1 00:00:00,280 --> 00:00:03,760 Speaker 1: This is the business of sports. Should Major League Baseball 2 00:00:04,000 --> 00:00:06,840 Speaker 1: shorten up the season? How do we present football to 3 00:00:06,920 --> 00:00:08,920 Speaker 1: the audience of the future. I don't think that most 4 00:00:08,920 --> 00:00:11,640 Speaker 1: players understand the power that they have. Michael Barr. The 5 00:00:11,720 --> 00:00:15,520 Speaker 1: future of IndyCar racing is looking bright. Scott Shnak, very 6 00:00:15,560 --> 00:00:18,759 Speaker 1: basic math here, more bidders means more money. Evan Nobody Williams, 7 00:00:18,960 --> 00:00:22,079 Speaker 1: the team value has essentially quadruples. And the leaders in 8 00:00:22,120 --> 00:00:25,480 Speaker 1: the sports industry time to bring in our guest, hal Steinbrunner, 9 00:00:25,600 --> 00:00:29,320 Speaker 1: National Hockey League Commissioner Gary Bettman, Atlanta Braves president Derek Schiller, 10 00:00:29,400 --> 00:00:35,160 Speaker 1: Patriots President Jonathan Kraft. Bloomberg Business of Sports from Bloomberg Radio. Hello, 11 00:00:35,240 --> 00:00:38,280 Speaker 1: I'm Scott So, I'm Evan Novie Williams, and I'm Michael Barr. 12 00:00:38,280 --> 00:00:42,400 Speaker 1: And this is the Bloomberg Business of Sports podcast where 13 00:00:42,440 --> 00:00:48,440 Speaker 1: you and I nothing all right, we'll explore the big 14 00:00:48,440 --> 00:00:51,559 Speaker 1: money issues in the world of sports, all three of 15 00:00:51,640 --> 00:00:56,440 Speaker 1: us being in a nut and and Medina to him, Indita, 16 00:00:57,240 --> 00:00:59,040 Speaker 1: h I can watch on the button. Thought she was 17 00:00:59,080 --> 00:01:00,680 Speaker 1: just a little I saw I can see this a 18 00:01:00,680 --> 00:01:04,040 Speaker 1: little headache, like, oh my god. But I wasn't expecting it. 19 00:01:04,120 --> 00:01:05,759 Speaker 1: I was like it was like a look away though. 20 00:01:05,760 --> 00:01:08,040 Speaker 1: You went for the mic to look away, and you 21 00:01:08,120 --> 00:01:13,160 Speaker 1: got it. I did very well, muscle memory. You knew 22 00:01:13,200 --> 00:01:17,000 Speaker 1: exactly how far to go. That was very good. I 23 00:01:17,080 --> 00:01:19,600 Speaker 1: was impressive. Like it says here though, speaking of impressive, 24 00:01:19,640 --> 00:01:22,280 Speaker 1: don't say we're going to begin with Amanati because we're not. Okay, 25 00:01:22,360 --> 00:01:24,679 Speaker 1: don't read that, all right, we won't. We won't read 26 00:01:25,120 --> 00:01:26,399 Speaker 1: we want to go with the balls. We want to 27 00:01:26,400 --> 00:01:31,000 Speaker 1: start with the ball. No one's listening anymore anyways. Not true. 28 00:01:31,240 --> 00:01:34,160 Speaker 1: So they're waiting for your bits of genius. So are 29 00:01:34,160 --> 00:01:38,399 Speaker 1: we going to Big Baller? Yeah, big baller? Man? What happened? 30 00:01:38,600 --> 00:01:42,240 Speaker 1: It's it's you know, first of all, somebody is apparently 31 00:01:42,280 --> 00:01:46,319 Speaker 1: accused of taking a bunch of money, and the family 32 00:01:46,480 --> 00:01:51,200 Speaker 1: that LaVar Ball brought in is now apparently accused of 33 00:01:51,600 --> 00:01:54,520 Speaker 1: Well is he accused? I just can't find one one 34 00:01:54,560 --> 00:01:57,680 Speaker 1: and a half million dollars? Yeah, I mean he's been 35 00:01:58,680 --> 00:02:01,720 Speaker 1: million dollars off the company all the time. I bet, 36 00:02:02,440 --> 00:02:05,240 Speaker 1: I bet. But yeah, that's the bigger story to me, 37 00:02:05,320 --> 00:02:07,960 Speaker 1: at least, is that this appears to be the end 38 00:02:08,320 --> 00:02:11,760 Speaker 1: of BBB, the Big Bowler brand Um, which was a 39 00:02:11,800 --> 00:02:15,680 Speaker 1: which was a shooting star in the landscape of basketball merchandise. 40 00:02:16,400 --> 00:02:20,280 Speaker 1: Remember LaVar, you know, the father started this, I guess 41 00:02:20,320 --> 00:02:23,560 Speaker 1: two years ago now. Um. It seemed like the end 42 00:02:23,560 --> 00:02:26,000 Speaker 1: game for him was to build a brand around his 43 00:02:26,080 --> 00:02:28,800 Speaker 1: three sons, all of whom are basketball players. Um, and 44 00:02:28,840 --> 00:02:31,360 Speaker 1: then maybe try to license that or sell it to 45 00:02:31,440 --> 00:02:37,680 Speaker 1: a bigger company. Obviously that never materialized. There were you know, shoes, 46 00:02:37,720 --> 00:02:41,000 Speaker 1: there were two hundred and nine dollars sandals. You know, 47 00:02:41,040 --> 00:02:44,000 Speaker 1: there was a lot of a lot of mistaff But 48 00:02:44,040 --> 00:02:46,960 Speaker 1: I'm surprised that you didn't have a pair of band 49 00:02:47,040 --> 00:02:50,720 Speaker 1: You're surprised I didn't pay five You know, it's my 50 00:02:50,840 --> 00:02:52,560 Speaker 1: birthday and I would never buy this for myself, but 51 00:02:52,600 --> 00:02:56,480 Speaker 1: I'd like a pair of I certainly appreciate part of 52 00:02:56,480 --> 00:02:58,720 Speaker 1: what was attempted here. I don't think they didn't necessarily 53 00:02:58,760 --> 00:03:01,160 Speaker 1: and in the best way. There was a pop up 54 00:03:01,160 --> 00:03:03,680 Speaker 1: shop in in New York for a little bit. Um. 55 00:03:03,720 --> 00:03:06,000 Speaker 1: I like the idea of somebody kind of trying trying 56 00:03:06,000 --> 00:03:08,679 Speaker 1: to challenge the you know, the incumbent system. We're Nike 57 00:03:08,760 --> 00:03:13,080 Speaker 1: and Adidas and and Puma and a few had. The 58 00:03:13,080 --> 00:03:17,520 Speaker 1: mixtape tour represented sort of the avant garde game. Sure, 59 00:03:17,560 --> 00:03:19,880 Speaker 1: so if Big Baller Brand was supposed to be a 60 00:03:19,880 --> 00:03:21,919 Speaker 1: newer version of that. I think that's great, right, But 61 00:03:21,960 --> 00:03:24,919 Speaker 1: I mean it seems like, you know, partially because Alan Foster, 62 00:03:25,000 --> 00:03:27,200 Speaker 1: this friend of the family who owns a sixth of 63 00:03:27,200 --> 00:03:30,160 Speaker 1: the company, since it appears that he was taking money away, 64 00:03:30,320 --> 00:03:34,480 Speaker 1: and we saw this week Alonzo who plays for the Lakers. Uh, 65 00:03:34,680 --> 00:03:37,200 Speaker 1: he took the tattoo, the Big Baller brand tattoo, and 66 00:03:37,200 --> 00:03:39,560 Speaker 1: covered it up with a pair of dice on his arm, 67 00:03:39,640 --> 00:03:43,120 Speaker 1: which I assumed brand. Yeah, I assume that means this 68 00:03:43,200 --> 00:03:45,600 Speaker 1: is the end of Big Baller Brand as we know it. 69 00:03:45,720 --> 00:03:48,720 Speaker 1: But now let's let's break it down what what happened. 70 00:03:48,840 --> 00:03:51,080 Speaker 1: I mean, yes, we can say, you know, obviously, when 71 00:03:51,080 --> 00:03:53,880 Speaker 1: you steal money, that's not good, if that's what happened, 72 00:03:54,280 --> 00:03:58,400 Speaker 1: But can you break down exactly why this is about 73 00:03:58,440 --> 00:04:00,840 Speaker 1: to come to the end of the road? I don't think. 74 00:04:01,000 --> 00:04:02,800 Speaker 1: I don't think we're ever going to know. I mean, certainly, 75 00:04:02,880 --> 00:04:05,240 Speaker 1: when you lose a million and a half dollars, that's 76 00:04:05,240 --> 00:04:07,080 Speaker 1: a big deal. I don't see a lot of Big 77 00:04:07,080 --> 00:04:09,640 Speaker 1: Bowler branch shoes. Yeah, there's also the possibility that it 78 00:04:09,720 --> 00:04:12,760 Speaker 1: was just not working in the way it intended. Right, 79 00:04:12,800 --> 00:04:15,440 Speaker 1: if if it was a money losing venture and you 80 00:04:15,440 --> 00:04:17,039 Speaker 1: know they wanted to get out of it. Alonzo it 81 00:04:17,080 --> 00:04:20,440 Speaker 1: appears if you if you read his social media, maybe 82 00:04:20,480 --> 00:04:22,680 Speaker 1: moving over to Nike gear, it's already I mean, if 83 00:04:22,680 --> 00:04:24,800 Speaker 1: the if the if they had decided this wasn't gonna work, 84 00:04:24,839 --> 00:04:27,200 Speaker 1: and you know, fraud or no fraud, you know from 85 00:04:27,240 --> 00:04:30,560 Speaker 1: their family friends, chance, if you're Nike, do you want 86 00:04:31,600 --> 00:04:34,120 Speaker 1: I'm not I don't know enough about basketball to know 87 00:04:34,160 --> 00:04:36,000 Speaker 1: if he's good or not. But he was a top 88 00:04:36,040 --> 00:04:39,599 Speaker 1: three pick. He plays alongside Lebron James. Is always going 89 00:04:39,640 --> 00:04:43,680 Speaker 1: to be attention on the Lakers, regardless of who. It's 90 00:04:43,720 --> 00:04:45,919 Speaker 1: not in the playoffs, but there are players that are 91 00:04:45,960 --> 00:04:48,159 Speaker 1: not going to make the playoffs this year. Lebron James included, right, 92 00:04:48,160 --> 00:04:51,279 Speaker 1: who is a marketing you know it is a marketing juggernaut. Yeah, 93 00:04:51,279 --> 00:04:54,159 Speaker 1: I think that Alonzo ball probably moves the needle a 94 00:04:54,160 --> 00:04:57,440 Speaker 1: little bit. And if you're Nike, right, you have the money, 95 00:04:57,279 --> 00:05:01,080 Speaker 1: why not shot out a little bit? Why not? Let's 96 00:05:01,120 --> 00:05:04,080 Speaker 1: move on? And this is a story that Evan wrote 97 00:05:04,400 --> 00:05:09,480 Speaker 1: and it involves Michael Avanati sticking with a Nike family here. Yeah, yeah, 98 00:05:09,600 --> 00:05:12,280 Speaker 1: quite speaking of Nike, quite a bizarre start to the 99 00:05:12,320 --> 00:05:16,560 Speaker 1: week here. Um, while we were recording our podcast on Monday, 100 00:05:16,680 --> 00:05:19,320 Speaker 1: Michael Vanatti tweeted that he, you know, was was on 101 00:05:19,320 --> 00:05:22,240 Speaker 1: the verge of announcing you know, major college basketball scandal 102 00:05:22,279 --> 00:05:25,720 Speaker 1: bribery news involving Nike. Um. And as we were kind 103 00:05:25,760 --> 00:05:27,640 Speaker 1: of typing at the keyboard trying to get caught up 104 00:05:27,640 --> 00:05:31,039 Speaker 1: on that, Uh, the Southern District of New York federal 105 00:05:31,080 --> 00:05:36,200 Speaker 1: prosecutors charged Michael Avanatti with trying to extort Nike. Right, so, 106 00:05:36,200 --> 00:05:39,080 Speaker 1: so the narrative flipped very quickly. Um. If you look 107 00:05:39,120 --> 00:05:42,719 Speaker 1: at the complaint, they have recorded conversations of Michael talking 108 00:05:42,760 --> 00:05:46,159 Speaker 1: to Nike lawyers threatening to take quote billions off of 109 00:05:46,200 --> 00:05:49,479 Speaker 1: their market cap. And by the way, and Mark Garrigos, 110 00:05:49,560 --> 00:05:56,920 Speaker 1: who represent Nike, I mean, yeah, there's it's the mix 111 00:05:57,040 --> 00:06:00,599 Speaker 1: of a AU Basketball, Nike Garrigos of Naughty. We have 112 00:06:00,680 --> 00:06:03,000 Speaker 1: sound of av Natti. Uh. This is what he has 113 00:06:03,040 --> 00:06:06,760 Speaker 1: to say about his involvement here. I am highly competent 114 00:06:07,279 --> 00:06:11,200 Speaker 1: that when all of the evidence is lay bare in 115 00:06:11,279 --> 00:06:15,400 Speaker 1: connection with these cases, when it is all known, when 116 00:06:15,480 --> 00:06:20,440 Speaker 1: due process occurs, that I will be fully exonerated and 117 00:06:20,560 --> 00:06:23,800 Speaker 1: justice will be done. The man knows how to get attention. 118 00:06:24,839 --> 00:06:26,760 Speaker 1: I will give him that. The man knows how to 119 00:06:26,800 --> 00:06:29,680 Speaker 1: get attention. So there's two obviously two things here. One, 120 00:06:30,000 --> 00:06:32,200 Speaker 1: if he extorted NI don't do that right like kids 121 00:06:32,240 --> 00:06:35,480 Speaker 1: at home, that's bad. But there is certainly a chance 122 00:06:35,520 --> 00:06:39,400 Speaker 1: that outside of the criminal active extortion um, that there 123 00:06:39,400 --> 00:06:41,960 Speaker 1: may be some truth to the underlying information he had 124 00:06:42,000 --> 00:06:43,680 Speaker 1: about Nike and and we got a little bit of 125 00:06:43,720 --> 00:06:46,039 Speaker 1: hint of that the day after he was arrested, when 126 00:06:46,040 --> 00:06:49,320 Speaker 1: he was tweeting kind of cryptic messages about DeAndre Ayton, 127 00:06:49,360 --> 00:06:51,080 Speaker 1: who was the first pick in the two thousand eighteen 128 00:06:51,160 --> 00:06:54,159 Speaker 1: NBA draft. Also Bull Bull, who's a freshman at the 129 00:06:54,200 --> 00:06:59,960 Speaker 1: University of Oregon school more closely might as well. Universe 130 00:07:00,400 --> 00:07:02,640 Speaker 1: um Eighton is a is a guy you know. A 131 00:07:02,640 --> 00:07:04,840 Speaker 1: couple of months ago, when the trial for for for 132 00:07:04,880 --> 00:07:07,800 Speaker 1: the earlier bribery stuff was happening here in Brooklyn, somebody 133 00:07:07,839 --> 00:07:10,720 Speaker 1: testified that that they had paid and Adida's representatives said 134 00:07:10,720 --> 00:07:14,880 Speaker 1: that he had paid, uh DeAndre Eaton's family. So, by 135 00:07:14,920 --> 00:07:17,760 Speaker 1: the way, getting it from all sides, yeah, from potentially 136 00:07:19,120 --> 00:07:21,800 Speaker 1: and by the way, then wound up signing with Puma. Yeah, 137 00:07:21,960 --> 00:07:25,200 Speaker 1: So if we look back, maybe all, this isn't all 138 00:07:25,200 --> 00:07:27,040 Speaker 1: that effective, which is a yeah, kind of a nice 139 00:07:27,080 --> 00:07:31,160 Speaker 1: reminder that this is not an exact sign signing. Um yeah, 140 00:07:31,200 --> 00:07:34,680 Speaker 1: but again a tough just another piece of you know, 141 00:07:34,720 --> 00:07:37,760 Speaker 1: another piece of something to embolden those who think the 142 00:07:37,800 --> 00:07:41,200 Speaker 1: n c a A and youth basketball and college basketball 143 00:07:41,240 --> 00:07:44,400 Speaker 1: have a have a big structural problem here. Um just 144 00:07:44,440 --> 00:07:46,480 Speaker 1: another you know, brings it back into the spotlight. The 145 00:07:46,480 --> 00:07:48,560 Speaker 1: fact that you know, it's an open secret. We've talked 146 00:07:48,560 --> 00:07:51,480 Speaker 1: about it before, but you know, the levels of youth 147 00:07:51,480 --> 00:07:54,080 Speaker 1: basketball at the high school and the club level, and 148 00:07:54,120 --> 00:07:56,280 Speaker 1: the way that bleeds into college and then into the 149 00:07:56,320 --> 00:07:58,840 Speaker 1: pros um there is a lot of illicit payments and 150 00:07:58,840 --> 00:08:00,520 Speaker 1: there's a lot of would you say, really particularly you know, 151 00:08:00,560 --> 00:08:02,480 Speaker 1: it's a long shot or maybe not a long shot, 152 00:08:02,520 --> 00:08:05,920 Speaker 1: but a better than or less than average chance that 153 00:08:06,160 --> 00:08:08,160 Speaker 1: a high school kid, let's say his family does take money, 154 00:08:08,200 --> 00:08:11,440 Speaker 1: will sign with that particular brand. But more importantly, if 155 00:08:11,480 --> 00:08:14,280 Speaker 1: it actually works, is to get that top recruit to 156 00:08:14,440 --> 00:08:17,840 Speaker 1: the university that you recuacee that that's the real payoff here. 157 00:08:17,920 --> 00:08:20,720 Speaker 1: Both bull Bull and DeAndre Eaton went to Nike schools. 158 00:08:20,880 --> 00:08:23,320 Speaker 1: You could say that Nike and Oregon are two of 159 00:08:23,360 --> 00:08:26,200 Speaker 1: the bigger you know, the bigger schools large and college 160 00:08:26,240 --> 00:08:29,640 Speaker 1: sports in in the Nike stable. Um, yeah, so yeah, 161 00:08:29,680 --> 00:08:32,240 Speaker 1: you can say that. Yeah, certainly when DeAndre Eaton was 162 00:08:32,280 --> 00:08:33,920 Speaker 1: playing in the n c A tournament, right, he was, 163 00:08:34,000 --> 00:08:36,480 Speaker 1: he was wearing Nike, and there's a chance, I mean, 164 00:08:36,480 --> 00:08:38,720 Speaker 1: you get a better shot of of signing him as 165 00:08:38,760 --> 00:08:40,720 Speaker 1: a pro if he's used to playing in the shoes. 166 00:08:40,760 --> 00:08:43,960 Speaker 1: And was there a reason the scenes and blue chips, 167 00:08:43,960 --> 00:08:48,080 Speaker 1: remember the Shack and Nicknolton movie. I mean, yeah, Neon Boudreau, 168 00:08:48,800 --> 00:08:56,320 Speaker 1: there's a reason why the exaggerated storylines work because in reality, 169 00:08:56,400 --> 00:08:58,960 Speaker 1: that's sort of what goes on. So there's a reason 170 00:08:59,080 --> 00:09:02,959 Speaker 1: why here's your tractor. You know, I got a new tractor. 171 00:09:03,320 --> 00:09:05,439 Speaker 1: We're going to hear a lot more about this, right 172 00:09:05,480 --> 00:09:07,840 Speaker 1: we know the FEDS are continuing to investigate, you know, 173 00:09:07,960 --> 00:09:10,760 Speaker 1: all the threads that they were pulling, Um that didn't 174 00:09:10,840 --> 00:09:13,439 Speaker 1: really touch Nike, touched the Nike schools, but didn't touch 175 00:09:13,520 --> 00:09:16,920 Speaker 1: Nike as a whole. Yet there's also a chance in 176 00:09:17,160 --> 00:09:20,920 Speaker 1: Michael Avanati's case separately, that just as part of discovery 177 00:09:21,000 --> 00:09:23,800 Speaker 1: or part of that process, uh, the information that he 178 00:09:23,840 --> 00:09:26,640 Speaker 1: had that he originally brought to Nike. Maybe comes out. Um, 179 00:09:26,760 --> 00:09:29,200 Speaker 1: we have not seen anywhere near the bottom. I think 180 00:09:29,280 --> 00:09:32,559 Speaker 1: of of of the the college basketball sneaker scandal. Well, 181 00:09:32,559 --> 00:09:34,080 Speaker 1: by the way, and I want to clarify something in 182 00:09:34,080 --> 00:09:37,960 Speaker 1: case anybody's saying, hey, I thought Abanati was accused of 183 00:09:38,360 --> 00:09:41,600 Speaker 1: taking money from a client. Well, yes, he's accused both 184 00:09:41,880 --> 00:09:45,320 Speaker 1: because in New York here is where the Nike cases. 185 00:09:45,840 --> 00:09:49,920 Speaker 1: On the West Coast in California is where the case 186 00:09:50,080 --> 00:09:52,360 Speaker 1: is where he's accused of taking over a million dollars 187 00:09:52,360 --> 00:09:54,480 Speaker 1: from his client. One of their fun little item from 188 00:09:54,480 --> 00:09:57,800 Speaker 1: the from the Avanati complaint, the conversations he had with Nike. 189 00:09:58,040 --> 00:10:00,160 Speaker 1: He had he had a client who was a a 190 00:10:00,040 --> 00:10:02,560 Speaker 1: AU basketball coach who apparently had evidence that that that 191 00:10:02,640 --> 00:10:05,679 Speaker 1: Nike was paying players. He wanted one point five million 192 00:10:05,679 --> 00:10:08,240 Speaker 1: dollars for his client. The other way he was extorting 193 00:10:08,320 --> 00:10:11,520 Speaker 1: Nike is he wanted Nike to hire his law firm 194 00:10:11,559 --> 00:10:14,880 Speaker 1: to do the internal investigation at a retainer of fifteen 195 00:10:15,440 --> 00:10:17,760 Speaker 1: million dollars. Hire his law firm to do the the 196 00:10:17,760 --> 00:10:23,560 Speaker 1: internal investigation. Never that it's about two three millions in 197 00:10:23,600 --> 00:10:26,880 Speaker 1: the same price. To me, it also totally highlights kind 198 00:10:26,920 --> 00:10:29,760 Speaker 1: of the farcical nature of when you see these things 199 00:10:29,800 --> 00:10:32,800 Speaker 1: pop up and suddenly, you know, the the organization hires 200 00:10:32,800 --> 00:10:34,959 Speaker 1: an outside law firm to come in and they say 201 00:10:35,000 --> 00:10:38,040 Speaker 1: they're independent, but they're under contract from the organization itself. 202 00:10:38,080 --> 00:10:40,439 Speaker 1: And rarely those things ever turn up anything that is 203 00:10:40,920 --> 00:10:44,120 Speaker 1: incredibly incendiary. I don't know. To me, that just kind 204 00:10:44,120 --> 00:10:46,040 Speaker 1: of highlighted the fact that when you see, you know, hey, 205 00:10:46,080 --> 00:10:49,559 Speaker 1: we've hired a law firm to do an independent internal investigation. Uh, 206 00:10:50,160 --> 00:10:54,400 Speaker 1: very often, possibly those things are our script. What brand 207 00:10:54,440 --> 00:10:56,520 Speaker 1: would you endorse? They came? But what's the high use? 208 00:10:56,600 --> 00:11:00,560 Speaker 1: I'm just curious, like, what brand would the bar name with? 209 00:11:00,640 --> 00:11:05,199 Speaker 1: What do your kids? Baby kids big bar brand? There 210 00:11:05,240 --> 00:11:12,000 Speaker 1: you go, I can't even stop. That's good. Uh, let's 211 00:11:12,000 --> 00:11:15,520 Speaker 1: move on the Mets willpons. Are they actually selling a 212 00:11:15,600 --> 00:11:23,840 Speaker 1: steak of the team. No, they're buying wait an, yeah, 213 00:11:23,840 --> 00:11:28,679 Speaker 1: they're buying some of the limited partners, Charter Communications and Comcast. 214 00:11:29,040 --> 00:11:31,800 Speaker 1: We're selling the piece of the team that they own. 215 00:11:32,559 --> 00:11:35,480 Speaker 1: And the Mets had right of first refusal and Inner 216 00:11:35,480 --> 00:11:38,439 Speaker 1: Circle Sports was out there marketing this piece of the team. 217 00:11:38,559 --> 00:11:43,000 Speaker 1: Um and they got an offer, and because the valuation 218 00:11:43,200 --> 00:11:45,560 Speaker 1: wasn't quite as high as what we think the Mets 219 00:11:45,559 --> 00:11:47,160 Speaker 1: would be worth our most people would think the Mets 220 00:11:47,200 --> 00:11:50,439 Speaker 1: are worth the Willpons and who have control anyway, whether 221 00:11:50,520 --> 00:11:54,640 Speaker 1: or not they um, but the price was right, So 222 00:11:54,679 --> 00:11:58,400 Speaker 1: the Wilpons have apparently decided to buy that steak in 223 00:11:58,440 --> 00:12:02,160 Speaker 1: the team, raising their total control of the franchise. So 224 00:12:02,200 --> 00:12:06,800 Speaker 1: this is around the steak from Comcast and Charter. Interesting, Yeather, 225 00:12:07,040 --> 00:12:08,680 Speaker 1: there seems to be like kind of two ways that 226 00:12:08,679 --> 00:12:10,800 Speaker 1: people have reacted to this, right. One is is the 227 00:12:10,840 --> 00:12:12,800 Speaker 1: way you said and that you know, maybe the he 228 00:12:12,840 --> 00:12:16,240 Speaker 1: had brought a first refusal, money wasn't flowing in necessarily 229 00:12:16,280 --> 00:12:17,880 Speaker 1: to it, and he didn't want to have a stake 230 00:12:17,920 --> 00:12:20,040 Speaker 1: out there that was going at such a low valuation, right, 231 00:12:20,040 --> 00:12:22,400 Speaker 1: so he bought it back himself. Well, it makes sense 232 00:12:22,440 --> 00:12:26,920 Speaker 1: because these smaller steaks. Think about, why would you spend 233 00:12:26,960 --> 00:12:29,720 Speaker 1: a whole lot of money to buy a minority share 234 00:12:29,760 --> 00:12:32,160 Speaker 1: of a team when you have no path control. I 235 00:12:32,200 --> 00:12:35,599 Speaker 1: couldn't no saying how the team has run, so they're devalued. 236 00:12:35,800 --> 00:12:40,599 Speaker 1: There's often a discount for limited partnerships, So if the 237 00:12:40,679 --> 00:12:43,840 Speaker 1: number is going to be low compared to what the 238 00:12:43,840 --> 00:12:47,839 Speaker 1: team is we think worth are valued at. Then if 239 00:12:47,880 --> 00:12:51,040 Speaker 1: you're the Wilpons, why not take it at the lower number, 240 00:12:51,480 --> 00:12:54,120 Speaker 1: because if and when, at some point you do sell, 241 00:12:54,240 --> 00:12:57,760 Speaker 1: if you choose to self control of the team, then 242 00:12:57,840 --> 00:13:00,880 Speaker 1: you're going back to that higher valuation, So you'll make 243 00:13:00,920 --> 00:13:02,760 Speaker 1: your money back on the money you just spent on 244 00:13:02,800 --> 00:13:05,720 Speaker 1: that steak. So you explained that's what was confusing to 245 00:13:05,720 --> 00:13:07,719 Speaker 1: me about this is like, well, wait a minute, it 246 00:13:07,760 --> 00:13:09,600 Speaker 1: made sense. If you're going to sell a piece of 247 00:13:09,640 --> 00:13:11,520 Speaker 1: this of the team, I didn't know they were going 248 00:13:11,559 --> 00:13:15,000 Speaker 1: to buy it. They're buy They're they're increasing their ownership 249 00:13:15,080 --> 00:13:18,520 Speaker 1: stake of the team at a lower valuation because one day, hey, 250 00:13:18,520 --> 00:13:19,960 Speaker 1: who knows right now? You know, they always say, hey, 251 00:13:20,000 --> 00:13:21,320 Speaker 1: we love the team. It's gonna stay in the family. 252 00:13:21,320 --> 00:13:24,120 Speaker 1: It will never be sold. Okay, that's fine. But if 253 00:13:24,160 --> 00:13:27,280 Speaker 1: you can get that steak at a lower price when 254 00:13:27,400 --> 00:13:30,439 Speaker 1: you do, or if you at some point do decide 255 00:13:30,480 --> 00:13:34,640 Speaker 1: to sell the team outright and sell control, you're going 256 00:13:34,679 --> 00:13:36,680 Speaker 1: to get a whole lot of bidders and a high 257 00:13:36,760 --> 00:13:38,880 Speaker 1: number for the New York Mets, So you'll make money 258 00:13:38,880 --> 00:13:40,680 Speaker 1: on that piece you just and let's actually give some 259 00:13:40,760 --> 00:13:43,520 Speaker 1: numbers here. The valuation that that the Wilpon and Sterling 260 00:13:43,520 --> 00:13:46,000 Speaker 1: Equity bought them that steak back at value the team 261 00:13:46,000 --> 00:13:48,720 Speaker 1: at one point, what do you think the Mets would 262 00:13:48,720 --> 00:13:51,040 Speaker 1: be an open off if the team was for sale overall? 263 00:13:51,200 --> 00:13:54,959 Speaker 1: I assume it would a lot more than one fillion. Yes, 264 00:13:55,000 --> 00:13:58,200 Speaker 1: it would be an amazing figure. You you had to 265 00:13:58,240 --> 00:14:05,120 Speaker 1: do it real quick before we go. UM. Earlier this week, 266 00:14:05,120 --> 00:14:10,040 Speaker 1: we talked about David West and the oil spill story, which, 267 00:14:10,040 --> 00:14:11,840 Speaker 1: for my money, is one of the more bizarre stories 268 00:14:11,840 --> 00:14:14,400 Speaker 1: that we've that we've talked about on the show this year. UM. 269 00:14:14,480 --> 00:14:17,560 Speaker 1: Shout out to Jay Hutchinson, a listener of ours, who 270 00:14:17,600 --> 00:14:20,720 Speaker 1: sent he went through and a very detailed kind of 271 00:14:20,720 --> 00:14:23,120 Speaker 1: breakdown of exactly how this happened. So we have more 272 00:14:23,120 --> 00:14:25,480 Speaker 1: information about it, I'll give it to you real quick. UM. 273 00:14:25,600 --> 00:14:28,720 Speaker 1: As part of BP's class action settlement for individuals, UH, 274 00:14:28,880 --> 00:14:31,280 Speaker 1: people were if if you could say that your employment, 275 00:14:31,360 --> 00:14:35,040 Speaker 1: your earnings were restricted due to the spill, UM, and 276 00:14:35,160 --> 00:14:38,360 Speaker 1: your employer was in an economic loss zone, which presumably 277 00:14:38,400 --> 00:14:40,680 Speaker 1: the Pelicans were, UM, you were allowed to file for 278 00:14:40,720 --> 00:14:43,240 Speaker 1: a claim UM, and that's what David West did. And 279 00:14:43,280 --> 00:14:45,600 Speaker 1: the way those claims worked is you kind of looked 280 00:14:45,640 --> 00:14:48,000 Speaker 1: at your two thousand nine salary and your two thousand 281 00:14:48,080 --> 00:14:49,720 Speaker 1: ten salary and if you could show that there was 282 00:14:49,760 --> 00:14:52,040 Speaker 1: a difference there, Um, you had a claim to put 283 00:14:52,080 --> 00:14:55,440 Speaker 1: in for BP. Uh so salary was only supposed to 284 00:14:55,440 --> 00:14:58,240 Speaker 1: be well, so that's the that's the thing. David West 285 00:14:58,520 --> 00:15:01,160 Speaker 1: followed everything correctly, right, is thousand nine salary was This 286 00:15:02,200 --> 00:15:05,000 Speaker 1: salary was one point four million dollars, went through the 287 00:15:05,000 --> 00:15:09,040 Speaker 1: whole process. Um, it went through a few appeals panels 288 00:15:09,360 --> 00:15:13,560 Speaker 1: where he won before finally BP got to the later 289 00:15:13,600 --> 00:15:15,680 Speaker 1: court of Appeals which looked at it and said, we 290 00:15:15,760 --> 00:15:18,080 Speaker 1: have no evidence here that this one point four million 291 00:15:18,080 --> 00:15:20,240 Speaker 1: dollar drop has anything to do at all with the 292 00:15:20,240 --> 00:15:22,840 Speaker 1: oil spills, so we're throwing this out. Um. So that's 293 00:15:22,840 --> 00:15:25,200 Speaker 1: exactly that's how it broke down. To me, it's just 294 00:15:25,280 --> 00:15:28,000 Speaker 1: kind of an amazing look at how the legal system 295 00:15:28,000 --> 00:15:31,120 Speaker 1: and bureaucracy works right now, where this is an obvious, 296 00:15:31,560 --> 00:15:34,120 Speaker 1: kind of silly claim right to look at his contract 297 00:15:34,120 --> 00:15:37,480 Speaker 1: that went through multiple multiple stages before finally someone with 298 00:15:37,520 --> 00:15:40,320 Speaker 1: the authority to say this is far before. You want 299 00:15:40,320 --> 00:15:42,880 Speaker 1: to have some fun right here, Okay, let let's see 300 00:15:42,920 --> 00:15:45,400 Speaker 1: how fast Medina can find the button Medina tall quickly. Hey, Hi, 301 00:15:45,680 --> 00:15:51,600 Speaker 1: whoa did you see that? Coming. Uh kind of that 302 00:15:51,680 --> 00:15:54,000 Speaker 1: was good. Well, I was anticipating because you were like, oh, 303 00:15:54,080 --> 00:15:56,240 Speaker 1: let's have some fun, So I thought, maybe let me 304 00:15:56,280 --> 00:16:00,320 Speaker 1: start listening to Oh, this is where they get trouble. 305 00:16:00,880 --> 00:16:10,920 Speaker 1: F f you in fun, Yes, hang out with, hanging 306 00:16:10,920 --> 00:16:13,640 Speaker 1: out with too much. This is the Bloomberg Business of 307 00:16:13,680 --> 00:16:17,560 Speaker 1: Sports podcast. I'm Michael bar along with Scott Sashnik and 308 00:16:17,640 --> 00:16:20,120 Speaker 1: Evan Noby Williams. We are here each and every Monday, 309 00:16:20,160 --> 00:16:22,800 Speaker 1: Wednesday and Thursday exploring the world of money in sports. 310 00:16:22,880 --> 00:16:24,200 Speaker 1: Join us again at the end of the week when 311 00:16:24,200 --> 00:16:27,720 Speaker 1: we speak with Rick Welts, CEO and President of the 312 00:16:27,760 --> 00:16:30,880 Speaker 1: Golden State Warriors. You're listening to Bloomberg Business of Sports 313 00:16:30,880 --> 00:16:34,720 Speaker 1: on Bloomberg Radio around the world and online where you 314 00:16:34,760 --> 00:16:35,920 Speaker 1: get your podcasts.