1
00:00:00,400 --> 00:00:03,120
Speaker 1: Coach, the energy out there felt different. What changed for

2
00:00:03,160 --> 00:00:03,800
Speaker 1: the team today?

3
00:00:03,880 --> 00:00:06,000
Speaker 2: It was the new game day scratches from the California

4
00:00:06,080 --> 00:00:09,440
Speaker 2: Lottery players. Everything. Those games sent the team's energy through

5
00:00:09,480 --> 00:00:09,840
Speaker 2: the roof.

6
00:00:09,880 --> 00:00:11,880
Speaker 1: Are you saying it was the off field play that

7
00:00:11,920 --> 00:00:13,000
Speaker 1: made the difference on the field.

8
00:00:13,119 --> 00:00:15,840
Speaker 2: Hey, little play makes your day, and today it made

9
00:00:15,880 --> 00:00:16,279
Speaker 2: the game.

10
00:00:16,760 --> 00:00:18,800
Speaker 3: That's all for now, coach, one more question.

11
00:00:18,960 --> 00:00:21,800
Speaker 1: Play the new Los Angeles Chargers, San Francisco forty nine

12
00:00:21,880 --> 00:00:24,960
Speaker 1: ers and Los Angeles Rams scratchers from the California Lottery.

13
00:00:25,040 --> 00:00:28,200
Speaker 1: A little play can make your day. Peace made responsibily.

14
00:00:28,240 --> 00:00:50,840
Speaker 1: Must be eighteen years or older to purchase late or claim.

15
00:00:50,880 --> 00:00:56,360
Speaker 3: All right, guys, welcome back episode ten. Time Fly, Time Flies.

16
00:00:56,400 --> 00:00:58,600
Speaker 3: This is a monumental episode for us because it's on

17
00:00:58,800 --> 00:01:01,760
Speaker 3: tenth one, tenth week. So first of all, we want

18
00:01:01,800 --> 00:01:06,200
Speaker 3: to thank you guys. Our growth has been tremendous on

19
00:01:06,280 --> 00:01:11,760
Speaker 3: all audio platforms, on YouTube, on Instagram ten weeks in

20
00:01:11,959 --> 00:01:14,759
Speaker 3: and you know we're hitting the ground running. So that's

21
00:01:14,800 --> 00:01:18,040
Speaker 3: only because you guys that are spreading the words. So

22
00:01:18,120 --> 00:01:19,080
Speaker 3: thank you, thank.

23
00:01:18,920 --> 00:01:23,600
Speaker 2: You, thank you everybody who's been supporting, hitting our website up,

24
00:01:23,840 --> 00:01:26,360
Speaker 2: getting the merged. We really appreciate it, Thank you so much.

25
00:01:26,440 --> 00:01:28,960
Speaker 3: All right, So we're going to jump into it this

26
00:01:29,000 --> 00:01:34,199
Speaker 3: week with one of the biggest topics of discussion, which

27
00:01:34,240 --> 00:01:39,880
Speaker 3: is a massive college cheating scandal Colle's admissions cheating scandal,

28
00:01:40,360 --> 00:01:44,600
Speaker 3: and it reaches pretty broad reaching. It's the biggest one

29
00:01:44,720 --> 00:01:48,520
Speaker 3: in American history FBI probe. So I put it on

30
00:01:48,560 --> 00:01:50,920
Speaker 3: my Instagram, I put it on our Instagram, actually on

31
00:01:50,960 --> 00:01:53,040
Speaker 3: your leisure page to see, you know, the reaction if

32
00:01:53,040 --> 00:01:54,440
Speaker 3: we should talk about it or not. And a lot

33
00:01:54,440 --> 00:01:56,480
Speaker 3: of people wanted us to talk about it, and a

34
00:01:56,520 --> 00:01:59,960
Speaker 3: lot of people really wasn't sure exactly the full dynamic,

35
00:02:00,440 --> 00:02:03,680
Speaker 3: what happens, like, what it really encountered, and you know,

36
00:02:03,920 --> 00:02:08,079
Speaker 3: all of that stuff. So with that being said, we

37
00:02:08,160 --> 00:02:14,079
Speaker 3: want to jump into it and explain it in full, yeah,

38
00:02:14,120 --> 00:02:17,840
Speaker 3: because it's more involved when people think.

39
00:02:17,680 --> 00:02:20,080
Speaker 2: Yeah, a lot of people like a really completely oblivious

40
00:02:20,080 --> 00:02:21,400
Speaker 2: to what happened. They saw it on the news and

41
00:02:21,440 --> 00:02:23,600
Speaker 2: the headlines. But there's so many layers to it, and

42
00:02:23,600 --> 00:02:25,280
Speaker 2: hopefully we'll be able to explain that to you in

43
00:02:25,360 --> 00:02:27,440
Speaker 2: a way that you can understand and digest.

44
00:02:27,760 --> 00:02:30,600
Speaker 3: All right, So you want to start it off.

45
00:02:30,480 --> 00:02:34,440
Speaker 2: Yeah, So we'll start with by the FBI finding this

46
00:02:34,520 --> 00:02:37,840
Speaker 2: out by mistake, completely by mistake. It was just a happenstance.

47
00:02:38,120 --> 00:02:42,440
Speaker 2: They were investigating this this man named uh Maury Tobin,

48
00:02:42,440 --> 00:02:45,000
Speaker 2: who was a yell alone and he was on the

49
00:02:45,080 --> 00:02:48,720
Speaker 2: investigation for a pump and dump scheme. So a pump

50
00:02:48,720 --> 00:02:50,720
Speaker 2: and dump is when you put money into a stock

51
00:02:51,240 --> 00:02:53,639
Speaker 2: and the stock rises and you sell it because you

52
00:02:53,960 --> 00:02:55,720
Speaker 2: know that the stock's not gonna last long. So he

53
00:02:55,720 --> 00:02:58,320
Speaker 2: was on the investigation. They had all the evidence presented

54
00:02:58,400 --> 00:03:01,239
Speaker 2: for him, and when they presented it, one of me

55
00:03:01,400 --> 00:03:03,160
Speaker 2: was like, you know what, I'll cooperate you guys, if

56
00:03:03,160 --> 00:03:05,560
Speaker 2: you give me linency, I'll cooperate. So what he does

57
00:03:05,600 --> 00:03:07,880
Speaker 2: is say, you know what, I'm a yello lum. My

58
00:03:08,080 --> 00:03:10,720
Speaker 2: daughter wants to go to Yea and play soccer. The

59
00:03:10,840 --> 00:03:15,680
Speaker 2: coach there, Rudy Meredith, offered me to have my daughter

60
00:03:15,680 --> 00:03:17,600
Speaker 2: come to school for four hundred and fifty thousand dollars.

61
00:03:17,760 --> 00:03:19,040
Speaker 2: So he says, you know what, if you pay four

62
00:03:19,080 --> 00:03:21,639
Speaker 2: hundred and fifty thousand, your daughter could come to the school.

63
00:03:22,760 --> 00:03:25,840
Speaker 2: FBI says, Okay, that's really good. Can you get that

64
00:03:25,960 --> 00:03:29,480
Speaker 2: on tape. So Tobin does is he wears a wire

65
00:03:29,520 --> 00:03:31,880
Speaker 2: and he goes to having meeting with Meredith, and he

66
00:03:31,960 --> 00:03:34,760
Speaker 2: has them on tape saying it now. Once Meredith is caught,

67
00:03:34,960 --> 00:03:38,080
Speaker 2: he says, you know what, I'll cooperate if you give

68
00:03:38,120 --> 00:03:41,200
Speaker 2: me linency, I'll tell you where this money is going.

69
00:03:41,640 --> 00:03:44,080
Speaker 2: And it comes up to this man named Rick Singer.

70
00:03:44,800 --> 00:03:46,320
Speaker 2: And if you don't know Rick Singer is, we're going

71
00:03:46,360 --> 00:03:48,360
Speaker 2: to go to some death about who he is and

72
00:03:48,360 --> 00:03:50,960
Speaker 2: his role in this story. But what he does is

73
00:03:51,080 --> 00:03:54,440
Speaker 2: he starts singing ironically enough, so you want to talk

74
00:03:54,440 --> 00:03:55,200
Speaker 2: about who Rick singers?

75
00:03:55,560 --> 00:03:58,960
Speaker 3: Yeah, So Rick Singer is a guy. He started a

76
00:03:59,000 --> 00:04:04,440
Speaker 3: company called the Key, right, and the Key was a

77
00:04:04,480 --> 00:04:09,400
Speaker 3: company that designed to have affluent parents paid to get

78
00:04:09,400 --> 00:04:12,280
Speaker 3: their kids into college. Right. And it's a couple of

79
00:04:12,280 --> 00:04:14,920
Speaker 3: different ways how you went about doing it, but they

80
00:04:14,920 --> 00:04:20,000
Speaker 3: were all pretty much illegal ways. So the Key, it's

81
00:04:20,000 --> 00:04:26,760
Speaker 3: all unfolded because of Lori Lochlin. So so she's I'm

82
00:04:26,800 --> 00:04:30,839
Speaker 3: Becky from full House, full House that brings back memories.

83
00:04:32,040 --> 00:04:38,200
Speaker 3: That's that's that's Selectee's crazy's all right. So now you

84
00:04:38,320 --> 00:04:42,640
Speaker 3: have I'm Becky from full House, right. And when he

85
00:04:42,680 --> 00:04:44,599
Speaker 3: got put the pressure on as far as we're Singer,

86
00:04:44,640 --> 00:04:46,440
Speaker 3: he starts to fold. So It's like it's like a

87
00:04:46,480 --> 00:04:49,600
Speaker 3: domino fact. Right, one guy rats, another guy rats. So

88
00:04:50,080 --> 00:04:52,720
Speaker 3: now he says, okay, well I'll open it up for you. Right,

89
00:04:52,800 --> 00:04:54,960
Speaker 3: this is bigger than just me. So now you have

90
00:04:55,120 --> 00:04:58,600
Speaker 3: all these Hollywood A List celebrities V List celebrities that

91
00:04:58,680 --> 00:05:00,800
Speaker 3: are paying up to five hundre tred thousand in some

92
00:05:00,839 --> 00:05:02,800
Speaker 3: case I heard even a million and a half to

93
00:05:02,839 --> 00:05:04,920
Speaker 3: get their kids into college. Right, So how they getting

94
00:05:04,920 --> 00:05:06,680
Speaker 3: their kids into college is the interesting part. A lot

95
00:05:06,720 --> 00:05:08,760
Speaker 3: of times people say, okay, well rich people paying to

96
00:05:08,800 --> 00:05:10,120
Speaker 3: get their kids into school, that's nothing.

97
00:05:10,360 --> 00:05:11,280
Speaker 2: Yeah, we've seen before.

98
00:05:11,360 --> 00:05:13,279
Speaker 3: Who really kids? But this is how it all breaks

99
00:05:13,320 --> 00:05:15,960
Speaker 3: down because the theme of this show is like the

100
00:05:16,040 --> 00:05:20,680
Speaker 3: backstory behind sports and entertainment, right, so we want to

101
00:05:20,720 --> 00:05:23,479
Speaker 3: give you the backstory behind sports and entertainment. So this

102
00:05:23,680 --> 00:05:28,120
Speaker 3: all ties in. It's a very complicated situation. So they're

103
00:05:28,160 --> 00:05:30,839
Speaker 3: really using two avenues to get the kids into college. Right,

104
00:05:30,920 --> 00:05:34,960
Speaker 3: So they're paying, they're using disability learning disabilities, right because

105
00:05:35,080 --> 00:05:37,440
Speaker 3: now if you have a learning disability, when you take

106
00:05:37,440 --> 00:05:40,159
Speaker 3: your sat or Act, you get longer time.

107
00:05:40,880 --> 00:05:44,840
Speaker 2: So that comes from him first paying school psychologists. So

108
00:05:45,000 --> 00:05:47,040
Speaker 2: the first thing he gets on a payroll school psychologist

109
00:05:47,080 --> 00:05:48,560
Speaker 2: and in two ways that they do with first ones

110
00:05:48,600 --> 00:05:52,280
Speaker 2: ACT SAT test. So he gets school psychologists because he

111
00:05:52,320 --> 00:05:54,279
Speaker 2: knows that they can create the paperwork that he needs

112
00:05:54,320 --> 00:05:57,120
Speaker 2: to show that the kids have learning disabilities. So when

113
00:05:57,120 --> 00:05:59,520
Speaker 2: they get that paperwork, it'll allow them to have extended

114
00:05:59,560 --> 00:06:02,000
Speaker 2: time into the testing accommodation, either time and a half

115
00:06:02,080 --> 00:06:05,480
Speaker 2: or double time. Once they get that, now the kids

116
00:06:05,480 --> 00:06:07,920
Speaker 2: have longer time to take the SAT. But it goes

117
00:06:07,960 --> 00:06:12,560
Speaker 2: even deeper because after they take the test, right, sometimes

118
00:06:12,880 --> 00:06:15,159
Speaker 2: he has another person on the payroll, the procter of

119
00:06:15,200 --> 00:06:17,400
Speaker 2: the test. So they take the test and a lot

120
00:06:17,440 --> 00:06:19,799
Speaker 2: of times the kids didn't know this, but the proctor

121
00:06:19,960 --> 00:06:22,360
Speaker 2: was like some guy that they hired, like an SAT genius,

122
00:06:22,400 --> 00:06:24,240
Speaker 2: and he would just change the answers for the students

123
00:06:24,279 --> 00:06:26,680
Speaker 2: so that they would get higher scores. He wouldn't even

124
00:06:26,720 --> 00:06:28,680
Speaker 2: further than that though, right, this is like one of

125
00:06:28,720 --> 00:06:32,200
Speaker 2: the illest things he did. We know, like when we

126
00:06:32,240 --> 00:06:35,080
Speaker 2: take the ACT and set like way back when that

127
00:06:35,160 --> 00:06:38,960
Speaker 2: those tests were at specific locations. So what he did

128
00:06:39,000 --> 00:06:40,920
Speaker 2: is he knew that the parents had a lot of money,

129
00:06:41,200 --> 00:06:43,680
Speaker 2: and he said, I need a different type of testing accommodation.

130
00:06:44,080 --> 00:06:48,360
Speaker 2: I need the students to create a scenario where they

131
00:06:48,360 --> 00:06:50,200
Speaker 2: have to leave. So parents would say, look, I'm going

132
00:06:50,240 --> 00:06:52,960
Speaker 2: on a business trip, I have to take my children.

133
00:06:53,200 --> 00:06:55,120
Speaker 2: Is any way that they can take this in a

134
00:06:55,120 --> 00:06:57,480
Speaker 2: different location? And they went to two places. They went

135
00:06:57,480 --> 00:06:59,600
Speaker 2: to Houston and they went to West Hollywood. And when

136
00:06:59,640 --> 00:07:02,320
Speaker 2: they were there, when it got there, obviously it was

137
00:07:02,400 --> 00:07:06,280
Speaker 2: the practor was on the payroll, but sometimes they had

138
00:07:06,320 --> 00:07:08,880
Speaker 2: people just go into those locations and take it for them.

139
00:07:08,920 --> 00:07:11,280
Speaker 2: So like these kids never took some kids never took

140
00:07:11,280 --> 00:07:14,040
Speaker 2: the test, some took it and answers were changed, and

141
00:07:14,080 --> 00:07:16,240
Speaker 2: it's like, wait, what how did this happen?

142
00:07:16,360 --> 00:07:19,640
Speaker 3: Yeah, so that's the academic side, And now we're talking

143
00:07:19,640 --> 00:07:23,360
Speaker 3: about the athletics side, right. So it's actually fitting that

144
00:07:23,400 --> 00:07:26,000
Speaker 3: you spoke about the academic side because you work in school,

145
00:07:26,240 --> 00:07:29,840
Speaker 3: you're educator, right, and I played sports my whole life,

146
00:07:29,920 --> 00:07:32,360
Speaker 3: So now I'll talk about the academic side. So as

147
00:07:32,360 --> 00:07:35,080
Speaker 3: a Division one former Division one athlete, I can speak

148
00:07:35,080 --> 00:07:38,000
Speaker 3: about this first hand. Yeah, so when you are recruited

149
00:07:38,040 --> 00:07:42,480
Speaker 3: to go to the school. Now, each college has academic

150
00:07:42,560 --> 00:07:45,080
Speaker 3: requirements right now, of academic requirements, most of the time,

151
00:07:45,400 --> 00:07:50,480
Speaker 3: they have leniency for athletics athletes, right, So it's lower

152
00:07:50,640 --> 00:07:53,320
Speaker 3: for an athlete to get the academic requirements are lower, right,

153
00:07:53,320 --> 00:07:56,600
Speaker 3: because they're an athlete. So what happens is that you

154
00:07:56,680 --> 00:08:01,640
Speaker 3: have big time college sports basket ball, football, everybody knows that, right,

155
00:08:01,960 --> 00:08:03,920
Speaker 3: But there's a lot of college sports where we actually

156
00:08:03,960 --> 00:08:08,360
Speaker 3: spoke about a few episodes ago, and nobody really knows

157
00:08:08,680 --> 00:08:11,120
Speaker 3: most of these sports, right. So you have teams like

158
00:08:11,200 --> 00:08:17,480
Speaker 3: water polo, sailing, even soccer in some cases squash squash. Uh,

159
00:08:17,760 --> 00:08:21,400
Speaker 3: nobody knows, no disrespect to these these teams, but nobody

160
00:08:21,440 --> 00:08:24,200
Speaker 3: knows the players and it's not it's no big deal, right,

161
00:08:24,240 --> 00:08:27,680
Speaker 3: So what happens is that the players on these teams,

162
00:08:27,840 --> 00:08:31,000
Speaker 3: they have a way to get into college with lower

163
00:08:31,320 --> 00:08:34,960
Speaker 3: SAT scores, lower ACT scores, lower you know, academic requirements.

164
00:08:35,040 --> 00:08:36,480
Speaker 3: So what they were doing is that now they were

165
00:08:36,480 --> 00:08:39,240
Speaker 3: paying off the coaches, right, they paid the college coaches

166
00:08:39,880 --> 00:08:43,679
Speaker 3: to put the kids on the team so they can

167
00:08:43,720 --> 00:08:46,680
Speaker 3: get in on that avenue as well. So now the

168
00:08:46,760 --> 00:08:49,640
Speaker 3: kids is on the squash team and he's never even

169
00:08:49,640 --> 00:08:54,560
Speaker 3: played squash. So a couple of schools got USC was

170
00:08:54,559 --> 00:08:57,160
Speaker 3: one of the schools, right, So USC, if a running

171
00:08:57,200 --> 00:08:59,520
Speaker 3: back doesn't show up to practice, everybody's going to know

172
00:08:59,520 --> 00:09:02,360
Speaker 3: what the running back like. That's you know, a big deal.

173
00:09:02,720 --> 00:09:06,640
Speaker 3: Nobody's checking to see if the rowing team shows up

174
00:09:06,640 --> 00:09:08,280
Speaker 3: the practice or not. Right, So now they have and

175
00:09:08,280 --> 00:09:12,080
Speaker 3: they was actually even photoshopping kids' faces on pictures to

176
00:09:12,120 --> 00:09:14,280
Speaker 3: make them seem like they were actually real athletes. Right,

177
00:09:14,320 --> 00:09:15,760
Speaker 3: So how does this all tie in? And so there's

178
00:09:15,760 --> 00:09:17,719
Speaker 3: always a plot twist, right, So how does this all

179
00:09:17,760 --> 00:09:21,400
Speaker 3: tie into everyday people? Is because as we spoke about before,

180
00:09:22,320 --> 00:09:26,600
Speaker 3: there's two sports that really fund the majority of every sport,

181
00:09:26,800 --> 00:09:29,720
Speaker 3: all the sports in college, right, and those two sports

182
00:09:29,760 --> 00:09:33,559
Speaker 3: are basketball and football. Right, So now you have basketball

183
00:09:33,559 --> 00:09:36,440
Speaker 3: and football, and we all know the demographics most of

184
00:09:36,440 --> 00:09:39,000
Speaker 3: the time of those sports, right, and those kids most

185
00:09:39,040 --> 00:09:41,920
Speaker 3: of the time aren't coming from very affluent families. Some do,

186
00:09:42,080 --> 00:09:45,720
Speaker 3: but most don't. Write middle class, low class, poor families.

187
00:09:45,760 --> 00:09:48,880
Speaker 3: So now you have those those two programs are funding

188
00:09:49,480 --> 00:09:53,640
Speaker 3: the other programs like water, polo, squash, sailing, all those teams. Right,

189
00:09:53,960 --> 00:09:56,720
Speaker 3: So now the funds that they're getting and it's helping

190
00:09:56,760 --> 00:10:00,960
Speaker 3: them run their programs. The wealthy pa parents are paying

191
00:10:01,080 --> 00:10:04,160
Speaker 3: those coaches to let their kids on the team, even

192
00:10:04,200 --> 00:10:06,439
Speaker 3: though those kids aren't actually on the team, just to

193
00:10:06,480 --> 00:10:09,200
Speaker 3: get into college. Right, So it all ties into the

194
00:10:09,280 --> 00:10:16,400
Speaker 3: idea of America and the weird combination of sports and education.

195
00:10:16,880 --> 00:10:20,240
Speaker 3: It's not normal to have sports and education tied together

196
00:10:20,400 --> 00:10:24,040
Speaker 3: in any part of the world other than America, right,

197
00:10:24,360 --> 00:10:28,559
Speaker 3: So part of the cheating scandual also was IMG Academy

198
00:10:28,559 --> 00:10:29,120
Speaker 3: in Florida.

199
00:10:29,320 --> 00:10:30,040
Speaker 2: You know that school?

200
00:10:30,240 --> 00:10:34,120
Speaker 3: Yes, So I am alumni of IMG Academy. So if

201
00:10:34,120 --> 00:10:36,280
Speaker 3: anybody's not familiar, I give you a quick rundown. IMG

202
00:10:36,440 --> 00:10:39,520
Speaker 3: Academy is one of the top prep schools in America,

203
00:10:39,679 --> 00:10:41,880
Speaker 3: if not the top prep school in America. And they

204
00:10:41,920 --> 00:10:46,240
Speaker 3: have a different approach whereas they build the academics around

205
00:10:46,280 --> 00:10:49,240
Speaker 3: the sports. Right, So sports is your main focus. You

206
00:10:49,280 --> 00:10:52,000
Speaker 3: go to school for whatever sports you're playing, and then

207
00:10:52,040 --> 00:10:55,520
Speaker 3: they kind of tailor make your athletic your academic requirements

208
00:10:55,640 --> 00:10:57,559
Speaker 3: around your sports. So you train for most of the

209
00:10:57,640 --> 00:10:59,280
Speaker 3: day and then you go to school for like part

210
00:10:59,320 --> 00:11:03,319
Speaker 3: time almost so it's a unique situation. So they had

211
00:11:03,320 --> 00:11:07,720
Speaker 3: the head of Academic Enrollment for Colleges or something. He

212
00:11:07,720 --> 00:11:10,000
Speaker 3: had a title something like that, Monstoy short he was

213
00:11:10,000 --> 00:11:13,800
Speaker 3: taking tests for kids to get him into college right

214
00:11:14,120 --> 00:11:18,960
Speaker 3: at IMG. So now it all comes down to this

215
00:11:19,000 --> 00:11:20,880
Speaker 3: is a billion dollar business. As we said before, the

216
00:11:20,960 --> 00:11:25,360
Speaker 3: NCAA and college sports. Right, so now college sports is

217
00:11:25,400 --> 00:11:29,480
Speaker 3: all being tied in with wealthy parents paying for their

218
00:11:29,559 --> 00:11:31,960
Speaker 3: kids to go to college, and they're using it on

219
00:11:32,000 --> 00:11:36,840
Speaker 3: the back of athletics to get their kids in via

220
00:11:37,840 --> 00:11:41,559
Speaker 3: one hundred thousand, five hundred thousand, seven hundred thousand dollars

221
00:11:41,640 --> 00:11:44,440
Speaker 3: that's going to coaches. So not everybody's getting paid in

222
00:11:44,480 --> 00:11:47,840
Speaker 3: this whole situation except except for the athletes that's making

223
00:11:47,880 --> 00:11:48,559
Speaker 3: all this possible.

224
00:11:48,679 --> 00:11:53,080
Speaker 2: The tennis coach at Texas or University of Texas ninety thousand.

225
00:11:53,600 --> 00:11:55,319
Speaker 2: He's a tennis coach. He got ninety thousand for a

226
00:11:55,400 --> 00:11:58,600
Speaker 2: kid to get into the school. Who's ever watched a

227
00:11:58,720 --> 00:12:01,079
Speaker 2: tennis match from Texas? Like you know what I'm saying, Like,

228
00:12:01,080 --> 00:12:02,040
Speaker 2: it just doesn't make sense.

229
00:12:03,080 --> 00:12:06,600
Speaker 3: Yeah, yeah, so yeah, So it's it's it's a very

230
00:12:06,720 --> 00:12:09,839
Speaker 3: it's a very complicated.

231
00:12:09,960 --> 00:12:14,920
Speaker 2: Yeah, I mean, it reeks of elitism and privilege. But

232
00:12:15,120 --> 00:12:17,520
Speaker 2: the question like that I had was like the why

233
00:12:17,800 --> 00:12:18,679
Speaker 2: why are they even doing this?

234
00:12:18,760 --> 00:12:18,920
Speaker 3: Right?

235
00:12:18,920 --> 00:12:22,520
Speaker 2: Because if you think about it, when you have families

236
00:12:22,520 --> 00:12:26,840
Speaker 2: who come from affluent neighborhoods and they come from wealth,

237
00:12:27,679 --> 00:12:31,440
Speaker 2: the college is kind of not even a necessity. Right,

238
00:12:31,480 --> 00:12:34,000
Speaker 2: you've already accumulated, your family is already a cumulated wealth.

239
00:12:34,160 --> 00:12:37,360
Speaker 2: Going to college won't guarantee that you accumulate anymore. Well, right,

240
00:12:37,360 --> 00:12:39,560
Speaker 2: if you have five hundred thousand dollars that pay the coach,

241
00:12:39,960 --> 00:12:42,000
Speaker 2: then why are you going to college? Right? Or you

242
00:12:42,000 --> 00:12:45,080
Speaker 2: could be learning the skills doing something else. Whereas every

243
00:12:45,080 --> 00:12:46,600
Speaker 2: time a kid like that gets in, you have a

244
00:12:46,640 --> 00:12:49,079
Speaker 2: kid who's busted their tail throughout their entire scholass of

245
00:12:49,160 --> 00:12:52,760
Speaker 2: career to have the opportunity and now they don't you

246
00:12:52,800 --> 00:12:54,559
Speaker 2: know what I'm saying. So it's like when a middle

247
00:12:54,559 --> 00:12:58,240
Speaker 2: class or people from low socioeconomic environments, when they go

248
00:12:58,240 --> 00:13:00,320
Speaker 2: to college, it's like that's our ticket to middle class,

249
00:13:00,320 --> 00:13:01,960
Speaker 2: Like we have to go to college because it'll give

250
00:13:02,040 --> 00:13:03,280
Speaker 2: us a good job and we can live in middle

251
00:13:03,280 --> 00:13:06,839
Speaker 2: class quote unquote life. And it's like, all right, well

252
00:13:06,960 --> 00:13:09,560
Speaker 2: college is the key, Well you already have that, so

253
00:13:09,640 --> 00:13:12,040
Speaker 2: like what's the why? Is like kind of puzzling to me.

254
00:13:12,160 --> 00:13:14,960
Speaker 3: And also, I mean we talked about basketball and football

255
00:13:15,000 --> 00:13:17,640
Speaker 3: funding these programs, but all about the kids that's actually

256
00:13:17,679 --> 00:13:22,839
Speaker 3: trying to get into college via squash right, Like it's

257
00:13:22,880 --> 00:13:25,679
Speaker 3: taking the spot from another kid right to get in

258
00:13:25,760 --> 00:13:27,600
Speaker 3: because you got a kid on the team that's not

259
00:13:27,679 --> 00:13:28,840
Speaker 3: even on the team.

260
00:13:28,880 --> 00:13:30,760
Speaker 2: Yeah, they didn't release the kids' names, but like the

261
00:13:30,840 --> 00:13:33,800
Speaker 2: one of the students that you will see, when he

262
00:13:33,840 --> 00:13:35,800
Speaker 2: went to the emissions office, they were like, oh, they

263
00:13:35,840 --> 00:13:37,360
Speaker 2: looked at his transfer and said, oh, oh you're on

264
00:13:37,400 --> 00:13:40,280
Speaker 2: the you run track and he was like, what, I

265
00:13:40,280 --> 00:13:42,160
Speaker 2: don't know what you're talking about. So sometimes the kids

266
00:13:42,200 --> 00:13:44,600
Speaker 2: didn't know. In fact, they wake Forest one of the

267
00:13:44,600 --> 00:13:47,680
Speaker 2: students who's in the investigation, they allowed her to stay

268
00:13:47,679 --> 00:13:49,960
Speaker 2: at the school because they found no evidence that she

269
00:13:50,040 --> 00:13:52,600
Speaker 2: knew that her parents had paid for her to be there.

270
00:13:53,080 --> 00:13:55,040
Speaker 2: So it's like crazy, because like, what do you do?

271
00:13:55,080 --> 00:13:58,600
Speaker 2: How do you reverse that? Because Stringing Singer's been doing

272
00:13:58,600 --> 00:14:01,800
Speaker 2: it for twenty five years, He's had eight hundred clients,

273
00:14:02,000 --> 00:14:04,760
Speaker 2: He's made twenty five million off of this scheme. What

274
00:14:04,800 --> 00:14:06,959
Speaker 2: do you do you revoke those degrees to the kids

275
00:14:07,200 --> 00:14:09,720
Speaker 2: who got paid right? How do you do it?

276
00:14:10,000 --> 00:14:11,800
Speaker 3: And this is something like I said, that the average

277
00:14:11,800 --> 00:14:13,600
Speaker 3: person isn't even thinking about right, And it just shows

278
00:14:13,640 --> 00:14:15,800
Speaker 3: you the disparity in this country. In the world too,

279
00:14:15,840 --> 00:14:18,400
Speaker 3: but especially in this country between the haves and the

280
00:14:18,480 --> 00:14:20,440
Speaker 3: have nots. Right, this is something that you know, the

281
00:14:20,520 --> 00:14:23,840
Speaker 3: average middle class, poor family, they're not even thinking about anything.

282
00:14:23,880 --> 00:14:25,720
Speaker 3: They don't even they're not even aware of this stuff, right,

283
00:14:25,800 --> 00:14:29,680
Speaker 3: So the extent that people will go to have their

284
00:14:29,760 --> 00:14:31,840
Speaker 3: kids succeed or sometimes, like you said, just to even

285
00:14:31,880 --> 00:14:36,520
Speaker 3: be a status symbol, it's obvious that it's not a

286
00:14:36,520 --> 00:14:37,280
Speaker 3: fair plane.

287
00:14:37,560 --> 00:14:40,200
Speaker 2: Like that said, like what you said, the status symbol,

288
00:14:40,240 --> 00:14:42,360
Speaker 2: like my kid is in Yale, or my kid went

289
00:14:42,400 --> 00:14:45,040
Speaker 2: to Harvard or he got into USC. It's like, really

290
00:14:45,040 --> 00:14:47,240
Speaker 2: like this kid, there's kids who are really actually trying

291
00:14:47,240 --> 00:14:49,720
Speaker 2: to get that done. We actually got a case in

292
00:14:50,320 --> 00:14:53,400
Speaker 2: Ohio in twenty eleven. It's this young this woman named

293
00:14:53,760 --> 00:14:57,040
Speaker 2: Kelly Williams Bowler, and she came back up in the

294
00:14:57,080 --> 00:15:00,680
Speaker 2: news because of this this scandal where she was facing

295
00:15:00,680 --> 00:15:04,120
Speaker 2: five years in prison because of an address fraud. She

296
00:15:04,200 --> 00:15:07,640
Speaker 2: lived in a part of Ohio where you know, poor neighborhood,

297
00:15:07,880 --> 00:15:10,200
Speaker 2: and she wanted her daughters to have a better life

298
00:15:10,280 --> 00:15:13,560
Speaker 2: or a better education, so she used her father's address, which

299
00:15:13,600 --> 00:15:16,640
Speaker 2: was in an affluent white neighborhood, and the school district

300
00:15:16,680 --> 00:15:18,400
Speaker 2: brought her up on charges for fraud. She was facing

301
00:15:18,440 --> 00:15:22,320
Speaker 2: five years in prison just because she just thought, hey,

302
00:15:22,480 --> 00:15:24,240
Speaker 2: a zoning issue. All right, I want to give my

303
00:15:24,280 --> 00:15:26,880
Speaker 2: kids the best education. Now, she didn't go to prison

304
00:15:26,880 --> 00:15:28,760
Speaker 2: for five years. I think she did ten days, but

305
00:15:28,840 --> 00:15:31,040
Speaker 2: even ten days, like, let's see how many of these

306
00:15:31,400 --> 00:15:32,600
Speaker 2: parents actually go to jail.

307
00:15:33,720 --> 00:15:37,360
Speaker 3: Well, we'll see, we'll see. So yeah, there you have it.

308
00:15:37,520 --> 00:15:42,160
Speaker 3: There you have it America. All right. So now we're

309
00:15:42,200 --> 00:15:44,800
Speaker 3: going to go into a very hot topic. Another thing

310
00:15:44,800 --> 00:15:46,520
Speaker 3: that we put on Instagram and see the reaction and

311
00:15:47,040 --> 00:15:49,320
Speaker 3: is brick and martar debt. Right, So this is something

312
00:15:49,440 --> 00:15:53,160
Speaker 3: that we try to talk about things that everybody can

313
00:15:53,240 --> 00:15:56,160
Speaker 3: relate to. And obviously everybody can relate to brick and martar,

314
00:15:56,200 --> 00:15:58,480
Speaker 3: whether you're a customer or business on it, right, because

315
00:15:58,480 --> 00:16:01,160
Speaker 3: most businesses are brick and more the businesses now, well

316
00:16:01,760 --> 00:16:04,520
Speaker 3: it's starting to change, but traditionally most small businesses are

317
00:16:04,520 --> 00:16:07,800
Speaker 3: brick and mortar. And everybody, you know, shops and brick

318
00:16:07,840 --> 00:16:11,120
Speaker 3: and mortar at some point, you know, in time. So

319
00:16:11,520 --> 00:16:14,160
Speaker 3: we're going to talk about brick and mortar dead right.

320
00:16:14,200 --> 00:16:17,200
Speaker 3: So the post that I actually put on Instagram, it

321
00:16:17,280 --> 00:16:22,040
Speaker 3: had pay Less closing locations. It had Macy's Clothing location,

322
00:16:22,480 --> 00:16:26,480
Speaker 3: Kmark Clothing location, see is clothing location. Radio shocks closed

323
00:16:26,520 --> 00:16:29,320
Speaker 3: Toys r US closed, and then it had Uber, which

324
00:16:29,360 --> 00:16:32,040
Speaker 3: is the biggest transportation company in the world, has no

325
00:16:32,120 --> 00:16:35,320
Speaker 3: physical cars. Right, Netflix, which is the biggest movie company

326
00:16:35,360 --> 00:16:38,640
Speaker 3: in the world, has no movie theaters. And Airbnb, which

327
00:16:38,680 --> 00:16:40,960
Speaker 3: is the biggest hotel company in the world, has no

328
00:16:41,000 --> 00:16:46,400
Speaker 3: physical hotels. So is Brick and Martar dead? And everything

329
00:16:46,480 --> 00:16:51,800
Speaker 3: transitioning to online virtually? We know that fifty one percent

330
00:16:51,800 --> 00:16:55,240
Speaker 3: of all shopping is done online right now, so it's

331
00:16:55,280 --> 00:16:59,720
Speaker 3: an interesting discussion to see is it dead or is

332
00:16:59,720 --> 00:17:00,680
Speaker 3: it just transitioning?

333
00:17:00,720 --> 00:17:03,200
Speaker 2: Yeah. I think in twenty seventeen the United States had

334
00:17:03,240 --> 00:17:05,760
Speaker 2: about eighty seven hundred stores closed and that was like

335
00:17:05,800 --> 00:17:08,840
Speaker 2: a whole time high. And we're in March and we

336
00:17:08,920 --> 00:17:13,000
Speaker 2: already have over five thousand store closings already in twenty nineteen,

337
00:17:13,359 --> 00:17:15,800
Speaker 2: so this is probably a record year for that. So

338
00:17:15,920 --> 00:17:18,880
Speaker 2: is it dead, I don't know. Is it adjusting? That's

339
00:17:18,880 --> 00:17:21,320
Speaker 2: a better question, and I think we have some cases

340
00:17:21,359 --> 00:17:22,920
Speaker 2: where we might see that it is adjusting.

341
00:17:23,600 --> 00:17:28,119
Speaker 3: Yeah, So all right, so Brick and Martin, right, in

342
00:17:28,200 --> 00:17:30,960
Speaker 3: my opinion, we'll just jump right into it. Is it dead? No,

343
00:17:31,800 --> 00:17:33,679
Speaker 3: I don't think it's dead, right, I think that the

344
00:17:33,800 --> 00:17:36,560
Speaker 3: old way of doing business is dead, right, and those

345
00:17:36,680 --> 00:17:42,080
Speaker 3: stores Macy's and Kmart and Sears. The reason why they're

346
00:17:42,080 --> 00:17:45,480
Speaker 3: dead or they're dying is that they haven't adjusted, right.

347
00:17:45,600 --> 00:17:48,680
Speaker 3: But if you look at like Amazon for instance, right,

348
00:17:48,880 --> 00:17:56,000
Speaker 3: So Amazon is interesting because Amazon is actually obviously the

349
00:17:56,160 --> 00:17:59,720
Speaker 3: giant of the virtual world, right, And we talked about

350
00:17:59,760 --> 00:18:02,560
Speaker 3: amaz Amazon and jay Z probably get mentioned in every

351
00:18:02,560 --> 00:18:07,960
Speaker 3: episode because it's just now it's unavoidable. But so Amazon

352
00:18:08,640 --> 00:18:13,080
Speaker 3: built their business model virtually, right. And then now what

353
00:18:13,119 --> 00:18:15,320
Speaker 3: they're doing is that they're transitioning into the brick and

354
00:18:15,359 --> 00:18:18,760
Speaker 3: mortar business. Right. So they brought Whole Foods right, well,

355
00:18:18,800 --> 00:18:21,360
Speaker 3: I think twelve million dollars a few years ago. Then

356
00:18:21,840 --> 00:18:25,560
Speaker 3: they have a bookstore, they have Amazon Bookstore, and now

357
00:18:25,600 --> 00:18:30,440
Speaker 3: they actually Amazon Go. You heard of that. So Amazon

358
00:18:30,520 --> 00:18:33,280
Speaker 3: Go is a cash list, a cashier list grocery store

359
00:18:33,720 --> 00:18:36,439
Speaker 3: that I think is in the UK. And that's like

360
00:18:36,480 --> 00:18:40,600
Speaker 3: their new forte into into grocery stores where no cashier is.

361
00:18:40,640 --> 00:18:43,120
Speaker 3: Everything is virtual. So what they're actually doing that they combinding, right,

362
00:18:43,160 --> 00:18:48,120
Speaker 3: So they combining their virtual dominance with the physical dominance

363
00:18:48,160 --> 00:18:50,199
Speaker 3: as well. And with Amazon, what they're really trying to

364
00:18:50,240 --> 00:18:53,120
Speaker 3: do is that they're trying to actually corner the market

365
00:18:53,280 --> 00:18:56,280
Speaker 3: in every way that you could possibly shop. Because everybody

366
00:18:56,320 --> 00:19:00,359
Speaker 3: knows that they have the online game on smash right out.

367
00:19:00,640 --> 00:19:05,399
Speaker 3: They have Amazon Echo, So Amazon Echo if anybody's not familiar,

368
00:19:05,440 --> 00:19:09,600
Speaker 3: that's like Alexa, where it's like a voice thing, voice

369
00:19:09,600 --> 00:19:11,359
Speaker 3: activated thing you speak to you can give orders and

370
00:19:11,359 --> 00:19:13,720
Speaker 3: you can order stuff via that way. Then they have

371
00:19:14,160 --> 00:19:15,920
Speaker 3: dash button. A lot of people don't even know what

372
00:19:16,040 --> 00:19:20,480
Speaker 3: dash button is. Dash button is only for Amazon Prime members.

373
00:19:20,840 --> 00:19:22,600
Speaker 3: The best way I can describe it like a USB

374
00:19:23,240 --> 00:19:25,639
Speaker 3: with a button on it, right, and they ship it

375
00:19:25,680 --> 00:19:27,479
Speaker 3: to you with items that you buy a lot of them.

376
00:19:27,480 --> 00:19:29,320
Speaker 3: So if you buy a lot of pop Tarts, then

377
00:19:29,320 --> 00:19:31,400
Speaker 3: you'll get a dash button with your pop tarts And

378
00:19:31,440 --> 00:19:33,360
Speaker 3: when your pop Tars is running low, when your pop

379
00:19:33,359 --> 00:19:36,359
Speaker 3: Tars runs up, you just hit the dash button and

380
00:19:36,680 --> 00:19:40,040
Speaker 3: more pop tost sent to you. Yeah, so it's the

381
00:19:40,080 --> 00:19:43,080
Speaker 3: same cereal hate that you can think of. So you

382
00:19:43,080 --> 00:19:44,600
Speaker 3: don't even have to go online, you don't have to

383
00:19:44,600 --> 00:19:45,679
Speaker 3: give a voice. All you have to do is just

384
00:19:45,680 --> 00:19:48,639
Speaker 3: literally press a button now. And then they have the

385
00:19:48,640 --> 00:19:52,520
Speaker 3: physical store, so they really those four things combined, they're

386
00:19:52,520 --> 00:19:54,679
Speaker 3: going to corner the market with any way that a

387
00:19:54,720 --> 00:19:57,760
Speaker 3: person could actually shop they're going to be involved. And

388
00:19:57,840 --> 00:20:00,879
Speaker 3: then also they want to move into fashion, and that's.

389
00:20:00,760 --> 00:20:02,240
Speaker 2: An interesting cosmetics as well.

390
00:20:02,320 --> 00:20:05,000
Speaker 3: Yes, cosmetic as well. So people still like to feel

391
00:20:05,200 --> 00:20:07,440
Speaker 3: the fabric and still try things on, even though a

392
00:20:07,440 --> 00:20:10,240
Speaker 3: lot of times people shop online. Me personally, I do both.

393
00:20:10,440 --> 00:20:12,760
Speaker 3: So with Amazon moving into the physical locations, that's going

394
00:20:12,840 --> 00:20:14,080
Speaker 3: to help them out with fashion as well.

395
00:20:14,200 --> 00:20:16,840
Speaker 2: They said that you can they can send you to close,

396
00:20:16,960 --> 00:20:18,320
Speaker 2: you can try them on, and if you don't like them,

397
00:20:18,359 --> 00:20:20,399
Speaker 2: sending it back. I believe. I think they have that

398
00:20:20,440 --> 00:20:21,600
Speaker 2: as part as the business.

399
00:20:21,600 --> 00:20:24,040
Speaker 3: Now that makes sense. I mean that's like most online.

400
00:20:23,840 --> 00:20:25,840
Speaker 2: Yeah, I mean that's dope. Yeah, you don't have to

401
00:20:25,920 --> 00:20:26,680
Speaker 2: leave your own to do it.

402
00:20:26,720 --> 00:20:28,960
Speaker 3: So and then also what I like to do personally,

403
00:20:29,440 --> 00:20:31,879
Speaker 3: I order stuff online that from a store that I

404
00:20:31,960 --> 00:20:33,760
Speaker 3: know I can bring it back to if it doesn't fit.

405
00:20:34,160 --> 00:20:35,680
Speaker 3: So if it doesn't fit, then I could just bring

406
00:20:35,680 --> 00:20:37,800
Speaker 3: it back to the physical location as opposed to having

407
00:20:37,800 --> 00:20:39,280
Speaker 3: to go through the hassle of bringing it to the

408
00:20:39,480 --> 00:20:43,719
Speaker 3: So I think that there's still room for breaking Martin right.

409
00:20:43,760 --> 00:20:45,760
Speaker 3: And you're gonna talk about an interesting story that a

410
00:20:45,800 --> 00:20:48,040
Speaker 3: Brick and Martyr company that has actually got it right.

411
00:20:48,160 --> 00:20:49,760
Speaker 2: Yeah, they got it right, and they're actually like a

412
00:20:49,800 --> 00:20:53,280
Speaker 2: case study in the Wall Street Journal. But a couple

413
00:20:53,280 --> 00:20:55,240
Speaker 2: of ones that didn't work, you said, were like Mazie's

414
00:20:55,240 --> 00:20:58,800
Speaker 2: closing store, JAG's, Penny's clothing store, Kmart. But TJ Max

415
00:20:59,320 --> 00:21:04,280
Speaker 2: has actually got it right. So TJ Max they own

416
00:21:04,400 --> 00:21:07,080
Speaker 2: a few companies. They owned Marshals, and they own home Goods,

417
00:21:07,480 --> 00:21:09,840
Speaker 2: and they rely solely on Brick and Martin right, So

418
00:21:09,960 --> 00:21:12,240
Speaker 2: their stores, I think they have about thirty hundred stores.

419
00:21:12,440 --> 00:21:14,359
Speaker 2: They were like all that revenue pretty much comes to that.

420
00:21:14,359 --> 00:21:18,200
Speaker 2: They don't really do too much online advertising or trying

421
00:21:18,240 --> 00:21:21,840
Speaker 2: to build their site. And when we see stores closing,

422
00:21:22,520 --> 00:21:26,280
Speaker 2: they're saying no, they've seen for thirty three straight quarters

423
00:21:26,359 --> 00:21:30,440
Speaker 2: up until twenty eighteen, I believe, well, their profits has increased,

424
00:21:30,480 --> 00:21:32,760
Speaker 2: so thirty three straight quarters. They're seeing people coming in

425
00:21:32,840 --> 00:21:35,639
Speaker 2: their stores shopping, buying things. And if you've shopped at

426
00:21:35,640 --> 00:21:39,080
Speaker 2: TJ Max for monstrels, you know that you're getting discounted

427
00:21:39,080 --> 00:21:42,920
Speaker 2: prices on brands, high end brands, that discount of prices.

428
00:21:43,119 --> 00:21:45,280
Speaker 2: But the brilliant strategy that they use is they turned

429
00:21:45,280 --> 00:21:48,600
Speaker 2: it into a shopping hunt. It's like you go into

430
00:21:48,640 --> 00:21:52,080
Speaker 2: these stores and it's like, hey, I found a bargain here,

431
00:21:52,240 --> 00:21:56,680
Speaker 2: Whereas right whereas in like stores like JC Pennies, it's like, hey,

432
00:21:57,200 --> 00:21:59,880
Speaker 2: this is the Polo section, this is the Nike section,

433
00:22:00,200 --> 00:22:03,240
Speaker 2: this is Tommy hill Finger section. TJ max is like,

434
00:22:03,520 --> 00:22:05,760
Speaker 2: you know what, We're gonna call this active where and

435
00:22:05,800 --> 00:22:07,840
Speaker 2: we're gonna put all those brands there and you go

436
00:22:07,960 --> 00:22:10,359
Speaker 2: hunt for the deal. So sometimes you'll find things in

437
00:22:10,400 --> 00:22:12,960
Speaker 2: there that's like, oh, this is sixty percent off. All right,

438
00:22:13,000 --> 00:22:15,080
Speaker 2: that's a bargain now if I buy it and you

439
00:22:15,160 --> 00:22:17,359
Speaker 2: go and you might not find it because it's like

440
00:22:17,480 --> 00:22:19,520
Speaker 2: that's the part of the skyvage hind it's all right,

441
00:22:19,520 --> 00:22:21,720
Speaker 2: well I got it now, you gotta wait. The other

442
00:22:21,720 --> 00:22:24,560
Speaker 2: thing that they do is they reinvent their They get

443
00:22:24,600 --> 00:22:27,159
Speaker 2: new inventory like every twenty one days. So like stores

444
00:22:27,160 --> 00:22:28,639
Speaker 2: like Macy's and J. C. Penny they don't have that

445
00:22:28,680 --> 00:22:32,560
Speaker 2: type of turnover. So TJ max is like, the inventory's

446
00:22:32,560 --> 00:22:35,040
Speaker 2: coming in, it's limited. People know that they're gonna get

447
00:22:35,040 --> 00:22:37,400
Speaker 2: a bargain there, they get it. Twenty one days later,

448
00:22:37,440 --> 00:22:39,480
Speaker 2: it's gone all of it, and then they get more

449
00:22:39,560 --> 00:22:43,600
Speaker 2: in right, so like their sales have exceeded norsetrom and

450
00:22:43,720 --> 00:22:48,800
Speaker 2: J C. Penny's combined TJ Max. Nobody's even thinking about that, right, right,

451
00:22:48,840 --> 00:22:51,960
Speaker 2: So like that's key. So if it's if it's dead,

452
00:22:52,680 --> 00:22:54,720
Speaker 2: then how is this thriving? They've got it.

453
00:22:54,720 --> 00:22:56,760
Speaker 3: Right, TJ MaTx. You know what I thought to think

454
00:22:56,800 --> 00:23:00,199
Speaker 3: about TJ Max. When I was young, they pine near

455
00:23:00,280 --> 00:23:03,720
Speaker 3: the layaway system. Remember that. I don't know if you

456
00:23:04,280 --> 00:23:05,520
Speaker 3: I don't know if you did that, but I did

457
00:23:05,560 --> 00:23:07,280
Speaker 3: that before. I did that when I was a kid

458
00:23:07,359 --> 00:23:08,639
Speaker 3: from I did that on clothes.

459
00:23:09,280 --> 00:23:11,000
Speaker 2: I say, yes, they had.

460
00:23:10,840 --> 00:23:13,560
Speaker 3: It lay away system where you can put clothes on

461
00:23:13,640 --> 00:23:19,760
Speaker 3: lay away. Yeah, I don't know, but uh yeah, that's

462
00:23:19,760 --> 00:23:22,400
Speaker 3: how important fashion was as a kid.

463
00:23:22,800 --> 00:23:25,879
Speaker 2: So there are some other companies that have that model

464
00:23:25,920 --> 00:23:27,880
Speaker 2: of like we'll bring a bunch of brands into a store,

465
00:23:28,000 --> 00:23:30,840
Speaker 2: like a SIMS which is out of business and Filing's basement.

466
00:23:30,840 --> 00:23:32,600
Speaker 2: They're out of business. And if you look at that

467
00:23:32,720 --> 00:23:35,880
Speaker 2: their strategy that their stores were so big and everything

468
00:23:36,000 --> 00:23:39,160
Speaker 2: was everywhere whereas TJ Mass you can look up all right,

469
00:23:39,200 --> 00:23:41,440
Speaker 2: that's a women's sestion, that's men's section. This is kids

470
00:23:41,560 --> 00:23:45,240
Speaker 2: active where it's very concentrated and it's easy to find

471
00:23:45,280 --> 00:23:48,840
Speaker 2: the things. So like like I said, That's.

472
00:23:48,080 --> 00:23:50,560
Speaker 3: One of the problems, especially like with Sears, is that

473
00:23:51,720 --> 00:23:54,920
Speaker 3: it's hard to be a master of all trades. Right,

474
00:23:55,000 --> 00:23:57,320
Speaker 3: So you go into seis, you can buy tires, you

475
00:23:57,359 --> 00:24:00,840
Speaker 3: can buy swimming whear, you can buy and there's nobody

476
00:24:00,920 --> 00:24:02,639
Speaker 3: to help you. You got to try to figure it

477
00:24:02,680 --> 00:24:05,680
Speaker 3: out on your own, and it becomes difficult. It becomes

478
00:24:05,760 --> 00:24:06,440
Speaker 3: very difficult.

479
00:24:06,880 --> 00:24:09,880
Speaker 2: So like that strategy like and like I said, that's

480
00:24:09,880 --> 00:24:11,840
Speaker 2: an artible, Like they're trying to figure out how are

481
00:24:11,880 --> 00:24:14,240
Speaker 2: they doing this right? If Breaking mart is dead, and

482
00:24:14,359 --> 00:24:15,800
Speaker 2: how is TJ max thriving?

483
00:24:16,359 --> 00:24:19,680
Speaker 3: So TJ max is thriving? And I wanted to bring it.

484
00:24:21,160 --> 00:24:23,439
Speaker 2: Erners, what's up? You ever walk into a small business

485
00:24:23,480 --> 00:24:26,639
Speaker 2: and everything just works, Like the checkout is fast, the

486
00:24:26,720 --> 00:24:30,600
Speaker 2: receipts are digital, tipping is a breeze, and you're out

487
00:24:30,600 --> 00:24:33,879
Speaker 2: the door before the line even builds. Odds are they're

488
00:24:34,000 --> 00:24:37,480
Speaker 2: using Square? We love supporting businesses that run on Square

489
00:24:37,560 --> 00:24:40,680
Speaker 2: because it just feels seamless. Whether it's a local coffee shop,

490
00:24:40,880 --> 00:24:43,360
Speaker 2: a vendor at a pop up market, or even one

491
00:24:43,400 --> 00:24:46,480
Speaker 2: of our merch partners. Square makes it easy for them

492
00:24:46,520 --> 00:24:50,480
Speaker 2: to take payments, manage inventory, and run their business with confidence.

493
00:24:50,840 --> 00:24:54,159
Speaker 2: All from one simple system. If you're a business owner

494
00:24:54,359 --> 00:24:57,760
Speaker 2: or even just thinking about launching something soon, Square is

495
00:24:57,840 --> 00:24:59,840
Speaker 2: hands down one of the best tools out there that

496
00:25:00,040 --> 00:25:03,920
Speaker 2: help you start, run, and grow. It's not just about payments,

497
00:25:04,320 --> 00:25:06,960
Speaker 2: it's about giving you time back so you can focus

498
00:25:07,000 --> 00:25:09,680
Speaker 2: on what matters most ready. To see how Square can

499
00:25:09,720 --> 00:25:14,560
Speaker 2: transform your business, visit Square dot com backslash, go backslash

500
00:25:14,640 --> 00:25:18,760
Speaker 2: eyl to learn more that Square dot com backslash, go

501
00:25:19,200 --> 00:25:23,399
Speaker 2: backslash eyl. Don't wait, don't hesitate, Let Square handle the

502
00:25:23,440 --> 00:25:27,439
Speaker 2: back end so you can keep pushing your vision forward.

503
00:25:29,600 --> 00:25:31,840
Speaker 2: This episode is brought to you by P and C Bank.

504
00:25:32,240 --> 00:25:35,000
Speaker 2: A lot of people think podcasts about work are boring,

505
00:25:35,200 --> 00:25:39,080
Speaker 2: and sure, they definitely can be, but understanding a professionals

506
00:25:39,119 --> 00:25:42,399
Speaker 2: routine shows us how they achieve their success little by little,

507
00:25:42,760 --> 00:25:46,400
Speaker 2: day after day. It's like banking with P and C Bank.

508
00:25:46,880 --> 00:25:49,680
Speaker 2: It might seem boring to save, plan and make calculated

509
00:25:49,720 --> 00:25:52,800
Speaker 2: decisions with your bank, but keeping your money boring is

510
00:25:52,840 --> 00:25:56,159
Speaker 2: what helps you live or more happily fulfilled life. P

511
00:25:56,280 --> 00:26:01,119
Speaker 2: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly

512
00:26:01,160 --> 00:26:03,800
Speaker 2: boring since eighteen sixty five is a service mark of

513
00:26:03,840 --> 00:26:07,080
Speaker 2: the PNC Financial Service Group Inc. P and C Bank

514
00:26:07,520 --> 00:26:09,679
Speaker 2: National Association member ATDIC.

515
00:26:11,480 --> 00:26:15,080
Speaker 4: An illegal alien from Guatemala charged with raping a child

516
00:26:15,160 --> 00:26:18,960
Speaker 4: in Massachusetts. An MS thirteen gang member from Al Salvador

517
00:26:19,200 --> 00:26:23,320
Speaker 4: accused of murdering a Texas. Man of Venezuelan charged with

518
00:26:23,400 --> 00:26:27,240
Speaker 4: filming and selling child pornography in Michigan. These are just

519
00:26:27,400 --> 00:26:31,160
Speaker 4: some of the heinous migrant criminals caught because of President

520
00:26:31,200 --> 00:26:34,720
Speaker 4: Donald J. Trump's leadership. I'm Christy Noman, the United States

521
00:26:34,800 --> 00:26:39,600
Speaker 4: Secretary of Homeland Security. Under President Trump, attempted illegal border

522
00:26:39,600 --> 00:26:43,160
Speaker 4: crossings are at the lowest levels ever recorded, and over

523
00:26:43,240 --> 00:26:46,439
Speaker 4: one hundred thousand illegal aliens have been arrested. If you

524
00:26:46,520 --> 00:26:50,359
Speaker 4: are here illegally, your next you will be fined nearly

525
00:26:50,440 --> 00:26:54,480
Speaker 4: one thousand dollars a day, imprisoned, and deported. You will

526
00:26:54,520 --> 00:26:58,160
Speaker 4: never return. But if you register using our CBP home

527
00:26:58,200 --> 00:27:01,560
Speaker 4: app and leave now, you could be allowed to return legally.

528
00:27:01,960 --> 00:27:06,679
Speaker 4: Do what's right, leave now. Under President Trump, America's laws,

529
00:27:06,880 --> 00:27:09,280
Speaker 4: border and families will be protected.

530
00:27:09,400 --> 00:27:11,400
Speaker 2: Sponsored by the United States Department of Homeland.

531
00:27:11,160 --> 00:27:13,840
Speaker 3: Security closer to Because we try to relate to the

532
00:27:13,960 --> 00:27:17,040
Speaker 3: everyday people, right and brick and martars so there's three

533
00:27:17,040 --> 00:27:21,360
Speaker 3: types of brick and martar businesses that most entrepreneurs that's

534
00:27:21,400 --> 00:27:24,840
Speaker 3: just getting started, especially you know in our community, they

535
00:27:24,880 --> 00:27:27,760
Speaker 3: always want to start, right, And that is a restaurant.

536
00:27:27,920 --> 00:27:29,840
Speaker 3: I know he's gonna say, that's a hair salon or

537
00:27:30,080 --> 00:27:32,600
Speaker 3: barbershop and a clothing store.

538
00:27:33,880 --> 00:27:35,960
Speaker 2: Sound pretty right, pretty common, That's about right.

539
00:27:36,080 --> 00:27:41,240
Speaker 3: So all right, we've all seen how barbershops and hair

540
00:27:41,280 --> 00:27:44,760
Speaker 3: salons are cash cows, right, especially hair salons. We have

541
00:27:44,800 --> 00:27:45,880
Speaker 3: to do a whole thing about that.

542
00:27:45,920 --> 00:27:49,080
Speaker 2: But yeah, that's like personally, I know that.

543
00:27:49,240 --> 00:27:53,199
Speaker 3: No, especially black women's here. That is a billion dollar industry.

544
00:27:53,240 --> 00:27:55,000
Speaker 2: We have an episode on that. That's a fact.

545
00:27:55,720 --> 00:28:00,239
Speaker 3: And barbershops along staple in the community. Restaurants that's one

546
00:28:00,240 --> 00:28:02,240
Speaker 3: of the hardest businesses to succeed, and we're gonna have

547
00:28:02,280 --> 00:28:07,480
Speaker 3: we got a special situation about the restaurant. But everybody,

548
00:28:07,480 --> 00:28:10,119
Speaker 3: for some reason, they still want to open restaurants. I

549
00:28:10,160 --> 00:28:13,399
Speaker 3: don't know why. But you see one restaurant I succeed,

550
00:28:13,440 --> 00:28:18,040
Speaker 3: you see hundred failed. And then the clothing store. Right,

551
00:28:18,160 --> 00:28:20,200
Speaker 3: so clothing store. So I'm gonna tell a personal story

552
00:28:20,200 --> 00:28:22,760
Speaker 3: about the clothing store. So the people that don't know

553
00:28:22,880 --> 00:28:24,600
Speaker 3: a financial advisor that's what I do for a living.

554
00:28:24,720 --> 00:28:24,880
Speaker 2: Right.

555
00:28:25,359 --> 00:28:30,240
Speaker 3: So I had a young lady coming to my office

556
00:28:30,280 --> 00:28:34,040
Speaker 3: a few months ago, and she's a social media influencer.

557
00:28:34,040 --> 00:28:36,080
Speaker 3: I won't say her name, but she's a social media influencer.

558
00:28:36,119 --> 00:28:37,960
Speaker 3: She's real big on social media. She has around like,

559
00:28:38,040 --> 00:28:41,320
Speaker 3: let's say, two point five million followers on Instagram. So

560
00:28:42,280 --> 00:28:46,520
Speaker 3: she comes to me and she's having problems with her business. Right.

561
00:28:46,560 --> 00:28:50,000
Speaker 3: So we're talking about the business and I'm getting the information.

562
00:28:50,040 --> 00:28:52,880
Speaker 3: We're going over to numbers, and she's bleeding money on

563
00:28:53,000 --> 00:28:55,600
Speaker 3: her clothing store. She has a clothing store. Right, So

564
00:28:55,800 --> 00:28:57,720
Speaker 3: she has a clothing store in the suburbs of New York,

565
00:28:59,320 --> 00:29:02,760
Speaker 3: and she's paid saying twelve thousand dollars a month in

566
00:29:02,880 --> 00:29:07,720
Speaker 3: RNT in them all, and her overhead she has, you know,

567
00:29:07,840 --> 00:29:11,680
Speaker 3: overhead about total probably twenty thousand dollars a month. Right,

568
00:29:12,320 --> 00:29:14,840
Speaker 3: And I'm telling her, like, well, why don't you just

569
00:29:14,880 --> 00:29:17,840
Speaker 3: do it online? And she was saying how online? She

570
00:29:18,000 --> 00:29:20,920
Speaker 3: used to make like eight thousand dollars a month online

571
00:29:21,040 --> 00:29:24,720
Speaker 3: right before she actually had the store. So you don't

572
00:29:24,760 --> 00:29:26,320
Speaker 3: have to be a rocket scientist to figure this out.

573
00:29:26,320 --> 00:29:28,120
Speaker 3: So I'm like, okay, you have two point five million

574
00:29:28,120 --> 00:29:30,920
Speaker 3: followers on Instagram Right now, New York is probably your

575
00:29:30,920 --> 00:29:33,960
Speaker 3: biggest market because you're from New York, but your store

576
00:29:34,000 --> 00:29:37,120
Speaker 3: is not even in the city. It's in the suburbs, right,

577
00:29:37,160 --> 00:29:41,000
Speaker 3: so probably let's say two percent of your followers can

578
00:29:41,040 --> 00:29:45,720
Speaker 3: actually go to your physical location, right, So you're not

579
00:29:45,960 --> 00:29:49,360
Speaker 3: leveraging your social media power, right. Why don't you have

580
00:29:49,600 --> 00:29:54,240
Speaker 3: online presence where any follower, no matter where they live,

581
00:29:54,320 --> 00:29:58,680
Speaker 3: whether it's Germany, Australia, California, Connecticut, they can shop online

582
00:29:58,680 --> 00:30:01,160
Speaker 3: twenty four hours a day, right a physical location. You're

583
00:30:01,160 --> 00:30:02,840
Speaker 3: already limiting yourself geographically.

584
00:30:02,920 --> 00:30:05,000
Speaker 2: That's what we said, like this episode on can the

585
00:30:05,040 --> 00:30:06,120
Speaker 2: consumer get the product?

586
00:30:06,160 --> 00:30:08,120
Speaker 3: Oh yeah, exactly, that's the biggest thing. Can it consumer

587
00:30:08,120 --> 00:30:11,479
Speaker 3: get the product or you're already limiting yourself geographically right now,

588
00:30:12,280 --> 00:30:15,960
Speaker 3: Not only are you limiting yourself geographically, you're spending a

589
00:30:16,120 --> 00:30:18,560
Speaker 3: ton of money on overhead, right And that's the problem

590
00:30:18,600 --> 00:30:20,120
Speaker 3: with brick and marts. So this is the real problem

591
00:30:20,120 --> 00:30:22,640
Speaker 3: with brick and Martar is that the money that is

592
00:30:22,680 --> 00:30:25,520
Speaker 3: being spent on overhead and you're not bringing up revenue

593
00:30:25,560 --> 00:30:28,760
Speaker 3: in so now you have to see if it really

594
00:30:28,840 --> 00:30:30,680
Speaker 3: makes sense. And this is why a lot of restaurants.

595
00:30:30,680 --> 00:30:33,640
Speaker 3: This is why most businesses fail regardless, but it's harder

596
00:30:33,640 --> 00:30:36,120
Speaker 3: for brick and mortar businesses because now you have to

597
00:30:36,120 --> 00:30:37,880
Speaker 3: pay your rent every month regardless, You got to pay

598
00:30:37,920 --> 00:30:39,400
Speaker 3: your capabil of life bill. You got to pay your

599
00:30:39,400 --> 00:30:41,720
Speaker 3: employees every month, whether you make money or not. Right,

600
00:30:41,760 --> 00:30:43,200
Speaker 3: so you have a good month, Okay, if you have

601
00:30:43,240 --> 00:30:45,120
Speaker 3: a bad month, nobody wants to hear you still got

602
00:30:45,200 --> 00:30:45,920
Speaker 3: to pay money.

603
00:30:46,000 --> 00:30:46,080
Speaker 2: Right.

604
00:30:46,120 --> 00:30:49,240
Speaker 3: Where you have an online business, you have expenses, but

605
00:30:49,440 --> 00:30:52,400
Speaker 3: nowhere near the brick and mortar. So, especially for something

606
00:30:52,480 --> 00:30:54,280
Speaker 3: like clothes, we look at fashion Over. We talked about

607
00:30:54,280 --> 00:30:59,320
Speaker 3: fashion Over before, but I don't I personally don't see

608
00:30:59,360 --> 00:31:04,520
Speaker 3: how it makes sense for a brick and martar fashion

609
00:31:04,560 --> 00:31:07,080
Speaker 3: business to succeed. Not to say that they can't succeed,

610
00:31:07,240 --> 00:31:09,959
Speaker 3: but it would have to be really tied in with

611
00:31:10,280 --> 00:31:12,800
Speaker 3: online presence and just have like a flagship store like

612
00:31:12,880 --> 00:31:15,280
Speaker 3: Fashion Over has like four stores, but those are more

613
00:31:15,280 --> 00:31:16,280
Speaker 3: like flagship stores.

614
00:31:16,400 --> 00:31:16,560
Speaker 2: Right.

615
00:31:16,800 --> 00:31:18,960
Speaker 3: I don't personally see how it makes sense to have

616
00:31:19,080 --> 00:31:23,560
Speaker 3: a brick and martar as your sole only store for

617
00:31:23,640 --> 00:31:24,440
Speaker 3: something like fashion.

618
00:31:24,520 --> 00:31:27,280
Speaker 2: So what we're seeing now is that people are starting online.

619
00:31:27,400 --> 00:31:29,520
Speaker 2: Like these small business they start online and when they

620
00:31:29,560 --> 00:31:32,240
Speaker 2: generate enough revenue, then they'll create a store, a brick

621
00:31:32,280 --> 00:31:34,360
Speaker 2: and martar store. Because it's like, all right now, and

622
00:31:34,360 --> 00:31:36,240
Speaker 2: this is one of the keys that people are trying

623
00:31:36,280 --> 00:31:38,280
Speaker 2: to adapt to, is like we have to create an

624
00:31:38,320 --> 00:31:41,840
Speaker 2: experience for these customers for them to come. So like, yeah,

625
00:31:41,920 --> 00:31:44,120
Speaker 2: that that young lady might have that store in New York.

626
00:31:44,400 --> 00:31:47,479
Speaker 2: But if they're having experiences in that store that they

627
00:31:47,480 --> 00:31:49,360
Speaker 2: can only get there, then people might fly.

628
00:31:49,880 --> 00:31:53,200
Speaker 3: Yeah, you gotta have something. There's a donuts shop in

629
00:31:53,600 --> 00:31:56,040
Speaker 3: New York and it's called its cro Nuts. Actually this

630
00:31:56,120 --> 00:31:59,080
Speaker 3: is a combination between croissants and donuts. Long story short.

631
00:31:59,120 --> 00:32:01,400
Speaker 3: People wait on line at like five o'clock in the morning.

632
00:32:01,400 --> 00:32:02,920
Speaker 3: They only sell like one hundred per day. It's a

633
00:32:02,960 --> 00:32:04,640
Speaker 3: limited You got to have some kind of gimmicks something

634
00:32:04,720 --> 00:32:06,760
Speaker 3: like that. So people are coming from a low Oh,

635
00:32:06,800 --> 00:32:08,320
Speaker 3: but you also have to combine. Even if we look

636
00:32:08,320 --> 00:32:10,400
Speaker 3: at the restaurant business, right, so now Uber Eats is

637
00:32:10,480 --> 00:32:13,360
Speaker 3: killing it, right, So now you have a physical location

638
00:32:13,360 --> 00:32:16,000
Speaker 3: where you're making food, but people can still go into

639
00:32:16,040 --> 00:32:18,400
Speaker 3: app and order it. And now you have a delivery

640
00:32:18,440 --> 00:32:20,959
Speaker 3: service that's delivering them food as well. And even if

641
00:32:21,000 --> 00:32:23,160
Speaker 3: you look at the mail prep business, that's huge as

642
00:32:23,160 --> 00:32:27,440
Speaker 3: far as even mailing people food. Like so, I think

643
00:32:27,520 --> 00:32:30,520
Speaker 3: in order to survive in today's climate, you have to

644
00:32:30,640 --> 00:32:33,200
Speaker 3: at the very least combined both. You can't just be

645
00:32:33,280 --> 00:32:36,320
Speaker 3: Bricking Martin adapting adjusts. You have to adapt and adjust.

646
00:32:36,440 --> 00:32:38,840
Speaker 3: But I don't think Brick and Martin is totally dead,

647
00:32:38,880 --> 00:32:40,920
Speaker 3: but I think in some industries it just doesn't make

648
00:32:40,960 --> 00:32:41,960
Speaker 3: sense in my opinion.

649
00:32:41,960 --> 00:32:43,920
Speaker 2: If we look at the number one company in the world, Apple,

650
00:32:43,960 --> 00:32:46,680
Speaker 2: they keep building stores, so it's like, what you know

651
00:32:46,720 --> 00:32:48,480
Speaker 2: what I mean, like this this isn't going anywhere. And

652
00:32:48,520 --> 00:32:51,840
Speaker 2: Apple has a unique model, right they have this customer

653
00:32:51,840 --> 00:32:54,320
Speaker 2: when they hire employees, they have this model. They live

654
00:32:54,360 --> 00:32:57,880
Speaker 2: by the acronym app l E. So what that means

655
00:32:58,000 --> 00:33:01,160
Speaker 2: is like, the first A is number one. We have

656
00:33:01,320 --> 00:33:03,720
Speaker 2: to approach the customers. So if you walk into an

657
00:33:03,720 --> 00:33:05,960
Speaker 2: Apple store, you'll notice that there's a lot of employees

658
00:33:06,000 --> 00:33:08,440
Speaker 2: in it, so there's enough for everybody to have a

659
00:33:08,600 --> 00:33:11,920
Speaker 2: one on one relationship with the employee. The second thing

660
00:33:12,000 --> 00:33:15,000
Speaker 2: is that they probe so they'll listen, Hey, why are

661
00:33:15,000 --> 00:33:17,120
Speaker 2: you here today? Can we help you with something? The

662
00:33:17,160 --> 00:33:20,720
Speaker 2: next thing is present after they hear what you come

663
00:33:20,760 --> 00:33:22,440
Speaker 2: to the store for, then they'll say, all right, well,

664
00:33:22,720 --> 00:33:24,440
Speaker 2: here are some things that can help you. Here's a

665
00:33:24,440 --> 00:33:26,440
Speaker 2: product that can help what you're trying to do. The

666
00:33:26,440 --> 00:33:28,800
Speaker 2: next thing they do is they listen, right, They listen

667
00:33:28,880 --> 00:33:31,480
Speaker 2: to say, all right, well you've told me the problem.

668
00:33:31,760 --> 00:33:34,920
Speaker 2: I've given you a solution. What do you think about it? Right?

669
00:33:35,040 --> 00:33:37,120
Speaker 2: Usually people buy the product or they'll say, you know what,

670
00:33:37,160 --> 00:33:39,080
Speaker 2: I'll come back, and then that leads to the e.

671
00:33:39,280 --> 00:33:43,280
Speaker 2: It's like the end. Hey, thanks for coming. I'd love

672
00:33:43,320 --> 00:33:44,640
Speaker 2: to see you come back. And a lot of times

673
00:33:44,720 --> 00:33:47,000
Speaker 2: Apple customers are loyal. They'll come back just because of

674
00:33:47,000 --> 00:33:49,760
Speaker 2: the customer service and while they wait, which is unique

675
00:33:49,800 --> 00:33:52,440
Speaker 2: to Apple, they can use the products. Like how many

676
00:33:52,440 --> 00:33:53,800
Speaker 2: times do you go in to the stores and kids

677
00:33:53,840 --> 00:33:57,000
Speaker 2: are adults are using the products while they're waiting, or

678
00:33:57,040 --> 00:33:59,960
Speaker 2: they're taking a class at the store while they're waiting.

679
00:34:00,240 --> 00:34:02,280
Speaker 2: So you got to have these in store experiences that

680
00:34:02,360 --> 00:34:04,560
Speaker 2: are unique to your store to generate the customers. So

681
00:34:04,560 --> 00:34:07,480
Speaker 2: it doesn't matter like if you have a great online presence,

682
00:34:07,680 --> 00:34:10,000
Speaker 2: you can't get this experience anywhere else, but coming to

683
00:34:10,000 --> 00:34:10,360
Speaker 2: the store.

684
00:34:11,920 --> 00:34:15,359
Speaker 3: That's pretty powerful. The acronym is pretty powerful for any

685
00:34:15,360 --> 00:34:19,440
Speaker 3: business owner. But yeah, well, brick and mortar business. As

686
00:34:19,480 --> 00:34:21,680
Speaker 3: I said, you know, I think that it's not dead,

687
00:34:21,800 --> 00:34:24,080
Speaker 3: but you have to find a way to combine the

688
00:34:24,120 --> 00:34:26,080
Speaker 3: two if you want to survive. And this is what

689
00:34:26,120 --> 00:34:28,120
Speaker 3: this show is about. We want to teach entrepreneurship and

690
00:34:28,160 --> 00:34:29,600
Speaker 3: help you out, help your business out.

691
00:34:29,719 --> 00:34:33,320
Speaker 2: So yeah, last note, like we had, we spoke about Tesla.

692
00:34:33,360 --> 00:34:35,840
Speaker 2: Tesla one of the stories. They completely did away with

693
00:34:35,840 --> 00:34:38,160
Speaker 2: all their stores, right, and we said that pay Lessons

694
00:34:38,200 --> 00:34:40,480
Speaker 2: closing stores. That's closed, Jimbarea has closed, Charlot, A lot

695
00:34:40,480 --> 00:34:42,680
Speaker 2: of the stores have closed because they couldn't adaptay pay

696
00:34:42,719 --> 00:34:44,920
Speaker 2: Lesson is one of those that just didn't adapt. Online

697
00:34:44,920 --> 00:34:47,359
Speaker 2: experience was terrible. They were still relying on print at

698
00:34:47,520 --> 00:34:50,239
Speaker 2: they couldn't adapt. So you see what happened to them.

699
00:34:50,680 --> 00:34:52,640
Speaker 3: Yeah, well, it's a jungle out here.

700
00:34:53,560 --> 00:34:57,359
Speaker 2: Gott to survive, all right, ladies and gentlemen. It's our

701
00:34:57,360 --> 00:34:59,480
Speaker 2: favorite time of the episode, storytelling.

702
00:35:00,120 --> 00:35:02,080
Speaker 3: Here's a little story that must be told.

703
00:35:02,680 --> 00:35:05,200
Speaker 2: Listen up, gangsters and honeys, with your head done, the

704
00:35:05,200 --> 00:35:07,399
Speaker 2: best story tell us right, I'm gonna say if.

705
00:35:07,400 --> 00:35:09,279
Speaker 3: Pray down, it's gray down, it's pray down, it's gray down.

706
00:35:09,280 --> 00:35:09,799
Speaker 2: It's gray down.

707
00:35:09,800 --> 00:35:13,920
Speaker 3: All right, boys and girls, So we are going to

708
00:35:13,960 --> 00:35:16,560
Speaker 3: tell a story. If you follow the show, you know

709
00:35:16,680 --> 00:35:19,120
Speaker 3: that this is my favorite part of the show.

710
00:35:19,320 --> 00:35:19,839
Speaker 2: Every time.

711
00:35:20,640 --> 00:35:23,640
Speaker 3: The last segment is story time, and today we have

712
00:35:23,680 --> 00:35:28,080
Speaker 3: a very special story, very interesting story, and we're going

713
00:35:28,120 --> 00:35:30,640
Speaker 3: to talk about the best sports deal ever made.

714
00:35:30,840 --> 00:35:32,480
Speaker 2: Is said that when you say the word interesting, that

715
00:35:32,520 --> 00:35:35,200
Speaker 2: means it's about to get real. That's a fact, It's

716
00:35:35,200 --> 00:35:35,920
Speaker 2: about to get real.

717
00:35:35,960 --> 00:35:38,160
Speaker 3: So this this is the best sports deal ever made

718
00:35:38,160 --> 00:35:41,160
Speaker 3: in history, the history of sports. Right. So in the

719
00:35:41,239 --> 00:35:44,920
Speaker 3: nineteen seventies, there was a league called the.

720
00:35:44,920 --> 00:35:47,560
Speaker 2: ABA American Basketball Association. Right.

721
00:35:47,760 --> 00:35:50,279
Speaker 3: So there was the NBA, which everybody knows about the NBA, right,

722
00:35:50,320 --> 00:35:52,600
Speaker 3: but then there was the ABA. So the best way

723
00:35:52,600 --> 00:35:55,000
Speaker 3: I could really describe the ABA. If anybody's a football fan,

724
00:35:55,280 --> 00:35:56,480
Speaker 3: remember the AFL.

725
00:35:57,360 --> 00:36:00,680
Speaker 2: Yeah, so even not an XFL, but.

726
00:36:00,600 --> 00:36:03,279
Speaker 3: The AFL, it was pretty big. At one point they

727
00:36:03,320 --> 00:36:04,279
Speaker 3: had Herschel Walker thing.

728
00:36:04,440 --> 00:36:05,160
Speaker 2: Yeah in the eighties.

729
00:36:05,239 --> 00:36:08,160
Speaker 3: Yeah, so the NFL was a was a football league

730
00:36:08,160 --> 00:36:09,680
Speaker 3: in the eighties and they was just wild, like they

731
00:36:09,719 --> 00:36:13,319
Speaker 3: had the cheerleaders, just it was the whole vibe.

732
00:36:13,040 --> 00:36:15,200
Speaker 2: Was just like they wanted to be everything in the NFL. Wan.

733
00:36:15,320 --> 00:36:17,640
Speaker 3: Yeah, it was just more renegade, you know, it would.

734
00:36:17,480 --> 00:36:21,680
Speaker 2: Be better like w w F and w C W okay,

735
00:36:21,840 --> 00:36:23,320
Speaker 2: you know that was for the kids.

736
00:36:23,360 --> 00:36:26,680
Speaker 3: Similar similar. So the a BA was like the NBA

737
00:36:26,680 --> 00:36:28,920
Speaker 3: at the time was kind of boring. It was like

738
00:36:28,960 --> 00:36:32,839
Speaker 3: the Celtics, you know, just blue collar. You know, it's

739
00:36:32,880 --> 00:36:35,160
Speaker 3: just kind of boring. For the a BA. They had

740
00:36:35,239 --> 00:36:38,080
Speaker 3: the striped basketball, they had the cheerleaders, they had the

741
00:36:38,160 --> 00:36:39,600
Speaker 3: Duncan and they had good players too.

742
00:36:39,600 --> 00:36:40,319
Speaker 2: They had great play.

743
00:36:40,400 --> 00:36:45,000
Speaker 3: They had Doctor j they had Moses Malone, David Thompson,

744
00:36:45,160 --> 00:36:48,719
Speaker 3: David Thompson, so they had like George Gervin Iceman. So

745
00:36:48,760 --> 00:36:51,040
Speaker 3: the ABA was just like flails like street ball. That's

746
00:36:51,160 --> 00:36:53,400
Speaker 3: that's that's the that's the comparison. A BA was like

747
00:36:53,760 --> 00:36:56,160
Speaker 3: the an one street ball, like the Rucker stuff like

748
00:36:56,200 --> 00:36:56,680
Speaker 3: that All.

749
00:36:56,600 --> 00:36:59,200
Speaker 2: Star game like that comes from the NBA. All the festivity,

750
00:36:59,239 --> 00:37:01,120
Speaker 2: the All Star Game, all that contest.

751
00:37:01,200 --> 00:37:04,080
Speaker 3: Yeah, ABA exactly. So ABA was they was They was

752
00:37:04,120 --> 00:37:08,000
Speaker 3: for excitement, right, but financially they it just wasn't working

753
00:37:08,000 --> 00:37:11,200
Speaker 3: out for them, right. So what happened is that there

754
00:37:11,280 --> 00:37:15,560
Speaker 3: was seven teams in the ABA and the NBA wanted

755
00:37:15,600 --> 00:37:19,160
Speaker 3: to merge, right because it was just then made sense

756
00:37:19,160 --> 00:37:20,760
Speaker 3: to just kind of compete with them, and the ABA

757
00:37:20,800 --> 00:37:22,719
Speaker 3: was kind of one the last leg financially, so the

758
00:37:22,800 --> 00:37:26,040
Speaker 3: NBA went to them and they proposed the merger. Right,

759
00:37:26,360 --> 00:37:31,200
Speaker 3: so the merger, the ABA accepted the merger, and it

760
00:37:31,320 --> 00:37:34,960
Speaker 3: was seven teams at the time, so four teams were

761
00:37:35,000 --> 00:37:37,320
Speaker 3: brought into the NBA. Those four teams were the Nets,

762
00:37:37,360 --> 00:37:40,120
Speaker 3: the Nuggets, the Pacers, and the Spurs, which are still

763
00:37:40,120 --> 00:37:42,520
Speaker 3: in the NBA today, right, And then so that was

764
00:37:42,560 --> 00:37:46,920
Speaker 3: three more teams left. So one team Virginia. They they

765
00:37:46,960 --> 00:37:51,120
Speaker 3: actually fizzled out and they didn't they didn't get brought

766
00:37:51,120 --> 00:37:54,239
Speaker 3: in because they just didn't make it right. They bullied up.

767
00:37:54,600 --> 00:37:58,880
Speaker 3: So that that left two teams. Right, So you had Kentucky,

768
00:37:59,400 --> 00:38:02,680
Speaker 3: the team from Ducky Kentucky, I think Colonels, Kentucky Colonels.

769
00:38:02,880 --> 00:38:05,319
Speaker 2: You know what crazy about them? The crazy thing about

770
00:38:05,320 --> 00:38:07,080
Speaker 2: them is that they were owned by the owner of

771
00:38:07,160 --> 00:38:10,400
Speaker 2: Kentucky Fried Chicken. Yes, which is crazy John Brown. Yeah.

772
00:38:10,440 --> 00:38:12,799
Speaker 2: So the NBA buys him out for three million dollars

773
00:38:12,840 --> 00:38:15,440
Speaker 2: at the time, nineteen seventy six. Like that's a lot

774
00:38:15,440 --> 00:38:17,600
Speaker 2: of money, but this is like that's a side business

775
00:38:17,600 --> 00:38:19,400
Speaker 2: for me, Like I got Kentucky Fried Chicken. So he

776
00:38:19,440 --> 00:38:19,799
Speaker 2: takes the.

777
00:38:19,760 --> 00:38:23,280
Speaker 3: Deal, and he also was the own he became the

778
00:38:23,320 --> 00:38:24,200
Speaker 3: governor of Kentucky.

779
00:38:24,320 --> 00:38:25,320
Speaker 2: Yeah, govern of Kentucky.

780
00:38:25,320 --> 00:38:29,400
Speaker 3: Two yeah, sor right. So they had the Kentucky Colonels

781
00:38:29,840 --> 00:38:32,600
Speaker 3: and the Saint Louis Squire.

782
00:38:32,360 --> 00:38:34,440
Speaker 2: Spirits spirits, sake Lewis Spirits.

783
00:38:35,000 --> 00:38:39,000
Speaker 3: So they offer the Kentucky team and the Saint Louis

784
00:38:39,040 --> 00:38:44,480
Speaker 3: team three million dollars as a buyout. Kentucky takes it, right,

785
00:38:44,640 --> 00:38:50,120
Speaker 3: Saint Louis says, it's not so fast, not interested, not interested.

786
00:38:50,160 --> 00:38:53,520
Speaker 2: Well, they said no because they had the vision. They

787
00:38:53,560 --> 00:38:55,879
Speaker 2: were like, look, well, before you go to that, before

788
00:38:55,880 --> 00:38:58,640
Speaker 2: you go to that. So they said no, right, But

789
00:38:58,680 --> 00:39:02,200
Speaker 2: they had good talent. Yeah, they had Moses Malone a

790
00:39:02,200 --> 00:39:04,080
Speaker 2: few other players, right, yeah, I think that was his

791
00:39:04,200 --> 00:39:06,640
Speaker 2: rookie year in nineteen seventy six. He's the first man.

792
00:39:06,560 --> 00:39:09,959
Speaker 3: Child first, he's the first person to come from high school.

793
00:39:10,120 --> 00:39:11,960
Speaker 2: He's the first man to professional. Right.

794
00:39:12,239 --> 00:39:14,640
Speaker 3: So they rejected it, right, And the owners of the

795
00:39:14,680 --> 00:39:17,359
Speaker 3: team they had it was two brothers, Ozzie and Dan

796
00:39:18,719 --> 00:39:20,080
Speaker 3: and what's the last.

797
00:39:19,920 --> 00:39:22,839
Speaker 2: Name Silna Silna.

798
00:39:22,000 --> 00:39:26,640
Speaker 3: And Dan Silna. So what they negotiated was a two

799
00:39:26,680 --> 00:39:32,360
Speaker 3: million dollar buyout and a part of the four teams

800
00:39:32,440 --> 00:39:35,960
Speaker 3: that were going into the NBA TV rights. So they

801
00:39:36,000 --> 00:39:39,600
Speaker 3: got one seventh of the TV rights of those four

802
00:39:39,640 --> 00:39:42,520
Speaker 3: teams that went to the NBA. Right, So, at the

803
00:39:42,560 --> 00:39:45,400
Speaker 3: time TV wasn't really big. It was like black and

804
00:39:45,440 --> 00:39:47,279
Speaker 3: white and things with the wire or stuff like that.

805
00:39:47,840 --> 00:39:52,280
Speaker 3: They was the seventies barely, but nobody was making nobody

806
00:39:52,320 --> 00:39:55,040
Speaker 3: was making money on team yet, so they say, okay,

807
00:39:55,239 --> 00:40:01,960
Speaker 3: one seventh of four teams TV rights. They were so

808
00:40:02,000 --> 00:40:03,480
Speaker 3: eager to get the deal. The NBA just wanted to

809
00:40:03,480 --> 00:40:05,759
Speaker 3: get the deal done, right, say so, give them two

810
00:40:05,800 --> 00:40:08,600
Speaker 3: million and give them one seventh and let it, you know,

811
00:40:09,000 --> 00:40:09,919
Speaker 3: let them go on their way.

812
00:40:10,120 --> 00:40:11,920
Speaker 2: At that time, I think the biggest start in the NBA.

813
00:40:12,280 --> 00:40:18,479
Speaker 2: You have Oscar Robinson, Kareem Abdul Jabbar, and doctor Jay

814
00:40:18,560 --> 00:40:21,160
Speaker 2: is right there on that line was becoming superstar. Bill

815
00:40:21,200 --> 00:40:23,680
Speaker 2: Russell probably is one of the big stars. No, Bill Russell,

816
00:40:23,840 --> 00:40:25,840
Speaker 2: Bill Walton, Bill Walton.

817
00:40:27,840 --> 00:40:33,600
Speaker 3: Okay, so all right, so now this is nineteen seventy six,

818
00:40:33,680 --> 00:40:38,040
Speaker 3: seventy six, nineteen seventy six, so a few years past

819
00:40:38,480 --> 00:40:44,360
Speaker 3: in the eighties, come and Larry Bird and Maggie Johnson

820
00:40:44,440 --> 00:40:49,040
Speaker 3: coming to the league, right, yeah, And the NBA changes fever. Right.

821
00:40:49,680 --> 00:40:52,520
Speaker 3: And then a few years after Larry Bird and Magic

822
00:40:52,640 --> 00:40:55,680
Speaker 3: Johnson coming to the league, is this guy Michael.

823
00:40:55,400 --> 00:40:56,880
Speaker 2: Jordan, Michael Jeffrey Jordan.

824
00:40:57,040 --> 00:40:59,960
Speaker 3: And then the league changes even more forever far.

825
00:41:00,760 --> 00:41:02,759
Speaker 2: Yeah, obviously landscape and now TV.

826
00:41:02,880 --> 00:41:05,840
Speaker 3: So now television television comes into play, right, and you

827
00:41:05,840 --> 00:41:09,560
Speaker 3: have a network called ESPN, and now sports is just

828
00:41:10,280 --> 00:41:14,520
Speaker 3: American television staple. Right, everybody watching sports on TV now

829
00:41:14,600 --> 00:41:19,320
Speaker 3: in the eighties nineties, So now what happened as nobody

830
00:41:19,320 --> 00:41:21,560
Speaker 3: would ever watch sports on TV. Let's just give these

831
00:41:21,560 --> 00:41:24,759
Speaker 3: guys one seventh. They ended up as the league rule

832
00:41:24,800 --> 00:41:27,080
Speaker 3: to the league for the thirty teams, right, So their

833
00:41:27,160 --> 00:41:32,160
Speaker 3: TV revenue, those the two brothers equal two percent of

834
00:41:32,280 --> 00:41:36,239
Speaker 3: the total TV revenue for the NBA. Right, So every

835
00:41:36,320 --> 00:41:42,040
Speaker 3: year they got two percent of TV revenue in perpetuity.

836
00:41:42,160 --> 00:41:43,880
Speaker 3: That was the best part of the deal. It was

837
00:41:43,880 --> 00:41:45,680
Speaker 3: in perpetuite. It's no end dates forever.

838
00:41:46,000 --> 00:41:48,120
Speaker 2: They's so you want to just tell them what perpetuities

839
00:41:48,239 --> 00:41:48,920
Speaker 2: People don't even know.

840
00:41:49,000 --> 00:41:54,600
Speaker 3: Yeah, perpetuity means forever, continuous, that's the easy answer, continuous answer.

841
00:41:54,960 --> 00:41:57,520
Speaker 3: So so now they have two percent of all NBA

842
00:41:57,760 --> 00:42:03,560
Speaker 3: TV revenue forever. Right, So this thing is one of

843
00:42:03,640 --> 00:42:07,520
Speaker 3: the most embarrassing things that the NBA has ever dealt with, right,

844
00:42:07,800 --> 00:42:11,720
Speaker 3: because they end up paying these guys three hundred million

845
00:42:11,760 --> 00:42:15,520
Speaker 3: dollars right from they started from nineteen seventy six to

846
00:42:15,600 --> 00:42:16,520
Speaker 3: twenty fourteen.

847
00:42:16,840 --> 00:42:19,359
Speaker 2: The crazy part is that from seventy six to seventy

848
00:42:19,440 --> 00:42:22,319
Speaker 2: nine they didn't make a dollar, but from eighty to

849
00:42:22,480 --> 00:42:25,840
Speaker 2: ninety seven or eighty to like two thousands to two thousand,

850
00:42:25,920 --> 00:42:26,960
Speaker 2: three hundred million.

851
00:42:26,800 --> 00:42:29,640
Speaker 3: Three hundred million, twenty fourteen eight it was three hundred million.

852
00:42:29,719 --> 00:42:29,959
Speaker 2: Right.

853
00:42:30,120 --> 00:42:34,320
Speaker 3: So finally twenty fourteen, the NBA they're going to reap.

854
00:42:34,080 --> 00:42:35,920
Speaker 2: On the TV deal right right, so like they're about

855
00:42:35,960 --> 00:42:38,880
Speaker 2: to They had a few TV deals prior. They had

856
00:42:38,920 --> 00:42:41,720
Speaker 2: one with NBC and then they had one with ESPN,

857
00:42:41,800 --> 00:42:44,200
Speaker 2: and right, like you said, sports were built over there,

858
00:42:44,200 --> 00:42:47,040
Speaker 2: Like that's a twenty four to seven sports network, so

859
00:42:47,080 --> 00:42:48,800
Speaker 2: you could imagine like people are going to be consuming

860
00:42:48,800 --> 00:42:52,319
Speaker 2: sports at all time. I But in twenty fourteen they

861
00:42:52,360 --> 00:42:56,600
Speaker 2: re upp with Turner Sports and ESPN a nine year

862
00:42:56,640 --> 00:42:59,439
Speaker 2: deal for twenty four billion dollars.

863
00:42:59,200 --> 00:43:01,759
Speaker 3: Right, so right before't do that, they said, Okay, we

864
00:43:01,880 --> 00:43:04,200
Speaker 3: have to get away from this deal because we've been

865
00:43:04,200 --> 00:43:07,279
Speaker 3: bleeding money for thirty years and it's only going to

866
00:43:07,320 --> 00:43:10,000
Speaker 3: get worse as we continue to grow. And now they

867
00:43:10,000 --> 00:43:12,200
Speaker 3: see that, Okay, the TV deals is going to keep

868
00:43:12,200 --> 00:43:14,520
Speaker 3: getting bigger and bigger, right, and we're not going to

869
00:43:14,600 --> 00:43:18,799
Speaker 3: keep paying these guys two percent forever, right, So we

870
00:43:18,840 --> 00:43:21,239
Speaker 3: got to get away from this. So they agree on

871
00:43:21,239 --> 00:43:23,520
Speaker 3: a deal in twenty fourteen for a lump sum buy

872
00:43:23,520 --> 00:43:26,279
Speaker 3: out of five hundred million dollars. Right. So now you

873
00:43:26,320 --> 00:43:28,279
Speaker 3: added three hundred million that they got up into two

874
00:43:28,320 --> 00:43:30,800
Speaker 3: thousand for that number, up, you add the five hundred million,

875
00:43:30,920 --> 00:43:32,680
Speaker 3: so they got eight hundred million dollars. They got eight

876
00:43:32,760 --> 00:43:36,600
Speaker 3: hundred million dollars on a three million dollar deal, three

877
00:43:36,600 --> 00:43:40,200
Speaker 3: million dollar buyout originally that they turned down. They ended

878
00:43:40,280 --> 00:43:41,680
Speaker 3: up getting eight hundred million.

879
00:43:41,719 --> 00:43:43,960
Speaker 2: The NBA didn't even have to have this problem. They

880
00:43:43,960 --> 00:43:46,720
Speaker 2: didn't even have to Like they wanted to buy teams,

881
00:43:46,760 --> 00:43:49,799
Speaker 2: They wanted to buy Detroit in the late seventies, They

882
00:43:49,800 --> 00:43:52,400
Speaker 2: wanted to buy New Jersey nets at that time in

883
00:43:52,440 --> 00:43:55,839
Speaker 2: the nineties, they would have had been owners in two

884
00:43:55,880 --> 00:43:59,120
Speaker 2: thousand and two. Out of twenty ten, they had to

885
00:43:59,160 --> 00:44:02,239
Speaker 2: accumulate almost one hundred million. They were worth more than

886
00:44:02,320 --> 00:44:04,480
Speaker 2: the Indiana Pacers were no.

887
00:44:04,600 --> 00:44:06,319
Speaker 3: But the best part about the story is that, so

888
00:44:06,320 --> 00:44:10,480
Speaker 3: they make eight hundred million dollars from the NBA without

889
00:44:10,520 --> 00:44:13,800
Speaker 3: any overhead, a team that nobody's heard of, a phantom

890
00:44:13,840 --> 00:44:19,000
Speaker 3: team that nobody's heard of, no players, no roster, no overhead,

891
00:44:19,360 --> 00:44:24,360
Speaker 3: no building, nothing. They literally made almost a billion dollars

892
00:44:25,480 --> 00:44:30,600
Speaker 3: just cause forever. So that people say, okay, well, why

893
00:44:30,640 --> 00:44:32,440
Speaker 3: did they take the buyout? They could have just kept

894
00:44:32,440 --> 00:44:34,759
Speaker 3: this going forever, right, So the guy, one of the

895
00:44:34,800 --> 00:44:36,680
Speaker 3: guys died rest in peace a couple of years ago,

896
00:44:36,719 --> 00:44:37,840
Speaker 3: so I think, you know, he probably gets to the

897
00:44:37,880 --> 00:44:39,560
Speaker 3: point where it's like, Okay, I'm about to die soon,

898
00:44:39,600 --> 00:44:43,960
Speaker 3: so I might just get five hundred million up front. Yeah,

899
00:44:44,000 --> 00:44:46,400
Speaker 3: you know, right. And then also it was a headache

900
00:44:46,400 --> 00:44:49,239
Speaker 3: for them because they hired lawyers. They kept going back

901
00:44:49,239 --> 00:44:50,839
Speaker 3: and forth because they felt like the NBA was kind

902
00:44:50,840 --> 00:44:52,760
Speaker 3: of cheating them with the numbers and it wasn't correct.

903
00:44:52,760 --> 00:44:55,000
Speaker 3: So they that was kind of and then their name

904
00:44:55,080 --> 00:44:57,960
Speaker 3: was always associated with that. They didn't really want to

905
00:44:57,960 --> 00:44:59,200
Speaker 3: be associated with that forever.

906
00:44:59,640 --> 00:45:01,440
Speaker 2: I would Yeah, it's not a bad thing.

907
00:45:01,440 --> 00:45:02,920
Speaker 3: They kind of wanted to just get it over with,

908
00:45:03,760 --> 00:45:07,880
Speaker 3: h But in life is ups and downs, right, So

909
00:45:07,920 --> 00:45:10,880
Speaker 3: they make almost eight hundred million dollars doing nothing. But

910
00:45:10,920 --> 00:45:12,360
Speaker 3: then they lose a substantial amount.

911
00:45:12,160 --> 00:45:17,560
Speaker 2: Of money from connect with this notorious, notorious one, Bernie made.

912
00:45:17,400 --> 00:45:21,200
Speaker 3: Off, Bernie Madoff. Bernie Madoff. So Bernie Madoff burns him

913
00:45:21,200 --> 00:45:26,200
Speaker 3: pretty bad. Yeah, man, Bernie Madoff person pretty bad. And

914
00:45:26,200 --> 00:45:27,600
Speaker 3: they lose a lot of money with Bernie made Off.

915
00:45:27,640 --> 00:45:29,120
Speaker 2: Yeah, they said, thank god, they didn't lose it at

916
00:45:29,120 --> 00:45:32,399
Speaker 2: all because they were they had diversified their portfolio, which

917
00:45:32,440 --> 00:45:35,160
Speaker 2: is good, but they did lose a substantial amount with Bernie.

918
00:45:35,200 --> 00:45:35,799
Speaker 3: They lost a lot.

919
00:45:35,960 --> 00:45:38,000
Speaker 2: Yeah, he's doing fifty years.

920
00:45:39,320 --> 00:45:41,480
Speaker 3: Yeah, he's doing a lot. He's doing a lot of time.

921
00:45:41,880 --> 00:45:43,879
Speaker 3: Bernie Mado plays a part in mets as well.

922
00:45:43,960 --> 00:45:45,680
Speaker 2: Yeah, the will Palm family lost a lot of money.

923
00:45:45,680 --> 00:45:47,560
Speaker 3: We'll talk about some we'll talk about that sometimes. But

924
00:45:48,120 --> 00:45:51,480
Speaker 3: so yeah, so by day they won. Even though they

925
00:45:51,480 --> 00:45:53,000
Speaker 3: lost a lot of money with Bernie made Off, they

926
00:45:53,040 --> 00:45:55,719
Speaker 3: still won in the grand scheme of things. And it's

927
00:45:55,760 --> 00:45:57,920
Speaker 3: a good story. And how we bring it back to

928
00:45:57,960 --> 00:46:01,239
Speaker 3: the everyday person is that we always talk about equity, right,

929
00:46:01,280 --> 00:46:05,200
Speaker 3: and the power of equity and the power of delayed gratification,

930
00:46:05,840 --> 00:46:08,440
Speaker 3: not taking everything up front. So they still got two

931
00:46:08,520 --> 00:46:11,960
Speaker 3: million dollars up front. But that TV deal that they

932
00:46:11,960 --> 00:46:15,239
Speaker 3: struck was brilliant, right, and almost a billion dollars. So

933
00:46:16,520 --> 00:46:20,480
Speaker 3: the guy from KFC, I mean, he's filthy rich. I'm

934
00:46:20,480 --> 00:46:21,880
Speaker 3: sure you know, it's not the end of the world,

935
00:46:22,080 --> 00:46:25,800
Speaker 3: but he has to be kicking himself or his family.

936
00:46:25,880 --> 00:46:28,600
Speaker 3: I mean, you took three million dollars and the other guys.

937
00:46:28,560 --> 00:46:33,239
Speaker 2: About the owners of the Virginia Squires, they left before

938
00:46:33,239 --> 00:46:35,640
Speaker 2: they could even get the three million, the two million

939
00:46:35,680 --> 00:46:39,720
Speaker 2: dollar offer to be bought out. They were the owners

940
00:46:40,360 --> 00:46:44,000
Speaker 2: Virginia Squires. Virginia Squires folded before they can get They folded.

941
00:46:44,200 --> 00:46:48,040
Speaker 3: It wasn't their fault. They folded. Well all right, Well,

942
00:46:49,040 --> 00:46:51,560
Speaker 3: before we end, we want to talk about a few

943
00:46:51,840 --> 00:46:57,360
Speaker 3: initiatives that we're started. So we talk about Patreon a lot,

944
00:46:57,800 --> 00:46:59,600
Speaker 3: but I don't think you guys fully understand, so we

945
00:46:59,640 --> 00:47:01,279
Speaker 3: want to to give you the backstory on it. So

946
00:47:01,760 --> 00:47:04,000
Speaker 3: me and Troy, we have a financial literacy program that

947
00:47:04,040 --> 00:47:06,600
Speaker 3: we run in the summertime, and that's what we help

948
00:47:06,719 --> 00:47:09,439
Speaker 3: kids learn about finance and stocks and stuff like that.

949
00:47:09,719 --> 00:47:11,319
Speaker 3: And then also we try we're trying to take the

950
00:47:11,320 --> 00:47:14,680
Speaker 3: financial literacy program like nationwide. And also we want to

951
00:47:14,680 --> 00:47:16,799
Speaker 3: write a book about financial literacy as well, and then

952
00:47:16,840 --> 00:47:19,759
Speaker 3: also just kind of spread the word of you know,

953
00:47:19,880 --> 00:47:24,880
Speaker 3: outside of the podcast of financial literacy, go to different towns, cities,

954
00:47:25,080 --> 00:47:27,319
Speaker 3: you know, workshops, stuff like that, because you know, good

955
00:47:27,320 --> 00:47:29,000
Speaker 3: thing about the Internet and now is that we have

956
00:47:29,040 --> 00:47:30,840
Speaker 3: a global reach, but we want to reach the people

957
00:47:30,840 --> 00:47:32,799
Speaker 3: in person. It help as many people as we possibly can, right,

958
00:47:32,840 --> 00:47:36,880
Speaker 3: that's not help the goals to help. So obviously, you know,

959
00:47:37,680 --> 00:47:40,360
Speaker 3: finances are important when it comes to helping. So Patreon

960
00:47:40,440 --> 00:47:43,040
Speaker 3: is an avenue that we put together to kind of

961
00:47:43,080 --> 00:47:46,200
Speaker 3: help financially fund these different initiatives that we have, right,

962
00:47:46,680 --> 00:47:50,480
Speaker 3: and also we are putting together a goal, right, so

963
00:47:50,520 --> 00:47:55,000
Speaker 3: our goal is to have one hundred people, one hundred patrons,

964
00:47:55,360 --> 00:47:57,680
Speaker 3: and ultimate goal is a thousand, but we want to

965
00:47:57,719 --> 00:48:01,000
Speaker 3: break it up into smaller goals, so one hundred patrons,

966
00:48:01,000 --> 00:48:04,080
Speaker 3: and there's different levels of our Patreon, right.

967
00:48:04,280 --> 00:48:07,880
Speaker 2: So the Patreon, like rachhad said, is it's for creators,

968
00:48:07,920 --> 00:48:10,440
Speaker 2: and I know some people are not familiar with it,

969
00:48:10,480 --> 00:48:12,799
Speaker 2: but it's for creators and it's to help fund some

970
00:48:12,840 --> 00:48:15,479
Speaker 2: of their initiatives and their plans. And so what we're

971
00:48:15,480 --> 00:48:18,880
Speaker 2: doing is once we reach one hundred patrons. We're going

972
00:48:18,960 --> 00:48:22,120
Speaker 2: to reach out to five of them and have them

973
00:48:22,200 --> 00:48:24,160
Speaker 2: talk to us for or have the ability to talk

974
00:48:24,200 --> 00:48:25,680
Speaker 2: to us for hours, so they can pick our brain.

975
00:48:25,960 --> 00:48:27,520
Speaker 2: A lot of times on the earn your Leisure pagent,

976
00:48:27,560 --> 00:48:30,400
Speaker 2: your page, people want you to mentor them or can

977
00:48:30,440 --> 00:48:32,800
Speaker 2: they pick your brain, So this is that opportunity. So

978
00:48:32,840 --> 00:48:34,399
Speaker 2: after we get to one hundred, we're going to take

979
00:48:34,440 --> 00:48:36,399
Speaker 2: five of those people and we're going to reach out

980
00:48:36,800 --> 00:48:39,800
Speaker 2: and we're going to have those conversations because it's important.

981
00:48:39,880 --> 00:48:42,120
Speaker 2: And when you go there, you'll see that there's different tiers.

982
00:48:42,160 --> 00:48:45,319
Speaker 2: We have five tiers, so you can join at any

983
00:48:45,320 --> 00:48:47,360
Speaker 2: tear that you like. But yeah, just to help the

984
00:48:47,360 --> 00:48:49,520
Speaker 2: support and help us get out some of these visions

985
00:48:49,520 --> 00:48:51,799
Speaker 2: that we have, we've created that avenue yep.

986
00:48:51,840 --> 00:48:54,360
Speaker 3: So that's on the website early Legion dot com. And

987
00:48:54,520 --> 00:48:56,840
Speaker 3: also on the website is our merch that me and

988
00:48:56,880 --> 00:49:00,279
Speaker 3: Troy wearing. If you're a subscribe to our YouTube, which

989
00:49:00,560 --> 00:49:03,239
Speaker 3: subscribe to our YouTube and Lisia is the YouTube page.

990
00:49:03,239 --> 00:49:05,200
Speaker 3: You see. We have the I have my shirt which

991
00:49:05,239 --> 00:49:09,120
Speaker 3: is hustle for your last name. Troy has the liability

992
00:49:09,440 --> 00:49:12,080
Speaker 3: and that is on our merch. We have new merch

993
00:49:12,160 --> 00:49:13,319
Speaker 3: that we rolled out as well.

994
00:49:13,440 --> 00:49:15,920
Speaker 2: So yeah, yeah, people asking for colors, so we got

995
00:49:16,000 --> 00:49:16,479
Speaker 2: every color.

996
00:49:16,520 --> 00:49:18,920
Speaker 3: We got every color we got, we got the v

997
00:49:19,000 --> 00:49:21,359
Speaker 3: next for the ladies, you know, we got we got

998
00:49:21,360 --> 00:49:23,600
Speaker 3: a full we got a full array of things. And

999
00:49:23,640 --> 00:49:28,239
Speaker 3: then also the book before before I leave, So I

1000
00:49:28,360 --> 00:49:31,319
Speaker 3: promised you every episode I'm going to mention a book

1001
00:49:31,600 --> 00:49:34,440
Speaker 3: that I think is good for business, uh or just

1002
00:49:34,480 --> 00:49:37,440
Speaker 3: you know, just in general. So Phil Knight Shoe Dog

1003
00:49:38,440 --> 00:49:42,280
Speaker 3: is an interesting book. I recommend anybody that's interested in business.

1004
00:49:42,360 --> 00:49:46,000
Speaker 3: Nike for anybody that's not familiar. Phil Knight is the

1005
00:49:46,040 --> 00:49:49,120
Speaker 3: owner and all the CEO. I don't know if he's

1006
00:49:49,120 --> 00:49:52,839
Speaker 3: still CEO, but he started Nike, the founder of Nike, right,

1007
00:49:53,200 --> 00:49:56,399
Speaker 3: So he tells the story of Nike, and it's his

1008
00:49:56,400 --> 00:49:58,880
Speaker 3: story and it's how Nike, And it's for any entrepreneur

1009
00:49:58,920 --> 00:50:02,959
Speaker 3: because there's no easy path to entrepreneurship and it talks

1010
00:50:03,000 --> 00:50:05,520
Speaker 3: about a lot of the ups and downs in different battles.

1011
00:50:05,520 --> 00:50:09,920
Speaker 3: So I highly recommend that book. Phil Knight Shoot Up.

1012
00:50:10,360 --> 00:50:13,160
Speaker 2: Yeah. So, like, like the final message I'll give that

1013
00:50:13,160 --> 00:50:15,600
Speaker 2: out man is struggle another sign that God loves you.

1014
00:50:15,640 --> 00:50:19,360
Speaker 2: So like that's part of the stories too. Perseverance, preparation.

1015
00:50:19,480 --> 00:50:19,600
Speaker 3: Man.

1016
00:50:19,640 --> 00:50:24,719
Speaker 2: You gotta keep follow your dream, never be discouraged, and

1017
00:50:25,080 --> 00:50:28,200
Speaker 2: don't take immediate gratification like we told them the story man.

1018
00:50:28,360 --> 00:50:32,040
Speaker 2: Sometimes the late gratification has its benefits. So that's my

1019
00:50:32,080 --> 00:50:32,640
Speaker 2: final word.

1020
00:50:32,719 --> 00:50:34,680
Speaker 3: Yeah, so that's it. Peace.

1021
00:51:01,280 --> 00:51:04,960
Speaker 4: An illegal alien from Guatemala charged with raping a child

1022
00:51:05,000 --> 00:51:08,759
Speaker 4: in Massachusetts. An MS thirteen gang member from Al Salvador

1023
00:51:09,000 --> 00:51:13,160
Speaker 4: accused of murdering a Texas. Man of Venezuelan charged with

1024
00:51:13,239 --> 00:51:17,120
Speaker 4: filming and selling child pornography in Michigan. These are just

1025
00:51:17,200 --> 00:51:20,960
Speaker 4: some of the heinous migrant criminals caught because of President

1026
00:51:21,000 --> 00:51:24,600
Speaker 4: Donald J. Trump's leadership. I'm Christy nom the United States

1027
00:51:24,600 --> 00:51:29,400
Speaker 4: Secretary of Homeland Security. Under President Trump, attempted illegal border

1028
00:51:29,440 --> 00:51:33,000
Speaker 4: crossings are at the lowest levels ever recorded, and over

1029
00:51:33,040 --> 00:51:36,279
Speaker 4: one hundred thousand illegal aliens have been arrested. If you

1030
00:51:36,360 --> 00:51:40,200
Speaker 4: are here illegally, your next you will be fine nearly

1031
00:51:40,280 --> 00:51:44,279
Speaker 4: one thousand dollars a day, imprisoned and deported, you will

1032
00:51:44,320 --> 00:51:47,960
Speaker 4: never return. But if you register using our CBP home

1033
00:51:48,040 --> 00:51:51,400
Speaker 4: app and leave now, you could be allowed to return legally.

1034
00:51:51,760 --> 00:51:56,520
Speaker 4: Do what's right. Leave now. Under President Trump America's laws,

1035
00:51:56,680 --> 00:52:00,640
Speaker 4: border and families will be protected sponsored the state's Department

1036
00:52:00,640 --> 00:52:01,320
Speaker 4: of Homeland Security,