1 00:00:01,160 --> 00:00:03,520 Speaker 1: This is the Bloomberg Business of Sports show will re 2 00:00:03,600 --> 00:00:06,240 Speaker 1: explore the big money issues in the world of sports. 3 00:00:06,320 --> 00:00:09,520 Speaker 1: I'm Michael Barr, I'm Scarlett Fou and I'm Damien sass Hour. 4 00:00:09,640 --> 00:00:12,920 Speaker 1: The NBA is facing more and more pressure of force 5 00:00:12,920 --> 00:00:16,720 Speaker 1: South Phoenix Suns owner Robert Sarver after an investigation found 6 00:00:16,720 --> 00:00:20,799 Speaker 1: to use racist slurs and harassed female employees. The league 7 00:00:20,800 --> 00:00:23,800 Speaker 1: announced it would suspend Sarver for a year and will 8 00:00:23,920 --> 00:00:26,439 Speaker 1: order him to pay a ten million dollar fine. But 9 00:00:26,680 --> 00:00:29,080 Speaker 1: a lot of people are saying that's not enough. NBA 10 00:00:29,120 --> 00:00:32,760 Speaker 1: Commissioner Adam Silver defended the league's penalty and said that 11 00:00:32,840 --> 00:00:36,840 Speaker 1: removing Sarver altogether isn't as simple as it might seem. 12 00:00:36,920 --> 00:00:39,320 Speaker 1: There's no need answer here. I mean, it's other other 13 00:00:39,400 --> 00:00:43,360 Speaker 1: than owning property, the rights that come with with with 14 00:00:43,479 --> 00:00:48,560 Speaker 1: owning an NBA team. Um, you know how that's set 15 00:00:48,600 --> 00:00:52,320 Speaker 1: up within our constitution. Um, what it would take to 16 00:00:54,320 --> 00:00:57,760 Speaker 1: remove that team, you know, from his control is a 17 00:00:57,840 --> 00:01:01,080 Speaker 1: very involved process, and it's differ than holding a job. 18 00:01:01,160 --> 00:01:04,800 Speaker 1: It just is when when when you actually um own 19 00:01:06,280 --> 00:01:08,880 Speaker 1: a team, it's it's it's just a very different proposition. 20 00:01:09,480 --> 00:01:13,119 Speaker 1: That was NBA Commissioner Adam Silver. Whatever the league's stance 21 00:01:13,240 --> 00:01:16,279 Speaker 1: might be, keeping servereign power with the Sons could start 22 00:01:16,319 --> 00:01:19,760 Speaker 1: to hurt the league's wallet. PayPal, who has sponsored a 23 00:01:19,880 --> 00:01:23,920 Speaker 1: patch Warren on the Sun's jerseys since eighteen, say they 24 00:01:24,000 --> 00:01:28,000 Speaker 1: will not renew their deal unless Sarver is out. For more. 25 00:01:28,120 --> 00:01:31,560 Speaker 1: We bring in Bloomberg reporter Jenny Seraine. Jenny, thank you 26 00:01:31,640 --> 00:01:34,280 Speaker 1: so much. Welcome to the Bloomberg Business of Sports. Thanks 27 00:01:34,280 --> 00:01:37,759 Speaker 1: for having me this story. Let's put it this way. 28 00:01:37,800 --> 00:01:42,320 Speaker 1: It got a reaction from NBA stars, including Lebron James, 29 00:01:42,760 --> 00:01:46,319 Speaker 1: that the league got it wrong on this one coming 30 00:01:46,880 --> 00:01:52,200 Speaker 1: about Sarver. Uh. How much pressure is the league facing 31 00:01:52,240 --> 00:01:55,360 Speaker 1: now two out the Sun's owner. I mean, I think 32 00:01:55,360 --> 00:01:58,160 Speaker 1: it's a lot of pressure. You know, you've got players, 33 00:01:58,240 --> 00:02:02,480 Speaker 1: You've got social activists groups. UM, you've even got sponsors saying, 34 00:02:02,480 --> 00:02:04,440 Speaker 1: you know what, this is unacceptable. We want to see 35 00:02:04,520 --> 00:02:08,000 Speaker 1: him out. UM. PayPal specifically, you know, they're the sponsor 36 00:02:08,000 --> 00:02:10,160 Speaker 1: of the jersey patch, so very visible sponsor and any 37 00:02:10,200 --> 00:02:12,960 Speaker 1: son's game. UM, and they're saying, you know, our contract 38 00:02:13,040 --> 00:02:14,280 Speaker 1: is up at the end of this year. If this 39 00:02:14,320 --> 00:02:16,880 Speaker 1: guy is not out by then, we will not be resigning. 40 00:02:16,919 --> 00:02:19,680 Speaker 1: So I think there's a very visible pressure and UM, 41 00:02:19,720 --> 00:02:22,560 Speaker 1: it'll be interesting to see how these guys respond because uh, 42 00:02:22,560 --> 00:02:25,440 Speaker 1: it's really mounting. Tell us a little bit more about 43 00:02:25,440 --> 00:02:28,400 Speaker 1: paypals relationship with the Phoenix Suns. How far back does 44 00:02:28,440 --> 00:02:31,440 Speaker 1: it go? And UM, is it something that's been in 45 00:02:31,480 --> 00:02:35,080 Speaker 1: place for a while or is it renewed pretty regularly? Yeah, no, 46 00:02:35,160 --> 00:02:37,640 Speaker 1: that's a great question. UM. I mean, Jersey patches haven't 47 00:02:37,639 --> 00:02:39,720 Speaker 1: been around that long, so I think they were first 48 00:02:39,720 --> 00:02:43,120 Speaker 1: introduced in ten UM and PayPal and the Suns were 49 00:02:43,120 --> 00:02:46,240 Speaker 1: actually one of the earlier UM deals that were reached, 50 00:02:46,240 --> 00:02:49,680 Speaker 1: So I think they first signed back in UM. And 51 00:02:49,840 --> 00:02:52,079 Speaker 1: it's a very visible sponsorship. You know, at anytime you 52 00:02:52,160 --> 00:02:54,480 Speaker 1: zoom and on a player, you see that little pat UM. 53 00:02:54,520 --> 00:02:56,480 Speaker 1: So I think for that reason, they're very important. It's 54 00:02:56,800 --> 00:02:59,519 Speaker 1: usually around ten million dollars a years, is the SATs 55 00:02:59,520 --> 00:03:02,320 Speaker 1: that we were seeing. So UM also a pretty lucrative 56 00:03:02,320 --> 00:03:05,359 Speaker 1: thing for for the NBA and for these teams UM. 57 00:03:05,400 --> 00:03:08,239 Speaker 1: So it's still a relatively new partnership obviously, but I 58 00:03:08,280 --> 00:03:10,600 Speaker 1: do think because it's so visible, because it's so lucrative, 59 00:03:10,840 --> 00:03:13,680 Speaker 1: I think the NBA will want to protect these deals. UM. 60 00:03:13,720 --> 00:03:17,760 Speaker 1: And it's you know, such a UM an important source 61 00:03:17,800 --> 00:03:19,960 Speaker 1: of revenue for these guys. So I really think that 62 00:03:19,960 --> 00:03:21,959 Speaker 1: that's what matters. And when you see the dollars really 63 00:03:21,960 --> 00:03:24,120 Speaker 1: start to walk, um, usually that's when you see a 64 00:03:24,160 --> 00:03:26,799 Speaker 1: little bit more action. Well, Jenny, you mentioned the dollars here, 65 00:03:26,919 --> 00:03:29,400 Speaker 1: and and Michael Barr mentioned Lebron James. I'm gonna mention 66 00:03:29,480 --> 00:03:31,919 Speaker 1: another name, Chris Paul. Chris Paul plays for the Phoenix Suns. 67 00:03:31,960 --> 00:03:34,880 Speaker 1: He's the Phoenix Suns twenty eight point four million dollar man, 68 00:03:35,360 --> 00:03:37,840 Speaker 1: and he came out against the owner. So you know, 69 00:03:37,880 --> 00:03:39,480 Speaker 1: my question for you, as you know, we've seen this 70 00:03:39,520 --> 00:03:41,680 Speaker 1: before with Don Sterling with the Clippers. You know, there 71 00:03:41,800 --> 00:03:45,840 Speaker 1: is precedent for the NBA to you know, remove an owner. Um, 72 00:03:46,120 --> 00:03:49,160 Speaker 1: what did they get it wrong here? I mean I 73 00:03:49,200 --> 00:03:52,320 Speaker 1: think yes, I think, you know, I think we'll see 74 00:03:52,320 --> 00:03:54,480 Speaker 1: what happens. I do think the fact that there is 75 00:03:54,880 --> 00:03:56,520 Speaker 1: kind of a tried and true path for them to 76 00:03:56,560 --> 00:03:58,880 Speaker 1: accomplish this helps a lot. Um. It's not something that 77 00:03:58,880 --> 00:04:00,640 Speaker 1: they're going to have to craft whole new, you know 78 00:04:00,840 --> 00:04:03,600 Speaker 1: plan around UM. But I do think just the fact 79 00:04:03,680 --> 00:04:06,680 Speaker 1: that you know, you've got thousands of pages of documents 80 00:04:06,680 --> 00:04:09,480 Speaker 1: and this whole report, you know, showing Um, a past 81 00:04:09,520 --> 00:04:12,640 Speaker 1: of sexist, racist behavior. Um, this is not a day 82 00:04:12,680 --> 00:04:14,120 Speaker 1: and age, but there never should have been a day 83 00:04:14,120 --> 00:04:15,400 Speaker 1: and age. But this is not a day and age 84 00:04:15,440 --> 00:04:18,280 Speaker 1: where that can be permitted. So I think, UM, we'll 85 00:04:18,320 --> 00:04:20,920 Speaker 1: see what happens. But I do think it's pretty clear 86 00:04:20,960 --> 00:04:25,320 Speaker 1: from from the responses here. Well, Damien had mentioned Don Sterling. 87 00:04:26,080 --> 00:04:30,599 Speaker 1: What's the difference he had he was banned for life 88 00:04:30,600 --> 00:04:35,840 Speaker 1: from the league. Uh, But according to what Adam Silver 89 00:04:36,040 --> 00:04:40,960 Speaker 1: is saying it this wasn't motivated by racial animus. Is 90 00:04:41,000 --> 00:04:44,480 Speaker 1: that the difference between these two situations. That is what 91 00:04:44,560 --> 00:04:47,719 Speaker 1: the NBA is saying, is the difference between these two situations. Yeah, 92 00:04:47,760 --> 00:04:49,280 Speaker 1: I mean I think in a lot of cases, this 93 00:04:49,320 --> 00:04:53,680 Speaker 1: guy was just recounting stories and instances where he had 94 00:04:53,760 --> 00:04:58,440 Speaker 1: previously heard, um, you know, racist words. So that is 95 00:04:58,440 --> 00:05:00,320 Speaker 1: what they're saying is the difference. But I mean think 96 00:05:00,440 --> 00:05:03,360 Speaker 1: if you look at PayPal statement, they view themselves as 97 00:05:03,400 --> 00:05:07,800 Speaker 1: a company that you know completely is against racism, sexism 98 00:05:07,839 --> 00:05:10,320 Speaker 1: in all of its forms, and so um, you know, 99 00:05:10,360 --> 00:05:14,600 Speaker 1: if you're looking at all the different players, sponsors, um, 100 00:05:14,720 --> 00:05:17,240 Speaker 1: fans who don't want to be associated with this kind 101 00:05:17,240 --> 00:05:19,400 Speaker 1: of language. Um, I think it's gonna be really hard 102 00:05:19,440 --> 00:05:22,920 Speaker 1: to to come back from this. Yeah. Dan Shulman, who 103 00:05:22,920 --> 00:05:25,760 Speaker 1: of course is the CEO of PayPal, put out a 104 00:05:25,760 --> 00:05:28,440 Speaker 1: statement saying, we've reviewed the report of the NBA league's 105 00:05:28,560 --> 00:05:31,800 Speaker 1: independent investigation into Phoenix Suns owner Robert Sarver and have 106 00:05:31,839 --> 00:05:35,120 Speaker 1: found his conduct unacceptable and in conflict with their values. 107 00:05:35,400 --> 00:05:37,599 Speaker 1: And to your point, Michael Barr is looking at what 108 00:05:37,720 --> 00:05:42,280 Speaker 1: exactly uh Sarver did do? Apparently he the league's investigation 109 00:05:42,320 --> 00:05:43,800 Speaker 1: found that he used the N word at least five 110 00:05:43,839 --> 00:05:46,520 Speaker 1: times in front of his employees and said he hated diversity. 111 00:05:46,560 --> 00:05:49,320 Speaker 1: That's one side. He also told a female employee, made 112 00:05:49,360 --> 00:05:52,680 Speaker 1: a remark about, um, you've never seen anything quite like 113 00:05:52,720 --> 00:05:55,080 Speaker 1: this before and I'm paraphrasing here before preparing for a 114 00:05:55,080 --> 00:05:57,960 Speaker 1: shower at the team facility, and expose himself to a 115 00:05:57,960 --> 00:06:01,040 Speaker 1: male employee, uh, who's on his knees in front of 116 00:06:01,040 --> 00:06:04,000 Speaker 1: server performing a fitness check. Yeah, I mean, anyone else 117 00:06:04,040 --> 00:06:06,800 Speaker 1: want to look up the definition for racial animus because 118 00:06:06,920 --> 00:06:11,200 Speaker 1: that sounds And then you go back to Don Sterling. 119 00:06:12,080 --> 00:06:14,120 Speaker 1: He was caught on tape telling his mistress not to 120 00:06:14,160 --> 00:06:21,960 Speaker 1: associate with or bring black men to team games. Yeah. Good, great, 121 00:06:22,839 --> 00:06:25,960 Speaker 1: I mean, come on, man, it's like a, well, we 122 00:06:26,120 --> 00:06:28,520 Speaker 1: can't prove. It's like, what what do you mean you get? 123 00:06:28,560 --> 00:06:32,920 Speaker 1: I'm sorry, Jenny, Jenny, does this mean Adam Silver is 124 00:06:32,960 --> 00:06:34,880 Speaker 1: at risk here? I mean, for I mean, is there 125 00:06:34,920 --> 00:06:37,840 Speaker 1: a possibility that the commissioner could you know, fall get 126 00:06:38,080 --> 00:06:40,400 Speaker 1: get a significant amount of heat and potentially get pushed out. 127 00:06:40,800 --> 00:06:42,840 Speaker 1: I'm surprised that he's been digging in his heels as 128 00:06:42,920 --> 00:06:45,480 Speaker 1: much as he has. Um. I don't know that this 129 00:06:45,560 --> 00:06:48,159 Speaker 1: is something that kind of rises to that level it 130 00:06:48,160 --> 00:06:50,960 Speaker 1: should be. I mean, I think these are really horrible 131 00:06:51,040 --> 00:06:53,200 Speaker 1: things that were said and done, and so you know, 132 00:06:53,240 --> 00:06:55,440 Speaker 1: it should be something that everybody's career is staked on, 133 00:06:55,560 --> 00:06:57,640 Speaker 1: you know, getting this right. But I don't think anybody's 134 00:06:57,680 --> 00:06:59,360 Speaker 1: calling for that quite yet. I definitely think people want 135 00:06:59,440 --> 00:07:01,120 Speaker 1: him to change his mind. Now, keep in mind, so 136 00:07:01,279 --> 00:07:07,120 Speaker 1: our owns of the Phoenix Suns and a minority owner. Also, 137 00:07:07,320 --> 00:07:13,120 Speaker 1: I think John Nev Joffe wants Sarber to sell his shares. Also, 138 00:07:13,760 --> 00:07:16,600 Speaker 1: if you have someone who was a minority owner who 139 00:07:16,640 --> 00:07:19,400 Speaker 1: as a stake in the team, can that be the 140 00:07:19,440 --> 00:07:23,200 Speaker 1: impetus to to get Starbar to sell. That's actually a 141 00:07:23,200 --> 00:07:25,560 Speaker 1: good question, and I'm not sure the answer, I think 142 00:07:26,080 --> 00:07:27,840 Speaker 1: probably makes it a lot easier that he's not the 143 00:07:27,880 --> 00:07:29,800 Speaker 1: majority owner, it's not as much of a stake to 144 00:07:29,800 --> 00:07:32,600 Speaker 1: buy out. And I do think I think that was 145 00:07:32,640 --> 00:07:35,640 Speaker 1: a really important thing. I think nobody wants to be 146 00:07:35,800 --> 00:07:38,560 Speaker 1: associated with these kind of comments and you know, ever, 147 00:07:38,680 --> 00:07:40,520 Speaker 1: but especially in today's day and age, and so I 148 00:07:40,560 --> 00:07:43,040 Speaker 1: think that just makes it a lot easier for folks 149 00:07:43,040 --> 00:07:45,800 Speaker 1: to kind of take whatever and means necessary to to 150 00:07:45,920 --> 00:07:48,400 Speaker 1: um to atject this guy, Well, the Jeff, he's quite 151 00:07:48,400 --> 00:07:51,600 Speaker 1: influentially owned STX, and you know another minority owner in 152 00:07:51,640 --> 00:07:54,760 Speaker 1: the Sun's Dial Capital, who who's invested in hedge funds 153 00:07:54,760 --> 00:07:57,800 Speaker 1: and private equity firms. I mean, you know, yeah, you know, 154 00:07:58,280 --> 00:08:00,559 Speaker 1: they've also not signed. I guess it was a letter, 155 00:08:00,720 --> 00:08:03,280 Speaker 1: you know, basically, and so so they're on the page 156 00:08:03,320 --> 00:08:05,080 Speaker 1: of you know, hey, they're not supportive, but from me either. 157 00:08:05,160 --> 00:08:07,640 Speaker 1: So you've got minority shareholders pulling away, You've got the 158 00:08:07,960 --> 00:08:11,320 Speaker 1: Sun's own players kind of railing out against them, even 159 00:08:11,360 --> 00:08:13,360 Speaker 1: if you know the NBA is not going to take action. 160 00:08:13,400 --> 00:08:14,680 Speaker 1: I mean, how are they gonna you know, how are 161 00:08:14,680 --> 00:08:16,640 Speaker 1: they going to manage through? This is really the question. 162 00:08:16,720 --> 00:08:19,040 Speaker 1: I also thought it was really interesting you know, um, 163 00:08:19,080 --> 00:08:21,320 Speaker 1: the waistarver made a lot of his money is um. 164 00:08:21,360 --> 00:08:23,200 Speaker 1: He came up through like regional banks. He owned a 165 00:08:23,200 --> 00:08:25,760 Speaker 1: bank and he was still a chairman on that bank. 166 00:08:25,800 --> 00:08:27,440 Speaker 1: I believe he was on their board of directors and 167 00:08:28,000 --> 00:08:30,280 Speaker 1: way earlier this year, months before any of this came out, 168 00:08:30,680 --> 00:08:33,120 Speaker 1: um from the NBA side, that bank had already done 169 00:08:33,120 --> 00:08:35,800 Speaker 1: its own investigation and asked him to leave. And so 170 00:08:36,320 --> 00:08:38,280 Speaker 1: you know, there was already a history in a pattern 171 00:08:38,320 --> 00:08:41,000 Speaker 1: here for the NBA to honestly follow suit slash. You know, 172 00:08:41,120 --> 00:08:44,000 Speaker 1: obviously it was probably made fully aware of that investigation 173 00:08:44,000 --> 00:08:46,720 Speaker 1: while it was going on. So it's interesting because they 174 00:08:46,720 --> 00:08:49,360 Speaker 1: could have easily just pointed to that example as the 175 00:08:49,400 --> 00:08:53,880 Speaker 1: president now. Instead they spent hours and thousands of documents. 176 00:08:53,880 --> 00:08:56,360 Speaker 1: It was interviewed three d and twenty people for this report. 177 00:08:56,360 --> 00:08:58,240 Speaker 1: How many people I think it was three and twenty 178 00:08:58,280 --> 00:09:01,280 Speaker 1: people that they interviewed for this Yeah, this was the outcome. Interesting. 179 00:09:01,640 --> 00:09:04,800 Speaker 1: Bloomberg reporter Jenny Serene, I'm sorry that you saw my 180 00:09:04,880 --> 00:09:09,400 Speaker 1: nostrils flair for a moment. That's the thing. I mean, 181 00:09:09,440 --> 00:09:13,000 Speaker 1: I knew the yeah, he used the N word. I 182 00:09:13,040 --> 00:09:16,840 Speaker 1: didn't know about more of that until you mentioned I 183 00:09:16,840 --> 00:09:20,080 Speaker 1: don't even want to repeat it anyway. Jenny, thank you 184 00:09:20,120 --> 00:09:22,080 Speaker 1: so much for joining us. We really do appreciate it 185 00:09:22,120 --> 00:09:25,040 Speaker 1: for having This is the Bloomberg Business of Sports podcast. 186 00:09:25,080 --> 00:09:28,680 Speaker 1: I'm Michael bar along with Scarlet Foo and Damien sass Hour. 187 00:09:28,760 --> 00:09:31,800 Speaker 1: You can catch us here each and every Monday, Wednesday 188 00:09:31,800 --> 00:09:34,120 Speaker 1: and Thursday exploring the world of money and sports. And 189 00:09:34,200 --> 00:09:36,880 Speaker 1: catch me on Twitter at Dick bar Sports and to'm 190 00:09:36,920 --> 00:09:39,200 Speaker 1: on Twitter at Scarlett and you can follow me at 191 00:09:39,320 --> 00:09:42,440 Speaker 1: d sass Hour and you can follow d sass Hour 192 00:09:42,640 --> 00:09:47,280 Speaker 1: somewhere else because my man has a show. Yeah, that's true. 193 00:09:47,320 --> 00:09:49,679 Speaker 1: Bloomberg The Lineup is our new television show here on 194 00:09:49,720 --> 00:09:53,199 Speaker 1: Bloomberg Television. It airs every Friday evening at seven pm 195 00:09:53,200 --> 00:09:55,040 Speaker 1: and thence on again at seven am and eleven am 196 00:09:55,120 --> 00:09:57,120 Speaker 1: on Saturday's right, And so what do you talk about 197 00:09:57,120 --> 00:09:59,720 Speaker 1: on the Bloomberg Lineup? Who? We like to talk about sports, 198 00:09:59,720 --> 00:10:02,160 Speaker 1: but specifically sports gambling, and we take more of a 199 00:10:02,160 --> 00:10:04,440 Speaker 1: differentiated approach. We look at money lines, we look at 200 00:10:04,440 --> 00:10:06,959 Speaker 1: spreads in order to really kind of see what the 201 00:10:07,000 --> 00:10:10,800 Speaker 1: market is pricing in the data. Guy. Yeah, yeah, I'm 202 00:10:10,800 --> 00:10:13,040 Speaker 1: also you know, the handsome face of the show, you know, 203 00:10:13,080 --> 00:10:15,120 Speaker 1: and everybody likes that I'm just getting teened in for. 204 00:10:15,400 --> 00:10:17,120 Speaker 1: But no, we have some great guests. I mean we've 205 00:10:17,120 --> 00:10:19,560 Speaker 1: had you know, I've had Amy Cross, who's been on this. Uh, 206 00:10:19,760 --> 00:10:22,320 Speaker 1: I've been on Bloomberg Business Sports with us before, former 207 00:10:22,360 --> 00:10:24,880 Speaker 1: CEO of The Raiders. We had Victor Cruz on the 208 00:10:24,880 --> 00:10:27,040 Speaker 1: first episode, and We've got someone special plan this week. 209 00:10:27,040 --> 00:10:29,320 Speaker 1: But I'm not gonna give just give us a sport 210 00:10:30,080 --> 00:10:32,800 Speaker 1: um football. Hopefully if he if he actually, if we 211 00:10:32,840 --> 00:10:35,360 Speaker 1: can twist his arm and get him in here. Oh dash, 212 00:10:35,440 --> 00:10:38,360 Speaker 1: rip Rock. Thank you so much, man, We appreciate it. 213 00:10:38,679 --> 00:10:40,959 Speaker 1: You've been listening to The Bloomberg Business of Sports on 214 00:10:41,000 --> 00:10:42,640 Speaker 1: Bloomberg Radio around the world.