1 00:00:02,440 --> 00:00:06,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:07,640 --> 00:00:11,520 Speaker 2: This is Bloomberg Business of Sports. Business of Sports can 3 00:00:11,560 --> 00:00:14,120 Speaker 2: be intimidating for hard for a start to break into. 4 00:00:14,240 --> 00:00:17,200 Speaker 3: We really appreciate when our owners are actually there, you know, 5 00:00:17,280 --> 00:00:18,360 Speaker 3: with us through the journey. 6 00:00:18,360 --> 00:00:21,880 Speaker 1: Teams ours especially have been very intentional to diversify at 7 00:00:21,880 --> 00:00:22,840 Speaker 1: all levels of the company. 8 00:00:22,920 --> 00:00:26,120 Speaker 4: Bybe win the golden years for the NFL and college football, 9 00:00:26,200 --> 00:00:29,200 Speaker 4: our demographic reach has continued to explode. 10 00:00:29,280 --> 00:00:32,879 Speaker 1: This is going to be really unlocking the streaming platform 11 00:00:32,960 --> 00:00:33,920 Speaker 1: for sports fans. 12 00:00:34,000 --> 00:00:36,560 Speaker 2: Sports evaluations are rising. We'll see when they peak. You 13 00:00:36,560 --> 00:00:39,159 Speaker 2: don't have to be the best in your sport to 14 00:00:39,240 --> 00:00:43,680 Speaker 2: make a whole ton of money. Bloomberg Business of Sports 15 00:00:43,720 --> 00:00:49,159 Speaker 2: from Bloomberg Radio. Hello, this is the Bloomberg Business of 16 00:00:49,200 --> 00:00:51,320 Speaker 2: Sports show. Will we explore the big money issues in 17 00:00:51,360 --> 00:00:52,159 Speaker 2: the world of sports. 18 00:00:52,200 --> 00:00:55,120 Speaker 5: I'm Michael Barr, I'm Scarlett Foe and Time Damian sas Hour. 19 00:00:55,480 --> 00:00:59,120 Speaker 2: Coming up on the show, the NCAA looks on the 20 00:00:59,160 --> 00:01:03,280 Speaker 2: way then a big revenue sharing deal with all of 21 00:01:03,320 --> 00:01:07,080 Speaker 2: its major conferences. We'll dive into that with former TD 22 00:01:07,400 --> 00:01:12,240 Speaker 2: Ameritrade CEO and former college football head coach Joe Mulliot. 23 00:01:12,360 --> 00:01:15,839 Speaker 4: I think like everything else, everything is pretty much driven 24 00:01:15,880 --> 00:01:17,880 Speaker 4: by money the best majority of the time, and I 25 00:01:17,880 --> 00:01:20,600 Speaker 4: think this really does a decent job of at least 26 00:01:20,600 --> 00:01:24,560 Speaker 4: initially addressing the money. So by agreeing to a two 27 00:01:24,560 --> 00:01:26,960 Speaker 4: point seven billion dollar settlement, I think the reason why 28 00:01:27,000 --> 00:01:29,800 Speaker 4: people are potentially agreeing with that, or are agreeing with that, 29 00:01:29,920 --> 00:01:32,560 Speaker 4: is because they're trying to avoid a twenty billion dollar 30 00:01:32,600 --> 00:01:33,720 Speaker 4: liability down the road. 31 00:01:34,040 --> 00:01:37,480 Speaker 2: Plus, we'll talk with a friend of the show, Bloomberg 32 00:01:37,600 --> 00:01:42,360 Speaker 2: Original's chief correspondent Jason Kelly, about the latest episode of 33 00:01:42,400 --> 00:01:46,639 Speaker 2: the Deal with Alex Rodriguez and Jason Kelly this week 34 00:01:46,920 --> 00:01:53,040 Speaker 2: featuring a Rod's Minnesota Timberwolves co owner Mark Glory. All 35 00:01:53,160 --> 00:01:55,800 Speaker 2: that on the way on the Bloomberg Business of Sports. 36 00:01:55,800 --> 00:01:59,400 Speaker 2: But first, the NFL is close to letting private equity 37 00:01:59,440 --> 00:02:03,200 Speaker 2: firms by stakes in teams. And once that happens, there's 38 00:02:03,400 --> 00:02:07,960 Speaker 2: one Super Bowl winning quarterback who wants in, Eli Manning. 39 00:02:08,440 --> 00:02:13,120 Speaker 6: Pressure from Thomas off the edge, Eli Manning stays on 40 00:02:13,160 --> 00:02:16,360 Speaker 6: his feet, ares it out down the field. 41 00:02:17,560 --> 00:02:19,640 Speaker 7: It is caught by Tyree. 42 00:02:20,280 --> 00:02:24,200 Speaker 2: Bloomberg News Florida correspondent Anna Kaiser has done some great 43 00:02:24,240 --> 00:02:26,920 Speaker 2: reporting on this, and she's here now to take us 44 00:02:26,919 --> 00:02:30,119 Speaker 2: through it. Anna, Welcome to the Bloomberg Business of Sports. 45 00:02:30,400 --> 00:02:31,840 Speaker 3: Hi, thank you so much for having me. 46 00:02:32,080 --> 00:02:34,919 Speaker 2: So let's start from the beginning. This is something that 47 00:02:35,120 --> 00:02:37,680 Speaker 2: first has got to start with the league saying, hey, 48 00:02:38,520 --> 00:02:42,240 Speaker 2: we want to do this, and Eli is hoping yes please, 49 00:02:42,280 --> 00:02:44,200 Speaker 2: So can you take us through that. 50 00:02:44,960 --> 00:02:53,040 Speaker 3: Yeah. So, earlier in May, the NFL has proposed or 51 00:02:53,120 --> 00:02:57,239 Speaker 3: is at least exploring, the idea of having private equity 52 00:02:58,040 --> 00:03:01,880 Speaker 3: come into the league. They are kind of the last 53 00:03:01,880 --> 00:03:05,280 Speaker 3: holdout for professional sports teams. There's a lot of private 54 00:03:05,320 --> 00:03:09,680 Speaker 3: equity ownership in the NBA and Major League Baseball, so 55 00:03:10,360 --> 00:03:14,400 Speaker 3: the NFL is exploring that as well. They're saying that 56 00:03:14,480 --> 00:03:16,880 Speaker 3: I think thirty percent of a team can be owned 57 00:03:16,919 --> 00:03:21,320 Speaker 3: by private equity or institutional capital, and about ten percent 58 00:03:21,440 --> 00:03:25,079 Speaker 3: can be owned by an individual firm. So then enters 59 00:03:25,200 --> 00:03:29,680 Speaker 3: Eli Manning, who is part of a private equity firm 60 00:03:29,720 --> 00:03:34,120 Speaker 3: called Brand Velocity Group. I spoke with them a couple 61 00:03:34,160 --> 00:03:37,000 Speaker 3: of weeks ago and asked them about this new development, 62 00:03:37,120 --> 00:03:41,200 Speaker 3: and they immediately said, yes, we're definitely interested in doing 63 00:03:41,240 --> 00:03:43,680 Speaker 3: something like that. It's really exciting news. It's going to 64 00:03:43,720 --> 00:03:47,960 Speaker 3: be really interesting here for the NFL if they do 65 00:03:48,080 --> 00:03:52,839 Speaker 3: allow private equity, so it seems something like they're really 66 00:03:52,920 --> 00:03:53,800 Speaker 3: eager about. 67 00:03:54,320 --> 00:03:58,560 Speaker 1: They're really eager about it, and Brand Velocity, which is 68 00:03:58,680 --> 00:04:02,880 Speaker 1: the pe firm that Eli Manning is a partner and 69 00:04:02,960 --> 00:04:08,080 Speaker 1: co founder of, is obviously very interested in an NFL franchise. 70 00:04:08,080 --> 00:04:10,760 Speaker 1: What exactly did Eli Manning say? I mean, I know 71 00:04:10,880 --> 00:04:13,160 Speaker 1: that it's not a surprise that a lot of private 72 00:04:13,160 --> 00:04:15,040 Speaker 1: equity firms would want to be part of the most 73 00:04:15,080 --> 00:04:18,080 Speaker 1: profitable professional sports league in the US and if not 74 00:04:18,160 --> 00:04:21,039 Speaker 1: the world. But you know, obviously when you attach Eli 75 00:04:21,080 --> 00:04:23,880 Speaker 1: Manning to the NFL and ownership, that's going to get 76 00:04:23,880 --> 00:04:24,800 Speaker 1: a lot of eyeballs. 77 00:04:26,080 --> 00:04:29,159 Speaker 3: Yeah, definitely. I mean, I think for him it would 78 00:04:29,200 --> 00:04:32,560 Speaker 3: obviously be a very exciting sort of feather in his 79 00:04:32,640 --> 00:04:35,240 Speaker 3: cap in terms of investing, because you know, he's so 80 00:04:35,360 --> 00:04:39,159 Speaker 3: personally tied to the NFL. He said he was just 81 00:04:39,240 --> 00:04:41,000 Speaker 3: really excited about it and that it was a really 82 00:04:41,040 --> 00:04:46,120 Speaker 3: good opportunity. You know, he hopes that it creates a 83 00:04:46,160 --> 00:04:52,799 Speaker 3: better fan experience, you know, that it just improves the league. 84 00:04:52,360 --> 00:04:58,080 Speaker 3: He also spoke about just how how much that's changed 85 00:04:58,120 --> 00:05:00,760 Speaker 3: in the league with among players, that players are getting 86 00:05:00,760 --> 00:05:04,480 Speaker 3: so involved in investing in the league itself. Sometimes when 87 00:05:04,520 --> 00:05:08,560 Speaker 3: they're still even playing professionally. So he said, when he 88 00:05:08,640 --> 00:05:10,880 Speaker 3: started in the NFL, like I mean early two thousands, 89 00:05:10,880 --> 00:05:14,960 Speaker 3: people never talked about that. It was like you're an athlete, 90 00:05:15,080 --> 00:05:18,440 Speaker 3: you know, stay in your lane, you know, keep it 91 00:05:18,480 --> 00:05:21,839 Speaker 3: to the professionals. And now that that's really really changed. 92 00:05:22,440 --> 00:05:24,440 Speaker 3: And he said that that was just a big evolution 93 00:05:24,560 --> 00:05:25,520 Speaker 3: from when he first started. 94 00:05:25,839 --> 00:05:28,040 Speaker 5: So and I you know what comes to my mind here, 95 00:05:28,040 --> 00:05:29,440 Speaker 5: And look, I don't know if it's a good thing 96 00:05:29,520 --> 00:05:31,360 Speaker 5: or a bad thing that private equity is buying into 97 00:05:31,400 --> 00:05:33,720 Speaker 5: the NFL, or that they're even discussing it, But you know, 98 00:05:33,839 --> 00:05:36,360 Speaker 5: from where I sit is I'm looking at a headline here, 99 00:05:36,800 --> 00:05:38,960 Speaker 5: I'm looking at Syrian. I'm looking at inter Milan, the 100 00:05:38,960 --> 00:05:42,560 Speaker 5: reigning champion of Syrian. I'm looking at oak Tree Seizon 101 00:05:42,680 --> 00:05:46,400 Speaker 5: control from a Chinese owner who couldn't pay their four 102 00:05:46,480 --> 00:05:49,919 Speaker 5: hundred million year alone. And you know, I just I 103 00:05:49,960 --> 00:05:53,240 Speaker 5: get the sense that is there a risk that, you know, 104 00:05:53,480 --> 00:05:55,600 Speaker 5: once you get some of these private equity funds in there, 105 00:05:55,600 --> 00:05:58,600 Speaker 5: who may you know they're very profit oriented, that they 106 00:05:59,040 --> 00:06:01,880 Speaker 5: you may see a lot more activity buying up stakes, 107 00:06:01,880 --> 00:06:04,480 Speaker 5: selling stakes guys who can't pay their loans, just you know, 108 00:06:04,839 --> 00:06:08,120 Speaker 5: a lot more movement on the ownership side, and I 109 00:06:08,120 --> 00:06:09,800 Speaker 5: wonder if that's good for the game. I'm curious to 110 00:06:09,800 --> 00:06:10,560 Speaker 5: hear your thoughts there. 111 00:06:11,440 --> 00:06:14,800 Speaker 3: Yeah, I mean that could be hard to say. You know, 112 00:06:14,920 --> 00:06:18,120 Speaker 3: Eli said something about you know, I just I really 113 00:06:18,160 --> 00:06:20,640 Speaker 3: do hope that this is a this is a good 114 00:06:20,760 --> 00:06:25,040 Speaker 3: change for the league. But obviously there is some skepticism there. 115 00:06:26,520 --> 00:06:28,560 Speaker 3: You know, up to thirty percent of a team being 116 00:06:28,600 --> 00:06:31,680 Speaker 3: owned by institutional capital is a pretty you know, it's 117 00:06:31,680 --> 00:06:34,600 Speaker 3: a big amount of an NFL team, and NFL teams 118 00:06:34,760 --> 00:06:38,640 Speaker 3: are extremely valuable. It's the most valuable sports league in 119 00:06:38,680 --> 00:06:42,839 Speaker 3: the country. So, you know, it definitely might change the game. 120 00:06:43,720 --> 00:06:49,200 Speaker 3: As private equity ownership has changed, you know a lot 121 00:06:49,240 --> 00:06:53,679 Speaker 3: of things. It changes companies when they when they acquire 122 00:06:53,720 --> 00:06:57,599 Speaker 3: a company, So you're going to expect to see some 123 00:06:57,760 --> 00:07:01,200 Speaker 3: changes and so and let me jump in here. 124 00:07:01,480 --> 00:07:04,600 Speaker 1: I'm curious because, as the Florida course wanted for Bloomberg News, 125 00:07:04,680 --> 00:07:09,120 Speaker 1: you obviously cover the industries that are leading the way 126 00:07:09,120 --> 00:07:11,160 Speaker 1: in Florida that matter the most, and of course a 127 00:07:11,160 --> 00:07:12,960 Speaker 1: lot of that has to do with property, it has 128 00:07:13,000 --> 00:07:16,360 Speaker 1: to do with entertainment, and increasingly it has to do 129 00:07:16,400 --> 00:07:20,000 Speaker 1: with sports as well. You think about the Miami Football 130 00:07:20,000 --> 00:07:24,760 Speaker 1: Club that David Beckham is invested in, yes, Cleanel Messi 131 00:07:24,840 --> 00:07:28,320 Speaker 1: and of course Miami gram Prix, Miami Graham Prix, Thank you, Damien. 132 00:07:28,400 --> 00:07:31,040 Speaker 1: And of course the Miami Dolphins with Steven Ross as 133 00:07:31,080 --> 00:07:35,400 Speaker 1: the you know, the big owner there, and the Florida 134 00:07:35,440 --> 00:07:37,880 Speaker 1: Panthers making to the Conference finals in the NHL. Like, 135 00:07:38,960 --> 00:07:41,480 Speaker 1: Florida is a big, big sports town, and I'm wondering 136 00:07:41,960 --> 00:07:45,240 Speaker 1: what you've observed when it comes to money and sports 137 00:07:45,400 --> 00:07:46,160 Speaker 1: in Florida. 138 00:07:46,280 --> 00:07:49,480 Speaker 3: Oh, there is so much buzz around sports in Florida 139 00:07:49,600 --> 00:07:54,440 Speaker 3: right now. You know, the big headline obviously being Leo 140 00:07:54,560 --> 00:07:57,520 Speaker 3: Messhi coming to live in Miami and play in Miami 141 00:07:58,000 --> 00:08:01,560 Speaker 3: with a huge surprise. I mean, no one thought that 142 00:08:02,080 --> 00:08:05,640 Speaker 3: Messi would ever play in the United States. And there 143 00:08:05,680 --> 00:08:09,080 Speaker 3: is a huge Argentine population here in South Florida. I 144 00:08:09,480 --> 00:08:13,760 Speaker 3: live in a very Argentinian neighborhood and it went crazy 145 00:08:13,840 --> 00:08:16,720 Speaker 3: during the World Cup. So to have their idol, you know, 146 00:08:16,800 --> 00:08:21,200 Speaker 3: living in Miami. You see his face everywhere now, I 147 00:08:21,200 --> 00:08:25,680 Speaker 3: mean in terms of just merchandise opportunities, Like I don't 148 00:08:25,680 --> 00:08:28,800 Speaker 3: think I ever really saw people wearing into Miami jerseys. Now, 149 00:08:28,880 --> 00:08:32,199 Speaker 3: like every kid is wearing that black and pink into 150 00:08:32,240 --> 00:08:35,880 Speaker 3: Miami jersey, Messy's name on the back. So there's a 151 00:08:36,080 --> 00:08:40,200 Speaker 3: ton of buzz around that. Formula one is obviously a 152 00:08:40,320 --> 00:08:43,760 Speaker 3: huge weekend for those of us who live here. Also, 153 00:08:43,800 --> 00:08:48,040 Speaker 3: it is a huge weekend for traffic and very high prices. 154 00:08:49,280 --> 00:08:53,280 Speaker 3: But yeah, very big, splashy event that the city, you know, 155 00:08:53,960 --> 00:08:57,560 Speaker 3: has done a lot to attract and make into what 156 00:08:57,640 --> 00:09:02,720 Speaker 3: it is. And Yeah, the Dolphins a lot of buzz 157 00:09:02,800 --> 00:09:05,319 Speaker 3: around them. They did very well last season and then 158 00:09:05,480 --> 00:09:07,280 Speaker 3: kind of puttered out, so I know that there's a 159 00:09:07,280 --> 00:09:09,040 Speaker 3: lot of hope around them. 160 00:09:09,280 --> 00:09:11,160 Speaker 5: Yeah, we don't need to talk about the Miami Dolphins 161 00:09:11,200 --> 00:09:13,559 Speaker 5: on this show, So let me ask you one more question, 162 00:09:14,040 --> 00:09:16,880 Speaker 5: Bias d. Yeah, let's get let's circle back to Eli 163 00:09:16,920 --> 00:09:19,560 Speaker 5: Manning here and Brand Velocity Group. And I'm curious, you know, 164 00:09:19,600 --> 00:09:22,680 Speaker 5: in your article, what role you know is Brand velosci 165 00:09:22,760 --> 00:09:24,839 Speaker 5: looking to play in terms of I mean, are they 166 00:09:24,920 --> 00:09:29,320 Speaker 5: a facilitator? Are they looking to co invest alongside private equity? Like, 167 00:09:29,480 --> 00:09:31,760 Speaker 5: are they you know, performing a you know, a financial 168 00:09:31,760 --> 00:09:35,720 Speaker 5: advisory role. I mean, what do you envision the role 169 00:09:35,720 --> 00:09:38,400 Speaker 5: of Eli Manning in you know, buying back into the 170 00:09:38,520 --> 00:09:39,960 Speaker 5: NFL from an ownership perspective. 171 00:09:40,120 --> 00:09:42,280 Speaker 3: Yeah, I mean I can tell you that that brand 172 00:09:42,360 --> 00:09:45,400 Speaker 3: Velocity group, they say that they are, you know, very 173 00:09:45,440 --> 00:09:52,160 Speaker 3: active investors. They get very involved with the brands. I 174 00:09:52,200 --> 00:09:54,360 Speaker 3: don't know how that would work with the NFL because 175 00:09:54,360 --> 00:09:59,120 Speaker 3: that's such an established institution, you know, I mean, how 176 00:09:59,200 --> 00:10:02,920 Speaker 3: much could they really come in and change things, especially 177 00:10:03,000 --> 00:10:07,440 Speaker 3: with only a ten percent ownership. But you know, they 178 00:10:07,440 --> 00:10:11,360 Speaker 3: think that they're really well positioned to make me some 179 00:10:11,800 --> 00:10:15,920 Speaker 3: you know, changes improvements in NFL teams because they have 180 00:10:16,320 --> 00:10:19,040 Speaker 3: a focus in sports, because they have you know, Eli 181 00:10:19,080 --> 00:10:22,280 Speaker 3: Manning as a partner. So I know that they're hoping 182 00:10:22,360 --> 00:10:26,880 Speaker 3: to be you know, pretty active in that investment. But 183 00:10:28,000 --> 00:10:30,760 Speaker 3: we'll see how how you know, how that really plays out, 184 00:10:30,840 --> 00:10:31,360 Speaker 3: all right. 185 00:10:31,240 --> 00:10:34,360 Speaker 1: Anna, I really appreciate your joining us today, Anna Kaiser, 186 00:10:34,400 --> 00:10:38,400 Speaker 1: Bloomberg's Florida correspondent, joining us to talk about Eli Manning 187 00:10:39,000 --> 00:10:41,520 Speaker 1: and of course, his private equity firm wanting to own 188 00:10:41,840 --> 00:10:44,760 Speaker 1: their own NFL team. As private equity he might soon 189 00:10:44,840 --> 00:10:48,400 Speaker 1: be allowed to start investing in that league. 190 00:10:48,720 --> 00:10:50,760 Speaker 3: Anna, thank you so much, thank you for having me. 191 00:10:51,120 --> 00:10:54,400 Speaker 2: We now turn to basketball the latest episode of the 192 00:10:54,520 --> 00:10:58,960 Speaker 2: Deal with Alex Rodriguez and Jason Kelly featuring a Rod's 193 00:10:59,160 --> 00:11:03,400 Speaker 2: Minnesota timber Wolves co owner Mark Lori with the Wolves 194 00:11:03,559 --> 00:11:07,719 Speaker 2: battling in the NBA Western Conference Finals. In the backdrop, 195 00:11:08,080 --> 00:11:11,480 Speaker 2: let's listen to a portion of the conversation between Jason, 196 00:11:11,640 --> 00:11:15,440 Speaker 2: Alex and Mark, starting with Mark talking about his natural 197 00:11:15,559 --> 00:11:17,160 Speaker 2: drive to become an entrepreneur. 198 00:11:17,320 --> 00:11:20,040 Speaker 8: I have to say, though, I was born an entrepreneur. Yeah. 199 00:11:20,120 --> 00:11:20,320 Speaker 7: Yeah. 200 00:11:20,320 --> 00:11:22,760 Speaker 9: When I was four years old, she just said, what 201 00:11:22,760 --> 00:11:24,080 Speaker 9: do you want to be when you grow up? And 202 00:11:24,120 --> 00:11:27,520 Speaker 9: I said, I want to be a farmer. And she 203 00:11:27,679 --> 00:11:29,720 Speaker 9: was like, farmer, wife, farmer, And I said, because they 204 00:11:29,760 --> 00:11:30,679 Speaker 9: grow stuff from nothing. 205 00:11:31,120 --> 00:11:32,880 Speaker 8: And that was sort of just the way I was, 206 00:11:32,920 --> 00:11:35,280 Speaker 8: sort of like born into the world. I love the 207 00:11:35,280 --> 00:11:36,720 Speaker 8: idea of growing stuff from nothing. 208 00:11:37,559 --> 00:11:39,360 Speaker 9: As a kid, I didn't know anything other than, you know, 209 00:11:39,559 --> 00:11:41,080 Speaker 9: farmer grows stuff from nothing. 210 00:11:41,080 --> 00:11:42,800 Speaker 8: Did you know about startups and things like that? 211 00:11:43,000 --> 00:11:43,200 Speaker 2: You know. 212 00:11:43,320 --> 00:11:44,880 Speaker 9: My parents had me when they were twenty years old, 213 00:11:45,000 --> 00:11:46,880 Speaker 9: so I spent a lot of time with my grandmother 214 00:11:46,920 --> 00:11:49,760 Speaker 9: and grandfather, and so I came home. I was the 215 00:11:49,760 --> 00:11:51,640 Speaker 9: first person in my family ever to go to college. 216 00:11:51,920 --> 00:11:54,320 Speaker 9: So I came home with this this crayon thing that said, 217 00:11:54,360 --> 00:11:55,199 Speaker 9: you know, what do you want to be when you 218 00:11:55,200 --> 00:11:56,880 Speaker 9: grew up and I said farmer. And I showed it 219 00:11:56,960 --> 00:12:00,000 Speaker 9: to my grandmother and she says, farmer. No, no, no 220 00:12:00,320 --> 00:12:04,880 Speaker 9: doctor or lawyer. That's a no farmer. And she was 221 00:12:04,920 --> 00:12:07,240 Speaker 9: you wanting me to be, you know, the first professional 222 00:12:07,559 --> 00:12:11,120 Speaker 9: in the family, And yeah, so I was. I did 223 00:12:11,160 --> 00:12:14,240 Speaker 9: every entrepreneur business you can imagine as a kid, you know, 224 00:12:14,440 --> 00:12:20,480 Speaker 9: car wash, newspaper route, recycling, baseball cards, lemonade, stands like 225 00:12:20,679 --> 00:12:23,800 Speaker 9: anything you can think of, it did, and you know, 226 00:12:23,920 --> 00:12:26,960 Speaker 9: just was born with this sort of you know drive 227 00:12:27,080 --> 00:12:30,800 Speaker 9: to want to like work hard and build something. 228 00:12:31,160 --> 00:12:34,040 Speaker 2: That's Mark Lorie on the latest edition of The Deal 229 00:12:34,120 --> 00:12:37,920 Speaker 2: with Alex Rodriguez and Jason Kelly. You can listen to 230 00:12:38,040 --> 00:12:41,559 Speaker 2: the full episode, plus listen back to all previous editions 231 00:12:41,600 --> 00:12:45,239 Speaker 2: on Apple, Spotify, and anywhere else you get your podcasts. 232 00:12:45,440 --> 00:12:47,640 Speaker 2: Coming up, we get more on the latest episode of 233 00:12:47,800 --> 00:12:52,360 Speaker 2: That Deal with co host and Bloomberg Originals Chief correspondent 234 00:12:52,760 --> 00:12:56,280 Speaker 2: Jason Kelly. You're listening to the Bloomberg Business of Sports 235 00:12:56,360 --> 00:13:03,080 Speaker 2: Bloomberg Radio. Around the world, You're listening to Bloomberg Business 236 00:13:03,080 --> 00:13:08,480 Speaker 2: of Sports from Bloomberg Radio. This is the Bloomberg Business 237 00:13:08,559 --> 00:13:10,800 Speaker 2: of Sports show, but we explore the big money issues 238 00:13:10,800 --> 00:13:13,280 Speaker 2: in the world of sports. I'm Michael Barr, along with 239 00:13:13,320 --> 00:13:17,120 Speaker 2: Scarlett Foo and Damian Sasaur. The latest episode of the 240 00:13:17,200 --> 00:13:20,160 Speaker 2: Deal with Alex Rodriguez and Jason Kelly is out. It's 241 00:13:20,200 --> 00:13:23,800 Speaker 2: featuring Mark Laurie. First of all, he's the founder and 242 00:13:23,880 --> 00:13:28,080 Speaker 2: CEO of Wonder and co owner along with A Rod 243 00:13:28,120 --> 00:13:31,640 Speaker 2: of the Minnesota Timberwolves. And we've got our old buddy, 244 00:13:31,760 --> 00:13:35,840 Speaker 2: old pal, old friend of the show, Bloomberg Original's chief 245 00:13:35,840 --> 00:13:38,480 Speaker 2: correspond to Jason Kelly here to take us behind the 246 00:13:38,480 --> 00:13:39,520 Speaker 2: scenes of the episode. 247 00:13:39,559 --> 00:13:42,640 Speaker 6: How are y'all doing? Speaking to you from London here? 248 00:13:42,640 --> 00:13:44,559 Speaker 6: It's nice in New York. So jealous of that? 249 00:13:45,040 --> 00:13:47,600 Speaker 2: Oh yeah, we'll bring me back a magnet. Will you? 250 00:13:48,480 --> 00:13:49,080 Speaker 7: Absolutely? 251 00:13:49,480 --> 00:13:52,520 Speaker 2: Whatever you did, Jason, You've got the man, Mark LRII. 252 00:13:52,640 --> 00:13:54,439 Speaker 2: Can you take us through your new episode? 253 00:13:54,600 --> 00:13:58,040 Speaker 6: I mean, it's an interesting episode for us because you know, 254 00:13:58,120 --> 00:14:01,720 Speaker 6: this is the first time, or probably the only time 255 00:14:01,800 --> 00:14:04,160 Speaker 6: that we were going to have on the Deal. You know, 256 00:14:04,240 --> 00:14:07,160 Speaker 6: one of Alex's like real, you know, honest to goodness 257 00:14:07,160 --> 00:14:09,079 Speaker 6: business partners. You know, this is a guy who he's 258 00:14:09,640 --> 00:14:13,240 Speaker 6: invested with over you know, a number of deals, most 259 00:14:13,280 --> 00:14:16,120 Speaker 6: notably you know they are co owners of a minority 260 00:14:16,120 --> 00:14:20,480 Speaker 6: stake in the Minnesota Timberwolves of Minnesota. Lynx and Mark 261 00:14:20,600 --> 00:14:24,200 Speaker 6: himself has a fascinating journey as an entrepreneur, and so 262 00:14:24,480 --> 00:14:27,120 Speaker 6: was cool because Alex knows so much of this story, 263 00:14:27,160 --> 00:14:29,200 Speaker 6: and so it was it was fun to sort of 264 00:14:29,240 --> 00:14:31,680 Speaker 6: draw some of that out of Mark, but also, you know, 265 00:14:32,320 --> 00:14:35,680 Speaker 6: shamelessly leverage my co host or for some good intel. 266 00:14:35,960 --> 00:14:38,600 Speaker 1: That must have been a really interesting dynamic to watch 267 00:14:38,600 --> 00:14:40,680 Speaker 1: because you could just kind of like throw a topic 268 00:14:40,720 --> 00:14:43,720 Speaker 1: out there and let them debate it, deliberate on it, 269 00:14:43,840 --> 00:14:47,360 Speaker 1: or just shoust over it. You had mentioned that, of 270 00:14:47,400 --> 00:14:49,760 Speaker 1: course they are minority owners and the Timberwolves at one 271 00:14:49,800 --> 00:14:51,880 Speaker 1: point they tried to buy the New York Mets. 272 00:14:52,440 --> 00:14:53,320 Speaker 8: Didn't talk about that. 273 00:14:53,280 --> 00:14:56,880 Speaker 6: At all, they did, I mean, and that was actually, 274 00:14:56,960 --> 00:14:58,800 Speaker 6: I mean, really how they got to know each other, 275 00:14:58,880 --> 00:15:03,680 Speaker 6: Scar and I think that process and you know, ultimately 276 00:15:03,680 --> 00:15:06,800 Speaker 6: losing obviously to Steve Cohen, who is now the owner 277 00:15:06,840 --> 00:15:10,640 Speaker 6: of the Mets, gave them a huge amount of conviction 278 00:15:10,840 --> 00:15:13,640 Speaker 6: on something that you guys know very well and we 279 00:15:13,680 --> 00:15:16,320 Speaker 6: talk about all the time on our show and on yours, 280 00:15:16,360 --> 00:15:20,800 Speaker 6: which is, you know, how important and candidly how valuable 281 00:15:20,880 --> 00:15:24,640 Speaker 6: sports are in the broader culture. But the economics are 282 00:15:24,680 --> 00:15:27,600 Speaker 6: you know, continue to grow, whether it's through media, rites, sponsorships, 283 00:15:27,640 --> 00:15:31,320 Speaker 6: et cetera. And so I think when they, you know, 284 00:15:31,440 --> 00:15:35,400 Speaker 6: doing the work rather on the mets, really teed them up, 285 00:15:35,840 --> 00:15:39,680 Speaker 6: as it were, when the Timberwolves came up for sale, 286 00:15:39,800 --> 00:15:42,600 Speaker 6: to to do that deal, and they've been super excited 287 00:15:42,640 --> 00:15:45,280 Speaker 6: about it. And you know, let's not forget. I mean, 288 00:15:45,560 --> 00:15:48,600 Speaker 6: Timberwolves are doing really well. You know, they're in the 289 00:15:48,600 --> 00:15:51,160 Speaker 6: conference finals, you know, which is the furthest they've ever 290 00:15:51,240 --> 00:15:54,520 Speaker 6: gone in in the NBA playoffs and the first time 291 00:15:54,520 --> 00:15:56,000 Speaker 6: they've been there, I believe since two thousand. 292 00:15:56,280 --> 00:15:58,640 Speaker 5: Jason, As you know, I am just a Voyer when 293 00:15:58,680 --> 00:16:00,520 Speaker 5: it comes to the business of sports. It's my real 294 00:16:00,600 --> 00:16:02,760 Speaker 5: job here at Bloomberg because I'm the chief Emerging market 295 00:16:02,760 --> 00:16:05,360 Speaker 5: fixed income strategist. And I'm wondering if you asked Mark 296 00:16:05,440 --> 00:16:09,000 Speaker 5: about his time His time at Credits was first Boston 297 00:16:09,040 --> 00:16:11,280 Speaker 5: back in the nineties when he was a vice president 298 00:16:11,360 --> 00:16:14,560 Speaker 5: in Emerging markets risk management. And I also would want 299 00:16:14,600 --> 00:16:16,360 Speaker 5: to ask you because you remember the late nineties we 300 00:16:16,400 --> 00:16:18,560 Speaker 5: had some pretty wait a financial crisis we had to 301 00:16:18,560 --> 00:16:21,000 Speaker 5: deal with the long term capital management. Did you know 302 00:16:21,040 --> 00:16:24,200 Speaker 5: that Mark Scarlett. Mark started the Global Association for Risk 303 00:16:24,720 --> 00:16:27,720 Speaker 5: you know the FRM, the Financial Risk Manager designation, like 304 00:16:27,720 --> 00:16:30,320 Speaker 5: the CFA. That's that's Mark Mark. 305 00:16:30,400 --> 00:16:33,080 Speaker 6: He started it started it really talk about that at 306 00:16:33,080 --> 00:16:35,960 Speaker 6: all we did. I'm so glad you brought that update 307 00:16:36,040 --> 00:16:39,240 Speaker 6: me because we did talk a lot about that because 308 00:16:40,040 --> 00:16:42,880 Speaker 6: that experience both you know, creating the FRM, which he 309 00:16:42,960 --> 00:16:45,520 Speaker 6: basically just like came up with the idea what the money. 310 00:16:45,320 --> 00:16:48,120 Speaker 7: Is and then just like put it together. You know, 311 00:16:48,640 --> 00:16:49,800 Speaker 7: I studied three years for. 312 00:16:49,720 --> 00:16:52,120 Speaker 5: A CFA, right, I mean he got a CFA. He's like, 313 00:16:52,160 --> 00:16:54,840 Speaker 5: this is a gimmick. Let's let's do another one. It's amazing. 314 00:16:55,640 --> 00:16:57,720 Speaker 6: He really like he saw that there was like this 315 00:16:57,800 --> 00:17:00,120 Speaker 6: need in the market. He saw that candidly was a 316 00:17:00,160 --> 00:17:03,960 Speaker 6: business opportunity. I mean the point about working on Wall 317 00:17:03,960 --> 00:17:07,359 Speaker 6: Street is he hated it, Like he really didn't like 318 00:17:08,359 --> 00:17:12,879 Speaker 6: and he you know, really took stock of his life 319 00:17:13,640 --> 00:17:16,320 Speaker 6: and you know, was making I think he said in 320 00:17:16,359 --> 00:17:19,359 Speaker 6: the episode half a million dollars a year at a 321 00:17:19,440 --> 00:17:22,760 Speaker 6: very young age. He had been super successful and he 322 00:17:22,880 --> 00:17:25,200 Speaker 6: was like, I just I don't want to do this anymore, 323 00:17:25,440 --> 00:17:29,919 Speaker 6: and you know, went out and really scratched that entrepreneurial 324 00:17:29,920 --> 00:17:35,119 Speaker 6: itch to the point where he sold very successfully three companies, 325 00:17:35,320 --> 00:17:38,680 Speaker 6: you know, culminating in the sale of jet dot Com 326 00:17:38,720 --> 00:17:42,520 Speaker 6: to Walmart for about three point three billion dollars. 327 00:17:43,400 --> 00:17:45,280 Speaker 2: I got to bring this up, and I know I'm 328 00:17:45,280 --> 00:17:48,840 Speaker 2: going a little bit off track. You wait, because I 329 00:17:48,840 --> 00:17:54,480 Speaker 2: got good grief, Charlie Brown. I wish I could be there. 330 00:17:55,280 --> 00:17:57,080 Speaker 2: You're going to Monaco, man. 331 00:17:57,320 --> 00:17:57,720 Speaker 7: I am? 332 00:17:57,960 --> 00:18:01,320 Speaker 6: I am? I mean, Formula one is, I would argue 333 00:18:01,359 --> 00:18:04,359 Speaker 6: guys like one of the most fascinating kind of business 334 00:18:04,400 --> 00:18:09,120 Speaker 6: sports culture stories of our time. Monica was obviously sort 335 00:18:09,119 --> 00:18:12,200 Speaker 6: of the granddaddy of them all when it comes to racing. 336 00:18:12,680 --> 00:18:15,680 Speaker 6: What I'm really interested to see is I'm actually gonna 337 00:18:15,680 --> 00:18:20,280 Speaker 6: be spend some time when I'm there with a big entourage, 338 00:18:20,320 --> 00:18:22,560 Speaker 6: for lack of a better term, from the Las Vegas 339 00:18:22,560 --> 00:18:24,560 Speaker 6: Grand Prix. They're going to be there, you know, talking 340 00:18:24,560 --> 00:18:26,000 Speaker 6: to sponsors, talking to. 341 00:18:26,359 --> 00:18:27,400 Speaker 7: Teams and all of that. 342 00:18:28,440 --> 00:18:32,679 Speaker 6: I have a sneaking suspicion that Las Vegas, which is 343 00:18:32,680 --> 00:18:35,440 Speaker 6: going into its second year, so it's it is literally 344 00:18:35,480 --> 00:18:40,600 Speaker 6: the youngest of the of the Grands Prix. They really 345 00:18:40,600 --> 00:18:43,119 Speaker 6: want to be the next Monica. They see themselves as 346 00:18:43,160 --> 00:18:45,880 Speaker 6: the future of f one, and you guys will find 347 00:18:45,880 --> 00:18:48,240 Speaker 6: this interesting if you don't know it already. Las Vegas 348 00:18:48,320 --> 00:18:51,560 Speaker 6: is also super interesting because Liberty Media, which owns Formula one, 349 00:18:51,640 --> 00:18:54,320 Speaker 6: is actually the promoter of that race, so they have 350 00:18:54,359 --> 00:18:56,840 Speaker 6: a lot of skin in the game to use some 351 00:18:57,000 --> 00:19:01,800 Speaker 6: you know, Vegas and gambling terminology. The sort of these 352 00:19:01,840 --> 00:19:05,600 Speaker 6: two worlds colliding, I think will be really interesting. But yeah, 353 00:19:04,880 --> 00:19:10,359 Speaker 6: I'm I am. I'm sheepishly admitted, conceding and admitting Michael 354 00:19:10,400 --> 00:19:12,919 Speaker 6: Barr that yes, I am going to Monica Jason. 355 00:19:12,920 --> 00:19:15,560 Speaker 5: I have to apologize for my colleague Michael Barr here. 356 00:19:15,760 --> 00:19:18,119 Speaker 5: I mean, he's in a full sweat, but you know, 357 00:19:18,720 --> 00:19:21,920 Speaker 5: you know he he was talking about the track earlier 358 00:19:21,920 --> 00:19:24,439 Speaker 5: and now I have to apologize because I thought he 359 00:19:24,640 --> 00:19:28,639 Speaker 5: was gonna ask about Mark Laurie on the track. You know, 360 00:19:28,720 --> 00:19:31,040 Speaker 5: Mark Laurie was the New Jersey state champ for the 361 00:19:31,080 --> 00:19:35,520 Speaker 5: fifty five meter dash and and he is fast man. 362 00:19:35,560 --> 00:19:37,840 Speaker 5: He beat Jerry Rice in a race for Saint Jude 363 00:19:37,880 --> 00:19:40,520 Speaker 5: Children Hospital. I think he was second to Michael Vick 364 00:19:40,600 --> 00:19:42,800 Speaker 5: in a forty yard dash for you know, with Ray 365 00:19:42,920 --> 00:19:46,679 Speaker 5: Lewis and Rich Eisen's run. How fast is Mark Laurie? 366 00:19:46,720 --> 00:19:47,120 Speaker 2: Is it real? 367 00:19:47,160 --> 00:19:48,440 Speaker 5: I mean, how big were his legs. 368 00:19:48,600 --> 00:19:51,640 Speaker 6: He's real, he is a he is not a large man, 369 00:19:52,320 --> 00:19:56,080 Speaker 6: but he can move for for sure, just based on 370 00:19:56,119 --> 00:19:58,640 Speaker 6: what you just described. I mean, I have to say 371 00:19:58,680 --> 00:20:01,360 Speaker 6: one of the things that I knew from meeting market 372 00:20:01,359 --> 00:20:03,480 Speaker 6: a couple of times, and obviously from Alex talking to 373 00:20:03,560 --> 00:20:07,280 Speaker 6: him talking about him a lot, and their very close 374 00:20:07,359 --> 00:20:10,560 Speaker 6: relationship in friendship. I mean, he's a total character, Like 375 00:20:10,600 --> 00:20:12,840 Speaker 6: if you made him up, nobody would believe you. And 376 00:20:12,960 --> 00:20:15,960 Speaker 6: you know, what he has done as an entrepreneur is 377 00:20:16,000 --> 00:20:22,520 Speaker 6: really interesting. He has this very interesting almost like theory 378 00:20:22,560 --> 00:20:27,320 Speaker 6: of business that he calls VCP Vision Capital People, and 379 00:20:27,400 --> 00:20:29,080 Speaker 6: he you know, walked us through some of that and 380 00:20:29,119 --> 00:20:31,680 Speaker 6: how he applies this to every company that he works on, 381 00:20:31,800 --> 00:20:34,920 Speaker 6: how they're you know, looking at the timberwolves and links 382 00:20:34,960 --> 00:20:37,960 Speaker 6: through that lens. So, I mean, he's he's a fascinating 383 00:20:38,040 --> 00:20:41,280 Speaker 6: sort of sort of thinker. He is not your typical 384 00:20:41,480 --> 00:20:44,520 Speaker 6: certainly not typical Wall Street guy, probably not your typical 385 00:20:44,640 --> 00:20:49,320 Speaker 6: team owner. And yeah, he does stuff like you know, 386 00:20:49,600 --> 00:20:51,919 Speaker 6: challenging people to forty yard dashes, which like. 387 00:20:51,960 --> 00:20:52,520 Speaker 7: Who does that? 388 00:20:53,160 --> 00:20:55,720 Speaker 1: Challenging very fast people to forty yard dashes? You know 389 00:20:55,760 --> 00:20:56,080 Speaker 1: who does? 390 00:20:56,119 --> 00:20:58,040 Speaker 7: Yeah, professional athletes exactly. 391 00:20:58,640 --> 00:21:03,600 Speaker 1: You mentioned VCP and his obsession with kind of putting 392 00:21:03,600 --> 00:21:07,639 Speaker 1: his stamp on different companies. He's a serial entrepreneur. What 393 00:21:08,200 --> 00:21:10,280 Speaker 1: does he want to do next? Obviously it doesn't end 394 00:21:10,320 --> 00:21:13,360 Speaker 1: with owning the Minnesota Timberwolves. And you know, he's got 395 00:21:13,400 --> 00:21:16,000 Speaker 1: a couple of I'm going to mix my metaphors here, 396 00:21:16,000 --> 00:21:19,120 Speaker 1: but like pots on the stove or you know what's 397 00:21:19,119 --> 00:21:20,439 Speaker 1: another metaphor that gets at this. 398 00:21:20,440 --> 00:21:23,320 Speaker 6: Well, that's a good metaphor because one of the big 399 00:21:23,359 --> 00:21:26,040 Speaker 6: thing that he's working on right now is actually a 400 00:21:26,480 --> 00:21:30,520 Speaker 6: food and restaurant really related concept called Wonder, which is 401 00:21:30,800 --> 00:21:31,520 Speaker 6: food delivery. 402 00:21:31,560 --> 00:21:33,520 Speaker 7: They're trying to revolutionize that whole world. 403 00:21:33,680 --> 00:21:37,920 Speaker 6: You know, that's obviously a really difficult and competitive industry. 404 00:21:37,920 --> 00:21:39,840 Speaker 6: We talked a little bit a little bit about his 405 00:21:40,320 --> 00:21:43,280 Speaker 6: adventures there. You know, keep in mind, I mean, he's 406 00:21:43,280 --> 00:21:47,960 Speaker 6: got the track record that definitely convinces people to bet 407 00:21:48,000 --> 00:21:48,800 Speaker 6: on him. 408 00:21:49,680 --> 00:21:50,760 Speaker 7: You know diapers dot. 409 00:21:50,640 --> 00:21:53,400 Speaker 6: Com, which I mean sounds made up right, It sounds 410 00:21:53,400 --> 00:21:54,440 Speaker 6: like you're watching a rom comm. 411 00:21:54,440 --> 00:21:56,440 Speaker 7: It's like, oh, yeah, he started company cult diapers dot Com. 412 00:21:56,440 --> 00:21:58,520 Speaker 6: He actually did started the company Cult diapers dot Com, 413 00:21:58,560 --> 00:22:03,080 Speaker 6: sold it to Amazon. Amazon shut it down as soon 414 00:22:03,080 --> 00:22:04,720 Speaker 6: as they bought it. They essentially bought it to shut 415 00:22:04,760 --> 00:22:06,720 Speaker 6: it down. He goes and starts jet dot com, and, 416 00:22:06,760 --> 00:22:09,640 Speaker 6: as I mentioned earlier, sells that to Walmart for three 417 00:22:09,680 --> 00:22:11,919 Speaker 6: point three billion dollars. But you know, one of the 418 00:22:11,920 --> 00:22:14,480 Speaker 6: things he said, and I wrote about this in summarizing 419 00:22:14,480 --> 00:22:18,040 Speaker 6: the episode, was you know, he loves building things and 420 00:22:18,080 --> 00:22:20,880 Speaker 6: he loves, you know, putting together a team. And one 421 00:22:20,920 --> 00:22:25,720 Speaker 6: of the things he talked about in the moments after 422 00:22:25,960 --> 00:22:29,240 Speaker 6: really really the days and weeks after selling diapers dot 423 00:22:29,280 --> 00:22:31,280 Speaker 6: Com to Amazon is like how depressed he and the 424 00:22:31,320 --> 00:22:34,439 Speaker 6: team work despite making just a huge amount of money. 425 00:22:35,480 --> 00:22:39,879 Speaker 6: He is just this like relentlessly restless guy who just 426 00:22:39,920 --> 00:22:42,480 Speaker 6: like likes to build stuff. So I mean, definitely definitely 427 00:22:42,560 --> 00:22:44,320 Speaker 6: keep an eye on him. He's in his early fifties, 428 00:22:44,359 --> 00:22:46,200 Speaker 6: so a lot of runways still left for him. 429 00:22:46,400 --> 00:22:49,000 Speaker 2: You talk to a guy like a Mark LORII, and 430 00:22:49,760 --> 00:22:53,520 Speaker 2: I guess the bottom line is what can the general 431 00:22:53,560 --> 00:22:57,040 Speaker 2: person take away from a Mark Lourie about learning about 432 00:22:57,119 --> 00:22:59,080 Speaker 2: what it means to be an entrepreneur? 433 00:22:59,480 --> 00:23:02,280 Speaker 7: Yeah? I love that question, Bar, you know it's interesting. 434 00:23:02,320 --> 00:23:05,679 Speaker 6: I got a text from a CEO after the shortly 435 00:23:05,720 --> 00:23:09,119 Speaker 6: after the episode was released saying, you know, and he 436 00:23:09,160 --> 00:23:13,280 Speaker 6: had listened to all the episodes of the deal, so 437 00:23:13,600 --> 00:23:18,119 Speaker 6: thank you, thank you, CEO for your listenership. But he 438 00:23:18,160 --> 00:23:20,000 Speaker 6: said this was the one he actually took the most 439 00:23:20,040 --> 00:23:22,800 Speaker 6: away from in terms of like practical advice. And I 440 00:23:22,880 --> 00:23:26,000 Speaker 6: do think this whole notion and listen, this is something 441 00:23:26,080 --> 00:23:28,960 Speaker 6: very familiar to us at the company where we work. 442 00:23:29,359 --> 00:23:32,119 Speaker 6: You know, culture and people really matter, and like who 443 00:23:32,200 --> 00:23:35,120 Speaker 6: you surround yourself with and a sense of mission. I 444 00:23:35,119 --> 00:23:41,840 Speaker 6: think is one thing that really came through so strongly 445 00:23:42,720 --> 00:23:45,320 Speaker 6: in the conversations with Mark and this idea of like 446 00:23:45,400 --> 00:23:48,200 Speaker 6: spending so much time and you know, he talks about 447 00:23:48,280 --> 00:23:52,080 Speaker 6: studying people's resumes and really understanding where they came from 448 00:23:52,119 --> 00:23:54,960 Speaker 6: and really getting to know them through that process. You 449 00:23:55,000 --> 00:23:57,040 Speaker 6: know that there's a saying that I'm sure you'll have 450 00:23:57,080 --> 00:24:00,439 Speaker 6: heard that, you know, culture, eat strategy for breakfast, and 451 00:24:00,600 --> 00:24:02,240 Speaker 6: I think he's a deep believer in that. And so 452 00:24:02,320 --> 00:24:04,600 Speaker 6: that was one thing that I think people will really 453 00:24:04,640 --> 00:24:07,640 Speaker 6: take away from him is you know, these very practical steps, 454 00:24:08,080 --> 00:24:11,800 Speaker 6: you know that. And it's interesting because it's practical steps 455 00:24:11,800 --> 00:24:16,080 Speaker 6: that involve something that we all I think sometimes trick 456 00:24:16,119 --> 00:24:19,159 Speaker 6: ourselves into thinking as like is soft or intangible and 457 00:24:19,200 --> 00:24:22,280 Speaker 6: in reality, it's at the core of everything, and so 458 00:24:22,520 --> 00:24:24,080 Speaker 6: that was my big takeaway from him. 459 00:24:24,520 --> 00:24:28,560 Speaker 2: The Deal with Jason Kelly and Alex Rodriguez and the 460 00:24:28,640 --> 00:24:32,480 Speaker 2: guest this week is Mark Laurie. Thank you so much, Jason. 461 00:24:32,920 --> 00:24:35,720 Speaker 2: You are always welcome to come on back, my man. 462 00:24:36,080 --> 00:24:37,560 Speaker 7: Thank you guys, always good to. 463 00:24:37,520 --> 00:24:39,960 Speaker 2: Talk to you. Our thanks to Jason Kelly for joining us. 464 00:24:40,200 --> 00:24:44,399 Speaker 2: He's chief correspondent at Bloomberg Originals and co host of 465 00:24:44,440 --> 00:24:48,959 Speaker 2: The Deal along with Alex Rodriguez and aka super Dude. 466 00:24:49,240 --> 00:24:52,440 Speaker 2: Listen to the latest episode with Mark Glori and all 467 00:24:52,480 --> 00:24:55,840 Speaker 2: the previous shows now on Apple, Spotify and anywhere else 468 00:24:55,920 --> 00:24:58,720 Speaker 2: you get your podcast up. Next, we turn to the 469 00:24:58,800 --> 00:25:02,280 Speaker 2: college ranks and how close the NCUBA is to a 470 00:25:02,320 --> 00:25:06,200 Speaker 2: new revenue sharing deal with its Power five conferences. You're 471 00:25:06,240 --> 00:25:09,439 Speaker 2: listening to the Bloomberg Business of Sports from Bloomberg Radio. 472 00:25:09,560 --> 00:25:24,080 Speaker 2: Around the world, You're listening to Bloomberg Business of Sports 473 00:25:24,320 --> 00:25:28,560 Speaker 2: from Bloomberg Radio. This is the Bloomberg Business of Sports show. 474 00:25:28,600 --> 00:25:30,440 Speaker 2: Will we explored the big money issues in the world 475 00:25:30,480 --> 00:25:33,439 Speaker 2: of sports. I'm Michael Barr, along with Scarlett Fu and 476 00:25:33,520 --> 00:25:37,480 Speaker 2: the Damian Sasaur. We've been watching big news in college sports. 477 00:25:37,560 --> 00:25:39,720 Speaker 2: The NC DOUBLEA could be on the brink of a 478 00:25:39,760 --> 00:25:43,760 Speaker 2: new revenue sharing deal with the Big twelve, acc SEC, 479 00:25:43,880 --> 00:25:47,320 Speaker 2: PAC twelve and Big ten, and a nearly three million 480 00:25:47,359 --> 00:25:51,040 Speaker 2: dollar fund for past athletes. It would mark the end 481 00:25:51,119 --> 00:25:54,080 Speaker 2: of a legal battle involving the NC DOUBLEA, and it 482 00:25:54,119 --> 00:25:57,760 Speaker 2: could reshape college sports. And here to help us break 483 00:25:57,760 --> 00:26:01,240 Speaker 2: it all down is Friend of the show, so Joe Molia. 484 00:26:01,440 --> 00:26:05,159 Speaker 2: He's former head football coach at Coastal Carolina, so he 485 00:26:05,320 --> 00:26:08,679 Speaker 2: knows a thing or two about college football. Plus he 486 00:26:08,760 --> 00:26:11,240 Speaker 2: is the former chairman of the board and CEO at 487 00:26:11,280 --> 00:26:14,040 Speaker 2: td Ameeror Trade, so he knows a thing or two 488 00:26:14,119 --> 00:26:18,280 Speaker 2: about money. Mister Joe, Welcome to the Bloomberg business of sports. 489 00:26:18,520 --> 00:26:21,680 Speaker 4: Hi, everybody's Charlotte, Damian Michael. It's good to be back on. 490 00:26:22,040 --> 00:26:24,600 Speaker 2: A old friend of the show. See, I always love that. 491 00:26:25,840 --> 00:26:28,359 Speaker 2: I want to just dive right into it because one 492 00:26:28,400 --> 00:26:31,640 Speaker 2: of the big things we got landmark revenue sharing deal 493 00:26:32,359 --> 00:26:34,520 Speaker 2: for the players in the future, as well as a 494 00:26:34,560 --> 00:26:38,280 Speaker 2: two point seven billion dollar fund for past athletes who 495 00:26:38,280 --> 00:26:41,399 Speaker 2: have been seeking damage. This is all about the story 496 00:26:41,440 --> 00:26:47,320 Speaker 2: with the NCUBLEA and nearing a settlement agreement with top conferences. 497 00:26:47,720 --> 00:26:49,159 Speaker 2: Can I get your thoughts about that? 498 00:26:50,320 --> 00:26:53,280 Speaker 4: Yeah, I think, like everything else, everything is pretty much 499 00:26:53,680 --> 00:26:55,919 Speaker 4: driven by money the best majority of the time. And 500 00:26:56,000 --> 00:26:58,520 Speaker 4: I think this really does a decent job, but at 501 00:26:58,600 --> 00:27:02,560 Speaker 4: least initially resting the money. So by agreeing to a 502 00:27:02,680 --> 00:27:05,040 Speaker 4: two point seven billion dollars settlement, I think the reason 503 00:27:05,040 --> 00:27:07,879 Speaker 4: why people are potentially agreeing with that, or are agreeing 504 00:27:07,920 --> 00:27:10,359 Speaker 4: with that is because they're trying to avoid a twenty 505 00:27:10,359 --> 00:27:13,880 Speaker 4: billion dollar liability down the road. So it addresses that 506 00:27:13,920 --> 00:27:17,120 Speaker 4: for the time being. Now, it still does not address 507 00:27:17,200 --> 00:27:22,760 Speaker 4: the appropriate structure and the process and the guardrails that 508 00:27:22,840 --> 00:27:25,600 Speaker 4: are necessary in effect to be able to handle this 509 00:27:25,720 --> 00:27:28,760 Speaker 4: as far as college athletics still and it's still a 510 00:27:28,840 --> 00:27:31,800 Speaker 4: major major question as to what's good for Power five 511 00:27:31,840 --> 00:27:34,840 Speaker 4: and football men's basketball. Is that good for other sports? 512 00:27:34,840 --> 00:27:37,080 Speaker 4: And is good for anything else other than Power five 513 00:27:37,640 --> 00:27:41,000 Speaker 4: football and men's basketball? And I think there are a 514 00:27:41,040 --> 00:27:43,880 Speaker 4: lot of questions with regard to that, and it may 515 00:27:44,000 --> 00:27:47,040 Speaker 4: serve the problem from a financial perspective mere term, but 516 00:27:47,080 --> 00:27:49,480 Speaker 4: it does not the overall challenge. 517 00:27:49,720 --> 00:27:53,040 Speaker 1: Okay, so everything but the Power five? How do they 518 00:27:53,080 --> 00:27:57,600 Speaker 1: move forward? How do they plan or how how does 519 00:27:57,640 --> 00:27:59,040 Speaker 1: the NCAA start to look at this. 520 00:27:59,400 --> 00:28:02,439 Speaker 4: Well, the answer double AS already said that all all 521 00:28:02,480 --> 00:28:04,920 Speaker 4: those things with regards to how they're going to handle 522 00:28:04,960 --> 00:28:06,760 Speaker 4: the portal, how they're going to handle transfers, how they're 523 00:28:06,760 --> 00:28:09,040 Speaker 4: going to handle contracts, how they're going to handle transparency, 524 00:28:09,640 --> 00:28:12,200 Speaker 4: those details have not been worked out yet and that's 525 00:28:12,240 --> 00:28:15,000 Speaker 4: part of the issue that that that I think exists here. 526 00:28:15,240 --> 00:28:18,280 Speaker 4: You come up with a solution that's driven by the courts, 527 00:28:18,920 --> 00:28:23,520 Speaker 4: that that that's driven by a lawsuit, that initially handles 528 00:28:23,520 --> 00:28:25,440 Speaker 4: the money, but it does not handle the issue. 529 00:28:25,600 --> 00:28:26,920 Speaker 10: It does not handle. 530 00:28:26,600 --> 00:28:29,000 Speaker 4: The problem with thard to college athletics. That's still a 531 00:28:29,040 --> 00:28:29,880 Speaker 4: major issue. 532 00:28:30,160 --> 00:28:32,800 Speaker 1: Is there the impetus for the NC Double A to 533 00:28:32,840 --> 00:28:34,840 Speaker 1: figure this out or is it just you know, we've 534 00:28:34,840 --> 00:28:38,960 Speaker 1: solved the money part of it, so there's less less 535 00:28:38,960 --> 00:28:41,680 Speaker 1: of a priority put on the rest of the details. 536 00:28:42,520 --> 00:28:46,560 Speaker 4: Well, they they'll not say, they won't say it that way, 537 00:28:46,600 --> 00:28:48,560 Speaker 4: but I think that is the case. And as long 538 00:28:48,600 --> 00:28:51,440 Speaker 4: as they satisfy powerfive football and as basketball for the 539 00:28:51,480 --> 00:28:53,720 Speaker 4: time being, they're going to feel okay. And I think 540 00:28:53,960 --> 00:28:56,520 Speaker 4: there's still an obsession with making sure they do everything 541 00:28:56,640 --> 00:28:59,440 Speaker 4: we can that they can't to keep Power five football 542 00:28:59,520 --> 00:29:03,800 Speaker 4: within within the auspices of the NCUAA. I really do 543 00:29:03,840 --> 00:29:06,920 Speaker 4: think that there is a bigger question here, bigger to leven. 544 00:29:07,040 --> 00:29:10,840 Speaker 10: You want to spend a minute on that, please, Okay. 545 00:29:10,920 --> 00:29:14,760 Speaker 4: So I think we've got to be it's almost existentialism 546 00:29:14,800 --> 00:29:17,959 Speaker 4: versus capitalism. And so if you go back from an 547 00:29:17,960 --> 00:29:21,920 Speaker 4: existentialist perspective, why do universities exist? 548 00:29:22,200 --> 00:29:22,600 Speaker 7: Period? 549 00:29:23,320 --> 00:29:27,960 Speaker 4: Then within that why do universities have athletic programs? Now 550 00:29:28,120 --> 00:29:29,760 Speaker 4: we could come up with all the reasons that, all 551 00:29:29,760 --> 00:29:31,680 Speaker 4: the good reasons, acting well of the academic can come up 552 00:29:31,680 --> 00:29:33,760 Speaker 4: with all the reasons of that. But now within that 553 00:29:33,840 --> 00:29:36,600 Speaker 4: world there is a very very real piece that is 554 00:29:36,640 --> 00:29:40,560 Speaker 4: absolutely one hundredercent business. It's all about capitalism, and it's 555 00:29:40,600 --> 00:29:42,040 Speaker 4: got nothing to do with academics. 556 00:29:42,160 --> 00:29:44,280 Speaker 10: That we don't even to talk about eligibility anymore. 557 00:29:44,480 --> 00:29:48,160 Speaker 4: So you have, in effect, you have the existentialist philosophy 558 00:29:48,160 --> 00:29:51,560 Speaker 4: in terms of why university life exists with amateurism, and 559 00:29:51,600 --> 00:29:55,080 Speaker 4: you have a real business that is now existing with 560 00:29:55,160 --> 00:29:58,360 Speaker 4: regards to the payment of players, which is capitalism. So 561 00:29:58,400 --> 00:30:00,760 Speaker 4: how do you handle us? I think there is a 562 00:30:00,800 --> 00:30:04,040 Speaker 4: way to potentially handle this. And you have two major groups. 563 00:30:04,320 --> 00:30:07,280 Speaker 4: One group's the professional group. Let's consider that the Power 564 00:30:07,320 --> 00:30:10,959 Speaker 4: fives dominantly Division one and the revenue sports. Then you 565 00:30:11,000 --> 00:30:13,959 Speaker 4: have the amateur group. Let's consider that the non revenue 566 00:30:14,000 --> 00:30:16,680 Speaker 4: sports and all the Division two and Division three. The 567 00:30:16,720 --> 00:30:19,840 Speaker 4: professional group has to break away from the nc double A. 568 00:30:20,160 --> 00:30:22,200 Speaker 4: They have to bring in their own executive team, and 569 00:30:22,240 --> 00:30:24,600 Speaker 4: they have to model themselves at professional sports. 570 00:30:25,120 --> 00:30:26,719 Speaker 10: Use the NFL as a guideline. 571 00:30:26,840 --> 00:30:29,400 Speaker 4: If the NFL ran themselves the way college athletics are 572 00:30:29,400 --> 00:30:31,920 Speaker 4: putting themselves today, they go out of business. So you 573 00:30:32,040 --> 00:30:35,800 Speaker 4: use a model that's that actually works. You have collective bargating, 574 00:30:36,160 --> 00:30:40,360 Speaker 4: you have transparency, you have contracts, you have you could 575 00:30:40,360 --> 00:30:42,840 Speaker 4: make it work. It's a business. It's a pure business. 576 00:30:42,840 --> 00:30:43,240 Speaker 10: Period. 577 00:30:43,320 --> 00:30:46,600 Speaker 5: So on the other side, yeah, sorry to cut you off. 578 00:30:46,640 --> 00:30:48,560 Speaker 5: I mean, I think I get the point here. We 579 00:30:48,640 --> 00:30:51,840 Speaker 5: haven't really agreed to how the transfer portal be handled, 580 00:30:51,840 --> 00:30:54,880 Speaker 5: how roster limits will be handled, how scholarship was Basically, 581 00:30:54,960 --> 00:30:57,280 Speaker 5: all this is designed to do is agree to a 582 00:30:57,360 --> 00:31:00,520 Speaker 5: number two point seven billion dollars to at the end 583 00:31:00,600 --> 00:31:03,320 Speaker 5: get some of these anti trustees off the NCAA's back 584 00:31:03,440 --> 00:31:06,040 Speaker 5: so that they can begin to discuss some of these issues. 585 00:31:06,240 --> 00:31:07,800 Speaker 8: I think I think that's what you're saying here. And 586 00:31:07,840 --> 00:31:09,440 Speaker 8: so then I only have one. 587 00:31:09,360 --> 00:31:12,280 Speaker 5: Question, who decides how that two point seven billion gets 588 00:31:12,480 --> 00:31:16,280 Speaker 5: allocated to past athletes and as past student athletes. I mean, 589 00:31:16,520 --> 00:31:18,240 Speaker 5: I got to believe some of the schools you don't 590 00:31:18,280 --> 00:31:22,120 Speaker 5: have football programs got to be, you know, pretty disappointed. 591 00:31:22,160 --> 00:31:23,800 Speaker 5: And how that I mean, talk to us a little 592 00:31:23,800 --> 00:31:25,280 Speaker 5: bit about that two point seven billion more. 593 00:31:25,320 --> 00:31:26,520 Speaker 2: I mean, what's at stake here? 594 00:31:26,680 --> 00:31:28,160 Speaker 4: Well, I think, for first of all, I think all 595 00:31:28,200 --> 00:31:30,720 Speaker 4: the non Power five football schools. 596 00:31:30,920 --> 00:31:32,240 Speaker 10: You know, we're already to complain about this. 597 00:31:32,280 --> 00:31:35,280 Speaker 4: Baalt acman with the Big East, the Commission, the Big 598 00:31:35,280 --> 00:31:37,040 Speaker 4: East has been very vocal in terms of this is 599 00:31:37,120 --> 00:31:39,880 Speaker 4: very unfair to them. They don't have football, as an example, 600 00:31:40,200 --> 00:31:43,600 Speaker 4: and the way they're supposed to distribute. Now, everything we're hearing, 601 00:31:43,640 --> 00:31:45,920 Speaker 4: by the way, has been leaks, and there's had a 602 00:31:45,960 --> 00:31:47,480 Speaker 4: lot of leaks on this so this span in the 603 00:31:47,560 --> 00:31:50,400 Speaker 4: last month or so, and and but there hasn't been 604 00:31:50,400 --> 00:31:52,400 Speaker 4: a leak with regards to they were supposed to be 605 00:31:52,440 --> 00:31:57,960 Speaker 4: a formula unless they're going back to twenty sixteen how 606 00:31:58,000 --> 00:32:00,560 Speaker 4: you would pay a swimmer versus how you might play 607 00:32:00,880 --> 00:32:04,080 Speaker 4: a Power five football player in twenty and twenty, Clearly 608 00:32:04,080 --> 00:32:06,760 Speaker 4: they would be different numbers, but they have some sort 609 00:32:06,800 --> 00:32:09,400 Speaker 4: of formula that they have not leaked, and we don't 610 00:32:09,480 --> 00:32:10,400 Speaker 4: know what that looks like. 611 00:32:10,680 --> 00:32:12,440 Speaker 10: So the devil would be in that details. 612 00:32:12,440 --> 00:32:14,960 Speaker 4: But yet all those issues still need to be worked out, 613 00:32:15,240 --> 00:32:17,120 Speaker 4: and the deal will only last in two thousand and 614 00:32:17,160 --> 00:32:20,920 Speaker 4: thirty four. So by the way, it's interested that happens 615 00:32:21,000 --> 00:32:23,520 Speaker 4: to correspond with the end I think of the Big 616 00:32:23,560 --> 00:32:27,120 Speaker 4: ten television deal. So two thousand and thirty four, but 617 00:32:27,160 --> 00:32:30,120 Speaker 4: in twenty thirty four you open it up for more lawsuits, 618 00:32:30,200 --> 00:32:32,160 Speaker 4: so it doesn't even protect them past two thousand and 619 00:32:32,160 --> 00:32:35,360 Speaker 4: thirty four. It pushes it pushes that then that down 620 00:32:35,360 --> 00:32:36,120 Speaker 4: the road a little bit. 621 00:32:36,440 --> 00:32:38,640 Speaker 5: So then, Joe, this is an unfair question because you're right, 622 00:32:38,640 --> 00:32:41,120 Speaker 5: we're just basing all of this on leaks and word 623 00:32:41,120 --> 00:32:44,120 Speaker 5: of mouth here. But who's in, Like, in the current 624 00:32:44,200 --> 00:32:46,680 Speaker 5: contract of this deal, there's two point seven billion dollar ideal. 625 00:32:47,680 --> 00:32:50,760 Speaker 5: Who has tentatively agreed to this as it stands, Power. 626 00:32:50,560 --> 00:32:53,640 Speaker 4: Five schools, some Power file conferences, and because they are 627 00:32:53,680 --> 00:32:56,959 Speaker 4: concerned that again especially in football men's basketball, that they 628 00:32:57,000 --> 00:33:00,520 Speaker 4: could worry about the twenty billion dollars liability. So when 629 00:33:00,520 --> 00:33:03,360 Speaker 4: you talk about the potential number in terms of going 630 00:33:03,400 --> 00:33:06,320 Speaker 4: back and taking care of athletes, going back to twenty sixteen. 631 00:33:06,640 --> 00:33:07,800 Speaker 10: The potential number there. 632 00:33:07,680 --> 00:33:09,360 Speaker 4: That's put on the table, But again we don't know 633 00:33:09,360 --> 00:33:12,400 Speaker 4: how valid these numbers are. Somebody's kind of pulling them 634 00:33:12,400 --> 00:33:14,880 Speaker 4: out of thin air. I think it's twenty billion dollars. 635 00:33:15,080 --> 00:33:18,200 Speaker 4: Twenty billion dollars, twenty billion dollars. So for Power five 636 00:33:18,320 --> 00:33:19,920 Speaker 4: to think, you know what, we're happy to set up 637 00:33:19,920 --> 00:33:21,880 Speaker 4: for two point seven because we don't want to go 638 00:33:21,880 --> 00:33:24,840 Speaker 4: anywhere near twenty billion, and rather than risk that, we'll 639 00:33:24,880 --> 00:33:25,920 Speaker 4: go over the two point seven. 640 00:33:26,280 --> 00:33:28,480 Speaker 10: But that's only going to last twenty and thirty four. 641 00:33:28,640 --> 00:33:31,760 Speaker 4: That's why they're happy that all the other schools are 642 00:33:31,800 --> 00:33:34,719 Speaker 4: represented by the NC DOUBLEA. So in effect, the other 643 00:33:34,760 --> 00:33:38,120 Speaker 4: schools really don't have a vote. The NC Double A 644 00:33:38,200 --> 00:33:39,000 Speaker 4: has their proxy. 645 00:33:39,480 --> 00:33:42,720 Speaker 1: Okay, so Joe, you are a longtime coach, You deal 646 00:33:42,760 --> 00:33:46,520 Speaker 1: with young people, You work and talk to their families. 647 00:33:47,000 --> 00:33:51,040 Speaker 1: What if you're a young athlete and you're being recruited 648 00:33:51,120 --> 00:33:53,720 Speaker 1: for to play sports in school and you have a 649 00:33:53,800 --> 00:33:56,920 Speaker 1: choice between going to a Power five school or not, 650 00:33:57,480 --> 00:34:01,440 Speaker 1: or playing football or another sport, how would you advise them? 651 00:34:01,480 --> 00:34:03,680 Speaker 1: How do they think through this? Because this is going 652 00:34:03,760 --> 00:34:05,400 Speaker 1: to be their next couple of years. They can't wait 653 00:34:05,480 --> 00:34:06,400 Speaker 1: until twenty thirty four. 654 00:34:07,760 --> 00:34:10,320 Speaker 10: Well, no, no, they can't. Well I think that already 655 00:34:10,360 --> 00:34:11,080 Speaker 10: exists Scarlett. 656 00:34:11,320 --> 00:34:14,319 Speaker 4: Okay, So so number one, it used to be what 657 00:34:14,480 --> 00:34:17,719 Speaker 4: is the right school for me as an individual student athlete? 658 00:34:17,880 --> 00:34:19,600 Speaker 4: Where am I going to get the best education? What 659 00:34:19,680 --> 00:34:21,319 Speaker 4: am I interested in terms of a major? What do 660 00:34:21,400 --> 00:34:23,440 Speaker 4: I think about life after football? I may get to 661 00:34:23,480 --> 00:34:26,560 Speaker 4: the NFL chances I'm not, so what am I interested in? 662 00:34:26,560 --> 00:34:30,120 Speaker 4: As far as that goes, that was always the big 663 00:34:30,200 --> 00:34:32,200 Speaker 4: question that you wanted a high. 664 00:34:32,000 --> 00:34:34,520 Speaker 10: School student or a transfer student to be able to answer. 665 00:34:34,760 --> 00:34:37,080 Speaker 4: Now, the first thing out of the first or second 666 00:34:37,080 --> 00:34:40,239 Speaker 4: thing out of a student athlete's mouth and being recruited, 667 00:34:40,440 --> 00:34:42,600 Speaker 4: whether he's coming in she or he or she's coming 668 00:34:42,600 --> 00:34:44,640 Speaker 4: in off the portal, or whether they're coming in from 669 00:34:44,719 --> 00:34:46,920 Speaker 4: high school or from the parents, is what kind of 670 00:34:47,000 --> 00:34:50,799 Speaker 4: and and I would I be able to get? That's 671 00:34:50,840 --> 00:34:52,799 Speaker 4: the first thing out of their mouths. So you could 672 00:34:52,840 --> 00:34:54,920 Speaker 4: talk about how great the university is, and you can 673 00:34:54,960 --> 00:34:56,960 Speaker 4: talk about what a wonderful experience is going to be 674 00:34:57,000 --> 00:34:59,520 Speaker 4: and what great facilities we have with great tradition, But 675 00:34:59,560 --> 00:35:01,799 Speaker 4: what's going to drive this is how much money I'm 676 00:35:01,800 --> 00:35:02,319 Speaker 4: going to get. 677 00:35:02,480 --> 00:35:05,319 Speaker 5: So if the power if the Big five conference, if 678 00:35:05,360 --> 00:35:09,120 Speaker 5: they support this, the Power five, sorry, if they support 679 00:35:09,120 --> 00:35:11,400 Speaker 5: this two point seven, you know what's to stop it? 680 00:35:11,440 --> 00:35:13,799 Speaker 5: I mean, what comes next? What's the timeline here? I mean, 681 00:35:13,800 --> 00:35:16,080 Speaker 5: what can we expect? Are they're gonna then have to 682 00:35:16,080 --> 00:35:18,759 Speaker 5: sit down with you know, all of the universities that 683 00:35:18,760 --> 00:35:21,120 Speaker 5: are represented by the NC double A to figure out 684 00:35:21,120 --> 00:35:24,280 Speaker 5: how the money's allocated, figure out you know, roster sizes, 685 00:35:24,400 --> 00:35:27,640 Speaker 5: roster limits, transfer portals, all this stuff. And I guess 686 00:35:27,640 --> 00:35:29,799 Speaker 5: my question is how long is that going to take? 687 00:35:29,920 --> 00:35:32,240 Speaker 4: Well, they've talked about six months, but they haven't addressed 688 00:35:32,280 --> 00:35:35,000 Speaker 4: any of that so far in the last three plus years, right, 689 00:35:35,040 --> 00:35:37,319 Speaker 4: But they will eventually address that. But the Power five 690 00:35:37,520 --> 00:35:39,919 Speaker 4: shimply won't worry about any other conferences. They will say 691 00:35:39,960 --> 00:35:42,200 Speaker 4: they do, but they will not. So they're going to 692 00:35:42,280 --> 00:35:44,400 Speaker 4: Power five will do whatever is in their best interest. 693 00:35:44,600 --> 00:35:46,400 Speaker 4: The NC double A is going to allow them to 694 00:35:46,440 --> 00:35:47,919 Speaker 4: do that because they don't want to see the Power 695 00:35:47,960 --> 00:35:50,879 Speaker 4: five breakaway from the NC double A. So the Power 696 00:35:50,880 --> 00:35:53,200 Speaker 4: five will do what they need to do for themselves, 697 00:35:53,200 --> 00:35:55,360 Speaker 4: and everybody else is going to have to fend for themselves. 698 00:35:55,480 --> 00:35:57,640 Speaker 4: That's what I meant at the very very beginning, folks, 699 00:35:57,640 --> 00:36:01,560 Speaker 4: that this does not solve the ultimately the ultimate issue. 700 00:36:01,719 --> 00:36:05,080 Speaker 4: The ultimate issue is you have this literally existentialist versus 701 00:36:05,120 --> 00:36:09,160 Speaker 4: capitalism dilemma, dilemma between what's going on in university life 702 00:36:09,239 --> 00:36:12,759 Speaker 4: and athletics. And there are five hundred and sixty seven 703 00:36:12,800 --> 00:36:18,320 Speaker 4: thousand college athletes that exist about about ballpark. Okay, probably 704 00:36:18,920 --> 00:36:22,080 Speaker 4: maybe one percent of them, that's five thousand and six 705 00:36:22,160 --> 00:36:24,959 Speaker 4: thousand and change get more than ten ten thousand dollars 706 00:36:25,000 --> 00:36:28,440 Speaker 4: a year one percent, So you got ninety nine percent, 707 00:36:28,520 --> 00:36:30,560 Speaker 4: or at least conservatives ninety five percent. 708 00:36:30,680 --> 00:36:32,920 Speaker 10: All college athletes are not not going to get a penny. 709 00:36:33,080 --> 00:36:34,520 Speaker 4: They're not going to get any money, or they're going 710 00:36:34,560 --> 00:36:36,800 Speaker 4: to get somebody it's going to want to be a nominal. 711 00:36:37,040 --> 00:36:39,760 Speaker 4: That's why there's got to be a major divide between 712 00:36:39,960 --> 00:36:42,560 Speaker 4: what's got to be looked at as professional. For the 713 00:36:42,640 --> 00:36:46,040 Speaker 4: time being, just keep calling division one and amateur is 714 00:36:46,080 --> 00:36:46,440 Speaker 4: called that. 715 00:36:46,400 --> 00:36:47,560 Speaker 10: Division two, division three. 716 00:36:47,840 --> 00:36:49,719 Speaker 4: So if you're good enough to get paid, If you're 717 00:36:49,760 --> 00:36:52,080 Speaker 4: good enough to get paid, that means they'll recruit you 718 00:36:52,280 --> 00:36:54,719 Speaker 4: from Division two to Division one, similar to what would 719 00:36:54,760 --> 00:36:57,320 Speaker 4: happen to the soccer league in the premier league in Europe. 720 00:36:57,480 --> 00:37:00,319 Speaker 4: You know, you have the best teams and then you 721 00:37:00,360 --> 00:37:02,320 Speaker 4: have kind of the ones that are doing real well. 722 00:37:02,400 --> 00:37:04,560 Speaker 4: On a particular year or two, they could get invited 723 00:37:04,640 --> 00:37:07,600 Speaker 4: up well. An individual can get invited up to Division one. 724 00:37:07,680 --> 00:37:10,719 Speaker 4: We have professionals right by being recruited by that year 725 00:37:10,840 --> 00:37:11,399 Speaker 4: doesn't work. 726 00:37:12,040 --> 00:37:15,000 Speaker 2: Jim Moly a former chairman of the board and CEO 727 00:37:15,160 --> 00:37:19,319 Speaker 2: of TD Ameritrade. By the way, he's coached to me 728 00:37:19,480 --> 00:37:24,200 Speaker 2: because he's the former head football coach at Coastal Carolina University. Joe, 729 00:37:24,360 --> 00:37:26,600 Speaker 2: thank you, sir for joining us on the Bloomberg Business 730 00:37:26,600 --> 00:37:28,680 Speaker 2: of Sports and thank you for dropping your knowledge on us. 731 00:37:28,719 --> 00:37:29,799 Speaker 2: We really do appreciate it. 732 00:37:29,840 --> 00:37:32,120 Speaker 10: Oaks. I'm grateful for you having me on all the best. 733 00:37:32,440 --> 00:37:35,640 Speaker 2: Now, have you missed anything, Go back and listen to 734 00:37:35,680 --> 00:37:38,600 Speaker 2: the whole thing on demand on the Bloomberg Business of 735 00:37:38,640 --> 00:37:42,239 Speaker 2: Sports podcast. It's available on Apple, Spotify and all your 736 00:37:42,239 --> 00:37:46,360 Speaker 2: favorite podcast platforms. Thank you for listening to the Bloomberg 737 00:37:46,400 --> 00:37:49,520 Speaker 2: Business of Sports Show. We're here each and every week 738 00:37:49,560 --> 00:37:52,319 Speaker 2: at the same time for my colleague Scarlett fu and 739 00:37:52,520 --> 00:37:55,840 Speaker 2: Damien Sassaur. I'm Michael Barn. Tune in again next week 740 00:37:56,000 --> 00:37:58,600 Speaker 2: for the latest on the stories moving big money in 741 00:37:58,680 --> 00:38:02,360 Speaker 2: the world of sports. You're listening to the Bloomberg Business 742 00:38:02,400 --> 00:38:06,759 Speaker 2: of Sports from Bloomberg Radio around the world. Stay with us. 743 00:38:06,760 --> 00:38:10,160 Speaker 2: Today's top stories and global business headlines are coming up 744 00:38:10,520 --> 00:38:10,960 Speaker 2: right now.