March 21, 2020 • 19 mins
Colin talks with David Carter, Professor of Sports Business at USC's Marshall School of Business talks about the impact of this pandemic on businesses around the sports world, stadium construction and even the gambling sector in this exclusive podcast.
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Episode Transcript
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Speaker 1 (00:03):
Hi everybody, and welcome to our Saturday morning podcasts. I
know a lot of you are out of your routine.
I certainly am. I think that adds stress. I'd clearly
not a licensed physician, but I feel more stress day
to day with my family. And we can create some
normalcy for you and do our show and put a
(00:25):
podcast on on Saturday's. I know our podcast numbers. I'm
sure this is true for everybody have gone through the
roof because so many of you have idle time and
time at home, so we do appreciate you stopping by.
I thought this morning I'd bring on David Carter. He's
a professor of Sports Business at the USC Marshall School
of Business, the executive director at USC Sports Business Institute,
(00:48):
a national authority on strategic marketing. Four books he's authored
Sports Business Industry. He founded the Sports Business Group in
the nineties ten years of consulting working with the entertainment industries,
and I thought David would be unique today because we
have networks and leagues that are in full crisis mode. David,
(01:13):
let me start with this personally for you. How has
the coronavirus affected you? Is it all online courses? Is
some of that. Are you prepared for it? It is?
I know my daughter's dealing with that. My son is
how have you gone about your daily business at USC? Yeah,
good morning, Great to be with you. You know, it's
(01:34):
been really interesting at the university. I think they were
fairly well prepared. I think they could signal that this
was coming, and I think they've built up to it
rather nicely. Heading into spring break, everything's online and I
think a lot of the students are now wondering what
will happen with graduation and beyond. But from a consulting standpoint,
and you take a look at across the industry, and
(01:55):
I've had the good fortune of having clients that our
team owners are invested and banks are involved in all
areas of spending in and around sports, and they're really
not quite sure the depth and breadth of this at
the moment in terms of protecting their cash flow and
maybe making other investments in sports. And so you're starting
to see things grind to a halt. McLea is looking
(02:18):
into extending eligibility for seniors who spring seasons were canceled.
Realistic or not. Oh, I think there is a workaround
to be had there. I think The key is that
everybody must understand the magnitude of the circumstances. They need
to treat each other as partners and not as MC
double a versus conference, versus student athlete versus athletic department.
(02:43):
I just don't think that's going to work. And I
think as long as there can be a collective calm
and realize that they need to work together. And that's
also true by the way calling of the co sports
leagues and its players and unions and their media partners
and everybody else, as long as cooler heads can continue
to prevail, there will be a solution to be had.
(03:04):
You know, the NCAA tournament, that seemed like an obvious one.
I had said this last week early Listen, you share
one ball, unlike hockey that has a divider between fans
and players. The fans are on top of you. There
are no masks for players. You're sweating on each other.
I thought basketball was the most problematic sport going forward.
(03:25):
In baseball you have a separation of people football and hockey.
You know you wear masks. I basketball. The NCAA tournament,
for example, what kind of loss do they estimate it
is for a turner who has to still pay a bill?
How does that? I'm in television and I'm not exactly
(03:48):
sure how that works. TNT, what do they do forget
about filling their schedule? Do they? Does the ncble A
still get paid, not get paid? How does that work? Well? Interestingly,
Sport by sport, you've got to go back and have
your attorneys scurry back and take a look at that
contractual language. Ultimately, you want to avoid litigation if what
(04:08):
you're talking about is really a postponement in payments or
a workaround in payments, or the hundreds of millions of
dollars flowing into the nc double A each year, around
eight hundred millions from the tournament, how much of that
will still flow in? And the real downstream issue is
even if a lot of that were to flow in,
and it appears as though some of that might now
be deferred, that money, as you know, is to be
(04:30):
turned around and sent out to the conferences in the
individual schools who really need that money. And so the
end user in this case or whatever, the individual athletic department.
They're scrambling to figure this out. And I think March
madness was particularly acute, not just because of what we're
talking about the MC DOUBLEA. But unlike other sporting events,
(04:51):
you had people from markets all over the country preparing
to travel to all other parts of the country, and
so there wasn't just an athlete infection possibility, but the
portability of that problem with a fan base was quite huge.
And so that's I think why you're starting to see
other big special events being postponed. In addition to the
traditional health causes we're seeing today. Professor of Sports Business
(05:13):
at the USC Marshall School of Business, David Carter, there
is a new dynamic, David, in my world. The social
media platforms now, I think they often pressure executives at
companies in the decisions. You know. I think there's a
lot of overreacting by companies because of a singular, random tweet,
(05:33):
often not from a legitimate source. We have seen news
cycles around a tweet that can't be verified. So I
look at the NFL, and the NFL is like, listen,
we're gonna do free agency and we're gonna do the draft.
We're not going to let the coronavirus stop us. It's
mostly paperwork, and they got some real pushback on social media.
(05:54):
Where do you land on their decision to go forward
with free agency in their draft. Well, I think all
these leagues and teams are going forward with business as
usual until they're not going forward with business as usual.
They are preparing for all these eventualities, and I think
the back end of that they need to do two things.
They need to protect against future litigation, and they need
(06:15):
to make sure that they're doing right by their business partners.
And if you're the NFL, for example, with the draft
and even free agency, you need to be in strong
communication with your teams, you know, with Las Vegas, with
other critical parties involved, to not just signal to them
what might be coming next, but work with them to
figure out what a viable workaround or long term solution
(06:39):
might be. And so I'm not surprised that all of
these leagues and events all over the world said, Hey,
we're going to be fine, We're gonna get this done,
and then all of a sudden, you hear, well, that's
just not the case. And I think the Tokyo Olympics
are going to be a great example of that in
the weeks to come. You know, there are two sports
in America that I do think have an advantage. They're
not beholden David to advertisers, because advertisers, once they flee,
(07:03):
you know, you lose a lot of money. And a
Super Bowl can make a sports network over five hundred
million dollars in just ads. So the WWE is run
by sort of a maverick Vince McMahon. There's a pay
per view model in place. The UFC now has gone
behind ESPN Plus's paywall. Dana White similar to Vince McMahon,
sort of alpha and again not dependent. Either the WWE
(07:28):
or the UFC is dependent on advertising dollars, so they
don't care about the pushback they get on social media.
My you. I looked at UFC and I thought, actually,
Dana White's always been hyper aggressive in terms of how
he runs his business. UFC could hold these without fans.
I mean, you put the camera on the octagon of
all the sports I look at that could start first.
(07:50):
I don't know why my eye goes to the UFC.
Your thought on that, well, I think sports to have
a very very avid stand base are going to protected,
especially if those fans are used to spending money on
media to watch those events. And secondarily, the two that
you're talking about, WWE and UFC. They don't have unions,
(08:11):
so they have different capabilities when it comes to posting
events and working with the aathletes, and that might be
a distinct advantage that they have over say, collective bargaining
that we see in the other league. Yeah, that's really interesting.
David Carter, Professor of Sports Business, did not think of that.
You're the NBA and you could absolutely start your season.
(08:35):
You could just you know, you call the owners and say, listen,
regular seasons over, we are going to start our playoffs.
Let's just say July fifteenth, four months from now, about
the time of the Olympics, We're gonna start our We're
gonna eliminate the bottom four seeds in each conference. We're
gonna do five game series. We're gonna wrap it up
by Labor Day. In terms of business, do you think
(08:59):
you could sell that to owners? Do you think, because
I do believe last year the Spurs Nuggets first round series, David,
it lasted, you know, it lasted two weeks. You could
do back to back games in the playoffs. You could
shorten playoff series from seven games to three games or five.
How long do you think it's possible for Adam Silver
(09:23):
David to push and push and push. What do you
think's going through his mind? Because, boy, you do not
want to give up this Lebron year. I mean this,
there is revenue lost here. How far do you think
he'll go on the push? Well, I think I think
the extent to which he's going to push forward is
going to be determined by how many players in the
league are continuing to test positive. And if we had
(09:45):
a couple of Lakers test positive yesterday, you've got to
believe that there may be more around the league. And
so it's not just a business issue for him. It'll
become a public relations issue for him, just like the
testing of athletes from multiple teams became a pr for
he and his crew earlier in the week. I think
from a business standpoint, when you think about getting into
(10:08):
the summer, that gets complicated because you're starting to see
so many other events being pushed to the summer, other competition,
such as family vacations and other things that might affect
TV ratings, for instance. So it's not you know, it's
a little bit like a Rubik's cube. You know, you
try to solve one part of it, and you have
these cascading problems on the other side. For example, what
(10:30):
about some of these newer owners or owners in sports
in general, have a lot of debt on their teams.
They might not be able to afford to sit it out.
Whereas others that are very well diversified, they've got multiple assets,
real estate and all the rest, you know, they may say,
let's just do what's right. But for some individual owners
for whom their team is their sole major asset, they're
(10:51):
going to have a different perspective. David Carter is the
executive director USC Sports Business Institute, a professor of Sports
Business at the us SEE Marshall School of Business, a
national authority on strategic marketing, author of four books about
the sports business injury industry. Excuse me, and you are
listening to our Saturday morning podcast. You know, in Los Angeles,
(11:14):
Sofi Stadium is going to be the home to the
Rams and the Chargers. A Vegas has a new stadium
with the Raiders. I have relatives there and a son there.
So I'm in Las Vegas at least once a month.
When you let's talk to Sofi, because it's not far
from where you're based at USC. When we think of
these stadiums, there is a great cost. I mean there's
(11:34):
been a cost overrun for that stadium in the multiple
billion dollars. In the end, though, as you see stadiums Foxborough,
we notice this where there is there is an economy
around the stadium, almost a mall. Do these stadiums add
to a local economy or is it the classic billionaire
gets taxpayer to pay for it. We all get soaked
(11:57):
and one guy makes out. But these things are a
rain on economies. What do you expect from a Soafi
stadium or the new Raiders stadium economically in those respective cities. Well,
I think you're right. Typically it can be a bait
and switch in terms of who's going to make the
money off of the proposed or forecast economic impact it's
coming from those But we're talking about the five billion
(12:19):
dollars or so the cronky's put into SAFI Stadium. I
think the problems there are far different than other cities
where where the municipalities have put in a ton of money.
And I think your other observation is correct. If you
take a look at the rams, you really can view
them as the anchor tenant in a mall and the
chargers to a lesser extent as a secondary tenant there,
(12:42):
but it's all the other music that's coming in. It's
going to be clearly the Olympics and World Cup events
and college football playoffs and so much more that's going
to be coming in there. And so for this first
year when they really want to raise the curtain, well
do the fans want to go? And when you ask
yourself about the fans, it's not just the you know,
the face painters that are the Rams fans with the
watermelons on their head, but it's corporate America who has
(13:04):
spend tens of millions of dollars on suites, are hoping
to entertain there. What are their budgets looking like right now? So, yeah,
you need you need this this great first year. And
so as I think that might be compromise. They got
great leadership over there, frankly, and I think they'll they'll
figure much of this out. But from a fan standpoint,
(13:25):
called I think the other thing that pops up is
I'm wondering, and that's all it is. Wondering fans of
the La Rams see Gurley move on. Are they wondering themselves? Gee?
I wonder if the Rams are going to retrench some
of their spending because they don't know what's going to
be happening down the road. Yeah, I do think Sofi
Stadium if you got to go go big because the
(13:46):
city Los Angeles is so entertainment driven, I think it'll
be a spectacular of home for world class events. I
think Jerry Jones did it right. We've seen boxing matches there.
You know, when I was a kid growing up in Seattle,
you did everything at the Kingdom high school football, boat shows,
you know, concerts, and I think this Sofi Stadium in
(14:07):
LA will be a spectacular home for that. I want
to dip if we code David Carter joining us into
sports gambling, and I'm not saying it's your field of expertise,
but I did think it's fascinating that Penn Gaming went
and bought a big chunk of barstool and sports gaming
is being kind of delivered state by state, you know,
(14:30):
and it's it's rolling pretty quickly now because some of
these municipalities can make money on it. It's tax revenue.
What is the endgame to you, David? When you look
in Europe you can bet games inside stadiums. Will this
be like every business that's developed in America, very few
get rich off it. If I said to you ten
(14:50):
years from now sports gambling in America, David Carter, where
are we at, It'll be It'll be massive, and it
will come without a ticcups. There will still be some
advocacy groups out there that are crying about the social
ills of it all, and others that are saying it's,
as you're suggesting, kind of robbing Peter to pay Paul.
(15:11):
Who will make the money off of it? The big
money probably the software companies that are ensuring the legitimacy
of it, as well as the leagues, and at some
point you'll see that trickle back down to the players
in a very meaningful way. So I think one of
the reasons why you're seeing team owners and prospective team
owners so bullish on franchise ownership as they see two
(15:32):
things going on. They see the growth of the global
markets for sport and they see the ability to unlock
tremendous revenue from gambling. Yeah, you know, this is really
a good point, David. I was reading a story about
six months ago, and it was some article on global wealth,
and multiple owners were saying, listen, here's what we know
(15:53):
Liverpool will have a wildly popular soccer team in a
hundred years from now. We don't know if IBM or
Google exists in a hundred years. Sports has become perhaps
the safest in a world of chaos, David. They were
making the argument that sports is the one constant in
(16:14):
each culture, regardless of its Iraq or Indiana, it doesn't matter.
And I think to your point, gambling is just seen
as an additional revenue stream on top of the sports
equity revenue stream. I think I think gambling is just
like another layer of income for billionaires who own teams. Well,
(16:38):
there's a lot to be said for that. I mean,
the sports industry at large is gonna be sipening more
time than money away from other activities, and it would
be funneled via its fans and gamblers to the teams,
whether that's at venue where they're can have at some
point robust gambling operations, or online from home or wherever else.
But again, I think you've got to get back to
(17:00):
to thinking about there's really two different fan bases. There's
that everyday fan base that's going to be very interested
in it the evolution of sport, but so too is
going to be corporate America as they wonder, hey, is
there an advertising opportunity for us here? Is there a
sponsorship opportunity? They're going to take the temperature of society,
and then once they get the green light on that,
I think you'll see corporate money also supporting and coming
(17:24):
in behind some of that fan money. David, thank you
so much for joining us here on a Saturday morning.
Good do you and all your family. And it's been
a very uncommon February in March, but we appreciate you
stopping by. My pleasure, have a great weekend. I want
to thank everybody for joining us on a Saturday morning podcast,
(17:44):
which we do pretty regularly. Our schedule in the last
month has been We're going to keep trying to find
great guests regardless of where we do the show. I've
got a home set up. If I am told by
the State of California I cannot leave my house, I've
got that set up ready to go. All this past
week I did the shows in Sherman Oaks in a
(18:05):
radio studio. Going forward, I hope I can return to
FS one soon. This is a lot This depends on
not just corporate decisions by our governors and our you know,
people that run our cities. So there's a lot of
information out there. I just I advocate strongly listening to
(18:29):
doctors and medical professionals. To get your information, go to
the CDC website, John Hopkins website. Take a deep breath. Everybody, pharmacies, banks,
you know, grocery stores, restaurants, they're open. The supply chain works.
I do believe there is better news ahead, and I
(18:51):
don't think it's that far off. I said when this started,
I thought it would be a spring in summer story.
I did not think it was a two and three
week story. I said, this is just the beginning. I
had access to some smart people in corporate America at
the top, and you know, listen a lot and asked
a lot of questions. So take a deep breath, spend
a lot of time with your family, try to get
(19:12):
out and do some walks and exercise. But thanks so
much for joining us and David Carter this morning, and
we will hear you and talk to you on Monday.
Hi everybody, and welcome to our Saturday morning podcasts. I
know a lot of you are out of your routine.
I certainly am. I think that adds stress. I'd clearly
not a licensed physician, but I feel more stress day
to day with my family. And we can create some
normalcy for you and do our show and put a
(00:25):
podcast on on Saturday's. I know our podcast numbers. I'm
sure this is true for everybody have gone through the
roof because so many of you have idle time and
time at home, so we do appreciate you stopping by.
I thought this morning I'd bring on David Carter. He's
a professor of Sports Business at the USC Marshall School
of Business, the executive director at USC Sports Business Institute,
(00:48):
a national authority on strategic marketing. Four books he's authored
Sports Business Industry. He founded the Sports Business Group in
the nineties ten years of consulting working with the entertainment industries,
and I thought David would be unique today because we
have networks and leagues that are in full crisis mode. David,
(01:13):
let me start with this personally for you. How has
the coronavirus affected you? Is it all online courses? Is
some of that. Are you prepared for it? It is?
I know my daughter's dealing with that. My son is
how have you gone about your daily business at USC? Yeah,
good morning, Great to be with you. You know, it's
(01:34):
been really interesting at the university. I think they were
fairly well prepared. I think they could signal that this
was coming, and I think they've built up to it
rather nicely. Heading into spring break, everything's online and I
think a lot of the students are now wondering what
will happen with graduation and beyond. But from a consulting standpoint,
and you take a look at across the industry, and
(01:55):
I've had the good fortune of having clients that our
team owners are invested and banks are involved in all
areas of spending in and around sports, and they're really
not quite sure the depth and breadth of this at
the moment in terms of protecting their cash flow and
maybe making other investments in sports. And so you're starting
to see things grind to a halt. McLea is looking
(02:18):
into extending eligibility for seniors who spring seasons were canceled.
Realistic or not. Oh, I think there is a workaround
to be had there. I think The key is that
everybody must understand the magnitude of the circumstances. They need
to treat each other as partners and not as MC
double a versus conference, versus student athlete versus athletic department.
(02:43):
I just don't think that's going to work. And I
think as long as there can be a collective calm
and realize that they need to work together. And that's
also true by the way calling of the co sports
leagues and its players and unions and their media partners
and everybody else, as long as cooler heads can continue
to prevail, there will be a solution to be had.
(03:04):
You know, the NCAA tournament, that seemed like an obvious one.
I had said this last week early Listen, you share
one ball, unlike hockey that has a divider between fans
and players. The fans are on top of you. There
are no masks for players. You're sweating on each other.
I thought basketball was the most problematic sport going forward.
(03:25):
In baseball you have a separation of people football and hockey.
You know you wear masks. I basketball. The NCAA tournament,
for example, what kind of loss do they estimate it
is for a turner who has to still pay a bill?
How does that? I'm in television and I'm not exactly
(03:48):
sure how that works. TNT, what do they do forget
about filling their schedule? Do they? Does the ncble A
still get paid, not get paid? How does that work? Well? Interestingly,
Sport by sport, you've got to go back and have
your attorneys scurry back and take a look at that
contractual language. Ultimately, you want to avoid litigation if what
(04:08):
you're talking about is really a postponement in payments or
a workaround in payments, or the hundreds of millions of
dollars flowing into the nc double A each year, around
eight hundred millions from the tournament, how much of that
will still flow in? And the real downstream issue is
even if a lot of that were to flow in,
and it appears as though some of that might now
be deferred, that money, as you know, is to be
(04:30):
turned around and sent out to the conferences in the
individual schools who really need that money. And so the
end user in this case or whatever, the individual athletic department.
They're scrambling to figure this out. And I think March
madness was particularly acute, not just because of what we're
talking about the MC DOUBLEA. But unlike other sporting events,
(04:51):
you had people from markets all over the country preparing
to travel to all other parts of the country, and
so there wasn't just an athlete infection possibility, but the
portability of that problem with a fan base was quite huge.
And so that's I think why you're starting to see
other big special events being postponed. In addition to the
traditional health causes we're seeing today. Professor of Sports Business
(05:13):
at the USC Marshall School of Business, David Carter, there
is a new dynamic, David, in my world. The social
media platforms now, I think they often pressure executives at
companies in the decisions. You know. I think there's a
lot of overreacting by companies because of a singular, random tweet,
(05:33):
often not from a legitimate source. We have seen news
cycles around a tweet that can't be verified. So I
look at the NFL, and the NFL is like, listen,
we're gonna do free agency and we're gonna do the draft.
We're not going to let the coronavirus stop us. It's
mostly paperwork, and they got some real pushback on social media.
(05:54):
Where do you land on their decision to go forward
with free agency in their draft. Well, I think all
these leagues and teams are going forward with business as
usual until they're not going forward with business as usual.
They are preparing for all these eventualities, and I think
the back end of that they need to do two things.
They need to protect against future litigation, and they need
(06:15):
to make sure that they're doing right by their business partners.
And if you're the NFL, for example, with the draft
and even free agency, you need to be in strong
communication with your teams, you know, with Las Vegas, with
other critical parties involved, to not just signal to them
what might be coming next, but work with them to
figure out what a viable workaround or long term solution
(06:39):
might be. And so I'm not surprised that all of
these leagues and events all over the world said, Hey,
we're going to be fine, We're gonna get this done,
and then all of a sudden, you hear, well, that's
just not the case. And I think the Tokyo Olympics
are going to be a great example of that in
the weeks to come. You know, there are two sports
in America that I do think have an advantage. They're
not beholden David to advertisers, because advertisers, once they flee,
(07:03):
you know, you lose a lot of money. And a
Super Bowl can make a sports network over five hundred
million dollars in just ads. So the WWE is run
by sort of a maverick Vince McMahon. There's a pay
per view model in place. The UFC now has gone
behind ESPN Plus's paywall. Dana White similar to Vince McMahon,
sort of alpha and again not dependent. Either the WWE
(07:28):
or the UFC is dependent on advertising dollars, so they
don't care about the pushback they get on social media.
My you. I looked at UFC and I thought, actually,
Dana White's always been hyper aggressive in terms of how
he runs his business. UFC could hold these without fans.
I mean, you put the camera on the octagon of
all the sports I look at that could start first.
(07:50):
I don't know why my eye goes to the UFC.
Your thought on that, well, I think sports to have
a very very avid stand base are going to protected,
especially if those fans are used to spending money on
media to watch those events. And secondarily, the two that
you're talking about, WWE and UFC. They don't have unions,
(08:11):
so they have different capabilities when it comes to posting
events and working with the aathletes, and that might be
a distinct advantage that they have over say, collective bargaining
that we see in the other league. Yeah, that's really interesting.
David Carter, Professor of Sports Business, did not think of that.
You're the NBA and you could absolutely start your season.
(08:35):
You could just you know, you call the owners and say, listen,
regular seasons over, we are going to start our playoffs.
Let's just say July fifteenth, four months from now, about
the time of the Olympics, We're gonna start our We're
gonna eliminate the bottom four seeds in each conference. We're
gonna do five game series. We're gonna wrap it up
by Labor Day. In terms of business, do you think
(08:59):
you could sell that to owners? Do you think, because
I do believe last year the Spurs Nuggets first round series, David,
it lasted, you know, it lasted two weeks. You could
do back to back games in the playoffs. You could
shorten playoff series from seven games to three games or five.
How long do you think it's possible for Adam Silver
(09:23):
David to push and push and push. What do you
think's going through his mind? Because, boy, you do not
want to give up this Lebron year. I mean this,
there is revenue lost here. How far do you think
he'll go on the push? Well, I think I think
the extent to which he's going to push forward is
going to be determined by how many players in the
league are continuing to test positive. And if we had
(09:45):
a couple of Lakers test positive yesterday, you've got to
believe that there may be more around the league. And
so it's not just a business issue for him. It'll
become a public relations issue for him, just like the
testing of athletes from multiple teams became a pr for
he and his crew earlier in the week. I think
from a business standpoint, when you think about getting into
(10:08):
the summer, that gets complicated because you're starting to see
so many other events being pushed to the summer, other competition,
such as family vacations and other things that might affect
TV ratings, for instance. So it's not you know, it's
a little bit like a Rubik's cube. You know, you
try to solve one part of it, and you have
these cascading problems on the other side. For example, what
(10:30):
about some of these newer owners or owners in sports
in general, have a lot of debt on their teams.
They might not be able to afford to sit it out.
Whereas others that are very well diversified, they've got multiple assets,
real estate and all the rest, you know, they may say,
let's just do what's right. But for some individual owners
for whom their team is their sole major asset, they're
(10:51):
going to have a different perspective. David Carter is the
executive director USC Sports Business Institute, a professor of Sports
Business at the us SEE Marshall School of Business, a
national authority on strategic marketing, author of four books about
the sports business injury industry. Excuse me, and you are
listening to our Saturday morning podcast. You know, in Los Angeles,
(11:14):
Sofi Stadium is going to be the home to the
Rams and the Chargers. A Vegas has a new stadium
with the Raiders. I have relatives there and a son there.
So I'm in Las Vegas at least once a month.
When you let's talk to Sofi, because it's not far
from where you're based at USC. When we think of
these stadiums, there is a great cost. I mean there's
(11:34):
been a cost overrun for that stadium in the multiple
billion dollars. In the end, though, as you see stadiums Foxborough,
we notice this where there is there is an economy
around the stadium, almost a mall. Do these stadiums add
to a local economy or is it the classic billionaire
gets taxpayer to pay for it. We all get soaked
(11:57):
and one guy makes out. But these things are a
rain on economies. What do you expect from a Soafi
stadium or the new Raiders stadium economically in those respective cities. Well,
I think you're right. Typically it can be a bait
and switch in terms of who's going to make the
money off of the proposed or forecast economic impact it's
coming from those But we're talking about the five billion
(12:19):
dollars or so the cronky's put into SAFI Stadium. I
think the problems there are far different than other cities
where where the municipalities have put in a ton of money.
And I think your other observation is correct. If you
take a look at the rams, you really can view
them as the anchor tenant in a mall and the
chargers to a lesser extent as a secondary tenant there,
(12:42):
but it's all the other music that's coming in. It's
going to be clearly the Olympics and World Cup events
and college football playoffs and so much more that's going
to be coming in there. And so for this first
year when they really want to raise the curtain, well
do the fans want to go? And when you ask
yourself about the fans, it's not just the you know,
the face painters that are the Rams fans with the
watermelons on their head, but it's corporate America who has
(13:04):
spend tens of millions of dollars on suites, are hoping
to entertain there. What are their budgets looking like right now? So, yeah,
you need you need this this great first year. And
so as I think that might be compromise. They got
great leadership over there, frankly, and I think they'll they'll
figure much of this out. But from a fan standpoint,
(13:25):
called I think the other thing that pops up is
I'm wondering, and that's all it is. Wondering fans of
the La Rams see Gurley move on. Are they wondering themselves? Gee?
I wonder if the Rams are going to retrench some
of their spending because they don't know what's going to
be happening down the road. Yeah, I do think Sofi
Stadium if you got to go go big because the
(13:46):
city Los Angeles is so entertainment driven, I think it'll
be a spectacular of home for world class events. I
think Jerry Jones did it right. We've seen boxing matches there.
You know, when I was a kid growing up in Seattle,
you did everything at the Kingdom high school football, boat shows,
you know, concerts, and I think this Sofi Stadium in
(14:07):
LA will be a spectacular home for that. I want
to dip if we code David Carter joining us into
sports gambling, and I'm not saying it's your field of expertise,
but I did think it's fascinating that Penn Gaming went
and bought a big chunk of barstool and sports gaming
is being kind of delivered state by state, you know,
(14:30):
and it's it's rolling pretty quickly now because some of
these municipalities can make money on it. It's tax revenue.
What is the endgame to you, David? When you look
in Europe you can bet games inside stadiums. Will this
be like every business that's developed in America, very few
get rich off it. If I said to you ten
(14:50):
years from now sports gambling in America, David Carter, where
are we at, It'll be It'll be massive, and it
will come without a ticcups. There will still be some
advocacy groups out there that are crying about the social
ills of it all, and others that are saying it's,
as you're suggesting, kind of robbing Peter to pay Paul.
(15:11):
Who will make the money off of it? The big
money probably the software companies that are ensuring the legitimacy
of it, as well as the leagues, and at some
point you'll see that trickle back down to the players
in a very meaningful way. So I think one of
the reasons why you're seeing team owners and prospective team
owners so bullish on franchise ownership as they see two
(15:32):
things going on. They see the growth of the global
markets for sport and they see the ability to unlock
tremendous revenue from gambling. Yeah, you know, this is really
a good point, David. I was reading a story about
six months ago, and it was some article on global wealth,
and multiple owners were saying, listen, here's what we know
(15:53):
Liverpool will have a wildly popular soccer team in a
hundred years from now. We don't know if IBM or
Google exists in a hundred years. Sports has become perhaps
the safest in a world of chaos, David. They were
making the argument that sports is the one constant in
(16:14):
each culture, regardless of its Iraq or Indiana, it doesn't matter.
And I think to your point, gambling is just seen
as an additional revenue stream on top of the sports
equity revenue stream. I think I think gambling is just
like another layer of income for billionaires who own teams. Well,
(16:38):
there's a lot to be said for that. I mean,
the sports industry at large is gonna be sipening more
time than money away from other activities, and it would
be funneled via its fans and gamblers to the teams,
whether that's at venue where they're can have at some
point robust gambling operations, or online from home or wherever else.
But again, I think you've got to get back to
(17:00):
to thinking about there's really two different fan bases. There's
that everyday fan base that's going to be very interested
in it the evolution of sport, but so too is
going to be corporate America as they wonder, hey, is
there an advertising opportunity for us here? Is there a
sponsorship opportunity? They're going to take the temperature of society,
and then once they get the green light on that,
I think you'll see corporate money also supporting and coming
(17:24):
in behind some of that fan money. David, thank you
so much for joining us here on a Saturday morning.
Good do you and all your family. And it's been
a very uncommon February in March, but we appreciate you
stopping by. My pleasure, have a great weekend. I want
to thank everybody for joining us on a Saturday morning podcast,
(17:44):
which we do pretty regularly. Our schedule in the last
month has been We're going to keep trying to find
great guests regardless of where we do the show. I've
got a home set up. If I am told by
the State of California I cannot leave my house, I've
got that set up ready to go. All this past
week I did the shows in Sherman Oaks in a
(18:05):
radio studio. Going forward, I hope I can return to
FS one soon. This is a lot This depends on
not just corporate decisions by our governors and our you know,
people that run our cities. So there's a lot of
information out there. I just I advocate strongly listening to
(18:29):
doctors and medical professionals. To get your information, go to
the CDC website, John Hopkins website. Take a deep breath. Everybody, pharmacies, banks,
you know, grocery stores, restaurants, they're open. The supply chain works.
I do believe there is better news ahead, and I
(18:51):
don't think it's that far off. I said when this started,
I thought it would be a spring in summer story.
I did not think it was a two and three
week story. I said, this is just the beginning. I
had access to some smart people in corporate America at
the top, and you know, listen a lot and asked
a lot of questions. So take a deep breath, spend
a lot of time with your family, try to get
(19:12):
out and do some walks and exercise. But thanks so
much for joining us and David Carter this morning, and
we will hear you and talk to you on Monday.
Hosts And Creators
Colin Cowherd
Jason McIntyre
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