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Speaker 1: Hello, I'm Scott, I'm and Been Noby Williams, and I'm

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Speaker 1: Michael barn. This is the Bloomberg Business of Sports podcast

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Speaker 1: where we explore the big money issues in the world

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Speaker 1: of sports. Let's start with extension talk take it away

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Speaker 1: and a president Mark Emirate three year extension through now. Um,

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Speaker 1: you know it's we we talked about. You know a

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Speaker 1: lot of these leaders like Roger Goodell another good example

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Speaker 1: who I think casual fans think, man, that person is

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Speaker 1: doing a terrible job, But when it comes to contract extensions,

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Speaker 1: they get the contract extension. And that's because for the

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Speaker 1: people who they report to. For for Roger Goodell, it's owners,

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Speaker 1: For Mark Emmert, it's board of governors and university presidents. Uh,

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Speaker 1: they're doing a good job protecting. But on the business

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Speaker 1: and on the add scale, isn't the next three years

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Speaker 1: going to be very increasing levels of service? Ada? However,

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Speaker 1: you want to be critical? Yeah, and why did? Why

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Speaker 1: is it the money? Is it? He loves it? Like

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Speaker 1: now would be a really good time to say, you know,

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Speaker 1: I've taken it to a certain plateau for somebody else

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Speaker 1: should assume control the Yeah, I mean, if Mark wants

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Speaker 1: to keep having the job. I mean, I can understand

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Speaker 1: him wanting to stay in. He's getting paid a little

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Speaker 1: over two million dollars a year um. But yeah, if

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Speaker 1: you're you know, the board of governors at the n

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Speaker 1: c A, a look at the last couple of I mean,

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Speaker 1: just the weight of lawsuits that are that are coming

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Speaker 1: down from any trust concerns to an FBI an ongoing

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Speaker 1: FBI investigation into middlemen and schools that are cheating n

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Speaker 1: c A rules. Uh, there was that report earlier this

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Speaker 1: year that a whistleblower had gone to Mark Emmert and

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Speaker 1: his office about Larry Nasser a number of years ago.

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Speaker 1: There is a whole host of possibilities. I'm a little

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Speaker 1: surprised about it. You mentioned revenue obviously going up. The

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Speaker 1: n c A has one revenue stream. It's the Turner,

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Speaker 1: CBS March Madness contract um. So he's not Mark, Mark

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Speaker 1: Emmerond is not driving that. That deal was negotiated a

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Speaker 1: couple of years ago. There are you know, they are

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Speaker 1: writers within it. So every year it gets a little higher.

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Speaker 1: He's not driving huge new revenue streams. It's going up,

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Speaker 1: whether he's at the helm or he's not, because it's

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Speaker 1: a single stream and it's I need to come up

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Speaker 1: with everybody else wants to diversify the revenue streams. Was

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Speaker 1: the n c A, I mean obviously, I mean the

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Speaker 1: problem that they gave away college football postseason so long ago, right,

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Speaker 1: so the college Football Playoff they're not in. All those

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Speaker 1: bowl games they're not in they operate the FCS so

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Speaker 1: the Division one double a game. But that's not a

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Speaker 1: huge commercial problem. Yeah, they just don't have. The big

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Speaker 1: money maker in college sports is college football, and the

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Speaker 1: n c A essentially gave away the rights to the

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Speaker 1: most important games. We got to talk about Lance Armstrong

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Speaker 1: was investing in UBERI well, it says it saved his family. Yeah,

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Speaker 1: he said. It looks out from the from the best

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Speaker 1: the back of napkin calculations that we can come up

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Speaker 1: with here, Bloomberg looked like Lance, what about twenty million

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Speaker 1: dollars a social investment of fund that contained Uber obviously

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Speaker 1: a while ago, and just like getting in on Amazon early. Well,

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Speaker 1: you know, Lance had some financial problems after all of

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Speaker 1: the ugliness that's surrounded Lands, but it's nice to know

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Speaker 1: that you're backed up by an early investment in Uber. Yeah,

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Speaker 1: this is back in two thousand nine, so you know,

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Speaker 1: way before he appeared on Oprah and admitted that, you know,

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Speaker 1: the cycling career that led to seven yellow jerseys was

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Speaker 1: a was a fraud. Um. But yeah, he he and

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Speaker 1: his friend Chris Soccer, you know, who's a pretty famous.

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Speaker 1: Investment was early in Google, I believe. Um. Yeah, he

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Speaker 1: put together a fund. Lance got in on it, gave

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Speaker 1: him a hundred thousand dollars. That fund was early in Uber,

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Speaker 1: it was early in docu sign And yeah, according to

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Speaker 1: to our colleagues here at Bloomberg, that's an investment that's

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Speaker 1: now worth you know, between twenty and thirty million dollars.

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Speaker 1: And for Lance, that's a lot of money. Scott mentioned,

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Speaker 1: he said it saved his family. You know. Between all

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Speaker 1: the law sponsorships, the lawsuits, Land settled the most recent

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Speaker 1: one for a lot less than people were expecting. Um.

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Speaker 1: But if that lawsuit, you know, with the federal government,

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Speaker 1: had had gone a different way, there's a chance that

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Speaker 1: Lance could have been some some real financial distress. Um.

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Speaker 1: Having an early investment in a in a massive company,

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Speaker 1: and if Uber goes public, look out, you know that

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Speaker 1: that's going to be more. Um. Yeah, let me tell you.

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Speaker 1: I mean, we pitched no products here. We are paid

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Speaker 1: for nothing. That's fine, We're not paid books people. Have

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Speaker 1: you ever used docusigned? I am not Years and years ago,

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Speaker 1: I bought and sold a property in Las Vegas, I

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Speaker 1: mean many many moons ago. Never went to Vegas, never

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Speaker 1: stepped foot in the place, sold it without ever going

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Speaker 1: everything by your documsign. Here's my initial click click click, click,

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Speaker 1: click down. The page goes done. Wonderful. So if you

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Speaker 1: ever have to buy a house or anything, let me

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Speaker 1: tell you it's great. I have one word for you,

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Speaker 1: young man plastics. Yeah, keep it going. Keep it going

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Speaker 1: for old man Barn. Maybe maybe Barn can get to

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Speaker 1: the sixth inning of a baseball game after his oval

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Speaker 1: team to take a blanket off his lap. At about nine,

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Speaker 1: young people ESPN and I agree with this. They're gonna

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Speaker 1: move up the time to Major League Baseball Sunday games

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Speaker 1: starting there at such an east and I agree with this.

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Speaker 1: If you lived in l A and you're at the

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Speaker 1: office at four o'clock, would you agree with this? This

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Speaker 1: is not about the fans. This is about the teams.

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Speaker 1: What I mean, it's about the team. One of the

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Speaker 1: major reasons why they're doing this is because the team's

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Speaker 1: got sick of, like you know, having to fly into

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Speaker 1: another town in in the dawn or whatever because they're

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Speaker 1: playing late. Evan, you're gonna chime, But are you insane?

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Speaker 1: You think they're mee who's saying that to the memory.

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Speaker 1: But come on, this is about a maximizing of viewers

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Speaker 1: with that twist at your marquee games, and you're losing

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Speaker 1: a whole generation of kids who shut this off. There's

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Speaker 1: a calculation going on a Major League Baseball We've got

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Speaker 1: to get younger. You see it with the Facebook deal,

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Speaker 1: digital digital digital, How do we cultivate a new generation

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Speaker 1: of fans and put in the eighth and ninth inning

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Speaker 1: of our best games or premier games? Yankees Red Sox

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Speaker 1: on it one in the morning when these kids have

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Speaker 1: to be in school on Monday, and I was like,

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Speaker 1: these kids were talking, they're just not staying up for baseball.

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Speaker 1: You want them to see the best part of the game,

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Speaker 1: which is the eighth and ninth if right now you're

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Speaker 1: sacrificing a little bit of audience on the on the

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Speaker 1: West Coast early, we know that people tend to stay

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Speaker 1: with games as they go later but they've seen the

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Speaker 1: drop off from the younger demo. That's what this is about.

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Speaker 1: Cultivating those kids to stay, to become and stay baseball

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Speaker 1: fans when everything is migrating to the iPad, to the iPhone,

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Speaker 1: that's how people are watching. Yeah, you hear so much.

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Speaker 1: You know for years, you know, complaining about baseball and

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Speaker 1: all sporting events that start too late on the East Coast,

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Speaker 1: kids not being able to stay up. And the answer

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Speaker 1: has always been, it's it's it's set at the time

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Speaker 1: that it starts because in fact maximizes viewers and therefore

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Speaker 1: maximizes dollars. Uh. To me, seeing this get moved means

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Speaker 1: that there is now a shift that that it may

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Speaker 1: start to become more lucrative for a sport like baseball

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Speaker 1: and a TV network like ESPN to maybe start some

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Speaker 1: things in the four o'clock hour on the West Coast,

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Speaker 1: just because, as Scott said, the value that younger fans bring.

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Speaker 1: I think a lot of leagues in baseball in particular

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Speaker 1: are starting to recognize that, hey, we need that a lot,

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Speaker 1: and those people can buy the way with the out

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Speaker 1: of home viewing one you can measure it and two

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Speaker 1: people on their office computer on their phone, and they're like,

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Speaker 1: what we're saying, they'll find a way. If it's their team,

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Speaker 1: if something they really want to see for that hour,

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Speaker 1: hour and a half they would have missed, they'll find

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Speaker 1: a way to watch it. And this is the this

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Speaker 1: is the premier baseball game, National Baseball game of the week.

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Speaker 1: It's insistently two of the top pitchers in the in

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Speaker 1: the league going head to head. It's the Monday night

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Speaker 1: football essentially for baseball, but Monday night football except Sunday night.

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Speaker 1: And but we got it. But I'm gonna I'm gonna

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Speaker 1: play here. I am Mr Devil, the old man bar

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Speaker 1: coming through are Yes, I get it, you want the

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Speaker 1: younger audience. But you know which program also that airs

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Speaker 1: at seven o'clock on a Sunday. Yes, And I wonder

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Speaker 1: what kind of class you're gonna have? Six what's the

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Speaker 1: average age of the sixty minutes viewer? Mr? Park Over

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Speaker 1: under you barometer? You baseball? I don't. I'm gonna be

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Speaker 1: harsh here because they do care. But they don't care.

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Speaker 1: Baseball doesn't care. They've got to cultivate those young Did

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Speaker 1: you get by the way that did you? Okay? I

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Speaker 1: didn't know if you even know where going, but that

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Speaker 1: they don't care that. They have got to find a way.

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Speaker 1: You see these numbers with baseball, they skew old. They

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Speaker 1: have got to find a way in sports. Betting is

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Speaker 1: gonna help, but they've got to find a way to

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Speaker 1: make younger people want to watch this kid. Again. This

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Speaker 1: is a very calculated decision they have taken in all

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Speaker 1: the different factors. They understand what sixty minutes might mean

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Speaker 1: for their viewership, and they now believe, which they didn't

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Speaker 1: clearly a couple of years ago, starting at seven am

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Speaker 1: on the seven pm on the East coast is the

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Speaker 1: way to do this. Can we pay a like Steve

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Speaker 1: crofton Gang and like, let's go out instead of the

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Speaker 1: normal clothes. Can we go out there? I'm Evan Novie Williams.

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Speaker 1: I'm like, like the end of sixty minutes? Do you

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Speaker 1: ever wonder why Scotts Okay, you you know who I'm doing?

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Speaker 1: All right, Okay, what do you want to do that?

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Speaker 1: All right? I'm Michael barn I'm Scott Sick. I don't

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Speaker 1: know what we're doing. Oh my god, man, I'm going

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Speaker 1: back to this script. This is the Bloomberg business of sports. Podcast,

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Speaker 1: and a memorable one at that, to speak like on

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Speaker 1: six Minutes with Scotti and heavn Nophie Williams. Two of

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Speaker 1: us are here each and every Monday, Wednesday and Thursday.

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Speaker 1: I don't where the heck Novie Williams is, exploring the

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Speaker 1: world of money in sports. Join us again at the

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Speaker 1: end of the week when we'll be speaking with super

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Speaker 1: agent Lee Steinberg. Listening to the the Bloomberg Business, I

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Speaker 1: feel like Bloomberg Radio around the world and online whereas

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Speaker 1: you can get our podcast