1 00:00:00,880 --> 00:00:05,040 Speaker 1: You're listening to Bloomberg Business of Sports from Bloomberg Radio. 2 00:00:05,720 --> 00:00:08,360 Speaker 1: Hi everyone, I'm Jason Kelly and Mike Lynch and I'm 3 00:00:08,360 --> 00:00:11,799 Speaker 1: Michael Barr. And this is the Bloomberg Business of Sports podcast, 4 00:00:11,840 --> 00:00:14,200 Speaker 1: where we explore the big money issues in the world 5 00:00:14,240 --> 00:00:16,520 Speaker 1: of sports. Big, big, big. We were talking about this 6 00:00:16,640 --> 00:00:20,040 Speaker 1: right before we started this recording with our guests. Nothing 7 00:00:20,120 --> 00:00:23,280 Speaker 1: is bigger than the NFL, and we're gonna get into 8 00:00:23,320 --> 00:00:28,200 Speaker 1: that and where this intersection of money and sports lives 9 00:00:28,280 --> 00:00:30,720 Speaker 1: the largest, and that is certainly in the National Football 10 00:00:30,760 --> 00:00:34,400 Speaker 1: League and everything around it. Nola Montaigne is whe us. 11 00:00:34,400 --> 00:00:37,400 Speaker 1: He's director of Verden's Capital Advisors. He joins us from 12 00:00:37,400 --> 00:00:42,000 Speaker 1: Los Angeles. No, really nice to speak with you again. Uh, 13 00:00:42,159 --> 00:00:44,639 Speaker 1: let's jump right into to the NFL if we can. 14 00:00:45,159 --> 00:00:48,919 Speaker 1: You played in the league, you advise a lot of players, 15 00:00:49,120 --> 00:00:53,840 Speaker 1: current and former. It does feel like the money only 16 00:00:53,880 --> 00:00:57,320 Speaker 1: gets bigger here, and we were reminded of that with 17 00:00:57,440 --> 00:01:00,440 Speaker 1: the draft and everything that comes after the draft as 18 00:01:00,680 --> 00:01:03,960 Speaker 1: contracts start to be worked out. How did we get here? 19 00:01:04,520 --> 00:01:06,600 Speaker 1: First of all, thank you all for having me. Uh 20 00:01:06,840 --> 00:01:09,680 Speaker 1: definitely appreciate it and always love, always love jumping on 21 00:01:09,760 --> 00:01:13,280 Speaker 1: with everybody. Uh, and and talking sports and business. It's 22 00:01:13,280 --> 00:01:17,440 Speaker 1: a good combo um. But you know, I think there 23 00:01:17,520 --> 00:01:21,319 Speaker 1: might be something primal, something psychological. Just human beings have 24 00:01:21,360 --> 00:01:25,880 Speaker 1: always loved the gladiator and football is the gladiator sport. 25 00:01:26,080 --> 00:01:29,280 Speaker 1: So the NFL has just played into that. And you know, 26 00:01:29,319 --> 00:01:31,679 Speaker 1: they've tweaked it over the years and try to figure 27 00:01:31,720 --> 00:01:34,199 Speaker 1: out how to make a very very violent sports safe. 28 00:01:34,280 --> 00:01:39,280 Speaker 1: But I think they just prey on people's instincts and 29 00:01:39,280 --> 00:01:43,399 Speaker 1: and that's you know, they have built this brand to 30 00:01:45,040 --> 00:01:49,240 Speaker 1: sixty five day year entity where you can't get away 31 00:01:49,280 --> 00:01:51,120 Speaker 1: from it even if you want to. You're always hearing 32 00:01:51,160 --> 00:01:54,480 Speaker 1: something about the NFL whenever you turn on sports news 33 00:01:54,560 --> 00:01:58,000 Speaker 1: or business or something along those lines. Yeah. I mean 34 00:01:58,160 --> 00:02:02,960 Speaker 1: even the combine is big news. We I remember, you know, 35 00:02:03,440 --> 00:02:06,680 Speaker 1: you never heard of the combine before in the seventies, 36 00:02:06,720 --> 00:02:08,079 Speaker 1: and now all of a sudden, it's like, oh, I 37 00:02:08,120 --> 00:02:10,800 Speaker 1: gotta see what's happening in the combine. And that is 38 00:02:11,200 --> 00:02:16,680 Speaker 1: brings an important point about TV rights and the NFL. 39 00:02:17,200 --> 00:02:19,960 Speaker 1: I mean, you've got the King of Kings for sports 40 00:02:20,600 --> 00:02:24,280 Speaker 1: and TV. Even during the COVID era, they were still 41 00:02:24,360 --> 00:02:28,280 Speaker 1: paying a pretty penny for the broadcast rights. Can you 42 00:02:28,320 --> 00:02:33,320 Speaker 1: expand more on that. Well, listen, I can speak directly 43 00:02:33,360 --> 00:02:36,720 Speaker 1: to it because when I went to the combine, when 44 00:02:36,720 --> 00:02:39,480 Speaker 1: I was a participant in the NFL Combine and two thousand, 45 00:02:39,680 --> 00:02:41,840 Speaker 1: I finished up college in ninety nine, so I went 46 00:02:41,840 --> 00:02:45,840 Speaker 1: to the two thousand combine in February. We got one 47 00:02:45,960 --> 00:02:49,080 Speaker 1: Russell T shirt that was basically sized. If you were 48 00:02:49,080 --> 00:02:50,520 Speaker 1: a big guy, you got a big one. If you're 49 00:02:50,520 --> 00:02:52,760 Speaker 1: a little guy, you got a little one. It felt 50 00:02:52,760 --> 00:02:55,240 Speaker 1: like stand paper. And you got a pair of shorts. 51 00:02:55,960 --> 00:02:57,800 Speaker 1: And you were there for two and a half days, 52 00:02:57,800 --> 00:03:00,320 Speaker 1: I think almost three days. You had to wear that 53 00:03:00,480 --> 00:03:03,079 Speaker 1: T shirt and those shorts the entire time you were there, 54 00:03:03,800 --> 00:03:07,520 Speaker 1: and nobody was allowed in the building. All you dealt 55 00:03:07,560 --> 00:03:10,359 Speaker 1: with for NFL people, you didn't sleep, You barely had 56 00:03:10,400 --> 00:03:14,959 Speaker 1: time to eat. Now they have massage therapists. They give 57 00:03:15,000 --> 00:03:19,320 Speaker 1: you more gear and clothing and shoes, and there's there's 58 00:03:19,680 --> 00:03:22,600 Speaker 1: suits where you go and get all kinds of different swag. 59 00:03:23,400 --> 00:03:27,520 Speaker 1: I mean, the money that revolves around this sport. I 60 00:03:27,520 --> 00:03:31,079 Speaker 1: don't even think that the general public can really conceptualize it. 61 00:03:31,200 --> 00:03:34,960 Speaker 1: You know, there's thirty two basically thirty two individuals who 62 00:03:34,960 --> 00:03:37,920 Speaker 1: sit around the table a few times a year, and 63 00:03:37,920 --> 00:03:40,320 Speaker 1: and those people are the only ones that really know 64 00:03:40,920 --> 00:03:43,520 Speaker 1: how much money is running through that sport. But when 65 00:03:43,520 --> 00:03:50,400 Speaker 1: you're talking about billion dollar franchises, um, the TV, the 66 00:03:50,400 --> 00:03:52,960 Speaker 1: TV and the TS that are out there, they understand 67 00:03:53,000 --> 00:03:55,240 Speaker 1: that that this is where it's at. This is the 68 00:03:55,280 --> 00:03:58,680 Speaker 1: big ticket. It always sells, It always outpaces everything whenever, 69 00:03:58,800 --> 00:04:01,480 Speaker 1: whenever a game is televised eised, and you know, the 70 00:04:01,520 --> 00:04:03,720 Speaker 1: networks know it, and the owners know that they have 71 00:04:05,280 --> 00:04:07,720 Speaker 1: they have the big ticket. Idem Hey, no, it's Mike 72 00:04:07,800 --> 00:04:09,880 Speaker 1: up in Boston. I want to talk a little bit 73 00:04:09,880 --> 00:04:13,560 Speaker 1: about cryptocurrency. Sean Culkin of the Chiefs once his entire 74 00:04:13,600 --> 00:04:17,160 Speaker 1: salary this year to be in bitcoin. I think Caroliner's 75 00:04:17,320 --> 00:04:20,159 Speaker 1: Russell Okung I believe that half of his thirteen million. 76 00:04:20,640 --> 00:04:24,320 Speaker 1: Any of your clients have an over over abundance of 77 00:04:24,320 --> 00:04:29,320 Speaker 1: curiosity about this form of currency. It's funny. We are 78 00:04:29,600 --> 00:04:34,120 Speaker 1: we are extremely um I'll say we're very very conservative 79 00:04:34,120 --> 00:04:37,520 Speaker 1: when it comes to the whole crypto conversation. Number One, 80 00:04:37,600 --> 00:04:40,400 Speaker 1: we have a big issue in using the term cryptocurrency 81 00:04:40,520 --> 00:04:42,720 Speaker 1: because I don't know, there's not a lot of ways 82 00:04:42,760 --> 00:04:45,320 Speaker 1: where you can where you can actually definitively say that 83 00:04:45,960 --> 00:04:48,560 Speaker 1: bitcoin is a form of currency. It lacks a lot 84 00:04:48,560 --> 00:04:52,840 Speaker 1: of the foundational definition of currency. But we have a 85 00:04:52,920 --> 00:04:55,520 Speaker 1: lot of clients. The locker room is a very dangerous place. 86 00:04:55,520 --> 00:04:58,159 Speaker 1: In a lot of cases. It's a wonderful place to 87 00:04:58,160 --> 00:05:01,440 Speaker 1: be around your teammates and to heal up and you know, 88 00:05:01,839 --> 00:05:03,680 Speaker 1: mess around and talk about the day. But when it 89 00:05:03,720 --> 00:05:06,280 Speaker 1: comes to business conversations, the locker room is a very 90 00:05:06,360 --> 00:05:10,360 Speaker 1: dangerous place, and crypto is a big conversation piece right now. 91 00:05:10,920 --> 00:05:14,240 Speaker 1: So we have a handful of clients, both in and 92 00:05:14,240 --> 00:05:17,800 Speaker 1: out of sports who dabble in it in a very 93 00:05:17,920 --> 00:05:22,000 Speaker 1: very small piece of their portfolio. Um. You can almost 94 00:05:22,000 --> 00:05:23,320 Speaker 1: look at it like if you're going to take a 95 00:05:23,360 --> 00:05:25,279 Speaker 1: thousand dollars and go to Las Vegas, and you're not 96 00:05:25,320 --> 00:05:28,400 Speaker 1: afraid to lose that thousand dollars, then if you don't 97 00:05:28,440 --> 00:05:32,400 Speaker 1: want to travel, you can you can get into cryptocurrency. Um. 98 00:05:32,440 --> 00:05:36,800 Speaker 1: Obviously there's a lot of big opinions the opposite way. UM, 99 00:05:36,839 --> 00:05:39,440 Speaker 1: the gentleman with the chiefs who made the decision that 100 00:05:39,520 --> 00:05:42,960 Speaker 1: he made, watched a couple of his his interviews and 101 00:05:43,040 --> 00:05:46,440 Speaker 1: his commentary on the subject, and he definitely got better 102 00:05:46,480 --> 00:05:49,279 Speaker 1: at talking about it the more he went in. Um, 103 00:05:49,320 --> 00:05:51,440 Speaker 1: you know, you just have to be aware of the ramifications. 104 00:05:51,440 --> 00:05:53,560 Speaker 1: You've gotta be aware of the tax consequences. You've gotta 105 00:05:53,560 --> 00:05:55,800 Speaker 1: be aware of the fees, and you've gotta you gotta 106 00:05:55,880 --> 00:05:58,719 Speaker 1: understand what are you getting for your money and how 107 00:05:58,760 --> 00:06:01,960 Speaker 1: are you able to actually use it to live your life? 108 00:06:02,000 --> 00:06:06,120 Speaker 1: If you're taking your salary out of your bank account 109 00:06:06,120 --> 00:06:08,920 Speaker 1: and you're putting it into something, how are you able 110 00:06:08,960 --> 00:06:12,839 Speaker 1: to use that whatever it is to live your life 111 00:06:12,839 --> 00:06:15,359 Speaker 1: and pay your bills and take care of your family 112 00:06:15,440 --> 00:06:19,920 Speaker 1: and uh, you know, hopefully it'll it'll grow over time, 113 00:06:20,800 --> 00:06:23,440 Speaker 1: or at least you won't lose anything over time. But 114 00:06:23,680 --> 00:06:25,919 Speaker 1: it's a it's a very complicated question. A lot of 115 00:06:25,920 --> 00:06:28,320 Speaker 1: times it gets into emotion because there's there's a lot 116 00:06:28,320 --> 00:06:32,280 Speaker 1: of passion on both sides of the argument. Um. So yes, 117 00:06:32,360 --> 00:06:36,000 Speaker 1: we we we have these conversations regularly, and we take 118 00:06:36,040 --> 00:06:40,159 Speaker 1: a very conservative and skeptical approach to it. Honestly, No. 119 00:06:40,360 --> 00:06:42,719 Speaker 1: I was talking to somebody in your business earlier this 120 00:06:42,800 --> 00:06:48,599 Speaker 1: week and they made an interesting distinction or a description 121 00:06:48,680 --> 00:06:52,360 Speaker 1: of the evolution of how players are thinking, and they 122 00:06:52,360 --> 00:06:55,560 Speaker 1: said they once were brand ambassadors, now they're brands. I 123 00:06:55,560 --> 00:06:58,040 Speaker 1: would take it a step further and say, now increasingly 124 00:06:58,600 --> 00:07:01,719 Speaker 1: they are owners and you know, taking investment stakes, not 125 00:07:01,920 --> 00:07:05,719 Speaker 1: just endorsement dollars. Do you agree with that first of all? 126 00:07:05,800 --> 00:07:09,440 Speaker 1: And and second what are the implications for a player 127 00:07:09,760 --> 00:07:15,280 Speaker 1: for your business as players and former players start to 128 00:07:15,400 --> 00:07:20,680 Speaker 1: think more holistically about themselves as as a business enterprise. 129 00:07:21,320 --> 00:07:24,360 Speaker 1: So that is a that is a great point. I 130 00:07:24,520 --> 00:07:29,560 Speaker 1: wholeheartedly agree, and I know my colleagues advertens also agree 131 00:07:29,560 --> 00:07:31,840 Speaker 1: and that all of our clients and the sports and 132 00:07:31,920 --> 00:07:36,560 Speaker 1: entertainment world, regardless of what they're what their particular profession 133 00:07:36,680 --> 00:07:40,280 Speaker 1: is within those environments, we view them as we view 134 00:07:40,320 --> 00:07:42,680 Speaker 1: them as entrepreneurs, we view them as business owners, and 135 00:07:42,720 --> 00:07:46,600 Speaker 1: we educate them and bring them through the development of 136 00:07:46,640 --> 00:07:50,560 Speaker 1: their own personal business. Branding is one part of a business. 137 00:07:50,600 --> 00:07:54,760 Speaker 1: It's not a whole business. So you really do have 138 00:07:54,840 --> 00:07:59,160 Speaker 1: to look at this, this opportunity that you have holistically. 139 00:07:59,400 --> 00:08:00,880 Speaker 1: You've got to take it all in. You've got to 140 00:08:00,920 --> 00:08:03,200 Speaker 1: see the different ways you can go because, as you 141 00:08:03,280 --> 00:08:06,000 Speaker 1: guys know, businesses evolve over time. And you might be 142 00:08:06,680 --> 00:08:08,800 Speaker 1: the greatest quarterback to ever walk the face of the 143 00:08:08,800 --> 00:08:13,280 Speaker 1: earth today, but tomorrow something hurts, or something pops, or 144 00:08:13,320 --> 00:08:16,040 Speaker 1: somebody who weighs two pounds more than you falls on 145 00:08:16,120 --> 00:08:18,440 Speaker 1: you and your business just evolved and you weren't planning 146 00:08:18,480 --> 00:08:21,480 Speaker 1: on it. So what are you going to do what's 147 00:08:21,480 --> 00:08:25,360 Speaker 1: going to come next? Looking long term? Uh, you know, 148 00:08:25,560 --> 00:08:28,880 Speaker 1: educating yourself, helping to grow your business and stay ahead 149 00:08:28,920 --> 00:08:32,720 Speaker 1: of trends. Um. It's a huge conversation. And I think 150 00:08:32,760 --> 00:08:38,320 Speaker 1: the more guys and girls in professional sports that look 151 00:08:38,360 --> 00:08:43,080 Speaker 1: at themselves as business owners and really do take in 152 00:08:43,160 --> 00:08:47,520 Speaker 1: that long term concept sooner in their careers, the sooner 153 00:08:47,559 --> 00:08:49,760 Speaker 1: they can do with the better um. And it has 154 00:08:49,800 --> 00:08:53,080 Speaker 1: to be within reason. UM. Those are the ones that 155 00:08:53,120 --> 00:08:55,400 Speaker 1: are that are successful long term. Those are the ones 156 00:08:55,440 --> 00:08:59,040 Speaker 1: that really figure out ways to to stay occupied when 157 00:08:59,080 --> 00:09:02,640 Speaker 1: they're playing careers are over and save their money, build 158 00:09:02,640 --> 00:09:06,280 Speaker 1: their wealth and take the most advantage of the notoriety 159 00:09:06,280 --> 00:09:08,720 Speaker 1: and the opportunity that they have in their professional sport. 160 00:09:08,960 --> 00:09:13,160 Speaker 1: There's another harsh reality about the NFL, and especially now 161 00:09:13,200 --> 00:09:14,920 Speaker 1: that we're going to have a brand new set of 162 00:09:14,960 --> 00:09:19,600 Speaker 1: recruits coming into the National Football League, they'll likely not 163 00:09:19,920 --> 00:09:24,439 Speaker 1: sign a second contract. And that's just a harsh reality 164 00:09:24,480 --> 00:09:27,480 Speaker 1: about the sport. Can you expand more on that? Yeah? 165 00:09:27,600 --> 00:09:31,400 Speaker 1: I can. Once again, you guys are hitting home because 166 00:09:31,440 --> 00:09:33,240 Speaker 1: I've got the scars and the and the aches and 167 00:09:33,320 --> 00:09:37,160 Speaker 1: pains every day when I wake up too, to prove 168 00:09:37,240 --> 00:09:39,800 Speaker 1: that it exists. You know, the vast majority of these 169 00:09:39,840 --> 00:09:43,240 Speaker 1: guys who are the greatest things since slice spread, especially 170 00:09:43,280 --> 00:09:46,240 Speaker 1: after the weekend, all these new shiny toys for all 171 00:09:46,280 --> 00:09:50,160 Speaker 1: these coaches and gms to play with. I mean, let's 172 00:09:50,200 --> 00:09:52,560 Speaker 1: flash back a few years. Look at the number of 173 00:09:52,600 --> 00:09:57,440 Speaker 1: quarterbacks drafted. Um two franchises that needed quarterbacks. These guys 174 00:09:57,440 --> 00:10:02,000 Speaker 1: were too big to fail. H They were early early picks, first, second, third, fourth, 175 00:10:02,000 --> 00:10:05,959 Speaker 1: fifth picks overall in the draft, they're all gone. I'm 176 00:10:05,960 --> 00:10:08,120 Speaker 1: not gonna throw anybody under the bus and name names, 177 00:10:08,120 --> 00:10:10,079 Speaker 1: but it doesn't take a big Google search to figure 178 00:10:10,120 --> 00:10:13,079 Speaker 1: out that these teams not only did they draft them 179 00:10:13,080 --> 00:10:16,360 Speaker 1: and and trade them away or release them, but they 180 00:10:16,400 --> 00:10:19,120 Speaker 1: even in a couple of cases, paid them huge money 181 00:10:19,200 --> 00:10:23,120 Speaker 1: and then paid to get rid of them. So even 182 00:10:23,160 --> 00:10:26,600 Speaker 1: if you were the most valuable position, most valuable player, 183 00:10:27,280 --> 00:10:30,839 Speaker 1: and the most sought after player in the draft, two 184 00:10:30,920 --> 00:10:33,080 Speaker 1: or three years later, you're on the you're on the 185 00:10:33,080 --> 00:10:35,440 Speaker 1: tail end of your career, and you're twenty some five 186 00:10:35,520 --> 00:10:38,720 Speaker 1: years old. Now hopefully you have a good amount of 187 00:10:38,720 --> 00:10:41,120 Speaker 1: savings in the bank, and you've and you've been smart 188 00:10:41,160 --> 00:10:45,319 Speaker 1: and diligent with with what you've done with those assets 189 00:10:45,360 --> 00:10:49,400 Speaker 1: that you've been able to earn during your NFL career. 190 00:10:49,440 --> 00:10:51,280 Speaker 1: But you have to expect it. It's going to end 191 00:10:51,320 --> 00:10:54,319 Speaker 1: sooner than you think. Everybody wants to be Tony Richardson 192 00:10:54,320 --> 00:10:56,920 Speaker 1: and play for seventeen years. Uh, you know, at a 193 00:10:56,960 --> 00:10:59,079 Speaker 1: position that most people don't even realize that's still on 194 00:10:59,120 --> 00:11:01,600 Speaker 1: a football field as a pullback. But not everybody gets 195 00:11:01,640 --> 00:11:05,080 Speaker 1: that opportunity, and not everybody can plan on that career 196 00:11:06,240 --> 00:11:08,439 Speaker 1: or is even willing to put themselves through that what 197 00:11:08,520 --> 00:11:11,560 Speaker 1: it takes to play for that long, um, you know, 198 00:11:11,600 --> 00:11:15,000 Speaker 1: in a living playing a very very violent game for 199 00:11:15,000 --> 00:11:17,960 Speaker 1: for that period of time. No, the two words I 200 00:11:18,040 --> 00:11:20,680 Speaker 1: heard more than any other words during the three days 201 00:11:20,679 --> 00:11:25,520 Speaker 1: of the draft were life changing. And obviously life changing 202 00:11:25,600 --> 00:11:28,640 Speaker 1: is going to intersect with financial literacy at some point 203 00:11:28,840 --> 00:11:31,000 Speaker 1: over the next month or so or years for some 204 00:11:31,080 --> 00:11:33,360 Speaker 1: of these guys. I'm involved with a program up here 205 00:11:33,360 --> 00:11:35,840 Speaker 1: in Boston with a bank called Credit for Life. We 206 00:11:35,840 --> 00:11:39,000 Speaker 1: take high school juniors and we say, Okay, here's your budget, 207 00:11:39,320 --> 00:11:42,840 Speaker 1: and here's your rent, here's your transportation, here's your utilities? 208 00:11:42,840 --> 00:11:43,960 Speaker 1: How are you going to pay for all of it? 209 00:11:44,000 --> 00:11:46,400 Speaker 1: And basically they just stay in there and stare at 210 00:11:46,480 --> 00:11:49,559 Speaker 1: us with their mouths open. Now, obviously your clients serves, 211 00:11:49,600 --> 00:11:53,120 Speaker 1: you know, making hundreds more than and thousands and millions 212 00:11:53,160 --> 00:11:55,120 Speaker 1: more than some of these kids. Do you ever slap 213 00:11:55,200 --> 00:11:57,360 Speaker 1: yourself on the forehead and just say, oh, my goodness, 214 00:11:57,360 --> 00:12:00,079 Speaker 1: whatever happened to financial literacy? Does it even exist with 215 00:12:00,160 --> 00:12:03,520 Speaker 1: some of these guys? You know? Unfortunately more and more, 216 00:12:04,040 --> 00:12:06,960 Speaker 1: um and listen, there's a lot of there's if you 217 00:12:06,960 --> 00:12:08,640 Speaker 1: want to say, blame, there's a lot of blame to 218 00:12:08,679 --> 00:12:12,520 Speaker 1: go around on this subject because some of these college 219 00:12:12,520 --> 00:12:15,720 Speaker 1: programs know what these kids are coming to college for, 220 00:12:15,880 --> 00:12:18,000 Speaker 1: what they're getting into. If everything goes right and they 221 00:12:18,040 --> 00:12:21,199 Speaker 1: stay healthy. How are you not teaching some of these 222 00:12:21,200 --> 00:12:23,520 Speaker 1: people how to write a check, how to balance a checkbook, 223 00:12:23,880 --> 00:12:26,040 Speaker 1: how a debit card works, how a credit card works, 224 00:12:26,080 --> 00:12:28,959 Speaker 1: just just basic basic functional You know, I need to 225 00:12:28,960 --> 00:12:31,120 Speaker 1: get a mortgage, I want to buy a car. What 226 00:12:31,160 --> 00:12:34,679 Speaker 1: it interest rates mean? So that's a scary and that's 227 00:12:34,679 --> 00:12:37,720 Speaker 1: a rabbit hole that is that is very very deep. 228 00:12:38,280 --> 00:12:42,000 Speaker 1: But the life changing concept is something that really triggered 229 00:12:42,840 --> 00:12:46,080 Speaker 1: when you said that first pick in the draft, who 230 00:12:46,120 --> 00:12:51,400 Speaker 1: is the guy who is the most um the least 231 00:12:51,440 --> 00:12:53,960 Speaker 1: likely to fail. He's the one that everybody wants. That's 232 00:12:54,040 --> 00:12:56,600 Speaker 1: that's the way it works. He's going to walk away 233 00:12:56,800 --> 00:13:01,000 Speaker 1: pre tax with thirty six seven million dollar are fully guaranteed. 234 00:13:01,640 --> 00:13:03,720 Speaker 1: There's thirty two picks in the first round. By the 235 00:13:03,760 --> 00:13:07,280 Speaker 1: time you get midway through the first round, that thirty 236 00:13:07,320 --> 00:13:10,679 Speaker 1: six thirty seven million guarantees cut in half down to 237 00:13:10,720 --> 00:13:13,520 Speaker 1: about fifteen pre tax. By the time you get to 238 00:13:13,520 --> 00:13:15,840 Speaker 1: the end of the first round, it's about a quarter 239 00:13:16,360 --> 00:13:19,720 Speaker 1: of the value. So once you start kicking in taxes, 240 00:13:19,800 --> 00:13:23,360 Speaker 1: once you start doing a couple of things, uh, you 241 00:13:23,400 --> 00:13:26,000 Speaker 1: know with your money, maybe buying a house or running apartment, 242 00:13:26,040 --> 00:13:31,400 Speaker 1: paying bills, you're you're yes, it's it's a lot of money, 243 00:13:31,520 --> 00:13:34,560 Speaker 1: especially for a kid coming out of college who's probably 244 00:13:34,679 --> 00:13:39,679 Speaker 1: in their very early twenties, but it's it's not necessarily 245 00:13:41,000 --> 00:13:42,880 Speaker 1: the amount of money that you need to live the 246 00:13:42,920 --> 00:13:45,520 Speaker 1: rest of your life. Take care of all your family, 247 00:13:45,559 --> 00:13:47,640 Speaker 1: take care of all your friends. You are going to 248 00:13:47,720 --> 00:13:49,719 Speaker 1: need to plan. You're gonna need a game plan. And 249 00:13:50,200 --> 00:13:52,640 Speaker 1: you know the way that we always speak to especially 250 00:13:52,720 --> 00:13:54,640 Speaker 1: young guys who are who are playing sports. As you 251 00:13:54,640 --> 00:13:56,720 Speaker 1: wouldn't go into a game without a game plan. You 252 00:13:56,720 --> 00:13:59,880 Speaker 1: wouldn't you wouldn't go in without a playbook and understand 253 00:14:00,360 --> 00:14:02,800 Speaker 1: what this road map is going to look like for 254 00:14:02,800 --> 00:14:05,840 Speaker 1: for you long term. A lot of these guys do. 255 00:14:06,120 --> 00:14:09,320 Speaker 1: When it comes to their their profession, their sport, they're 256 00:14:09,440 --> 00:14:12,599 Speaker 1: very very prepared, they're very diligent, they work hard, they focus, 257 00:14:12,640 --> 00:14:15,320 Speaker 1: but when it comes to that off field, they have 258 00:14:15,360 --> 00:14:19,040 Speaker 1: no plan. They make decisions based on emotion, or they 259 00:14:19,080 --> 00:14:21,840 Speaker 1: make decisions that are guided by people who don't have 260 00:14:21,920 --> 00:14:25,360 Speaker 1: their best interests in mind. And unfortunately, if if a 261 00:14:25,400 --> 00:14:30,800 Speaker 1: lot more would just be patient, take a breath, spend 262 00:14:30,840 --> 00:14:34,520 Speaker 1: some time educating themselves, reading and knowing that you're gonna 263 00:14:34,560 --> 00:14:37,520 Speaker 1: play football or basketball or baseball for a limited period 264 00:14:37,520 --> 00:14:41,240 Speaker 1: of time, you're gonna be able to invest your money 265 00:14:41,280 --> 00:14:44,640 Speaker 1: over the rest of your life, So don't rush into that. 266 00:14:45,000 --> 00:14:47,440 Speaker 1: Take a beat, figure out what you need to do, 267 00:14:47,560 --> 00:14:49,360 Speaker 1: figure out the right people to help you do that, 268 00:14:49,880 --> 00:14:53,080 Speaker 1: and and make good decisions in that before you just 269 00:14:53,280 --> 00:14:54,960 Speaker 1: rush to it, so that you can say, oh, I 270 00:14:55,040 --> 00:14:57,080 Speaker 1: own a I own an in and out Burger, or 271 00:14:57,120 --> 00:14:59,880 Speaker 1: I own this, or I own that well, all the 272 00:15:00,000 --> 00:15:03,720 Speaker 1: things bring ramifications. So so now before we let you go, 273 00:15:03,760 --> 00:15:08,200 Speaker 1: and I gotta ask you about labor and negotiations because 274 00:15:08,240 --> 00:15:10,040 Speaker 1: we're going to see some big ones over the next 275 00:15:10,120 --> 00:15:13,800 Speaker 1: year or so, you know, most notably in Major League Baseball. Obviously, 276 00:15:13,920 --> 00:15:16,960 Speaker 1: folks are already starting to talk in and around that 277 00:15:17,400 --> 00:15:20,160 Speaker 1: in this new era that we're in when it comes 278 00:15:20,200 --> 00:15:25,560 Speaker 1: to as you say, athletes as entrepreneurs, athletes as businesses, 279 00:15:25,840 --> 00:15:29,720 Speaker 1: in an era where sports continues to be incredibly important 280 00:15:29,920 --> 00:15:33,320 Speaker 1: and very very lucrative, what are the one or two 281 00:15:33,400 --> 00:15:37,400 Speaker 1: things that you're most keyed in on as these negotiations 282 00:15:37,440 --> 00:15:41,360 Speaker 1: start across the big pro sports. I think that labor 283 00:15:41,760 --> 00:15:46,760 Speaker 1: is becoming much more aware of the long term care aspect. 284 00:15:47,040 --> 00:15:50,480 Speaker 1: The long term, whether it be from a from a 285 00:15:50,520 --> 00:15:56,720 Speaker 1: support standpoint, mental and physical well being support um, making 286 00:15:56,760 --> 00:16:00,520 Speaker 1: sure that there's some type of benefit that is provided 287 00:16:00,600 --> 00:16:02,600 Speaker 1: if you if you play a certain amount of years 288 00:16:02,720 --> 00:16:07,560 Speaker 1: or whatever the barrier. Venturely from a qualification standpoint, that 289 00:16:07,680 --> 00:16:10,240 Speaker 1: you have the ability to take care of yourself in 290 00:16:10,280 --> 00:16:12,800 Speaker 1: some cases take care of your family for the long 291 00:16:12,920 --> 00:16:16,880 Speaker 1: term thanks to the sport that you participated in. And 292 00:16:17,520 --> 00:16:21,120 Speaker 1: I really believe that something that you mentioned earlier, was 293 00:16:21,200 --> 00:16:25,760 Speaker 1: this this personal branding concept. More and more athletes are 294 00:16:26,080 --> 00:16:29,680 Speaker 1: following or trying to follow that. I'll call it the 295 00:16:29,800 --> 00:16:32,880 Speaker 1: NBA model because the NBA players, they're on the court, 296 00:16:32,960 --> 00:16:35,600 Speaker 1: everybody can see their faces. Everybody knows who they are, 297 00:16:36,400 --> 00:16:41,080 Speaker 1: everybody knows who the stars are locally, nationally, globally. More 298 00:16:41,120 --> 00:16:44,400 Speaker 1: and more athletes are realizing the benefit of that and 299 00:16:44,440 --> 00:16:48,680 Speaker 1: the benefit of what that can mean moving past your 300 00:16:48,720 --> 00:16:52,880 Speaker 1: career on the field. So the more recognizable you can be, 301 00:16:53,680 --> 00:16:57,200 Speaker 1: the more you can kind of keep that revenue stream 302 00:16:57,320 --> 00:17:01,360 Speaker 1: or some form of a revenue stream moving beyond your 303 00:17:01,400 --> 00:17:04,760 Speaker 1: actual playing career. And when you're talking about football, the 304 00:17:04,880 --> 00:17:07,560 Speaker 1: playing career on average is very short. You know, the 305 00:17:07,640 --> 00:17:11,840 Speaker 1: statistics are are are three years roughly give or take. 306 00:17:12,400 --> 00:17:16,359 Speaker 1: But unfortunately for football players, that doesn't include the guys 307 00:17:16,400 --> 00:17:19,959 Speaker 1: that get cut after training camp wraps up and and 308 00:17:20,000 --> 00:17:23,679 Speaker 1: never make another real viable contractor team after that. You know, 309 00:17:23,720 --> 00:17:26,320 Speaker 1: the the average NFL career is probably more like four 310 00:17:26,359 --> 00:17:29,400 Speaker 1: to six months, but they used the three year concept 311 00:17:29,440 --> 00:17:31,840 Speaker 1: because it sounds a little bit better. So when you're 312 00:17:31,840 --> 00:17:35,920 Speaker 1: looking at that long of odds, you really should look 313 00:17:35,960 --> 00:17:38,359 Speaker 1: at that opportunity and figure out Okay, how can I 314 00:17:38,400 --> 00:17:40,520 Speaker 1: perpetuate this? How can I get the most out of it? 315 00:17:40,560 --> 00:17:44,040 Speaker 1: How can I network and build relationships? And when it 316 00:17:44,080 --> 00:17:50,480 Speaker 1: comes to the labor negotiations, that's becoming more of the 317 00:17:50,480 --> 00:17:52,800 Speaker 1: the concept that the players are revolving around. How can 318 00:17:52,840 --> 00:17:54,960 Speaker 1: I have a bigger piece of this business for the 319 00:17:55,040 --> 00:17:58,199 Speaker 1: long term versus just the short term gain of a 320 00:17:58,200 --> 00:18:01,080 Speaker 1: little bit more money in my contract. Um, you know 321 00:18:01,119 --> 00:18:02,600 Speaker 1: this is going to affect me for the rest of 322 00:18:02,640 --> 00:18:04,560 Speaker 1: my life. How do I how do I have it 323 00:18:04,760 --> 00:18:07,080 Speaker 1: benefit me for the rest of my life? Yeah, the 324 00:18:07,080 --> 00:18:11,280 Speaker 1: power dynamics certainly have shifted and will continue to shift. No. 325 00:18:11,480 --> 00:18:13,480 Speaker 1: Really good to catch up with you and and spend 326 00:18:13,520 --> 00:18:17,840 Speaker 1: some time, very timely conversation obviously as we continue to 327 00:18:17,920 --> 00:18:20,760 Speaker 1: digest the NFL Draft, think about everything that's going on 328 00:18:20,800 --> 00:18:23,240 Speaker 1: in the world of sports, especially as we're getting back 329 00:18:23,680 --> 00:18:25,960 Speaker 1: in arenas and and all of that good stuff. Nolal 330 00:18:26,000 --> 00:18:29,440 Speaker 1: Montane is a director of Verden's Capital Advisers. Great to 331 00:18:29,480 --> 00:18:32,040 Speaker 1: talk to you, man, Thank you, appreciate your fellows. Thank you. No, 332 00:18:32,359 --> 00:18:35,439 Speaker 1: this is the Bloomberg Business of Sports podcast on Michael 333 00:18:35,440 --> 00:18:38,000 Speaker 1: Bar on Twitter at Big Bar Sports, and I'm Mike Lynch. 334 00:18:38,000 --> 00:18:40,119 Speaker 1: You can follow me at Lynch E w CVB, and 335 00:18:40,119 --> 00:18:42,760 Speaker 1: I'm Jason Kelly. Follow me at Jason Kelly News. We're 336 00:18:42,760 --> 00:18:45,800 Speaker 1: here each and every Monday, Wednesday, and Thursday exploring the 337 00:18:45,800 --> 00:18:47,960 Speaker 1: world of money and sports. Join us again at the 338 00:18:48,119 --> 00:18:53,160 Speaker 1: end of the week. We are talking hockey release the Kraken. Yeah, 339 00:18:53,240 --> 00:18:56,399 Speaker 1: it's happening out in Seattle. We're gonna catch up with 340 00:18:56,520 --> 00:18:59,640 Speaker 1: the CEO and owner of that team, so be sure 341 00:18:59,680 --> 00:19:02,399 Speaker 1: to too into that. You're listening to Bloomberg Business of 342 00:19:02,440 --> 00:19:06,360 Speaker 1: Sports on Bloomberg Radio around the world and online wherever 343 00:19:06,400 --> 00:19:07,680 Speaker 1: you get your podcasts.