1 00:00:00,720 --> 00:00:04,800 Speaker 1: This is Bloomberg Business of Sports where in a situation 2 00:00:04,880 --> 00:00:07,440 Speaker 1: that we haven't dealt with in modern times, the pandemic 3 00:00:07,440 --> 00:00:11,280 Speaker 1: here has really accelerated the investments that we've been advocating 4 00:00:11,360 --> 00:00:13,640 Speaker 1: for for a year. From a macro standpoint, I think 5 00:00:13,680 --> 00:00:16,880 Speaker 1: our sport industry is really forced to look at the 6 00:00:17,000 --> 00:00:20,079 Speaker 1: business a little bit differently. In depth conversations with the 7 00:00:20,239 --> 00:00:22,520 Speaker 1: leaders in the sports industry and he sport, there is 8 00:00:22,560 --> 00:00:25,320 Speaker 1: a good admiration we're still moving forward part of something 9 00:00:25,400 --> 00:00:27,320 Speaker 1: much bigger than the sport right now, the health and 10 00:00:27,360 --> 00:00:30,200 Speaker 1: standustry of our stakeholders are real, smart important every moment. 11 00:00:30,320 --> 00:00:32,680 Speaker 1: I think we're all from a business respective thinking about 12 00:00:32,720 --> 00:00:35,280 Speaker 1: the impact that the virus is having across the country. 13 00:00:35,280 --> 00:00:40,120 Speaker 1: In Bloomberg Business of Sports from Bloomberg Radio every One, 14 00:00:40,159 --> 00:00:42,720 Speaker 1: I'm Jason Kelly, and I'm Mike Lynch and I'm Michael 15 00:00:42,720 --> 00:00:45,320 Speaker 1: bar And this is the Bloomberg Business of Sports podcast 16 00:00:45,360 --> 00:00:47,520 Speaker 1: where we explore the big money issues in the world 17 00:00:47,520 --> 00:00:49,880 Speaker 1: of sports. And there's a lot of big money getting 18 00:00:50,040 --> 00:00:54,520 Speaker 1: thrown around and talked about today across the world of sports. 19 00:00:54,600 --> 00:00:56,560 Speaker 1: Before we get to that, just want to say, especially 20 00:00:56,600 --> 00:01:00,440 Speaker 1: the Lynchy Happy Patriots Day. Normally we would be uh 21 00:01:00,480 --> 00:01:05,840 Speaker 1: talking about the fabled Boston Marathon. Uh not today, but 22 00:01:06,000 --> 00:01:08,720 Speaker 1: you know it's still a nice holiday and a Sox game, 23 00:01:09,000 --> 00:01:12,120 Speaker 1: so a little bit of hope they're up in Boston. 24 00:01:12,160 --> 00:01:16,200 Speaker 1: But it is a special day, Lynchie, It certainly is. 25 00:01:16,240 --> 00:01:19,280 Speaker 1: In Massachusetts, they reenact the Battle on the Lexington Green 26 00:01:19,400 --> 00:01:22,920 Speaker 1: that happens at sunrise, and then the Boston Marathon is 27 00:01:23,000 --> 00:01:25,560 Speaker 1: a big day. The Red Sox always play a home 28 00:01:25,600 --> 00:01:28,200 Speaker 1: game at eleven o'clock in the morning. When the marathon 29 00:01:28,280 --> 00:01:31,600 Speaker 1: used to start at noontime. The marathon runners would go 30 00:01:31,640 --> 00:01:34,440 Speaker 1: by Fenway Park and Kenmore Square at roughly the same 31 00:01:34,480 --> 00:01:36,960 Speaker 1: time the Red Sox game get out, so thirty five 32 00:01:36,959 --> 00:01:39,839 Speaker 1: thousand people would just finished with Red Sox game, walk 33 00:01:39,880 --> 00:01:41,920 Speaker 1: two blocks and just cheer on all the runners that 34 00:01:42,000 --> 00:01:44,840 Speaker 1: were coming by a special day. The marathon is scheduled 35 00:01:44,840 --> 00:01:48,160 Speaker 1: to be run on Columbus Day in October, and fingers 36 00:01:48,160 --> 00:01:50,720 Speaker 1: crossed that things go well with COVID and the vaccinations 37 00:01:50,760 --> 00:01:53,000 Speaker 1: and we can get this great tradition, a race that 38 00:01:53,000 --> 00:01:55,520 Speaker 1: you've run a few times, Jason, right, I have. I mean, 39 00:01:55,600 --> 00:01:59,880 Speaker 1: here's helping because it is an incredible, incredible day. You know, 40 00:02:00,080 --> 00:02:03,919 Speaker 1: in the world of running an amateur running, in professional running, 41 00:02:03,920 --> 00:02:07,200 Speaker 1: distance running, it is the pinnacle um. There's nothing like it. 42 00:02:07,240 --> 00:02:10,280 Speaker 1: There's such a special vibe. And also from a business perspective, 43 00:02:10,320 --> 00:02:12,959 Speaker 1: I have to say, and I think you would echo this, Lynchy, 44 00:02:13,000 --> 00:02:16,080 Speaker 1: it's very important economically for the city of Boston. That 45 00:02:16,160 --> 00:02:19,360 Speaker 1: weekend is massive. You cannot get a hotel room. You 46 00:02:19,440 --> 00:02:23,880 Speaker 1: certainly can't get a restaurant reservation at an Italian place 47 00:02:23,960 --> 00:02:27,360 Speaker 1: for all the carbon loading that's going on um all 48 00:02:27,400 --> 00:02:32,680 Speaker 1: through the weekend. But you know, it is a meaningful destination. 49 00:02:33,080 --> 00:02:35,799 Speaker 1: And you know, we know, and and and I will 50 00:02:35,919 --> 00:02:37,919 Speaker 1: cop to this as someone who's spent way too much 51 00:02:37,960 --> 00:02:42,600 Speaker 1: on running shoes and marathon jackets and gear over time. Uh, 52 00:02:42,800 --> 00:02:46,440 Speaker 1: marathon runners spend money, and especially in Boston because often 53 00:02:46,480 --> 00:02:49,360 Speaker 1: it's your one shot to do it. So it's an 54 00:02:49,400 --> 00:02:52,600 Speaker 1: important economic tool. I know for the city of Boston. Well, 55 00:02:52,600 --> 00:02:55,120 Speaker 1: all the thirty thousand people usually run in the race, 56 00:02:55,200 --> 00:02:57,720 Speaker 1: and they don't arrive from the city of Boston by themselves. 57 00:02:57,720 --> 00:03:00,880 Speaker 1: They come with family members in an entourage. So multiplied 58 00:03:00,880 --> 00:03:03,200 Speaker 1: the thirty thousand by about ten and that's how many 59 00:03:03,200 --> 00:03:05,280 Speaker 1: people you have in the city that want to buy 60 00:03:05,639 --> 00:03:09,360 Speaker 1: marathon gear. Memorabilia. They want to eat, they want to drink, 61 00:03:09,400 --> 00:03:10,920 Speaker 1: They might want to go to the baseball game. They 62 00:03:10,919 --> 00:03:12,600 Speaker 1: would want to go to the Museum of Science, they 63 00:03:12,680 --> 00:03:14,200 Speaker 1: might work go to the Museum of Fine Arts, they 64 00:03:14,240 --> 00:03:16,440 Speaker 1: might want to go into swan boats. So it's really 65 00:03:16,480 --> 00:03:19,640 Speaker 1: a feel good weekend and and culminated by by the 66 00:03:19,720 --> 00:03:23,480 Speaker 1: race itself, and um, you know, hopefully next year at 67 00:03:23,520 --> 00:03:26,080 Speaker 1: this time, we're talking about a race on Patriots Day 68 00:03:26,280 --> 00:03:29,000 Speaker 1: in Boston in a school vacation week. It's a state holiday, 69 00:03:29,040 --> 00:03:30,520 Speaker 1: by the way, right, none of the schools, none of 70 00:03:30,520 --> 00:03:33,519 Speaker 1: the municipal offices are open. Yeah. I always have fun 71 00:03:33,600 --> 00:03:37,720 Speaker 1: memories of that race. Also my my brother's birthday, Sam Kelly, 72 00:03:38,800 --> 00:03:42,360 Speaker 1: and graduate of Boston University. So it all comes together. Um, 73 00:03:42,600 --> 00:03:45,840 Speaker 1: I saw a number of marathons with him across the years. 74 00:03:46,160 --> 00:03:51,960 Speaker 1: So let's talk about the big money news today, Michael Barr. 75 00:03:52,520 --> 00:03:54,440 Speaker 1: You know, I think we're all trying to get our 76 00:03:54,440 --> 00:03:58,320 Speaker 1: heads around what happened over the weekend with this proposed 77 00:03:58,320 --> 00:04:01,160 Speaker 1: European Super League. It's more than a proposal. At this point. 78 00:04:01,200 --> 00:04:03,600 Speaker 1: You have the biggest clubs in the world signed on 79 00:04:04,000 --> 00:04:09,840 Speaker 1: to do this, six from the English Premier League, three 80 00:04:10,000 --> 00:04:14,880 Speaker 1: from Spain three from um Italy. I believe France and 81 00:04:14,920 --> 00:04:18,559 Speaker 1: Germany have been so far set out. This is seen 82 00:04:18,680 --> 00:04:21,880 Speaker 1: by our own reporting at Bloomberg, the Financial Times and 83 00:04:21,920 --> 00:04:26,520 Speaker 1: elsewhere as potentially the biggest reorganization of the world of 84 00:04:26,520 --> 00:04:29,920 Speaker 1: football since the mid nineteen fifties is a big deal. 85 00:04:30,520 --> 00:04:33,039 Speaker 1: We have an old saying back in Detroit, how are 86 00:04:33,040 --> 00:04:35,680 Speaker 1: you gonna play this? That's pretty much what this is 87 00:04:35,720 --> 00:04:38,240 Speaker 1: going on here for a lot of soccer fans, because 88 00:04:38,279 --> 00:04:42,440 Speaker 1: they're not happy in Europe, especially in England. And let 89 00:04:42,440 --> 00:04:45,159 Speaker 1: me add to that that JP Morgan is bank rolling 90 00:04:46,000 --> 00:04:49,040 Speaker 1: uh and we're talking about over four point eight billion dollars. 91 00:04:49,560 --> 00:04:53,520 Speaker 1: But it has drawn criticism from fans all over the place. 92 00:04:53,920 --> 00:04:57,720 Speaker 1: I think many are worried that the grass roots of 93 00:04:57,760 --> 00:05:02,480 Speaker 1: the sport is going to be a limited So Lynchy, 94 00:05:02,520 --> 00:05:04,640 Speaker 1: you know, one of the things that this gets to 95 00:05:04,760 --> 00:05:11,080 Speaker 1: the very core of is the underlying principles of European football, 96 00:05:11,120 --> 00:05:14,200 Speaker 1: and specifically English football, which is the whole notion of 97 00:05:14,760 --> 00:05:19,560 Speaker 1: relegation and promotion and essentially earning your spot and what 98 00:05:19,640 --> 00:05:21,840 Speaker 1: this would replace. And I think this is important to 99 00:05:21,839 --> 00:05:24,080 Speaker 1: to explain to folks who aren't as familiar with this. 100 00:05:24,080 --> 00:05:27,200 Speaker 1: This would essentially replace the Champions League, which is the 101 00:05:27,440 --> 00:05:31,440 Speaker 1: annual tournament where the top teams from all the national 102 00:05:31,520 --> 00:05:34,360 Speaker 1: leagues across Europe get together and play and you have 103 00:05:34,440 --> 00:05:37,680 Speaker 1: to earn your spot. This would take out for a 104 00:05:37,680 --> 00:05:41,200 Speaker 1: certain number of teams for six in the EPLU to 105 00:05:41,400 --> 00:05:45,599 Speaker 1: start the whole idea of of qualifying and if you 106 00:05:45,640 --> 00:05:47,919 Speaker 1: were to do this tournament next year, there are a 107 00:05:48,040 --> 00:05:51,000 Speaker 1: number of teams and this is really getting people fired up. 108 00:05:51,200 --> 00:05:54,560 Speaker 1: There are a number of the teams, um including Arsenal 109 00:05:54,839 --> 00:05:58,440 Speaker 1: and Tottenham, who were part of this new super league, 110 00:05:58,560 --> 00:06:02,120 Speaker 1: who actually wouldn't qualify for this big tournament, but they 111 00:06:02,200 --> 00:06:07,760 Speaker 1: be guaranteed entry and that thus guaranteed the revenue associated 112 00:06:07,800 --> 00:06:10,640 Speaker 1: with it, and that is it's just making people furious. 113 00:06:10,680 --> 00:06:13,240 Speaker 1: It's making them crazy. Well, if you're one of the 114 00:06:13,279 --> 00:06:15,839 Speaker 1: top six clubs in the top tier of this new 115 00:06:15,880 --> 00:06:18,760 Speaker 1: super league, you will each club will get four million 116 00:06:18,800 --> 00:06:21,680 Speaker 1: dollars and that's pretty tough to resist. You know, I 117 00:06:22,480 --> 00:06:25,120 Speaker 1: really like this this open league in Europe. You know, 118 00:06:25,279 --> 00:06:28,040 Speaker 1: it gives teams like like Leicester City back five years 119 00:06:28,040 --> 00:06:30,920 Speaker 1: ago winning the Premier League. Um, I guess that's sort 120 00:06:30,920 --> 00:06:33,520 Speaker 1: of like a triple A team in Major League Baseball 121 00:06:33,600 --> 00:06:35,960 Speaker 1: coming up and qualifying for the plot season and winning 122 00:06:35,960 --> 00:06:38,360 Speaker 1: the World Series. It's a little bit of an embarrassment 123 00:06:38,360 --> 00:06:41,159 Speaker 1: for some of the bigger and more established clubs. But 124 00:06:41,440 --> 00:06:45,000 Speaker 1: this would eliminate all that, and these clubs would go 125 00:06:45,360 --> 00:06:47,440 Speaker 1: and they want to play, They want their cake and 126 00:06:47,480 --> 00:06:48,960 Speaker 1: eat it too, because they want to play a midweek 127 00:06:49,000 --> 00:06:51,080 Speaker 1: schedule then come back and play in their regular leagues 128 00:06:51,080 --> 00:06:54,120 Speaker 1: on the weekend. That's not gonna happen. And and one 129 00:06:54,160 --> 00:06:56,040 Speaker 1: of the things that this does mean I've been reading 130 00:06:56,040 --> 00:06:59,120 Speaker 1: a lot about this this morning, the various takes, especially 131 00:06:59,200 --> 00:07:01,480 Speaker 1: for them business per aspective. I mean, one of the 132 00:07:01,480 --> 00:07:05,719 Speaker 1: things that this does, Michael barr Is, speaks to how 133 00:07:05,760 --> 00:07:09,640 Speaker 1: important broadcast revenue is. And so the Champions League, the 134 00:07:09,680 --> 00:07:12,080 Speaker 1: current set up that that I was describing earlier, where 135 00:07:12,240 --> 00:07:16,320 Speaker 1: the top teams qualify, they all go play in this tournament. Uh, 136 00:07:16,520 --> 00:07:21,080 Speaker 1: that is a situation where you know there's additional revenue 137 00:07:21,400 --> 00:07:26,000 Speaker 1: that that comes into play. This new league, by some estimates, 138 00:07:26,080 --> 00:07:31,920 Speaker 1: would double that to about four billion euro And so 139 00:07:32,080 --> 00:07:36,280 Speaker 1: you see the economic reasoning here. If you are the 140 00:07:36,320 --> 00:07:39,880 Speaker 1: owners of these big teams, there's just more money to 141 00:07:39,960 --> 00:07:43,760 Speaker 1: be made, and it's more guaranteed. So the business side 142 00:07:43,760 --> 00:07:47,000 Speaker 1: of it makes sense in terms of just the bottom line, 143 00:07:47,640 --> 00:07:51,440 Speaker 1: but the broader business sense of you know, catering to 144 00:07:51,480 --> 00:07:54,680 Speaker 1: your fan base and and keeping your fan base happy 145 00:07:54,480 --> 00:07:56,840 Speaker 1: that that is not playing out very well at this moment. No, 146 00:07:57,080 --> 00:07:59,400 Speaker 1: that's that's the whole thing. The fans are saying this 147 00:07:59,480 --> 00:08:02,120 Speaker 1: is just a read move because there's a lot of 148 00:08:02,120 --> 00:08:05,040 Speaker 1: money in that TV revenue, and the fans that are 149 00:08:05,080 --> 00:08:07,920 Speaker 1: against us saying this is what this is all about. 150 00:08:08,360 --> 00:08:11,400 Speaker 1: And I mean you afa, they're not happy at all. 151 00:08:11,680 --> 00:08:14,480 Speaker 1: They're gonna they're threatening to ban the Super League team 152 00:08:14,480 --> 00:08:18,119 Speaker 1: players from national teams to take part in the euro 153 00:08:18,320 --> 00:08:23,760 Speaker 1: and World Cup competitions. This is yes, you're right, it's 154 00:08:23,800 --> 00:08:27,800 Speaker 1: it's a business move. It's uh, there's coin in it. 155 00:08:27,920 --> 00:08:31,760 Speaker 1: Forgive me for putting it that way, but sometimes you 156 00:08:31,840 --> 00:08:35,840 Speaker 1: might lose some sponsorships in the process, and you might 157 00:08:35,880 --> 00:08:38,360 Speaker 1: lose a big fan base, which is where it all 158 00:08:38,440 --> 00:08:40,760 Speaker 1: comes down in the first place, because that's where a 159 00:08:40,760 --> 00:08:43,439 Speaker 1: lot of your revenue comes in. Once we get past 160 00:08:43,520 --> 00:08:47,120 Speaker 1: COVID and we're full blast of people coming in the stands, 161 00:08:46,920 --> 00:08:50,199 Speaker 1: that's where they make the money. So Lynchy, as Michael 162 00:08:50,200 --> 00:08:51,800 Speaker 1: part likes to say, I'm gonna say the quiet part 163 00:08:51,800 --> 00:08:54,600 Speaker 1: out loud, which is that when you look at the 164 00:08:54,679 --> 00:08:57,640 Speaker 1: ownership here, and this is something that that I explored 165 00:08:57,679 --> 00:09:01,920 Speaker 1: in a recent UH digital series for Bloomberg that that 166 00:09:02,000 --> 00:09:04,559 Speaker 1: aired last week or was dropped last week as the 167 00:09:04,600 --> 00:09:07,200 Speaker 1: kids say UH, And you can check that out at 168 00:09:07,480 --> 00:09:11,520 Speaker 1: Bloomberg dot com slash QT slash series UH It's the 169 00:09:11,520 --> 00:09:16,640 Speaker 1: business of sports. We looked into the slate and the 170 00:09:16,720 --> 00:09:22,200 Speaker 1: spate of American investors going in too English football specifically, 171 00:09:22,800 --> 00:09:26,320 Speaker 1: and a number of those owners are involved here. They 172 00:09:26,360 --> 00:09:30,160 Speaker 1: are not English. In many cases they are either American 173 00:09:30,760 --> 00:09:35,920 Speaker 1: or otherwise foreign, including an investment group and an ownership 174 00:09:35,920 --> 00:09:39,040 Speaker 1: group very familiar to you, Fenway Sports Group. They are 175 00:09:39,080 --> 00:09:43,199 Speaker 1: the owners of Love Liverpool Football Club. Liverpool Football Club 176 00:09:43,280 --> 00:09:46,559 Speaker 1: one of the six teams that has signed on UH. 177 00:09:46,800 --> 00:09:50,520 Speaker 1: This is not the sort of warm and fuzzy ownership 178 00:09:50,559 --> 00:09:55,480 Speaker 1: that maybe we're used to seeing heralded around Fenway. And 179 00:09:55,520 --> 00:09:57,760 Speaker 1: then also you get the Glazer family yea on the 180 00:09:57,760 --> 00:10:00,920 Speaker 1: Tampa Bay Buccaneers, so they've got their fingers in there. Um. 181 00:10:01,320 --> 00:10:03,720 Speaker 1: Lebron James is part of that Fenway Sports group. He 182 00:10:03,840 --> 00:10:06,400 Speaker 1: jumped aboard about a month ago. We reported that, and 183 00:10:06,760 --> 00:10:09,400 Speaker 1: he had a great conversation with him earlier this year. 184 00:10:10,000 --> 00:10:13,280 Speaker 1: And this is that this is where a lot of 185 00:10:13,280 --> 00:10:16,760 Speaker 1: people are looking to spend their money. Um because of 186 00:10:16,840 --> 00:10:20,040 Speaker 1: the the TV rights are just astronomical, which had just 187 00:10:20,080 --> 00:10:24,520 Speaker 1: pointed out. And you know, think of the broadcasting entities 188 00:10:24,559 --> 00:10:28,560 Speaker 1: in Spain, in Italy, and then just in Great Britain 189 00:10:28,600 --> 00:10:31,040 Speaker 1: alone you can watch Sky, you get BBC, you get 190 00:10:31,360 --> 00:10:34,280 Speaker 1: bt Sport I think over there, and this is just 191 00:10:34,360 --> 00:10:37,800 Speaker 1: gonna be a win win situation for all these investors. 192 00:10:37,800 --> 00:10:39,679 Speaker 1: And so it's not the little family in the little 193 00:10:39,720 --> 00:10:42,440 Speaker 1: town like the Green Bay Packers, you know, have have 194 00:10:42,559 --> 00:10:44,840 Speaker 1: shares and they own the Green Bay Packers. This is 195 00:10:44,880 --> 00:10:48,040 Speaker 1: so this is international ownership well. And I think the 196 00:10:48,080 --> 00:10:50,679 Speaker 1: other important thing to think about here, one of the 197 00:10:50,720 --> 00:10:52,800 Speaker 1: other important things to think about is this notion of 198 00:10:53,480 --> 00:10:56,640 Speaker 1: if these bigger teams start to pull away from the 199 00:10:56,720 --> 00:10:58,800 Speaker 1: rest of the league, you know, the rest of the 200 00:10:58,880 --> 00:11:01,960 Speaker 1: league is then denied some of the economic opportunity that 201 00:11:02,000 --> 00:11:06,600 Speaker 1: comes along with it. That economic opportunity is so deeply 202 00:11:06,800 --> 00:11:09,800 Speaker 1: tied to the communities that are served here and that 203 00:11:09,920 --> 00:11:12,559 Speaker 1: is one of the things that is just rilling people up. 204 00:11:13,000 --> 00:11:16,840 Speaker 1: And I think we all know, being sports fans, the 205 00:11:17,000 --> 00:11:21,240 Speaker 1: passion and the local pride and the rising and falling 206 00:11:21,320 --> 00:11:24,679 Speaker 1: of your very emotion in your state of mind, and 207 00:11:24,720 --> 00:11:29,160 Speaker 1: how that ties to your local club. Whatever we feel, 208 00:11:29,760 --> 00:11:33,319 Speaker 1: I dare say is magnified in many cases ten twenty 209 00:11:33,480 --> 00:11:37,439 Speaker 1: hundred times if you're rooting for your local football club 210 00:11:37,640 --> 00:11:40,360 Speaker 1: in England. I mean, these are teams that are named 211 00:11:40,480 --> 00:11:43,520 Speaker 1: after you know, in many ways. If you're talking about Arsenal, 212 00:11:43,559 --> 00:11:46,200 Speaker 1: they are named after an Arsenal. If you're talking about 213 00:11:46,200 --> 00:11:51,720 Speaker 1: Aston Villa, it's named for the villa that the local 214 00:11:51,800 --> 00:11:56,160 Speaker 1: football club used to play outside of. So much rises 215 00:11:56,200 --> 00:12:00,400 Speaker 1: and falls, as I said, on these clubs, and you know, 216 00:12:00,880 --> 00:12:03,240 Speaker 1: notably when I was working on this piece, Peter Moore, 217 00:12:03,320 --> 00:12:06,640 Speaker 1: who's the former CEO of Liverpool, pointed out that in 218 00:12:06,840 --> 00:12:10,840 Speaker 1: his estimation, the owners of Liverpool, the Fenway Sports Group, 219 00:12:11,200 --> 00:12:14,480 Speaker 1: they saw themselves. They still see themselves according to him, 220 00:12:14,520 --> 00:12:17,360 Speaker 1: as you know, really just stewards here that that that 221 00:12:17,480 --> 00:12:22,800 Speaker 1: the local community owns these teams. This flies in the 222 00:12:22,840 --> 00:12:25,680 Speaker 1: face of that in many ways. Now the business cases, 223 00:12:25,840 --> 00:12:27,880 Speaker 1: we are running a business. This is ultimately good for 224 00:12:27,920 --> 00:12:30,040 Speaker 1: the community and this is good for the club and 225 00:12:30,120 --> 00:12:33,320 Speaker 1: if the club wins then that all accrues to the 226 00:12:33,360 --> 00:12:36,880 Speaker 1: local community. But it really is not sitting right. And 227 00:12:36,920 --> 00:12:40,000 Speaker 1: I do wonder, you know, Michael Barr, do you think, 228 00:12:40,400 --> 00:12:43,000 Speaker 1: just to put ourselves in the heads of the owners, 229 00:12:43,160 --> 00:12:49,320 Speaker 1: do you think they expected this violent and vitriolic a reaction. No, 230 00:12:49,880 --> 00:12:52,600 Speaker 1: because they were looking at it as a business move, 231 00:12:53,040 --> 00:12:58,760 Speaker 1: and yes, yes, sports it is a business. But remember now, 232 00:12:59,440 --> 00:13:03,240 Speaker 1: this move means that the clubs now in this super club. 233 00:13:04,040 --> 00:13:06,760 Speaker 1: It frees them from playing against the smaller teams that 234 00:13:06,840 --> 00:13:10,400 Speaker 1: bring in lower income and that really has riled a 235 00:13:10,440 --> 00:13:13,959 Speaker 1: lot of people. It's like, if you take a Super 236 00:13:14,080 --> 00:13:18,840 Speaker 1: NFL team and and they are playing a smaller market team, 237 00:13:18,960 --> 00:13:21,559 Speaker 1: well they don't have to play that smaller market team anymore. 238 00:13:21,600 --> 00:13:25,880 Speaker 1: And and that means, especially if they're the visiting team, 239 00:13:25,920 --> 00:13:29,040 Speaker 1: there's a lot of money involved for the local bars, 240 00:13:29,200 --> 00:13:33,120 Speaker 1: for the restaurants. All of that is hinging on this, 241 00:13:33,720 --> 00:13:36,360 Speaker 1: and I don't think they expected any of this backlash 242 00:13:36,520 --> 00:13:39,000 Speaker 1: to follow up on that. Just so there are American 243 00:13:39,280 --> 00:13:42,720 Speaker 1: listeners here who aren't familiar with European football understand would 244 00:13:42,720 --> 00:13:45,520 Speaker 1: this be like the Yankees, the Dodgers, the Braves, the Cubs, 245 00:13:45,559 --> 00:13:48,400 Speaker 1: the Red Sox, the teams that have strong financial backing 246 00:13:48,800 --> 00:13:51,240 Speaker 1: for me a super league and just shutting out the 247 00:13:51,240 --> 00:13:53,840 Speaker 1: teams like Kansas City, Milwaukee, Tampa Bay so they don't 248 00:13:53,880 --> 00:13:56,800 Speaker 1: have to revenue share with these smaller market teams. Is 249 00:13:56,800 --> 00:14:00,360 Speaker 1: there any similarity here. There's a similarity to to some 250 00:14:00,520 --> 00:14:04,679 Speaker 1: extent in insofar as it will alter the schedule. And 251 00:14:05,000 --> 00:14:07,880 Speaker 1: I think Michael Barr brings up a really good point, 252 00:14:07,960 --> 00:14:10,880 Speaker 1: which is, you know, when they're playing these midweek games, 253 00:14:10,960 --> 00:14:13,440 Speaker 1: you know, often those midweek games are played against some 254 00:14:13,480 --> 00:14:15,760 Speaker 1: of the lower tier club so they won't be playing 255 00:14:16,240 --> 00:14:21,800 Speaker 1: against you know, a Burnley or a similar type team 256 00:14:22,440 --> 00:14:25,720 Speaker 1: going forward, at Burnley being one of the EPL teams 257 00:14:25,720 --> 00:14:28,240 Speaker 1: that sort of lower down in the table. It's not 258 00:14:28,320 --> 00:14:31,800 Speaker 1: close to London. It's you know, pretty far away um 259 00:14:31,800 --> 00:14:36,400 Speaker 1: from from everybody else geographically, and so you wouldn't have 260 00:14:36,800 --> 00:14:41,120 Speaker 1: a Manchester United necessarily um or an Arsenal or Liverpool 261 00:14:41,200 --> 00:14:43,480 Speaker 1: you know, just going and playing there, which which brings 262 00:14:43,480 --> 00:14:48,080 Speaker 1: a lot of you know, excitement and candidly money and 263 00:14:48,240 --> 00:14:52,240 Speaker 1: attention to those places. What are the parallels that I'm 264 00:14:52,240 --> 00:14:55,080 Speaker 1: making in my own mind, which I think is right 265 00:14:55,960 --> 00:14:59,520 Speaker 1: and and this speaks to the kind of passion narrative 266 00:14:59,560 --> 00:15:02,520 Speaker 1: as well as the economic narrative is the way that 267 00:15:02,600 --> 00:15:05,560 Speaker 1: you've seen the Power five conferences in college football really 268 00:15:07,000 --> 00:15:10,600 Speaker 1: pushed themselves away from some of the lower tier college 269 00:15:10,600 --> 00:15:15,480 Speaker 1: football programs. And and we're all familiar with these situations 270 00:15:15,520 --> 00:15:19,200 Speaker 1: where you know, an Auburn or an Alabama or University 271 00:15:19,200 --> 00:15:22,480 Speaker 1: of Georgia or University of Michigan they will go and play, 272 00:15:22,880 --> 00:15:25,760 Speaker 1: you know, a lesser team and basically they will pay 273 00:15:25,880 --> 00:15:29,480 Speaker 1: that team and to sort of go beat them up. Um. 274 00:15:29,520 --> 00:15:33,280 Speaker 1: But the lesser team, you know, needing the revenue, needing 275 00:15:33,280 --> 00:15:36,160 Speaker 1: the attention, is more than happy to do that. So 276 00:15:36,840 --> 00:15:40,000 Speaker 1: if you take that away and you really start to 277 00:15:40,040 --> 00:15:44,200 Speaker 1: bifurcate this league, the economics start to shift pretty dramatically. 278 00:15:44,400 --> 00:15:47,600 Speaker 1: And and so there there is an economic and there's 279 00:15:47,680 --> 00:15:52,000 Speaker 1: also just this this kind of it changes the very 280 00:15:52,040 --> 00:15:54,720 Speaker 1: fabric of the game, I think, and I think that's 281 00:15:55,200 --> 00:15:58,000 Speaker 1: it is really getting to people's core. I mean, I've 282 00:15:58,000 --> 00:16:01,560 Speaker 1: been hearing from European colleagues all morning, who who just said, 283 00:16:02,160 --> 00:16:04,680 Speaker 1: this is all anybody can talk about in Europe, by 284 00:16:04,720 --> 00:16:07,800 Speaker 1: the way, and I think American fans of the big 285 00:16:07,840 --> 00:16:15,200 Speaker 1: clubs maybe a little bit uh less fired up about it, 286 00:16:15,240 --> 00:16:18,440 Speaker 1: depending on how much you know about it. But you know, 287 00:16:18,640 --> 00:16:20,880 Speaker 1: Michael Barr, one of the interesting things about it too, 288 00:16:21,040 --> 00:16:24,640 Speaker 1: is that from an American perspective, well, this is sort 289 00:16:24,680 --> 00:16:26,360 Speaker 1: of how it works in the sense that there's no 290 00:16:26,440 --> 00:16:30,800 Speaker 1: relegation in promotion, you don't necessarily earn you know, you're 291 00:16:30,840 --> 00:16:33,480 Speaker 1: in the same league regardless of how you do in 292 00:16:33,520 --> 00:16:36,240 Speaker 1: any given year, if you're in the NFL or the 293 00:16:36,360 --> 00:16:39,400 Speaker 1: NBA or Major League Baseball. And so for an American audience, 294 00:16:39,400 --> 00:16:41,960 Speaker 1: so they may be saying, well, I don't think this 295 00:16:42,000 --> 00:16:43,920 Speaker 1: is such it's not that big of a deal. Well, 296 00:16:44,080 --> 00:16:48,320 Speaker 1: I wonder what Lebron James, who just joined the Fenway Group. 297 00:16:49,200 --> 00:16:53,880 Speaker 1: And Lebron James obviously has been a very vocal person 298 00:16:54,520 --> 00:16:59,320 Speaker 1: when it comes to a lot of the the civil 299 00:16:59,400 --> 00:17:03,080 Speaker 1: rights things that have happened here in the United States, 300 00:17:03,480 --> 00:17:07,119 Speaker 1: and now you have this that's happening in Europe, and 301 00:17:07,200 --> 00:17:10,080 Speaker 1: I I just wonder, now does it put him in 302 00:17:10,200 --> 00:17:15,520 Speaker 1: a in a quagmire? I'm just curious. Interesting, interesting question. Yeah, 303 00:17:15,560 --> 00:17:18,879 Speaker 1: I mean, I think we will start to see athletes 304 00:17:18,960 --> 00:17:21,120 Speaker 1: maybe weigh in on this. We are certainly in an 305 00:17:21,200 --> 00:17:24,119 Speaker 1: arrow where athletes, whether it's Lebron or some of the 306 00:17:25,000 --> 00:17:28,879 Speaker 1: notable players in the in the European leagues, uh start 307 00:17:28,920 --> 00:17:31,240 Speaker 1: to speak out against against this a little more clearly 308 00:17:31,280 --> 00:17:34,080 Speaker 1: they have some economic interests here as well. Although I 309 00:17:34,119 --> 00:17:35,800 Speaker 1: do want to go back before we wrap up to 310 00:17:35,880 --> 00:17:39,960 Speaker 1: something you said that's really important that UEFA has come 311 00:17:39,960 --> 00:17:42,840 Speaker 1: out and said and it and it says it has 312 00:17:42,880 --> 00:17:46,439 Speaker 1: the support of FIFA in this regard, and I just 313 00:17:46,480 --> 00:17:49,119 Speaker 1: want to reiterate something you pointed out Michael Barr, that 314 00:17:49,400 --> 00:17:53,880 Speaker 1: they are going to seek to bar teams and potentially 315 00:17:54,040 --> 00:17:57,800 Speaker 1: players who play in this super league from competing in 316 00:17:57,800 --> 00:18:03,080 Speaker 1: the World Cup, competing in reach NAL and World Championships 317 00:18:03,119 --> 00:18:08,920 Speaker 1: and tournaments. That would be massive if you basically say, 318 00:18:08,960 --> 00:18:12,600 Speaker 1: because the top players not surprisingly played for the top 319 00:18:12,600 --> 00:18:16,119 Speaker 1: teams in Europe for the most part, if those players 320 00:18:16,160 --> 00:18:19,200 Speaker 1: are not allowed to compete for their national teams at 321 00:18:19,240 --> 00:18:24,800 Speaker 1: the World Cup, that that could essentially, if that holds up, 322 00:18:25,160 --> 00:18:29,160 Speaker 1: that actually could undo all of this, uh Lynchy, because 323 00:18:29,200 --> 00:18:31,879 Speaker 1: if you think about the notion again, thinking about it 324 00:18:32,000 --> 00:18:35,879 Speaker 1: through an American lens, that if you know, certain players 325 00:18:36,400 --> 00:18:39,080 Speaker 1: made certain choices of their teams made certain choices and 326 00:18:39,119 --> 00:18:41,639 Speaker 1: then they weren't able to compete in the Olympics or 327 00:18:42,240 --> 00:18:45,680 Speaker 1: um compete on some sort of world stage. Players might 328 00:18:45,680 --> 00:18:48,760 Speaker 1: make a different choice. Yeah, but are you gonna be 329 00:18:48,920 --> 00:18:51,000 Speaker 1: left behind if this super league goes. I mean I 330 00:18:51,000 --> 00:18:52,800 Speaker 1: would roll the dice on this thing and say see 331 00:18:52,800 --> 00:18:55,800 Speaker 1: you in court. Yeah. Yeah, this is you know, and 332 00:18:55,880 --> 00:18:58,160 Speaker 1: I've never seen anything like this. The Prime Minister Boris 333 00:18:58,200 --> 00:19:01,360 Speaker 1: Johnson came out condemning this super I mean, imagine President 334 00:19:01,400 --> 00:19:04,080 Speaker 1: Biden coming out and just you know, because I don't 335 00:19:04,080 --> 00:19:07,840 Speaker 1: think the National Football League decided to add another division 336 00:19:07,920 --> 00:19:11,640 Speaker 1: or two more teams. It's unbelievable and and what's great, 337 00:19:11,640 --> 00:19:13,480 Speaker 1: there are no filters on some of these people, and 338 00:19:16,160 --> 00:19:21,159 Speaker 1: the president of you says they called everyone's snakes and 339 00:19:21,240 --> 00:19:23,680 Speaker 1: spitting in the face of football lovers. I've never seen 340 00:19:23,720 --> 00:19:26,520 Speaker 1: anything like this in my life. We do. We just 341 00:19:26,760 --> 00:19:30,399 Speaker 1: for a split second there had the Bostonian doing an 342 00:19:30,440 --> 00:19:33,359 Speaker 1: English accent. I think I think we may need to 343 00:19:33,480 --> 00:19:42,119 Speaker 1: edit that out. But it's fascinating reading. I mean, like 344 00:19:42,160 --> 00:19:44,359 Speaker 1: every ten minutes there's a there's a new take on 345 00:19:44,359 --> 00:19:46,320 Speaker 1: this thing and a new slant on it. And you know, 346 00:19:46,400 --> 00:19:49,360 Speaker 1: if if you're not familiar with you know, football over 347 00:19:49,359 --> 00:19:52,480 Speaker 1: there and the beautiful game, I mean, this is this 348 00:19:52,480 --> 00:19:53,879 Speaker 1: will tell you all you need to know about the 349 00:19:53,880 --> 00:19:57,080 Speaker 1: passion uh and the allegiance these people have to this 350 00:19:57,119 --> 00:19:59,399 Speaker 1: game over there. If you all pay good money to 351 00:19:59,480 --> 00:20:03,359 Speaker 1: have linching, you did again. That was This is the 352 00:20:03,400 --> 00:20:07,040 Speaker 1: Bloomberg Business of Sports podcast Michael Barr. You can follow 353 00:20:07,119 --> 00:20:09,480 Speaker 1: me on Twitter at Big Bar Sports and this is 354 00:20:09,560 --> 00:20:11,760 Speaker 1: let you have a jolly good day. You can follow 355 00:20:11,800 --> 00:20:15,160 Speaker 1: me at Lynchy w CVB, and I'm Jason Kelly at 356 00:20:15,240 --> 00:20:17,879 Speaker 1: Jason Kelly News right here each and every Monday, Wednesday 357 00:20:17,920 --> 00:20:21,639 Speaker 1: and Thursday exploring the world of money in sports. You're listening, 358 00:20:21,840 --> 00:20:25,280 Speaker 1: I hope the Bloomberg Business of Sports on Bloomberg Radio 359 00:20:25,359 --> 00:20:28,760 Speaker 1: around the world. That was great, Linsey and online wherever 360 00:20:28,800 --> 00:20:29,959 Speaker 1: you get your podcasts.