frame, according

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Speaker 1: to sources. I want to see how that's going to

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Speaker 1: play out. Yeah, Mike Clif, I mean this is interesting.

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Speaker 1: I mean, soccer is one of these games that we

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Speaker 1: know is very popular. It feels like the last few

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Speaker 1: years have been pivotal in terms of the US really

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Speaker 1: embracing it from a professional level. How important in the

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Speaker 1: broader scheme of things is soccer getting back to business

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Speaker 1: and sort of how it gets back to business. How

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Speaker 1: much do you think about that? Well, I think I

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Speaker 1: still think it's the younger brother of to all the

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Speaker 1: four major sports. Uh, it's it's a great participant sport,

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Speaker 1: as we know through kids in high school and college.

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Speaker 1: But it's just in this country it's never caught on

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Speaker 1: as a spectator sport. But if they can get a

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Speaker 1: jump on all the other sports and be on television regularly,

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Speaker 1: it'll be great exposure for them. If they can get

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Speaker 1: ahead ahead of for instance, ahead of on TV, ahead

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Speaker 1: of the NBA in the NHL, I think would would

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Speaker 1: do enormous good for them. Um, I'm just wondering, you know,

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Speaker 1: do they have enough room at Disney, because isn't the

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Speaker 1: NBA going to get down to Disney as well? And

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Speaker 1: we're gonna have soccer, I mean, Goofy, Mickey and mine

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Speaker 1: are going to be pretty busy down there. When when

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Speaker 1: all these when soccer and NBA gets down there exactly right,

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Speaker 1: you know, they're hosting all these fears. Everybody wants to

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Speaker 1: come to Disney World. I mean. The other interesting thing

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Speaker 1: that I had started to think about two is that

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Speaker 1: we did have news this week speaking of Disney that

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Speaker 1: Disney well, Disney World is going to have a soft

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Speaker 1: reopening of sorts mid July. So it is going to

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Speaker 1: be a very busy time. You're gonna have a lot

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Speaker 1: of folks down there. Now. Granted, Disney World is going

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Speaker 1: to be open in a limited way, and we've seen

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Speaker 1: a preview of that over in Shanghai in terms of

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Speaker 1: how Disney is dealing with the opening of its parks.

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Speaker 1: But Universal Orlando, I believe is opening as well. So

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Speaker 1: all eyes definitely pointing to there, and you know, the

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Speaker 1: nervous Nelly and Me and the warrior about uh, you know,

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Speaker 1: how this second wave of the virus hits. You start

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Speaker 1: to think a lot about how Florida and and specifically

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Speaker 1: Central Florida Michael Barr is going to look amid all this. Well, yeah,

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Speaker 1: and let's be honest, this plan isn't all peaches and cream.

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Speaker 1: By the way, I had peaches and cream, and I

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Speaker 1: don't know why that's a popular thing, but anyway, Uh,

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Speaker 1: there's a stumbling block, and then that is there are

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Speaker 1: three major League soccer teams the in Chicago, d C.

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Speaker 1: And San Jose. Now those cities have not yet allowed

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Speaker 1: to begin individual workouts because of the stay at home restrictions.

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Speaker 1: Now they could travel to Orlando in June, uh to

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Speaker 1: help create a more level playing field. But that's the problem.

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Speaker 1: There's not a level playing field. Yeah yeah, Now it

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Speaker 1: seems like we're gonna be talking about this level playing

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Speaker 1: field a lot, all right, So I think it's fair

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Speaker 1: to say this next story is one of all of

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Speaker 1: our favorites, which is minor league baseball. We're missing it.

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Speaker 1: I love minor league ball personally. I don't know about you.

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Speaker 1: Guys have many memories of growing up and being in

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Speaker 1: college and you know, just going to minor league parks.

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Speaker 1: It is the purest uh iteration in some ways of baseball, UH,

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Speaker 1: largely shut down as all sports are. But just go

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Speaker 1: to Airbnb, Mike Lynch and you can actually just run

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Speaker 1: out of stadium for yourself. Pensacola Blue Wahoops have a

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Speaker 1: promotion going. You had me at Blue Wahoo's, right, I mean,

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Speaker 1: this is incredible Wahoo. We all know that the minor

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Speaker 1: league marketing directors are the most creative people in all

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Speaker 1: of sports without question, without questions. So they have a

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Speaker 1: great idea of a fifteen dollars ten people can come

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Speaker 1: in and spend the night in their ballpark. Now, they

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Speaker 1: can take batting practice, they can run the bases, they

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Speaker 1: can order food if they want, they can have breakfast

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Speaker 1: in the morning, and they have a little uh like.

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Speaker 1: They have a one bedroom that sleeps ten. There are

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Speaker 1: four bunk beds that sleep eight, two queen sized beds

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Speaker 1: there with free bathrooms. There are color TVs, and theft

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Speaker 1: hundred dollars, which is a hundred and fifty dollars ahead.

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Speaker 1: You can come in and spend the night at the

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Speaker 1: Blue Wahoo's Ballpark right on the car right on the

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Speaker 1: shore in Pensacola. And you know, my mind started running

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Speaker 1: away with me right here. I said, what kind of

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Speaker 1: people would be attracted to do this? And I see

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Speaker 1: the wide spectrum going from a nice family like the

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Speaker 1: Brady Bunch coming in and having a nice family night,

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Speaker 1: to Otter Flounder and Blue Tarski and the group from

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Speaker 1: from Animal House and everybody in between. I think it's

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Speaker 1: an awesome idea. And I went, and I'm sure you

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Speaker 1: guys did the same thing. I went on their website

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Speaker 1: and tried to book a date, and every one of

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Speaker 1: them appeared to be sold out. Oh yeah, yeah, I

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Speaker 1: did the I did the exact same thing. Yeah. The

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Speaker 1: one thing, Michael bar that caught my attention when I

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Speaker 1: was reading the story about it was, you know, they

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Speaker 1: they had some some rather vague languages, like you could

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Speaker 1: take batting practice, you can have breakfast at home plate,

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Speaker 1: you can you know, have a picnic in out in

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Speaker 1: the outfield, or you know, do whatever. And I just

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Speaker 1: feel like, to the animal house points, the do whatever

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Speaker 1: is really what sets my mind wandering into in exactly

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Speaker 1: the terms that I think you're thinking, Mike Clench of

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Speaker 1: if you get a bunch of yahoo's, uh with the Wahoo's,

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Speaker 1: you don't know what's going to happen. Part of the

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Speaker 1: fun of doing this is that you can go and

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Speaker 1: and check out the batting cages and it's like having

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Speaker 1: the kids play in a backyard, yeah, and seeing what's

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Speaker 1: out there. I mean, this is really a great idea.

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Speaker 1: I wonder if it's going to catch on across the

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Speaker 1: minor league parks. Actually, I have a neighbor who's an

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Speaker 1: owner of one of the or co owner of one

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Speaker 1: of the minor league ballparks and minor league teams down south.

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Speaker 1: I wonder if I'm gonna ask him if I can

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Speaker 1: just you know, rent it out for a vacation. Guys,

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Speaker 1: let's talk about college football. I am a big college

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Speaker 1: football fan. I grew up in the South, and if

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Speaker 1: you grow up in the South, you know that Saturdays

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Speaker 1: are even more important then Sundays. I mean the church

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Speaker 1: stuff and things like that. We won't get into that,

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Speaker 1: but uh, you know, college sports, college football over pro

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Speaker 1: football in many ways down in that part of the country.

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Speaker 1: And a reminder as we look toward the fall that

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Speaker 1: the financial and economic implications of either a subdued college

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Speaker 1: football or no college football or fanless college football, it

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Speaker 1: is dramatic. Michael Barr, this is really going to be

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Speaker 1: interesting how this plays out, especially with no fans. And

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Speaker 1: I'm getting serious about Alabama football. You know how fierce

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Speaker 1: it is down there. So you get the crowd in

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Speaker 1: there and everybody's yelling roll tide. Now, how do you

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Speaker 1: do that without any fans in the stands? This this

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Speaker 1: is even more than pro sports because the fans play

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Speaker 1: a huge role in big time college sports. Well, and

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Speaker 1: there's an economic ecosyst Um Mike Lynch around college football

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Speaker 1: specifically that I think we cannot forget about here, right.

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Speaker 1: I mean, this is a it's an economic system. It's

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Speaker 1: not just a football program. No, it's a four billion

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Speaker 1: dollar business. About a billion and a half close to

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Speaker 1: that comes from the ticket sales. Uh. There's a lot

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Speaker 1: of money spent on game day concessions, parking, etcetera, etcetera.

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Speaker 1: And most schools UH will tell you that sevent of

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Speaker 1: their total athletic revenue comes from football. And obviously the

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Speaker 1: fallout and the carnage from this, and we've already seen it.

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Speaker 1: A number of schools have dropped a lot of our

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Speaker 1: city sports permanently. And that's the sad part. And once

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Speaker 1: those sports go away, they never ever come back. This

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Speaker 1: is gonna be our own version of a little bit

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Speaker 1: of a civil war. Conferences are going to be at

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Speaker 1: odds with each other. States are going to be at

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Speaker 1: odds with each other. Um, And you know we're gonna play,

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Speaker 1: We're not going to play. We're gonna have fans, We're

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Speaker 1: not going to have fans. And I think this is

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Speaker 1: you know that here comes the money temptation again. You know,

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Speaker 1: you've got the old analogy I used before with the

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Speaker 1: devil on one shoulder and the angel on the other

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Speaker 1: from the animal house. You know. But but look how

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Speaker 1: much money we can get, you know, is it worth

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Speaker 1: the risk? Is it worth the risk? And I think

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Speaker 1: there's going to be a lot of contentious conversations going on.

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Speaker 1: So I heard a figure. There's a preview of an

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Speaker 1: interview we're going to roll out next week. I heard

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Speaker 1: a figure from from George Pine. He was a chief

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Speaker 1: operating officer at one point of i MG work down

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Speaker 1: south for quite some time, especially during his time at NASCAR,

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Speaker 1: And he said to me, going back to something you

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Speaker 1: said about Alabama, Michael Barr, every game day, weekend, you

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Speaker 1: know what the economic impact is for Tuscaloosa. Twenty million dollars.

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Speaker 1: Twenty million dollars is generated by a single University of

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Speaker 1: Alabama football game in Tuscaloosa. So you multiply that by

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Speaker 1: five or six, depending on how many home games there are.

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Speaker 1: So looking at for that little town, for this one

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Speaker 1: little town in Alabama, twenty million dollars of essentially lost revenue.

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Speaker 1: You're talking about sandwich shops, You're talking about you know,

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Speaker 1: folks who are going to sell you a keg. You're

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Speaker 1: talking about a lot of small businesses, hotel years, everything

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Speaker 1: like that, And and I think it's really important to

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Speaker 1: remember how much lifeblood there is in these sports down there. Well,

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Speaker 1: the key is, can we buy September at be out

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Speaker 1: of the woods if you want to call it that?

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Speaker 1: Of this coronavirus pandemic And right now we're just getting

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Speaker 1: ready to enter into June and I'm not so sure

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Speaker 1: that it's going to happen. And you hit the nail

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Speaker 1: on the head, Jason. The mom and pop areas there,

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Speaker 1: the you know when you go to the bars and

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Speaker 1: grills down there, and they've been their institutions for years,

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Speaker 1: and all of a sudden you take a big hit

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Speaker 1: and like that. It's not like, uh, you know with

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Speaker 1: the owner of Bubb a Shrimp, where he's got like

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Speaker 1: a bank roll. These guys are going day to day

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Speaker 1: and all it takes is for something like this and

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Speaker 1: that's the end of the ball game. Well, and Mike Linch,

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Speaker 1: you said it very well, and I think it applies

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Speaker 1: not just to the teams, but to these small businesses

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Speaker 1: that we're talking about. Once you're done, it's very, very

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Speaker 1: hard to come back. You know, can you reopen that

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Speaker 1: sandwich shop next season if football is maybe, but you

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Speaker 1: gotta literally eat in the meantime. So I think this,

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Speaker 1: We're not done with this story by a long shot. Now.

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Speaker 1: When I think of the people that are on the

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Speaker 1: corner with Alabama foam fingers and gunnons and T shirts

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Speaker 1: and hats, the people who actually charge you to park

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Speaker 1: on their front lawn, right, those people count and they

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Speaker 1: know they get twenty bucks a car, and they may

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Speaker 1: pack ten cars per game there. And you know that's

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Speaker 1: a nice little cash in the pocket for him. And

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Speaker 1: you see it, and you see it in college towns

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Speaker 1: all across this country. Yeah. Well, and you you brought

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Speaker 1: up a really good point that I've been thinking about

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Speaker 1: as well, which is, you know, maybe you get the

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Speaker 1: SEC kind of all together to more or less make

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Speaker 1: the same rules. But does the A C C. And

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Speaker 1: I'm staying in this out here, does the A C

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Speaker 1: C follow the same rules as the SEC does? Is

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Speaker 1: the N C double A, you know, able to put

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Speaker 1: out the same rules. And I go back to something

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Speaker 1: we were talking about earlier in the show, which is

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Speaker 1: this notion of this is playing out differently in different

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Speaker 1: regions of the country. And so obviously I'm obsessed with

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Speaker 1: the South, but you know, college football also huge in

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Speaker 1: the Midwest, and so does the Ohio State uh administration

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Speaker 1: make a different decision than the Penn State, than the Alabama,

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Speaker 1: than the U c L A U s C. I mean,

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Speaker 1: it's just it gets really really tricky, really really fast.

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Speaker 1: Well yeah, I mean Michigan has already said, oh, we're

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Speaker 1: going to play football. Well that's great, but I want

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Speaker 1: to see how you're going to do it. You hit it.

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Speaker 1: You got Michigan, You've got Michigan State, you got Ohio State. Uh.

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Speaker 1: I can go on and on. I mean it's this

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Speaker 1: is in the Big ten. I mean there's this is

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Speaker 1: huge and like you said, down south, this is the

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Speaker 1: same thing. So you know, what's going to happen? Who knows?

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Speaker 1: And uh, I just hope and pray for the mom

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Speaker 1: and pops that are the ancillaries around the big college

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Speaker 1: sports that they're able to survive this well and and Mike.

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Speaker 1: But before we move on to the next thing, I

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Speaker 1: also want to point out that, you know, a lot

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Speaker 1: of this is contingent on what happens with the colleges

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Speaker 1: and universities themselves. This is, after all, college football that

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Speaker 1: we're talking about. They are tied to academics of higher learning.

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Speaker 1: Sometimes we forget that. I certainly forget that sometimes in

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Speaker 1: the in the heat of thinking about big time southern

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Speaker 1: college football. But you know, they ultimately have to take

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Speaker 1: their cues from their administrations. They ultimately have to take

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Speaker 1: their cues, especially the state schools, from the governors of

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Speaker 1: those states. And if school is not in session, what

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Speaker 1: do you do? And it exacerbates some things that you

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Speaker 1: talked about earlier in this conversation, you know, which is

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Speaker 1: the players want to play, the coaches want to coach,

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Speaker 1: but everybody wants to be healthy. But ultimately they're also students. Well,

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Speaker 1: let's take like, for instance, the a c C has

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Speaker 1: a wide geographical the entire East Coast. So you get

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Speaker 1: a school like Clemson, it's in the state of South Carolina.

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Speaker 1: Let's say that they are going to open their doors

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Speaker 1: for students to come in and go to class in

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Speaker 1: the fall. Boston Colleges in Massachusetts, let's say the governor

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Speaker 1: of Massachusetts said, we're still doing online classes. So what

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Speaker 1: happens when Boston College plays Clemson? If they play at

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Speaker 1: Boston College do they play with no fans? But if

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Speaker 1: they play at Clemson they can play with fans. And

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Speaker 1: will Boston College agree to get down there and play

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Speaker 1: in front of fans when they when when Massachusetts are

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Speaker 1: still shut down? So you're right, these are the umpteen

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Speaker 1: thousand issues that have to be resolved before the ball's

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Speaker 1: teed up and kicked off. Absolutely all right. Well, a

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Speaker 1: lot to look forward to and a lot to unpack

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Speaker 1: as we head toward the fall. In the meantime, Michael

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Speaker 1: Barrn do the number of the week? Mondrosn want to

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Speaker 1: because that's some not in German. It feels better to

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Speaker 1: be number one than number five. I'll wear a number

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Speaker 1: because of Mike. We have a chance to go for

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Speaker 1: three in a row. Good numbers in a a good time.

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Speaker 1: And let's first started wearing the number. I would just

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Speaker 1: have the Inove Bloomberg Business of Sports, the number of

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Speaker 1: the week. Here we go, get inside bars head, here

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Speaker 1: we here we go. You gotta pass those cobwebs in

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Speaker 1: between the easy years. The number of the week, gentlemen,

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Speaker 1: it's a little bit serious. And the number of the

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Speaker 1: week is four hundred. I'm gonna say four hundred dollars

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Speaker 1: four hundred dollars. Oh, is it a ticket price? No?

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Speaker 1: Is it um an average number of for some medical equipment. No, No,

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Speaker 1: it's a stipend. I'll say that. Oh, it's a stipend.

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Speaker 1: Does this relate college athletes? You know, it's actually it's

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Speaker 1: uh involving the Oakland Athletics. All right, tell us what

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Speaker 1: they were paying their minor league employees players FO a week,

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Speaker 1: and now they're not paying them anything exactly. That's how

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Speaker 1: much the minor league players were getting weekly per game.

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Speaker 1: And now that's even going to go belly up. So

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Speaker 1: now you compare the minor league player getting this compared

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Speaker 1: to the guy who's making in Major League baseball, you know,

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Speaker 1: a big fat seven figures, and now you have this problem.

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Speaker 1: In fact, there's a question if the Players Association is

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Speaker 1: going to even accept the offer, and the whole baseball

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Speaker 1: season could be up in the air and not go

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Speaker 1: this season because of this. Yeah. Wow, yeah, I mean,

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Speaker 1: these are the these are the numbers that I think

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Speaker 1: we continue to worry about. And again, you know, from

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Speaker 1: the perspective of this labor debate that we're having, as

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Speaker 1: you alluded to, um with the baseball players. I feel

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Speaker 1: like the minor league teams Airbnb is notwithstanding, are really

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Speaker 1: uh in in a pickle. M Absolutely fingers are crossed

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Speaker 1: for I'm Jason Kelly on Twitter at Jason Kelly News,

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Speaker 1: and I'm Mike Lynch at Lynch E w c VB,

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Speaker 1: and I'm Michael Barr at Big Bar Sports. Getting ready

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Speaker 1: to watch Hazel. You're listening to Bloomberg Business of Sports

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Speaker 1: on Bloomberg Radio around the world and online wherever you

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Speaker 1: get your podcast. Mr b