Speaker 1: Coach, the energy out there felt different. What changed for
Speaker 1: the team today?
Speaker 2: It was the new game day scratches from the California
Speaker 2: Lottery players. Everything. Those games sent the team's energy through
Speaker 2: the roof.
Speaker 1: Are you saying it was the off field play that
Speaker 1: made the difference on the field.
Speaker 2: Hey, little play makes your day, and today it made
Speaker 2: the game.
Speaker 3: That's all for now, coach, one more question.
Speaker 1: Play the new Los Angeles Chargers, San Francisco forty nine
Speaker 1: ers and Los Angeles Rams scratchers from the California Lottery.
Speaker 1: A little play can make your day. Peace made responsibily.
Speaker 1: Must be eighteen years or older to purchase late or claim.
Speaker 3: All right, guys, welcome back episode ten. Time Fly, Time Flies.
Speaker 3: This is a monumental episode for us because it's on
Speaker 3: tenth one, tenth week. So first of all, we want
Speaker 3: to thank you guys. Our growth has been tremendous on
Speaker 3: all audio platforms, on YouTube, on Instagram ten weeks in
Speaker 3: and you know we're hitting the ground running. So that's
Speaker 3: only because you guys that are spreading the words. So
Speaker 3: thank you, thank.
Speaker 2: You, thank you everybody who's been supporting, hitting our website up,
Speaker 2: getting the merged. We really appreciate it, Thank you so much.
Speaker 3: All right, So we're going to jump into it this
Speaker 3: week with one of the biggest topics of discussion, which
Speaker 3: is a massive college cheating scandal Colle's admissions cheating scandal,
Speaker 3: and it reaches pretty broad reaching. It's the biggest one
Speaker 3: in American history FBI probe. So I put it on
Speaker 3: my Instagram, I put it on our Instagram, actually on
Speaker 3: your leisure page to see, you know, the reaction if
Speaker 3: we should talk about it or not. And a lot
Speaker 3: of people wanted us to talk about it, and a
Speaker 3: lot of people really wasn't sure exactly the full dynamic,
Speaker 3: what happens, like, what it really encountered, and you know,
Speaker 3: all of that stuff. So with that being said, we
Speaker 3: want to jump into it and explain it in full, yeah,
Speaker 3: because it's more involved when people think.
Speaker 2: Yeah, a lot of people like a really completely oblivious
Speaker 2: to what happened. They saw it on the news and
Speaker 2: the headlines. But there's so many layers to it, and
Speaker 2: hopefully we'll be able to explain that to you in
Speaker 2: a way that you can understand and digest.
Speaker 3: All right, So you want to start it off.
Speaker 2: Yeah, So we'll start with by the FBI finding this
Speaker 2: out by mistake, completely by mistake. It was just a happenstance.
Speaker 2: They were investigating this this man named uh Maury Tobin,
Speaker 2: who was a yell alone and he was on the
Speaker 2: investigation for a pump and dump scheme. So a pump
Speaker 2: and dump is when you put money into a stock
Speaker 2: and the stock rises and you sell it because you
Speaker 2: know that the stock's not gonna last long. So he
Speaker 2: was on the investigation. They had all the evidence presented
Speaker 2: for him, and when they presented it, one of me
Speaker 2: was like, you know what, I'll cooperate you guys, if
Speaker 2: you give me linency, I'll cooperate. So what he does
Speaker 2: is say, you know what, I'm a yello lum. My
Speaker 2: daughter wants to go to Yea and play soccer. The
Speaker 2: coach there, Rudy Meredith, offered me to have my daughter
Speaker 2: come to school for four hundred and fifty thousand dollars.
Speaker 2: So he says, you know what, if you pay four
Speaker 2: hundred and fifty thousand, your daughter could come to the school.
Speaker 2: FBI says, Okay, that's really good. Can you get that
Speaker 2: on tape. So Tobin does is he wears a wire
Speaker 2: and he goes to having meeting with Meredith, and he
Speaker 2: has them on tape saying it now. Once Meredith is caught,
Speaker 2: he says, you know what, I'll cooperate if you give
Speaker 2: me linency, I'll tell you where this money is going.
Speaker 2: And it comes up to this man named Rick Singer.
Speaker 2: And if you don't know Rick Singer is, we're going
Speaker 2: to go to some death about who he is and
Speaker 2: his role in this story. But what he does is
Speaker 2: he starts singing ironically enough, so you want to talk
Speaker 2: about who Rick singers?
Speaker 3: Yeah, So Rick Singer is a guy. He started a
Speaker 3: company called the Key, right, and the Key was a
Speaker 3: company that designed to have affluent parents paid to get
Speaker 3: their kids into college. Right. And it's a couple of
Speaker 3: different ways how you went about doing it, but they
Speaker 3: were all pretty much illegal ways. So the Key, it's
Speaker 3: all unfolded because of Lori Lochlin. So so she's I'm
Speaker 3: Becky from full House, full House that brings back memories.
Speaker 3: That's that's that's Selectee's crazy's all right. So now you
Speaker 3: have I'm Becky from full House, right. And when he
Speaker 3: got put the pressure on as far as we're Singer,
Speaker 3: he starts to fold. So It's like it's like a
Speaker 3: domino fact. Right, one guy rats, another guy rats. So
Speaker 3: now he says, okay, well I'll open it up for you. Right,
Speaker 3: this is bigger than just me. So now you have
Speaker 3: all these Hollywood A List celebrities V List celebrities that
Speaker 3: are paying up to five hundre tred thousand in some
Speaker 3: case I heard even a million and a half to
Speaker 3: get their kids into college. Right, So how they getting
Speaker 3: their kids into college is the interesting part. A lot
Speaker 3: of times people say, okay, well rich people paying to
Speaker 3: get their kids into school, that's nothing.
Speaker 2: Yeah, we've seen before.
Speaker 3: Who really kids? But this is how it all breaks
Speaker 3: down because the theme of this show is like the
Speaker 3: backstory behind sports and entertainment, right, so we want to
Speaker 3: give you the backstory behind sports and entertainment. So this
Speaker 3: all ties in. It's a very complicated situation. So they're
Speaker 3: really using two avenues to get the kids into college. Right,
Speaker 3: So they're paying, they're using disability learning disabilities, right because
Speaker 3: now if you have a learning disability, when you take
Speaker 3: your sat or Act, you get longer time.
Speaker 2: So that comes from him first paying school psychologists. So
Speaker 2: the first thing he gets on a payroll school psychologist
Speaker 2: and in two ways that they do with first ones
Speaker 2: ACT SAT test. So he gets school psychologists because he
Speaker 2: knows that they can create the paperwork that he needs
Speaker 2: to show that the kids have learning disabilities. So when
Speaker 2: they get that paperwork, it'll allow them to have extended
Speaker 2: time into the testing accommodation, either time and a half
Speaker 2: or double time. Once they get that, now the kids
Speaker 2: have longer time to take the SAT. But it goes
Speaker 2: even deeper because after they take the test, right, sometimes
Speaker 2: he has another person on the payroll, the procter of
Speaker 2: the test. So they take the test and a lot
Speaker 2: of times the kids didn't know this, but the proctor
Speaker 2: was like some guy that they hired, like an SAT genius,
Speaker 2: and he would just change the answers for the students
Speaker 2: so that they would get higher scores. He wouldn't even
Speaker 2: further than that though, right, this is like one of
Speaker 2: the illest things he did. We know, like when we
Speaker 2: take the ACT and set like way back when that
Speaker 2: those tests were at specific locations. So what he did
Speaker 2: is he knew that the parents had a lot of money,
Speaker 2: and he said, I need a different type of testing accommodation.
Speaker 2: I need the students to create a scenario where they
Speaker 2: have to leave. So parents would say, look, I'm going
Speaker 2: on a business trip, I have to take my children.
Speaker 2: Is any way that they can take this in a
Speaker 2: different location? And they went to two places. They went
Speaker 2: to Houston and they went to West Hollywood. And when
Speaker 2: they were there, when it got there, obviously it was
Speaker 2: the practor was on the payroll, but sometimes they had
Speaker 2: people just go into those locations and take it for them.
Speaker 2: So like these kids never took some kids never took
Speaker 2: the test, some took it and answers were changed, and
Speaker 2: it's like, wait, what how did this happen?
Speaker 3: Yeah, so that's the academic side, And now we're talking
Speaker 3: about the athletics side, right. So it's actually fitting that
Speaker 3: you spoke about the academic side because you work in school,
Speaker 3: you're educator, right, and I played sports my whole life,
Speaker 3: So now I'll talk about the academic side. So as
Speaker 3: a Division one former Division one athlete, I can speak
Speaker 3: about this first hand. Yeah, so when you are recruited
Speaker 3: to go to the school. Now, each college has academic
Speaker 3: requirements right now, of academic requirements, most of the time,
Speaker 3: they have leniency for athletics athletes, right, So it's lower
Speaker 3: for an athlete to get the academic requirements are lower, right,
Speaker 3: because they're an athlete. So what happens is that you
Speaker 3: have big time college sports basket ball, football, everybody knows that, right,
Speaker 3: But there's a lot of college sports where we actually
Speaker 3: spoke about a few episodes ago, and nobody really knows
Speaker 3: most of these sports, right. So you have teams like
Speaker 3: water polo, sailing, even soccer in some cases squash squash. Uh,
Speaker 3: nobody knows, no disrespect to these these teams, but nobody
Speaker 3: knows the players and it's not it's no big deal, right,
Speaker 3: So what happens is that the players on these teams,
Speaker 3: they have a way to get into college with lower
Speaker 3: SAT scores, lower ACT scores, lower you know, academic requirements.
Speaker 3: So what they were doing is that now they were
Speaker 3: paying off the coaches, right, they paid the college coaches
Speaker 3: to put the kids on the team so they can
Speaker 3: get in on that avenue as well. So now the
Speaker 3: kids is on the squash team and he's never even
Speaker 3: played squash. So a couple of schools got USC was
Speaker 3: one of the schools, right, So USC, if a running
Speaker 3: back doesn't show up to practice, everybody's going to know
Speaker 3: what the running back like. That's you know, a big deal.
Speaker 3: Nobody's checking to see if the rowing team shows up
Speaker 3: the practice or not. Right, So now they have and
Speaker 3: they was actually even photoshopping kids' faces on pictures to
Speaker 3: make them seem like they were actually real athletes. Right,
Speaker 3: So how does this all tie in? And so there's
Speaker 3: always a plot twist, right, So how does this all
Speaker 3: tie into everyday people? Is because as we spoke about before,
Speaker 3: there's two sports that really fund the majority of every sport,
Speaker 3: all the sports in college, right, and those two sports
Speaker 3: are basketball and football. Right, So now you have basketball
Speaker 3: and football, and we all know the demographics most of
Speaker 3: the time of those sports, right, and those kids most
Speaker 3: of the time aren't coming from very affluent families. Some do,
Speaker 3: but most don't. Write middle class, low class, poor families.
Speaker 3: So now you have those those two programs are funding
Speaker 3: the other programs like water, polo, squash, sailing, all those teams. Right,
Speaker 3: So now the funds that they're getting and it's helping
Speaker 3: them run their programs. The wealthy pa parents are paying
Speaker 3: those coaches to let their kids on the team, even
Speaker 3: though those kids aren't actually on the team, just to
Speaker 3: get into college. Right, So it all ties into the
Speaker 3: idea of America and the weird combination of sports and education.
Speaker 3: It's not normal to have sports and education tied together
Speaker 3: in any part of the world other than America, right,
Speaker 3: So part of the cheating scandual also was IMG Academy
Speaker 3: in Florida.
Speaker 2: You know that school?
Speaker 3: Yes, So I am alumni of IMG Academy. So if
Speaker 3: anybody's not familiar, I give you a quick rundown. IMG
Speaker 3: Academy is one of the top prep schools in America,
Speaker 3: if not the top prep school in America. And they
Speaker 3: have a different approach whereas they build the academics around
Speaker 3: the sports. Right, So sports is your main focus. You
Speaker 3: go to school for whatever sports you're playing, and then
Speaker 3: they kind of tailor make your athletic your academic requirements
Speaker 3: around your sports. So you train for most of the
Speaker 3: day and then you go to school for like part
Speaker 3: time almost so it's a unique situation. So they had
Speaker 3: the head of Academic Enrollment for Colleges or something. He
Speaker 3: had a title something like that, Monstoy short he was
Speaker 3: taking tests for kids to get him into college right
Speaker 3: at IMG. So now it all comes down to this
Speaker 3: is a billion dollar business. As we said before, the
Speaker 3: NCAA and college sports. Right, so now college sports is
Speaker 3: all being tied in with wealthy parents paying for their
Speaker 3: kids to go to college, and they're using it on
Speaker 3: the back of athletics to get their kids in via
Speaker 3: one hundred thousand, five hundred thousand, seven hundred thousand dollars
Speaker 3: that's going to coaches. So not everybody's getting paid in
Speaker 3: this whole situation except except for the athletes that's making
Speaker 3: all this possible.
Speaker 2: The tennis coach at Texas or University of Texas ninety thousand.
Speaker 2: He's a tennis coach. He got ninety thousand for a
Speaker 2: kid to get into the school. Who's ever watched a
Speaker 2: tennis match from Texas? Like you know what I'm saying, Like,
Speaker 2: it just doesn't make sense.
Speaker 3: Yeah, yeah, so yeah, So it's it's it's a very
Speaker 3: it's a very complicated.
Speaker 2: Yeah, I mean, it reeks of elitism and privilege. But
Speaker 2: the question like that I had was like the why
Speaker 2: why are they even doing this?
Speaker 3: Right?
Speaker 2: Because if you think about it, when you have families
Speaker 2: who come from affluent neighborhoods and they come from wealth,
Speaker 2: the college is kind of not even a necessity. Right,
Speaker 2: you've already accumulated, your family is already a cumulated wealth.
Speaker 2: Going to college won't guarantee that you accumulate anymore. Well, right,
Speaker 2: if you have five hundred thousand dollars that pay the coach,
Speaker 2: then why are you going to college? Right? Or you
Speaker 2: could be learning the skills doing something else. Whereas every
Speaker 2: time a kid like that gets in, you have a
Speaker 2: kid who's busted their tail throughout their entire scholass of
Speaker 2: career to have the opportunity and now they don't you
Speaker 2: know what I'm saying. So it's like when a middle
Speaker 2: class or people from low socioeconomic environments, when they go
Speaker 2: to college, it's like that's our ticket to middle class,
Speaker 2: Like we have to go to college because it'll give
Speaker 2: us a good job and we can live in middle
Speaker 2: class quote unquote life. And it's like, all right, well
Speaker 2: college is the key, Well you already have that, so
Speaker 2: like what's the why? Is like kind of puzzling to me.
Speaker 3: And also, I mean we talked about basketball and football
Speaker 3: funding these programs, but all about the kids that's actually
Speaker 3: trying to get into college via squash right, Like it's
Speaker 3: taking the spot from another kid right to get in
Speaker 3: because you got a kid on the team that's not
Speaker 3: even on the team.
Speaker 2: Yeah, they didn't release the kids' names, but like the
Speaker 2: one of the students that you will see, when he
Speaker 2: went to the emissions office, they were like, oh, they
Speaker 2: looked at his transfer and said, oh, oh you're on
Speaker 2: the you run track and he was like, what, I
Speaker 2: don't know what you're talking about. So sometimes the kids
Speaker 2: didn't know. In fact, they wake Forest one of the
Speaker 2: students who's in the investigation, they allowed her to stay
Speaker 2: at the school because they found no evidence that she
Speaker 2: knew that her parents had paid for her to be there.
Speaker 2: So it's like crazy, because like, what do you do?
Speaker 2: How do you reverse that? Because Stringing Singer's been doing
Speaker 2: it for twenty five years, He's had eight hundred clients,
Speaker 2: He's made twenty five million off of this scheme. What
Speaker 2: do you do you revoke those degrees to the kids
Speaker 2: who got paid right? How do you do it?
Speaker 3: And this is something like I said, that the average
Speaker 3: person isn't even thinking about right, And it just shows
Speaker 3: you the disparity in this country. In the world too,
Speaker 3: but especially in this country between the haves and the
Speaker 3: have nots. Right, this is something that you know, the
Speaker 3: average middle class, poor family, they're not even thinking about anything.
Speaker 3: They don't even they're not even aware of this stuff, right,
Speaker 3: So the extent that people will go to have their
Speaker 3: kids succeed or sometimes, like you said, just to even
Speaker 3: be a status symbol, it's obvious that it's not a
Speaker 3: fair plane.
Speaker 2: Like that said, like what you said, the status symbol,
Speaker 2: like my kid is in Yale, or my kid went
Speaker 2: to Harvard or he got into USC. It's like, really
Speaker 2: like this kid, there's kids who are really actually trying
Speaker 2: to get that done. We actually got a case in
Speaker 2: Ohio in twenty eleven. It's this young this woman named
Speaker 2: Kelly Williams Bowler, and she came back up in the
Speaker 2: news because of this this scandal where she was facing
Speaker 2: five years in prison because of an address fraud. She
Speaker 2: lived in a part of Ohio where you know, poor neighborhood,
Speaker 2: and she wanted her daughters to have a better life
Speaker 2: or a better education, so she used her father's address, which
Speaker 2: was in an affluent white neighborhood, and the school district
Speaker 2: brought her up on charges for fraud. She was facing
Speaker 2: five years in prison just because she just thought, hey,
Speaker 2: a zoning issue. All right, I want to give my
Speaker 2: kids the best education. Now, she didn't go to prison
Speaker 2: for five years. I think she did ten days, but
Speaker 2: even ten days, like, let's see how many of these
Speaker 2: parents actually go to jail.
Speaker 3: Well, we'll see, we'll see. So yeah, there you have it.
Speaker 3: There you have it America. All right. So now we're
Speaker 3: going to go into a very hot topic. Another thing
Speaker 3: that we put on Instagram and see the reaction and
Speaker 3: is brick and martar debt. Right, So this is something
Speaker 3: that we try to talk about things that everybody can
Speaker 3: relate to. And obviously everybody can relate to brick and martar,
Speaker 3: whether you're a customer or business on it, right, because
Speaker 3: most businesses are brick and more the businesses now, well
Speaker 3: it's starting to change, but traditionally most small businesses are
Speaker 3: brick and mortar. And everybody, you know, shops and brick
Speaker 3: and mortar at some point, you know, in time. So
Speaker 3: we're going to talk about brick and mortar dead right.
Speaker 3: So the post that I actually put on Instagram, it
Speaker 3: had pay Less closing locations. It had Macy's Clothing location,
Speaker 3: Kmark Clothing location, see is clothing location. Radio shocks closed
Speaker 3: Toys r US closed, and then it had Uber, which
Speaker 3: is the biggest transportation company in the world, has no
Speaker 3: physical cars. Right, Netflix, which is the biggest movie company
Speaker 3: in the world, has no movie theaters. And Airbnb, which
Speaker 3: is the biggest hotel company in the world, has no
Speaker 3: physical hotels. So is Brick and Martar dead? And everything
Speaker 3: transitioning to online virtually? We know that fifty one percent
Speaker 3: of all shopping is done online right now, so it's
Speaker 3: an interesting discussion to see is it dead or is
Speaker 3: it just transitioning?
Speaker 2: Yeah. I think in twenty seventeen the United States had
Speaker 2: about eighty seven hundred stores closed and that was like
Speaker 2: a whole time high. And we're in March and we
Speaker 2: already have over five thousand store closings already in twenty nineteen,
Speaker 2: so this is probably a record year for that. So
Speaker 2: is it dead, I don't know. Is it adjusting? That's
Speaker 2: a better question, and I think we have some cases
Speaker 2: where we might see that it is adjusting.
Speaker 3: Yeah, So all right, so Brick and Martin, right, in
Speaker 3: my opinion, we'll just jump right into it. Is it dead? No,
Speaker 3: I don't think it's dead, right, I think that the
Speaker 3: old way of doing business is dead, right, and those
Speaker 3: stores Macy's and Kmart and Sears. The reason why they're
Speaker 3: dead or they're dying is that they haven't adjusted, right.
Speaker 3: But if you look at like Amazon for instance, right,
Speaker 3: So Amazon is interesting because Amazon is actually obviously the
Speaker 3: giant of the virtual world, right, And we talked about
Speaker 3: amaz Amazon and jay Z probably get mentioned in every
Speaker 3: episode because it's just now it's unavoidable. But so Amazon
Speaker 3: built their business model virtually, right. And then now what
Speaker 3: they're doing is that they're transitioning into the brick and
Speaker 3: mortar business. Right. So they brought Whole Foods right, well,
Speaker 3: I think twelve million dollars a few years ago. Then
Speaker 3: they have a bookstore, they have Amazon Bookstore, and now
Speaker 3: they actually Amazon Go. You heard of that. So Amazon
Speaker 3: Go is a cash list, a cashier list grocery store
Speaker 3: that I think is in the UK. And that's like
Speaker 3: their new forte into into grocery stores where no cashier is.
Speaker 3: Everything is virtual. So what they're actually doing that they combinding, right,
Speaker 3: So they combining their virtual dominance with the physical dominance
Speaker 3: as well. And with Amazon, what they're really trying to
Speaker 3: do is that they're trying to actually corner the market
Speaker 3: in every way that you could possibly shop. Because everybody
Speaker 3: knows that they have the online game on smash right out.
Speaker 3: They have Amazon Echo, So Amazon Echo if anybody's not familiar,
Speaker 3: that's like Alexa, where it's like a voice thing, voice
Speaker 3: activated thing you speak to you can give orders and
Speaker 3: you can order stuff via that way. Then they have
Speaker 3: dash button. A lot of people don't even know what
Speaker 3: dash button is. Dash button is only for Amazon Prime members.
Speaker 3: The best way I can describe it like a USB
Speaker 3: with a button on it, right, and they ship it
Speaker 3: to you with items that you buy a lot of them.
Speaker 3: So if you buy a lot of pop Tarts, then
Speaker 3: you'll get a dash button with your pop tarts And
Speaker 3: when your pop Tars is running low, when your pop
Speaker 3: Tars runs up, you just hit the dash button and
Speaker 3: more pop tost sent to you. Yeah, so it's the
Speaker 3: same cereal hate that you can think of. So you
Speaker 3: don't even have to go online, you don't have to
Speaker 3: give a voice. All you have to do is just
Speaker 3: literally press a button now. And then they have the
Speaker 3: physical store, so they really those four things combined, they're
Speaker 3: going to corner the market with any way that a
Speaker 3: person could actually shop they're going to be involved. And
Speaker 3: then also they want to move into fashion, and that's.
Speaker 2: An interesting cosmetics as well.
Speaker 3: Yes, cosmetic as well. So people still like to feel
Speaker 3: the fabric and still try things on, even though a
Speaker 3: lot of times people shop online. Me personally, I do both.
Speaker 3: So with Amazon moving into the physical locations, that's going
Speaker 3: to help them out with fashion as well.
Speaker 2: They said that you can they can send you to close,
Speaker 2: you can try them on, and if you don't like them,
Speaker 2: sending it back. I believe. I think they have that
Speaker 2: as part as the business.
Speaker 3: Now that makes sense. I mean that's like most online.
Speaker 2: Yeah, I mean that's dope. Yeah, you don't have to
Speaker 2: leave your own to do it.
Speaker 3: So and then also what I like to do personally,
Speaker 3: I order stuff online that from a store that I
Speaker 3: know I can bring it back to if it doesn't fit.
Speaker 3: So if it doesn't fit, then I could just bring
Speaker 3: it back to the physical location as opposed to having
Speaker 3: to go through the hassle of bringing it to the
Speaker 3: So I think that there's still room for breaking Martin right.
Speaker 3: And you're gonna talk about an interesting story that a
Speaker 3: Brick and Martyr company that has actually got it right.
Speaker 2: Yeah, they got it right, and they're actually like a
Speaker 2: case study in the Wall Street Journal. But a couple
Speaker 2: of ones that didn't work, you said, were like Mazie's
Speaker 2: closing store, JAG's, Penny's clothing store, Kmart. But TJ Max
Speaker 2: has actually got it right. So TJ Max they own
Speaker 2: a few companies. They owned Marshals, and they own home Goods,
Speaker 2: and they rely solely on Brick and Martin right, So
Speaker 2: their stores, I think they have about thirty hundred stores.
Speaker 2: They were like all that revenue pretty much comes to that.
Speaker 2: They don't really do too much online advertising or trying
Speaker 2: to build their site. And when we see stores closing,
Speaker 2: they're saying no, they've seen for thirty three straight quarters
Speaker 2: up until twenty eighteen, I believe, well, their profits has increased,
Speaker 2: so thirty three straight quarters. They're seeing people coming in
Speaker 2: their stores shopping, buying things. And if you've shopped at
Speaker 2: TJ Max for monstrels, you know that you're getting discounted
Speaker 2: prices on brands, high end brands, that discount of prices.
Speaker 2: But the brilliant strategy that they use is they turned
Speaker 2: it into a shopping hunt. It's like you go into
Speaker 2: these stores and it's like, hey, I found a bargain here,
Speaker 2: Whereas right whereas in like stores like JC Pennies, it's like, hey,
Speaker 2: this is the Polo section, this is the Nike section,
Speaker 2: this is Tommy hill Finger section. TJ max is like,
Speaker 2: you know what, We're gonna call this active where and
Speaker 2: we're gonna put all those brands there and you go
Speaker 2: hunt for the deal. So sometimes you'll find things in
Speaker 2: there that's like, oh, this is sixty percent off. All right,
Speaker 2: that's a bargain now if I buy it and you
Speaker 2: go and you might not find it because it's like
Speaker 2: that's the part of the skyvage hind it's all right,
Speaker 2: well I got it now, you gotta wait. The other
Speaker 2: thing that they do is they reinvent their They get
Speaker 2: new inventory like every twenty one days. So like stores
Speaker 2: like Macy's and J. C. Penny they don't have that
Speaker 2: type of turnover. So TJ max is like, the inventory's
Speaker 2: coming in, it's limited. People know that they're gonna get
Speaker 2: a bargain there, they get it. Twenty one days later,
Speaker 2: it's gone all of it, and then they get more
Speaker 2: in right, so like their sales have exceeded norsetrom and
Speaker 2: J C. Penny's combined TJ Max. Nobody's even thinking about that, right, right,
Speaker 2: So like that's key. So if it's if it's dead,
Speaker 2: then how is this thriving? They've got it.
Speaker 3: Right, TJ MaTx. You know what I thought to think
Speaker 3: about TJ Max. When I was young, they pine near
Speaker 3: the layaway system. Remember that. I don't know if you
Speaker 3: I don't know if you did that, but I did
Speaker 3: that before. I did that when I was a kid
Speaker 3: from I did that on clothes.
Speaker 2: I say, yes, they had.
Speaker 3: It lay away system where you can put clothes on
Speaker 3: lay away. Yeah, I don't know, but uh yeah, that's
Speaker 3: how important fashion was as a kid.
Speaker 2: So there are some other companies that have that model
Speaker 2: of like we'll bring a bunch of brands into a store,
Speaker 2: like a SIMS which is out of business and Filing's basement.
Speaker 2: They're out of business. And if you look at that
Speaker 2: their strategy that their stores were so big and everything
Speaker 2: was everywhere whereas TJ Mass you can look up all right,
Speaker 2: that's a women's sestion, that's men's section. This is kids
Speaker 2: active where it's very concentrated and it's easy to find
Speaker 2: the things. So like like I said, That's.
Speaker 3: One of the problems, especially like with Sears, is that
Speaker 3: it's hard to be a master of all trades. Right,
Speaker 3: So you go into seis, you can buy tires, you
Speaker 3: can buy swimming whear, you can buy and there's nobody
Speaker 3: to help you. You got to try to figure it
Speaker 3: out on your own, and it becomes difficult. It becomes
Speaker 3: very difficult.
Speaker 2: So like that strategy like and like I said, that's
Speaker 2: an artible, Like they're trying to figure out how are
Speaker 2: they doing this right? If Breaking mart is dead, and
Speaker 2: how is TJ max thriving?
Speaker 3: So TJ max is thriving? And I wanted to bring it.
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Speaker 3: Security closer to Because we try to relate to the
Speaker 3: everyday people, right and brick and martars so there's three
Speaker 3: types of brick and martar businesses that most entrepreneurs that's
Speaker 3: just getting started, especially you know in our community, they
Speaker 3: always want to start, right, And that is a restaurant.
Speaker 3: I know he's gonna say, that's a hair salon or
Speaker 3: barbershop and a clothing store.
Speaker 2: Sound pretty right, pretty common, That's about right.
Speaker 3: So all right, we've all seen how barbershops and hair
Speaker 3: salons are cash cows, right, especially hair salons. We have
Speaker 3: to do a whole thing about that.
Speaker 2: But yeah, that's like personally, I know that.
Speaker 3: No, especially black women's here. That is a billion dollar industry.
Speaker 2: We have an episode on that. That's a fact.
Speaker 3: And barbershops along staple in the community. Restaurants that's one
Speaker 3: of the hardest businesses to succeed, and we're gonna have
Speaker 3: we got a special situation about the restaurant. But everybody,
Speaker 3: for some reason, they still want to open restaurants. I
Speaker 3: don't know why. But you see one restaurant I succeed,
Speaker 3: you see hundred failed. And then the clothing store. Right,
Speaker 3: so clothing store. So I'm gonna tell a personal story
Speaker 3: about the clothing store. So the people that don't know
Speaker 3: a financial advisor that's what I do for a living.
Speaker 2: Right.
Speaker 3: So I had a young lady coming to my office
Speaker 3: a few months ago, and she's a social media influencer.
Speaker 3: I won't say her name, but she's a social media influencer.
Speaker 3: She's real big on social media. She has around like,
Speaker 3: let's say, two point five million followers on Instagram. So
Speaker 3: she comes to me and she's having problems with her business. Right.
Speaker 3: So we're talking about the business and I'm getting the information.
Speaker 3: We're going over to numbers, and she's bleeding money on
Speaker 3: her clothing store. She has a clothing store. Right, So
Speaker 3: she has a clothing store in the suburbs of New York,
Speaker 3: and she's paid saying twelve thousand dollars a month in
Speaker 3: RNT in them all, and her overhead she has, you know,
Speaker 3: overhead about total probably twenty thousand dollars a month. Right,
Speaker 3: And I'm telling her, like, well, why don't you just
Speaker 3: do it online? And she was saying how online? She
Speaker 3: used to make like eight thousand dollars a month online
Speaker 3: right before she actually had the store. So you don't
Speaker 3: have to be a rocket scientist to figure this out.
Speaker 3: So I'm like, okay, you have two point five million
Speaker 3: followers on Instagram Right now, New York is probably your
Speaker 3: biggest market because you're from New York, but your store
Speaker 3: is not even in the city. It's in the suburbs, right,
Speaker 3: so probably let's say two percent of your followers can
Speaker 3: actually go to your physical location, right, So you're not
Speaker 3: leveraging your social media power, right. Why don't you have
Speaker 3: online presence where any follower, no matter where they live,
Speaker 3: whether it's Germany, Australia, California, Connecticut, they can shop online
Speaker 3: twenty four hours a day, right a physical location. You're
Speaker 3: already limiting yourself geographically.
Speaker 2: That's what we said, like this episode on can the
Speaker 2: consumer get the product?
Speaker 3: Oh yeah, exactly, that's the biggest thing. Can it consumer
Speaker 3: get the product or you're already limiting yourself geographically right now,
Speaker 3: Not only are you limiting yourself geographically, you're spending a
Speaker 3: ton of money on overhead, right And that's the problem
Speaker 3: with brick and marts. So this is the real problem
Speaker 3: with brick and Martar is that the money that is
Speaker 3: being spent on overhead and you're not bringing up revenue
Speaker 3: in so now you have to see if it really
Speaker 3: makes sense. And this is why a lot of restaurants.
Speaker 3: This is why most businesses fail regardless, but it's harder
Speaker 3: for brick and mortar businesses because now you have to
Speaker 3: pay your rent every month regardless, You got to pay
Speaker 3: your capabil of life bill. You got to pay your
Speaker 3: employees every month, whether you make money or not. Right,
Speaker 3: so you have a good month, Okay, if you have
Speaker 3: a bad month, nobody wants to hear you still got
Speaker 3: to pay money.
Speaker 2: Right.
Speaker 3: Where you have an online business, you have expenses, but
Speaker 3: nowhere near the brick and mortar. So, especially for something
Speaker 3: like clothes, we look at fashion Over. We talked about
Speaker 3: fashion Over before, but I don't I personally don't see
Speaker 3: how it makes sense for a brick and martar fashion
Speaker 3: business to succeed. Not to say that they can't succeed,
Speaker 3: but it would have to be really tied in with
Speaker 3: online presence and just have like a flagship store like
Speaker 3: Fashion Over has like four stores, but those are more
Speaker 3: like flagship stores.
Speaker 2: Right.
Speaker 3: I don't personally see how it makes sense to have
Speaker 3: a brick and martar as your sole only store for
Speaker 3: something like fashion.
Speaker 2: So what we're seeing now is that people are starting online.
Speaker 2: Like these small business they start online and when they
Speaker 2: generate enough revenue, then they'll create a store, a brick
Speaker 2: and martar store. Because it's like, all right now, and
Speaker 2: this is one of the keys that people are trying
Speaker 2: to adapt to, is like we have to create an
Speaker 2: experience for these customers for them to come. So like, yeah,
Speaker 2: that that young lady might have that store in New York.
Speaker 2: But if they're having experiences in that store that they
Speaker 2: can only get there, then people might fly.
Speaker 3: Yeah, you gotta have something. There's a donuts shop in
Speaker 3: New York and it's called its cro Nuts. Actually this
Speaker 3: is a combination between croissants and donuts. Long story short.
Speaker 3: People wait on line at like five o'clock in the morning.
Speaker 3: They only sell like one hundred per day. It's a
Speaker 3: limited You got to have some kind of gimmicks something
Speaker 3: like that. So people are coming from a low Oh,
Speaker 3: but you also have to combine. Even if we look
Speaker 3: at the restaurant business, right, so now Uber Eats is
Speaker 3: killing it, right, So now you have a physical location
Speaker 3: where you're making food, but people can still go into
Speaker 3: app and order it. And now you have a delivery
Speaker 3: service that's delivering them food as well. And even if
Speaker 3: you look at the mail prep business, that's huge as
Speaker 3: far as even mailing people food. Like so, I think
Speaker 3: in order to survive in today's climate, you have to
Speaker 3: at the very least combined both. You can't just be
Speaker 3: Bricking Martin adapting adjusts. You have to adapt and adjust.
Speaker 3: But I don't think Brick and Martin is totally dead,
Speaker 3: but I think in some industries it just doesn't make
Speaker 3: sense in my opinion.
Speaker 2: If we look at the number one company in the world, Apple,
Speaker 2: they keep building stores, so it's like, what you know
Speaker 2: what I mean, like this this isn't going anywhere. And
Speaker 2: Apple has a unique model, right they have this customer
Speaker 2: when they hire employees, they have this model. They live
Speaker 2: by the acronym app l E. So what that means
Speaker 2: is like, the first A is number one. We have
Speaker 2: to approach the customers. So if you walk into an
Speaker 2: Apple store, you'll notice that there's a lot of employees
Speaker 2: in it, so there's enough for everybody to have a
Speaker 2: one on one relationship with the employee. The second thing
Speaker 2: is that they probe so they'll listen, Hey, why are
Speaker 2: you here today? Can we help you with something? The
Speaker 2: next thing is present after they hear what you come
Speaker 2: to the store for, then they'll say, all right, well,
Speaker 2: here are some things that can help you. Here's a
Speaker 2: product that can help what you're trying to do. The
Speaker 2: next thing they do is they listen, right, They listen
Speaker 2: to say, all right, well you've told me the problem.
Speaker 2: I've given you a solution. What do you think about it? Right?
Speaker 2: Usually people buy the product or they'll say, you know what,
Speaker 2: I'll come back, and then that leads to the e.
Speaker 2: It's like the end. Hey, thanks for coming. I'd love
Speaker 2: to see you come back. And a lot of times
Speaker 2: Apple customers are loyal. They'll come back just because of
Speaker 2: the customer service and while they wait, which is unique
Speaker 2: to Apple, they can use the products. Like how many
Speaker 2: times do you go in to the stores and kids
Speaker 2: are adults are using the products while they're waiting, or
Speaker 2: they're taking a class at the store while they're waiting.
Speaker 2: So you got to have these in store experiences that
Speaker 2: are unique to your store to generate the customers. So
Speaker 2: it doesn't matter like if you have a great online presence,
Speaker 2: you can't get this experience anywhere else, but coming to
Speaker 2: the store.
Speaker 3: That's pretty powerful. The acronym is pretty powerful for any
Speaker 3: business owner. But yeah, well, brick and mortar business. As
Speaker 3: I said, you know, I think that it's not dead,
Speaker 3: but you have to find a way to combine the
Speaker 3: two if you want to survive. And this is what
Speaker 3: this show is about. We want to teach entrepreneurship and
Speaker 3: help you out, help your business out.
Speaker 2: So yeah, last note, like we had, we spoke about Tesla.
Speaker 2: Tesla one of the stories. They completely did away with
Speaker 2: all their stores, right, and we said that pay Lessons
Speaker 2: closing stores. That's closed, Jimbarea has closed, Charlot, A lot
Speaker 2: of the stores have closed because they couldn't adaptay pay
Speaker 2: Lesson is one of those that just didn't adapt. Online
Speaker 2: experience was terrible. They were still relying on print at
Speaker 2: they couldn't adapt. So you see what happened to them.
Speaker 3: Yeah, well, it's a jungle out here.
Speaker 2: Gott to survive, all right, ladies and gentlemen. It's our
Speaker 2: favorite time of the episode, storytelling.
Speaker 3: Here's a little story that must be told.
Speaker 2: Listen up, gangsters and honeys, with your head done, the
Speaker 2: best story tell us right, I'm gonna say if.
Speaker 3: Pray down, it's gray down, it's pray down, it's gray down.
Speaker 2: It's gray down.
Speaker 3: All right, boys and girls, So we are going to
Speaker 3: tell a story. If you follow the show, you know
Speaker 3: that this is my favorite part of the show.
Speaker 2: Every time.
Speaker 3: The last segment is story time, and today we have
Speaker 3: a very special story, very interesting story, and we're going
Speaker 3: to talk about the best sports deal ever made.
Speaker 2: Is said that when you say the word interesting, that
Speaker 2: means it's about to get real. That's a fact, It's
Speaker 2: about to get real.
Speaker 3: So this this is the best sports deal ever made
Speaker 3: in history, the history of sports. Right. So in the
Speaker 3: nineteen seventies, there was a league called the.
Speaker 2: ABA American Basketball Association. Right.
Speaker 3: So there was the NBA, which everybody knows about the NBA, right,
Speaker 3: but then there was the ABA. So the best way
Speaker 3: I could really describe the ABA. If anybody's a football fan,
Speaker 3: remember the AFL.
Speaker 2: Yeah, so even not an XFL, but.
Speaker 3: The AFL, it was pretty big. At one point they
Speaker 3: had Herschel Walker thing.
Speaker 2: Yeah in the eighties.
Speaker 3: Yeah, so the NFL was a was a football league
Speaker 3: in the eighties and they was just wild, like they
Speaker 3: had the cheerleaders, just it was the whole vibe.
Speaker 2: Was just like they wanted to be everything in the NFL. Wan.
Speaker 3: Yeah, it was just more renegade, you know, it would.
Speaker 2: Be better like w w F and w C W okay,
Speaker 2: you know that was for the kids.
Speaker 3: Similar similar. So the a BA was like the NBA
Speaker 3: at the time was kind of boring. It was like
Speaker 3: the Celtics, you know, just blue collar. You know, it's
Speaker 3: just kind of boring. For the a BA. They had
Speaker 3: the striped basketball, they had the cheerleaders, they had the
Speaker 3: Duncan and they had good players too.
Speaker 2: They had great play.
Speaker 3: They had Doctor j they had Moses Malone, David Thompson,
Speaker 3: David Thompson, so they had like George Gervin Iceman. So
Speaker 3: the ABA was just like flails like street ball. That's
Speaker 3: that's that's the that's the comparison. A BA was like
Speaker 3: the an one street ball, like the Rucker stuff like
Speaker 3: that All.
Speaker 2: Star game like that comes from the NBA. All the festivity,
Speaker 2: the All Star Game, all that contest.
Speaker 3: Yeah, ABA exactly. So ABA was they was They was
Speaker 3: for excitement, right, but financially they it just wasn't working
Speaker 3: out for them, right. So what happened is that there
Speaker 3: was seven teams in the ABA and the NBA wanted
Speaker 3: to merge, right because it was just then made sense
Speaker 3: to just kind of compete with them, and the ABA
Speaker 3: was kind of one the last leg financially, so the
Speaker 3: NBA went to them and they proposed the merger. Right,
Speaker 3: so the merger, the ABA accepted the merger, and it
Speaker 3: was seven teams at the time, so four teams were
Speaker 3: brought into the NBA. Those four teams were the Nets,
Speaker 3: the Nuggets, the Pacers, and the Spurs, which are still
Speaker 3: in the NBA today, right, And then so that was
Speaker 3: three more teams left. So one team Virginia. They they
Speaker 3: actually fizzled out and they didn't they didn't get brought
Speaker 3: in because they just didn't make it right. They bullied up.
Speaker 3: So that that left two teams. Right, So you had Kentucky,
Speaker 3: the team from Ducky Kentucky, I think Colonels, Kentucky Colonels.
Speaker 2: You know what crazy about them? The crazy thing about
Speaker 2: them is that they were owned by the owner of
Speaker 2: Kentucky Fried Chicken. Yes, which is crazy John Brown. Yeah.
Speaker 2: So the NBA buys him out for three million dollars
Speaker 2: at the time, nineteen seventy six. Like that's a lot
Speaker 2: of money, but this is like that's a side business
Speaker 2: for me, Like I got Kentucky Fried Chicken. So he
Speaker 2: takes the.
Speaker 3: Deal, and he also was the own he became the
Speaker 3: governor of Kentucky.
Speaker 2: Yeah, govern of Kentucky.
Speaker 3: Two yeah, sor right. So they had the Kentucky Colonels
Speaker 3: and the Saint Louis Squire.
Speaker 2: Spirits spirits, sake Lewis Spirits.
Speaker 3: So they offer the Kentucky team and the Saint Louis
Speaker 3: team three million dollars as a buyout. Kentucky takes it, right,
Speaker 3: Saint Louis says, it's not so fast, not interested, not interested.
Speaker 2: Well, they said no because they had the vision. They
Speaker 2: were like, look, well, before you go to that, before
Speaker 2: you go to that. So they said no, right, But
Speaker 2: they had good talent. Yeah, they had Moses Malone a
Speaker 2: few other players, right, yeah, I think that was his
Speaker 2: rookie year in nineteen seventy six. He's the first man.
Speaker 3: Child first, he's the first person to come from high school.
Speaker 2: He's the first man to professional. Right.
Speaker 3: So they rejected it, right, And the owners of the
Speaker 3: team they had it was two brothers, Ozzie and Dan
Speaker 3: and what's the last.
Speaker 2: Name Silna Silna.
Speaker 3: And Dan Silna. So what they negotiated was a two
Speaker 3: million dollar buyout and a part of the four teams
Speaker 3: that were going into the NBA TV rights. So they
Speaker 3: got one seventh of the TV rights of those four
Speaker 3: teams that went to the NBA. Right, So, at the
Speaker 3: time TV wasn't really big. It was like black and
Speaker 3: white and things with the wire or stuff like that.
Speaker 3: They was the seventies barely, but nobody was making nobody
Speaker 3: was making money on team yet, so they say, okay,
Speaker 3: one seventh of four teams TV rights. They were so
Speaker 3: eager to get the deal. The NBA just wanted to
Speaker 3: get the deal done, right, say so, give them two
Speaker 3: million and give them one seventh and let it, you know,
Speaker 3: let them go on their way.
Speaker 2: At that time, I think the biggest start in the NBA.
Speaker 2: You have Oscar Robinson, Kareem Abdul Jabbar, and doctor Jay
Speaker 2: is right there on that line was becoming superstar. Bill
Speaker 2: Russell probably is one of the big stars. No, Bill Russell,
Speaker 2: Bill Walton, Bill Walton.
Speaker 3: Okay, so all right, so now this is nineteen seventy six,
Speaker 3: seventy six, nineteen seventy six, so a few years past
Speaker 3: in the eighties, come and Larry Bird and Maggie Johnson
Speaker 3: coming to the league, right, yeah, And the NBA changes fever. Right.
Speaker 3: And then a few years after Larry Bird and Magic
Speaker 3: Johnson coming to the league, is this guy Michael.
Speaker 2: Jordan, Michael Jeffrey Jordan.
Speaker 3: And then the league changes even more forever far.
Speaker 2: Yeah, obviously landscape and now TV.
Speaker 3: So now television television comes into play, right, and you
Speaker 3: have a network called ESPN, and now sports is just
Speaker 3: American television staple. Right, everybody watching sports on TV now
Speaker 3: in the eighties nineties, So now what happened as nobody
Speaker 3: would ever watch sports on TV. Let's just give these
Speaker 3: guys one seventh. They ended up as the league rule
Speaker 3: to the league for the thirty teams, right, So their
Speaker 3: TV revenue, those the two brothers equal two percent of
Speaker 3: the total TV revenue for the NBA. Right, So every
Speaker 3: year they got two percent of TV revenue in perpetuity.
Speaker 3: That was the best part of the deal. It was
Speaker 3: in perpetuite. It's no end dates forever.
Speaker 2: They's so you want to just tell them what perpetuities
Speaker 2: People don't even know.
Speaker 3: Yeah, perpetuity means forever, continuous, that's the easy answer, continuous answer.
Speaker 3: So so now they have two percent of all NBA
Speaker 3: TV revenue forever. Right, So this thing is one of
Speaker 3: the most embarrassing things that the NBA has ever dealt with, right,
Speaker 3: because they end up paying these guys three hundred million
Speaker 3: dollars right from they started from nineteen seventy six to
Speaker 3: twenty fourteen.
Speaker 2: The crazy part is that from seventy six to seventy
Speaker 2: nine they didn't make a dollar, but from eighty to
Speaker 2: ninety seven or eighty to like two thousands to two thousand,
Speaker 2: three hundred million.
Speaker 3: Three hundred million, twenty fourteen eight it was three hundred million.
Speaker 2: Right.
Speaker 3: So finally twenty fourteen, the NBA they're going to reap.
Speaker 2: On the TV deal right right, so like they're about
Speaker 2: to They had a few TV deals prior. They had
Speaker 2: one with NBC and then they had one with ESPN,
Speaker 2: and right, like you said, sports were built over there,
Speaker 2: Like that's a twenty four to seven sports network, so
Speaker 2: you could imagine like people are going to be consuming
Speaker 2: sports at all time. I But in twenty fourteen they
Speaker 2: re upp with Turner Sports and ESPN a nine year
Speaker 2: deal for twenty four billion dollars.
Speaker 3: Right, so right before't do that, they said, Okay, we
Speaker 3: have to get away from this deal because we've been
Speaker 3: bleeding money for thirty years and it's only going to
Speaker 3: get worse as we continue to grow. And now they
Speaker 3: see that, Okay, the TV deals is going to keep
Speaker 3: getting bigger and bigger, right, and we're not going to
Speaker 3: keep paying these guys two percent forever, right, So we
Speaker 3: got to get away from this. So they agree on
Speaker 3: a deal in twenty fourteen for a lump sum buy
Speaker 3: out of five hundred million dollars. Right. So now you
Speaker 3: added three hundred million that they got up into two
Speaker 3: thousand for that number, up, you add the five hundred million,
Speaker 3: so they got eight hundred million dollars. They got eight
Speaker 3: hundred million dollars on a three million dollar deal, three
Speaker 3: million dollar buyout originally that they turned down. They ended
Speaker 3: up getting eight hundred million.
Speaker 2: The NBA didn't even have to have this problem. They
Speaker 2: didn't even have to Like they wanted to buy teams,
Speaker 2: They wanted to buy Detroit in the late seventies, They
Speaker 2: wanted to buy New Jersey nets at that time in
Speaker 2: the nineties, they would have had been owners in two
Speaker 2: thousand and two. Out of twenty ten, they had to
Speaker 2: accumulate almost one hundred million. They were worth more than
Speaker 2: the Indiana Pacers were no.
Speaker 3: But the best part about the story is that, so
Speaker 3: they make eight hundred million dollars from the NBA without
Speaker 3: any overhead, a team that nobody's heard of, a phantom
Speaker 3: team that nobody's heard of, no players, no roster, no overhead,
Speaker 3: no building, nothing. They literally made almost a billion dollars
Speaker 3: just cause forever. So that people say, okay, well, why
Speaker 3: did they take the buyout? They could have just kept
Speaker 3: this going forever, right, So the guy, one of the
Speaker 3: guys died rest in peace a couple of years ago,
Speaker 3: so I think, you know, he probably gets to the
Speaker 3: point where it's like, Okay, I'm about to die soon,
Speaker 3: so I might just get five hundred million up front. Yeah,
Speaker 3: you know, right. And then also it was a headache
Speaker 3: for them because they hired lawyers. They kept going back
Speaker 3: and forth because they felt like the NBA was kind
Speaker 3: of cheating them with the numbers and it wasn't correct.
Speaker 3: So they that was kind of and then their name
Speaker 3: was always associated with that. They didn't really want to
Speaker 3: be associated with that forever.
Speaker 2: I would Yeah, it's not a bad thing.
Speaker 3: They kind of wanted to just get it over with,
Speaker 3: h But in life is ups and downs, right, So
Speaker 3: they make almost eight hundred million dollars doing nothing. But
Speaker 3: then they lose a substantial amount.
Speaker 2: Of money from connect with this notorious, notorious one, Bernie made.
Speaker 3: Off, Bernie Madoff. Bernie Madoff. So Bernie Madoff burns him
Speaker 3: pretty bad. Yeah, man, Bernie Madoff person pretty bad. And
Speaker 3: they lose a lot of money with Bernie made Off.
Speaker 2: Yeah, they said, thank god, they didn't lose it at
Speaker 2: all because they were they had diversified their portfolio, which
Speaker 2: is good, but they did lose a substantial amount with Bernie.
Speaker 3: They lost a lot.
Speaker 2: Yeah, he's doing fifty years.
Speaker 3: Yeah, he's doing a lot. He's doing a lot of time.
Speaker 3: Bernie Mado plays a part in mets as well.
Speaker 2: Yeah, the will Palm family lost a lot of money.
Speaker 3: We'll talk about some we'll talk about that sometimes. But
Speaker 3: so yeah, so by day they won. Even though they
Speaker 3: lost a lot of money with Bernie made Off, they
Speaker 3: still won in the grand scheme of things. And it's
Speaker 3: a good story. And how we bring it back to
Speaker 3: the everyday person is that we always talk about equity, right,
Speaker 3: and the power of equity and the power of delayed gratification,
Speaker 3: not taking everything up front. So they still got two
Speaker 3: million dollars up front. But that TV deal that they
Speaker 3: struck was brilliant, right, and almost a billion dollars. So
Speaker 3: the guy from KFC, I mean, he's filthy rich. I'm
Speaker 3: sure you know, it's not the end of the world,
Speaker 3: but he has to be kicking himself or his family.
Speaker 3: I mean, you took three million dollars and the other guys.
Speaker 2: About the owners of the Virginia Squires, they left before
Speaker 2: they could even get the three million, the two million
Speaker 2: dollar offer to be bought out. They were the owners
Speaker 2: Virginia Squires. Virginia Squires folded before they can get They folded.
Speaker 3: It wasn't their fault. They folded. Well all right, Well,
Speaker 3: before we end, we want to talk about a few
Speaker 3: initiatives that we're started. So we talk about Patreon a lot,
Speaker 3: but I don't think you guys fully understand, so we
Speaker 3: want to to give you the backstory on it. So
Speaker 3: me and Troy, we have a financial literacy program that
Speaker 3: we run in the summertime, and that's what we help
Speaker 3: kids learn about finance and stocks and stuff like that.
Speaker 3: And then also we try we're trying to take the
Speaker 3: financial literacy program like nationwide. And also we want to
Speaker 3: write a book about financial literacy as well, and then
Speaker 3: also just kind of spread the word of you know,
Speaker 3: outside of the podcast of financial literacy, go to different towns, cities,
Speaker 3: you know, workshops, stuff like that, because you know, good
Speaker 3: thing about the Internet and now is that we have
Speaker 3: a global reach, but we want to reach the people
Speaker 3: in person. It help as many people as we possibly can, right,
Speaker 3: that's not help the goals to help. So obviously, you know,
Speaker 3: finances are important when it comes to helping. So Patreon
Speaker 3: is an avenue that we put together to kind of
Speaker 3: help financially fund these different initiatives that we have, right,
Speaker 3: and also we are putting together a goal, right, so
Speaker 3: our goal is to have one hundred people, one hundred patrons,
Speaker 3: and ultimate goal is a thousand, but we want to
Speaker 3: break it up into smaller goals, so one hundred patrons,
Speaker 3: and there's different levels of our Patreon, right.
Speaker 2: So the Patreon, like rachhad said, is it's for creators,
Speaker 2: and I know some people are not familiar with it,
Speaker 2: but it's for creators and it's to help fund some
Speaker 2: of their initiatives and their plans. And so what we're
Speaker 2: doing is once we reach one hundred patrons. We're going
Speaker 2: to reach out to five of them and have them
Speaker 2: talk to us for or have the ability to talk
Speaker 2: to us for hours, so they can pick our brain.
Speaker 2: A lot of times on the earn your Leisure pagent,
Speaker 2: your page, people want you to mentor them or can
Speaker 2: they pick your brain, So this is that opportunity. So
Speaker 2: after we get to one hundred, we're going to take
Speaker 2: five of those people and we're going to reach out
Speaker 2: and we're going to have those conversations because it's important.
Speaker 2: And when you go there, you'll see that there's different tiers.
Speaker 2: We have five tiers, so you can join at any
Speaker 2: tear that you like. But yeah, just to help the
Speaker 2: support and help us get out some of these visions
Speaker 2: that we have, we've created that avenue yep.
Speaker 3: So that's on the website early Legion dot com. And
Speaker 3: also on the website is our merch that me and
Speaker 3: Troy wearing. If you're a subscribe to our YouTube, which
Speaker 3: subscribe to our YouTube and Lisia is the YouTube page.
Speaker 3: You see. We have the I have my shirt which
Speaker 3: is hustle for your last name. Troy has the liability
Speaker 3: and that is on our merch. We have new merch
Speaker 3: that we rolled out as well.
Speaker 2: So yeah, yeah, people asking for colors, so we got
Speaker 2: every color.
Speaker 3: We got every color we got, we got the v
Speaker 3: next for the ladies, you know, we got we got
Speaker 3: a full we got a full array of things. And
Speaker 3: then also the book before before I leave, So I
Speaker 3: promised you every episode I'm going to mention a book
Speaker 3: that I think is good for business, uh or just
Speaker 3: you know, just in general. So Phil Knight Shoe Dog
Speaker 3: is an interesting book. I recommend anybody that's interested in business.
Speaker 3: Nike for anybody that's not familiar. Phil Knight is the
Speaker 3: owner and all the CEO. I don't know if he's
Speaker 3: still CEO, but he started Nike, the founder of Nike, right,
Speaker 3: So he tells the story of Nike, and it's his
Speaker 3: story and it's how Nike, And it's for any entrepreneur
Speaker 3: because there's no easy path to entrepreneurship and it talks
Speaker 3: about a lot of the ups and downs in different battles.
Speaker 3: So I highly recommend that book. Phil Knight Shoot Up.
Speaker 2: Yeah. So, like, like the final message I'll give that
Speaker 2: out man is struggle another sign that God loves you.
Speaker 2: So like that's part of the stories too. Perseverance, preparation.
Speaker 3: Man.
Speaker 2: You gotta keep follow your dream, never be discouraged, and
Speaker 2: don't take immediate gratification like we told them the story man.
Speaker 2: Sometimes the late gratification has its benefits. So that's my
Speaker 2: final word.
Speaker 3: Yeah, so that's it. Peace.
Speaker 4: An illegal alien from Guatemala charged with raping a child
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