0:02

Here you go. Here you go. Expectation.

0:17

That. The nothing personal where the

0:19

day it is wednesday for to

0:21

for to for. Expectation

0:24

were talking about the Los Angeles

0:26

Dodgers today. Because. It

0:28

struck me that everyone. Everyone

0:31

meaning fans of Baseball Writers and

0:33

Baseball have all of a sudden

0:35

started to reflect on the season.

0:38

And we're not even at the end of

0:40

April. But teams have played twenty four, twenty

0:42

five games. And. There's certain

0:44

teams that were expected to stink. And

0:46

do certain teams the were expected to stink

0:49

Who don't? Certain teams were expected to be

0:51

in the middle who are doing well are

0:53

doing badly. But. Every.

0:56

Article about the Dodgers has been focusing

0:58

on how great show hey are Tiny

1:00

has been. And. He

1:02

has been. Superb. The.

1:05

Top of the Dodgers line. The. Twenty

1:07

Seven Yankees Dodgers lineup the greatest

1:09

top three in the history of

1:12

lineups where they decided to go

1:14

bats. oh tiny and Freeman with

1:16

Will Smith in the clean. They'll

1:19

give you stats that movies batting three forty

1:22

seven and show he's batting three sixty four.

1:24

They'll give you the O P s over

1:26

a thousand for both of them. They'll.

1:28

Talk about. Historic.

1:31

Numbers are tiny, he's got all these extra

1:33

base hits and how great it is that

1:35

with all the distractions he's playing so well.

1:38

And. I'm not trying to york

1:40

on anyone's Oh Taniyama, But.

1:42

I am trying to say. That. In

1:44

baseball. We've. Learned over

1:46

and over again, Yet. People

1:48

forget over and over again.

1:51

That. One player. To.

1:53

Players or a big three

1:55

does not a champion make.

1:58

And. the dodgers are currently a great

2:00

example of that. They have

2:03

the 11th best record in Major League Baseball.

2:06

They're a team that has seven and nine in their

2:08

past 16 games. They started seven

2:10

and two, but they are now

2:12

two under over 16 games, which

2:14

coincidentally is 10% of a season. So

2:19

I ask you, what's the cause of that? It's

2:22

a pretty simple cause, the same thing that

2:25

if you were paying attention, you knew going into

2:27

the season, the Dodgers

2:29

pitching is mediocre. Now

2:32

we can get excited by watching Tyler Glass.

2:34

Now that's exciting. He's got great games when

2:36

he goes seven plus, he's got

2:38

an absolute life on his fastball,

2:41

he's got wipeout spin, everything's fantastic.

2:44

And then you realize you've got four other days, except

2:47

one of those days was gonna be surefire

2:49

rookie of the year, Yamamoto. Maybe

2:51

still surefire rookie of the year, but

2:54

not without struggles. And

2:57

then you look a little deeper at their pitching and

2:59

you realize they have eight

3:01

quality starts in their 25 games. Six

3:06

innings or more, three runs or fewer. Who's

3:09

got quality starts anymore? Nobody.

3:12

Well, that's not exactly true. When

3:14

you go look at the standings for teams

3:16

that have quality starts, you'd expect to see

3:19

the nationals at the bottom with four quality

3:21

starts. And you'd expect to

3:23

see teams at the top with

3:25

14 or 15 quality starts. Eight

3:29

is right in the middle, coincidentally

3:32

right where their record is. So

3:35

what do you do when you are running the team

3:38

where you expect going into

3:40

the season, your over under was 103 and a

3:42

half games. That

3:44

is a pipe dream right now. As a

3:46

matter of fact, you can bet if you

3:48

still are pro Dodgers, you can

3:51

bet right now that the Dodgers will win a

3:53

hundred games. And what is it, Coca? It's minus

3:55

one 10 to win a hundred that

3:57

they win a hundred or more games. It's

3:59

a. very, very small premium that

4:02

is required. In the beginning

4:04

of the season, when 103.5 is the market, to win 100, you're

4:08

giving back three and a half games, you are

4:10

gonna get paid. You

4:13

are gonna, for age 69, you are gonna have to

4:15

pay, is of course what I meant. So

4:19

what point during the season do you start

4:21

evaluating your team? I

4:24

don't know if we covered this in a mailbag recently,

4:27

or was it a regular episode? When

4:29

we talk about our own evaluation

4:31

of our team and how

4:33

we do it during the off season, then we

4:36

do it in spring training, and then

4:38

we do it during the course of the

4:40

season, and the best front offices are the

4:42

ones who can truly evaluate what their team

4:44

is, not what they thought it

4:46

would be. And we

4:48

talked about how it's the glass half full,

4:50

and right now if you're Andrew Friedman, I

4:52

think what he's doing, he's

4:56

looking at his team, and he's

4:58

saying, listen, we're in first place in a competitive vision,

5:02

our pitching's been only okay, our

5:04

offense has been exactly what we expected it to be,

5:07

I would expect that we will

5:10

have the season that we thought we would have. It's

5:13

April 24th, we're good. But

5:17

if you're really drilling down as an

5:19

executive, and if you're the best executive

5:21

in baseball, or one of the highest

5:23

paid executives in baseball, around

5:27

May 15th, and

5:29

this is why we fired a bunch of managers, not saying

5:31

I was the best executive in baseball by any stretch, but

5:33

this is when we started to think about, are we going

5:35

to replace the manager? Are we, did we

5:37

get it wrong? Did we get it right? Are we good? Are

5:39

we not good? You

5:41

look, we're about two and a half weeks away, three

5:44

weeks away, where the

5:46

Dodgers, if they are in this position three weeks

5:48

from now, a little bit over

5:50

500, fantastic offense, not

5:53

patting their lead in the very competitive

5:55

NL West. Do you

5:58

start thinking about either adding to your... team

6:00

or do you say this was our

6:03

plan where we'll get Ferris Bueller back.

6:05

Kershaw is going to be ready to

6:07

go sometime after the All-Star break. This

6:09

was we were we always knew we

6:11

just wanted to hang on in the

6:13

beginning and then we'll take off. The

6:18

best executives don't do that because

6:20

teams that you think are just going to

6:22

take off. They

6:24

don't flip the switch. They rarely

6:26

do take off and you can't

6:29

count on it. What

6:31

happens more often is that a team, much like

6:33

a child who's three years old, you say, oh,

6:35

he'll grow out of it. Oh, she won't be

6:37

that way when she's older. And then your kids

6:39

get older and realize, wow, they were just like

6:41

that when they were three. I don't know if

6:43

any of you have kids, but if you do, think about what

6:46

I'm saying and tell me if your experience is

6:48

the same where your kids' personalities come out when

6:51

they're young. And that's sort of what they are.

6:55

It's pretty much the same with baseball. Every

6:57

once in a while, something happens to your

6:59

child, an event, a moment, and maybe their

7:01

path changes, but generally not.

7:04

The same with teams. Generally, what

7:06

you are over the first month and a half, which

7:09

gets you to May 15th, that's who you're going to

7:11

be for the past and the next four and a

7:13

half months. Jason Stark calling

7:16

you out, Jason, you've got a great stat.

7:20

And I wish I had it exact, but you'll get the

7:22

gist. If you look

7:25

at the standings on Memorial Day, where when you're

7:27

working for a team or you're a fan of

7:29

a team, you say, oh, it's early, it's only

7:31

Memorial Day. We are right in this.

7:33

Everything's going to be great. The

7:36

general rule is I want to say, is it 70

7:38

percent, 75 percent? I'll

7:41

text you later and ask, oh, that's the look

7:43

at me, Louie. I will send an email or

7:45

a tweet and find out what the actual number

7:47

is. But the standings around Memorial Day are generally

7:49

the standings. But there's always

7:51

the team and you think you're going

7:53

to be that one where you're just going to turn it

7:55

on and you're going to take off and you're going to

7:57

win. I Don't think the Dodgers.

8:00

And the ability to do that. And.

8:02

If you know the you don't have the ability to

8:04

do it. Then. When you look

8:07

yourself may fifteenth, that's when you start

8:09

deciding that you are going to add.

8:12

So I have a few. Thoughts. For

8:15

the Dodgers, won. If they

8:17

continue where they are, Dave Roberts is gonna

8:19

be fine. But. It's a somehow

8:21

fall off get caught me by the diamond

8:23

backs, get caught by the Padres. Stay around

8:26

five hundred. As we get into the summer

8:28

months, there will be a ton of heat

8:30

on Dave Roberts and I don't think they

8:32

will make a managerial changes. Matter fact, they

8:34

will not. However,

8:37

If. The Dodgers have the ability to add and

8:40

that was always part of their budget. I

8:42

would expect the Dodgers to add earlier

8:44

rather than later. And. The reason

8:47

I would suggest that they add earlier

8:49

than they may have projected they needed

8:51

to, is it you want to get

8:53

the team in the mindset. The.

8:55

Crushing mindset. That.

8:57

They are gonna be the steamroller that they thought

8:59

they were going to beat. I don't think so,

9:01

but that many people thought they were going, it

9:03

beats and I assume their front office thought that.

9:06

And. If you're gonna be that steamroller,

9:09

you better start rolling soon. Really?

9:12

Soon if you want to have fun. Wait,

9:16

To see, let's do a Dodgers wait to

9:18

see we have one right now. We have

9:20

the under one of three and a half

9:22

before the season started. I like it. I

9:24

mean, I'd. Make. It even stronger. I.

9:27

Might you wait to see? The Dodgers

9:29

will not win one hundred games? They

9:31

simply do not have the staff to

9:33

win one hundred games. and by the

9:35

time they add it's it'll be like

9:37

Jim Lovell losing the moon. They will

9:39

lose the ability to win one hundred

9:41

games. So wait to see. We're. Going.

9:44

Under. A hundred for the Dodgers. I

9:49

don't need to do a wait to see about

9:51

the White Sox. I don't think aka. The.

9:54

White Sox are back in the news. They're back

9:56

in my mind because they're always on my mind.

9:59

Willie Nelson. The region they are is

10:01

are going for this new stadium. So.

10:03

Many we are in the. This.

10:05

Is a strange time. Unless

10:07

it's always this time. and I just didn't think

10:10

of it in these terms. So many teams in

10:12

so many sports are going for new ballparks. A

10:14

new stadiums, New arenas right now. The

10:17

White Sox. I think the Bears are about

10:19

to announce that their forget Arlington. I guess

10:21

they'll use that land for a parking lot

10:23

with it's. Joni. Mitchell Counting Crows. Or

10:25

maybe they'll sell it. or maybe they'll develop

10:27

pets. But it won't have anything to do

10:29

with and stadium because they're looking to build

10:31

on the Waterfront. Lot.

10:34

Of movie references Today I'm feel movie references

10:36

to that are know why? I guess it's

10:38

a regular Wednesday. And the

10:40

White Sox? you remember we're doing. That's

10:43

huge development on the South Loop. Well.

10:47

News came out. And there

10:49

was an article in Crane Chicago Business. And.

10:53

It's all about the financing

10:55

for this project. Jerry Reinsdorf,

10:57

whom pays attention to everything,

11:00

trust me. Must

11:02

have realized. And. Correctly

11:05

so that pushing through a stadium deal

11:07

is not simple. He may remember from

11:09

when he tried to get the current

11:11

ballpark built and the fact that he

11:13

had threatened to move to Tampa and

11:16

came right to the edge of moving

11:18

the White Sox. Their been rumblings of

11:20

Nashville when Reinsdorf met with the Mayor,

11:22

but that was never about relocation. It

11:25

was just a little bit about leverage. But.

11:28

Now when Reinsdorf is realizing that

11:30

it's good to be way harder

11:32

in today's climate than he expected.

11:35

Given. Field of Schemes and all the different.

11:37

Initiatives the don't pass in the the difficulty

11:39

in getting public money. He

11:42

is now quote up in his anti. With.

11:45

That means is that. He is

11:47

not going to ask for the

11:49

entire one point two five billion

11:52

dollars that's needed for a ballpark.

11:55

even though that's how it started. Us.

11:58

Twitter things cocoa whereas. How

12:01

it started. How's it going? I'm

12:03

picturing one with Reinsdorf in the White Sox.

12:05

Given the fact that I think their own

12:07

sixty right now, I don't think they've won

12:09

a game. And. I think they're forty

12:11

two games back in their division. I

12:14

think there are a lot to lose. One hundred and ten

12:16

games this year. Book. It right now

12:18

is verified of there's a market for that but if

12:20

there is. I. Be instant taking a look

12:22

at that for a pic of the day. But

12:26

A How we're doing, How are we doing?

12:29

Like. What it was like when the season

12:31

started. it's. I mean, I think

12:33

that he probably knew his team wasn't good

12:35

but didn't think it was this bad. It's

12:37

and he was sitting up and he was

12:39

in a sweet and getting all excited about

12:41

a new ballpark. and now how's it going?

12:44

sort of Second is dumb in the fetal

12:46

position in one corner off camera in an

12:48

owner sweet. Because it's impossible.

12:50

Some things to go worse for the

12:52

White Sox. Though.

12:54

It should be noted. Team performance

12:57

is not directly correlated to

12:59

public financing of a new

13:01

ballpark. It never has been.

13:05

As. A team We'd like to build a

13:07

winning team. So a crescendo was in

13:09

your first year. New ballparks that would

13:11

be amazing. Hard

13:13

to do but it would be amazing. But.

13:16

For the White Sox. What

13:22

I'm expecting from them. Is

13:24

that they had to do a little pure

13:27

wet. And so Jerry decided,

13:29

now's the time to do it. And.

13:31

The pure a wet was that now

13:33

he wanted it to get out there.

13:36

That Reinsdorf had mentioned quote a figure

13:38

of two hundred million or more in

13:40

terms of his contribution. Source

13:45

thinking about that number. A.

13:47

One point two billion dollar project.

13:50

If the team puts in two hundred million. That's.

13:54

Not even twenty percent. Twenty percent will

13:56

be two hundred and Forty million. That

13:59

would be. Common and Eighty

14:01

Three Seventeen Partnership. I'm

14:06

trying to remember the last eighty three seventy

14:08

partnerships you think the Marlins and when I

14:10

negotiated was back good we weren't close stated

14:12

three seventeen with what we had a put

14:15

into the ballpark feel. It's

14:18

on her dogs the Nationals when one hundred

14:20

zero Public's but that was then. that was

14:22

part of getting a team from Montreal into

14:24

Washington. Very, very difficult to

14:27

get numbers by fast. So.

14:29

Why would the White Sox? Waste.

14:32

A Pr moments. By.

14:34

Talking about their willingness to

14:36

invest their own funds into

14:38

the project. When.

14:41

Reinsdorf has said quotes he's

14:43

willing to open his wallet.

14:46

Yeah, ten a number gets floated

14:48

around two hundred million. That's.

14:52

Not gonna make any one in public

14:54

happy that slackness was any of the

14:56

taxpayers or any of the public officials.

14:59

They don't get cover from that number.

15:02

And when you're putting the stadium deal

15:04

together, it's all about cover. Your

15:07

all about providing cover to the

15:09

local politicians for participating in this

15:12

venture in order to get your

15:14

ballpark built. And

15:16

the need to give cover. Is

15:19

way more pronounced today than

15:21

it ever has been because

15:23

of ancillary developments. It

15:26

used to be that the cover was only

15:28

hey, they're keeping naming rights. Say they're keeping

15:30

concession. That's

15:33

child's play. Now.

15:36

Where. Teams want is the revenue from

15:38

the other development firm hotels from

15:41

the convention center, from the retails

15:43

from the housing. They want

15:45

to run that development, collect money for

15:47

that developments. Have that be off the

15:49

books. Not the finest books of the

15:51

company, but off the revenue sharing books.

15:54

Major League Baseball. They. Want to

15:56

be asked? The books? And. they want

15:58

to use that as part of their global

16:00

P&L as they

16:02

examine how high their payroll

16:04

can be. So I want to take a minute about

16:07

that because I've discussed this

16:09

concept before. And

16:11

I've discussed it in terms of franchises where

16:14

if you own 10 Chick-fil-A's and

16:17

one of them loses a ton of money, you're

16:19

not going to take money from the one that

16:21

makes a ton of money to support the one

16:23

that loses a ton of money. You would sooner

16:26

close the one that loses money and then have

16:28

nine Chick-fil-A's. The purpose

16:30

of a profitable franchise is to

16:32

profit. It's to get money distributed

16:34

to you. It's to increase the

16:37

value of your enterprise, not

16:39

to fund a

16:41

crappy Chick-fil-A. There

16:45

are examples where companies do that. And we told

16:47

you that was called a loss leader. So

16:49

that's when you start something that you know

16:51

is not going to be profitable, but it's

16:53

part of your expense because you're building your brand

16:55

or you want to be in a neighborhood, you

16:58

want to say thank you to somebody

17:00

or something that helps you throughout your career.

17:02

That's called a loss leader. In

17:05

baseball, when I tell you, and

17:08

we discussed this, here's what it is, Koka, with

17:10

Fenway Sports Group. Fenway

17:12

Sports Group isn't taking money from the penguins and

17:14

moving them to the Red Sox or money from

17:16

the Red Sox and moving them to Liverpool. Totally

17:19

separate entities that need to stand on

17:21

their own two feet. A

17:25

baseball team that is just a baseball team. Now,

17:27

Rhinestore phones the Bulls and the White Sox. He

17:30

also owns the new stadium network that he's trying to create

17:32

an RSN. You

17:36

can play around with numbers, play

17:38

around with right steals, where the

17:40

White Sox could have a lower right steal,

17:42

but still pass the smell test within baseball

17:46

because you're not allowed to have a right steal of

17:48

zero because right steals are

17:50

part of revenue sharing, but

17:52

you could have a below market right

17:54

steal that would pass the MLB smell

17:56

test that would buttress your RSN. network,

17:59

which is a business you're trying to

18:01

build and you want it to show

18:03

profitability. You could also go the other

18:05

way. And if you own a

18:08

network, you can pay a huge right

18:10

steal to the team, which you wouldn't,

18:12

but you could, so that your team

18:14

can have extra cash operating

18:16

income that can be used for

18:19

players or for whatever you want. What

18:22

I think Rhinestore's business play is, is

18:24

that he wants the White Sox to be able to

18:26

support a higher payroll by

18:29

itself. He wants

18:31

to take the development money and he wants

18:33

to feed a bit of it to the

18:36

White Sox as a little sort of training

18:38

wheels to get it going, but

18:40

it's really a larger family real

18:42

estate play than just moving the

18:44

White Sox payroll up. So

18:47

him getting this stadium deal in

18:50

his mind, and I'm

18:52

not pretending to read your Rhinestore's mind, but

18:54

as a business person, I can expect he's

18:57

a rational actor in the world of business.

19:00

He realizes that instead of funding

19:02

a White Sox

19:04

payroll with capital from other

19:06

businesses or with capital from

19:08

his net worth or with

19:11

capital that he borrows, he

19:14

may be willing to fund the

19:16

White Sox with capital generated from

19:18

quote, White Sox related business. And

19:22

the ancillary development for

19:24

these ballparks, that's

19:26

now called ancillary revenue.

19:30

Look at what Ted Leonis is trying to do in Washington

19:32

with the deal he cut in DC. He wants

19:35

to do a whole big development that

19:37

will help the caps, the caps, the

19:39

capitals and the wizards. I

19:42

was about to say when I said caps, my

19:44

head, Coco, you can edit that out, but I

19:47

stumbled because they used to be the bullets. And

19:49

when I said caps, I was thinking bullets, and

19:51

they have not been, people may not remember this,

19:53

they used to be called the Wizards with the

19:55

Washington Bullets back with the big E and West

19:57

Unsell those teams. So

20:01

the way this White Sox situation ends,

20:03

and every time they lose a game, I think

20:05

they lost last night, they were up 5-2 in

20:08

the 8th, their bullpen blew it to the Twins,

20:11

they're actually 3-20, Coke is telling me, not

20:13

0-60. All right, I got

20:15

that wrong. The Chicago White Sox,

20:17

at 3-20, have been shut out

20:19

a record 8 times in their

20:21

first 23 games, and

20:24

it will have 0 to do with whether or

20:27

not $200 million is enough to get a new

20:29

ballpark done for the Chicago White Sox. We're going

20:32

to have a lot more out of Chicago, I'm

20:34

sure, Bears, White Sox. It's

20:37

all about TV

20:40

money. Let me

20:42

do that transition. Let me do it totally better. The

20:45

White Sox, not 0 and 60,

20:48

3 and 20 to start the season, shut out

20:50

8 times in 23 games. We're going to hear

20:52

a lot more about the White Sox as they

20:54

continue their drive to get a new ballpark. TV

21:00

rights are an important part of

21:02

every baseball team's P&L.

21:05

One of the great disruptions that's happening is

21:07

with the RSN bankruptcy, try to figure out

21:09

what your TV revenue is going to be.

21:12

You've got baseball doing the games.

21:14

MLB took over production for Diamondbacks

21:17

and Rockies and Padres. As

21:20

you can see, not correlated to excitement

21:22

or performance on the field. It's all

21:24

about the number of subscribers in a

21:26

particular demographic. It's all about carriage rights.

21:29

It's all about people paying for something they

21:31

don't want and holding on to that really

21:34

antiquated notion of how people are going to

21:37

act. We

21:40

spent quite a bit of time talking

21:42

about the NBA and their upcoming right

21:44

steal. Well, we have an update. The

21:47

Wall Street Journal reported that

21:49

there is a formal right

21:52

to match In

21:54

the NBA Media Rights deals that

21:56

it currently has with ESPN and

21:58

Warner Discovery, TNT. For.

22:00

Purposes of this segment it will be

22:02

yes P N N Dmt. Because

22:05

I could say Disney but I'm saying yes be

22:07

anti anti. A

22:10

right to match. One.

22:13

Piece of advice to the nothing

22:15

personal audience. When. You

22:17

are negotiating a contract. When.

22:20

You are selling something. The.

22:23

Right to match. As.

22:26

Nothing but a flashing impact on the

22:28

value of the product you are trying

22:30

to sell. What?

22:33

A right to match means. Is. That

22:35

the N B A can do a deal with

22:37

Apple. Just.

22:40

For streaming games. on a

22:42

Tuesday night. They.

22:45

Can get right down to it, ready

22:47

to sign? And when

22:49

you have granted a right to match to

22:51

you are previously contract id. Partner.

22:54

Which. The and be A D D S P N

22:57

N Dmt. What? That means

22:59

is before you executed deal with a

23:01

third parties you have to go back

23:03

to the first party and say okay.

23:06

This is the deal we have with Apple. You.

23:09

Can match. The.

23:11

Are so many lawsuits and arbitrations

23:14

that happen from these provisions? Because.

23:17

If you're a smart company, you negotiate

23:19

a deal with Apple that E S

23:21

P N N T N T I'm

23:23

not match and I don't me because

23:25

the values too much because Apple provide

23:27

something to you that they can A

23:29

massive for example, Apple could give the

23:31

N B a messy like deal. Where.

23:33

It the N B A gets a percentage. Of

23:36

the new subscription revenue to Apple Tv

23:39

because Apple Tv is gonna have an

23:41

M B A package. And.

23:43

Then the mph you go to court and say

23:45

hey. E S P N

23:47

had the right to match, but they

23:49

couldn't match because they don't have the

23:52

ability. There's no subscription revenue that they

23:54

could do with that they could offer.

23:57

Now of course E S P N could offer present

23:59

as be a spam. Last, but it would not be

24:01

a true match. Turner. I've whatever

24:03

their streaming network Gays which escapes me right

24:05

now because they do have one. I

24:08

can you imagine the mental block I'm

24:10

having a to twenty four in Paris

24:12

right now doing a show with you.

24:15

Max. Thank you. But

24:18

it's it's bogus. Apple

24:21

has a far greater pot with which

24:23

to deal from. So

24:25

one way to these go to court is

24:27

when. The. Team

24:29

or the league or the party the

24:32

granted the right to match. Believes.

24:35

That they've given the company the right

24:37

to match in. that company has done

24:39

it. But the company responds with. You.

24:41

Did not give us a deal that

24:44

was match or both. Same cause of

24:46

action because we would match any deal

24:48

that were able to match. Because if

24:50

you're just talking about money where the

24:52

rights fees are one billion versus one

24:55

point five billion in a straight right

24:57

steal, that's very easy. So.

25:00

When you're negotiating, You

25:02

make it as complicated as possible through the

25:04

and be a to make it is difficult

25:06

as possible if you're looking. To

25:08

do a deal with someone other than E S

25:10

P N N Dmt. And

25:13

all indicators say that the M B A. Just

25:15

wants to do a deal the way they've done with

25:17

the S P N N Dmt which I think his

25:20

mistake but. The.

25:23

Other reason than a right to match is not

25:25

a good thing to ever give. Is

25:30

that when you are signing the contract.

25:34

And. You know that you have the ability to

25:36

have something. Like. E S P N. Has.

25:41

The right. Sit. And be a gives. The.

25:45

Right to match. Is.

25:47

Something that they're willing to pay

25:49

for. So.

25:51

You have to pay more money. In.

25:54

Order to get this right to match because

25:56

it's so powerful. But. the

25:58

money that you pay as is

26:01

always under the

26:03

total value of that which is being sold. So

26:07

if the NBA did not have a right to

26:09

match, in theory, they

26:11

could go out to Apple, they could go

26:13

to Peacock, they could go to Sky Sport,

26:16

they could go anywhere and cut a

26:18

deal, and they would get

26:20

a competitive offer from those companies

26:22

to air NBA games. But

26:25

what incentive does Apple have, and we

26:27

keep using Apple, to sit down and

26:30

negotiate the best possible deal for themselves

26:33

or the best possible deal for the NBA, when

26:35

they know they're gonna waste all this lawyer money,

26:37

they're gonna waste all these hours and meetings, and

26:39

then the NBA just picks up the deal and

26:41

brings it to ESPN and says, match it, ESPN

26:43

says, fine, thanks for doing the work. We'll just

26:45

sign our name to that. Do

26:49

you remember the days, are those

26:51

days over, Coca, of the matching

26:53

offers with NBA free agents? I

26:56

haven't read about that recently. I would assume

26:59

those days are over, where if you offered a

27:01

guy a 20 million

27:03

three year deal, but the

27:07

team that offers the free agent 20

27:09

million over three years, the original team

27:11

has the right to match it, and

27:14

it's very simple in that regard.

27:16

You take your player contract, it has

27:18

the term and the total compensation, and

27:21

what's blank is the team. So

27:24

if the Brooklyn Nets

27:26

sign a free agent for 20 million over three,

27:28

but the New York Knicks have a right to

27:30

offer, the New York Knicks sign them for 20

27:32

over three. The reason

27:34

why that's bad for free agents is

27:37

that getting the Nets to offer 20

27:39

over three, it's

27:42

a waste for them because they know that it's just gonna

27:44

get matched. If there's no

27:46

right to match, then you can go out

27:48

and say, listen, I want 40 over

27:50

three, I want 45 over three. A

27:53

baseball that was never a restricted

27:55

free agency is in the NBA, Coca that

27:58

is correct. It

28:00

used to be called the right to match. It was matching.

28:03

Somebody will tell me in the chat whether or not that's still happening,

28:06

no I'm not looking at the chat. But

28:08

when you're going out with players, players

28:13

in baseball, with

28:15

their agents, have the right to

28:18

tell you that they've got five offers from five

28:20

teams and that the offers they have are $100

28:22

million, $120 million, and what they'll say to you,

28:26

and I've had agents say this to me, hey

28:28

David, we'll always give you the right to

28:30

match. But it's not contractually obligated,

28:33

and you don't know if they're telling the

28:35

truth. In a real right

28:37

to match, you present a formal offer

28:40

to the team that had that

28:42

right to match. So

28:45

it's gonna be fascinating to see what will

28:47

happen here going forward. But

28:49

my guess is that

28:51

the NBA is going to re-up

28:54

with ESPN and TNT, and

28:56

I also believe that

28:59

all the talk of me telling you about

29:01

the WNBA, every

29:03

day it's a new article. More

29:06

teams have sold out season tickets. Teams

29:09

are moving their Indiana Fever games to bigger venues.

29:12

It used to be just one now. Several of

29:14

the Indiana Fever road games are being played in

29:16

larger venues than where the actual home team would

29:18

normally play. Kaitlyn Clark

29:20

signs a $28 million eight year Nike deal. Greatest,

29:24

I think it's the highest deal for

29:26

an WNBA player. Everything

29:29

indicates the moment

29:31

that we've described for the WNBA and

29:33

for women's sports. I'm in,

29:36

but I told you, please take a look at

29:38

the TV deal. Because

29:40

when you've got the commissioner who's telling

29:42

you, and I'm talking about Kathy, not Adam, the

29:44

commissioner of the WNBA saying, I think that

29:46

our rights fees will at least double. I

29:49

love where we are as we negotiate a

29:51

deal because their deal's running out because they're

29:53

a part of the NBA deal. I

29:57

don't think that's gonna change. I think

29:59

the network's... Now are going to do a

30:01

deal with the N B A. There will

30:03

be more money allocated in that the old

30:05

to the W M B A to will

30:07

keep the dream going that the W M

30:10

B A is flourishing. See a franchise values

30:12

continue go up, See if revenues continue to

30:14

go up. But I. Don't

30:16

think there's any more in the industry who

30:18

thinks that the W M B A is

30:20

ready to do a standalone broadcast deal at

30:22

a number that would match what the and

30:24

Be A would allocate to them as part

30:26

of their large overall deal. And.

30:29

If I'm Adam Silver, I am paying

30:31

close attention because where I'm negotiating with

30:33

the Spl Tnt, I always keep in

30:35

mind a pegged number for the W

30:38

N B A. That. Would be

30:40

one of those early negotiating points. Hey listen

30:42

they were sixty million last the of gonna

30:44

move into one hundred million. So just now

30:46

whatever we come up with hundred million dollars

30:49

for years been our kids and be a

30:51

Now let's negotiate what we're doing in the

30:53

and be a and what package you are

30:55

going to get the rights to. That's.

30:58

My guess how it's going and obviously

31:00

it's an easy thing to wait to

31:02

see because they'll be an announcement. When.

31:04

These deals get re ups. Or

31:09

when. We come back organ or of you're

31:11

moving. I have a story about this movie and

31:14

then we're gonna give you a i tell you

31:16

something that happened with the Ftc which three letters

31:18

that my guess is you don't think about a

31:20

lot. And what they did

31:22

yesterday. Will. Impact every business,

31:24

not just the sports business.

31:27

Will. Be right back. For.

31:31

The ones who work hard to ensure their crew

31:33

can always go the extra mile. And. The

31:35

ones who get an early. So everyone can go

31:37

home on time. There's. Greens are. Offering.

31:40

Professional grade supplies backed by product experts

31:42

so you can quickly and easily find

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31:46

can count on access to a committed team

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ready to go the extra mile for you.

31:51

Call Could granger.com for just stop by. Granger.

31:54

For. The ones. who get it done Welcome

32:04

back to Nothing Personal. It's David Sampson

32:06

live from Paris, coming

32:08

to you every day, 8 a.m. Eastern.

32:11

We are live tomorrow as well. Friday, we'll have a

32:13

mailbag, and then we're back on U.S.

32:15

soil on Monday. Looking

32:18

forward to our last live show Monday

32:20

night, Nothing Personal Live with David Sampson at

32:22

City Winery in New York City. Please

32:25

go to davidsampsonpodcast.com. There are

32:27

still tickets available. It

32:29

is selling out though, so it

32:31

looks like I got some notification from

32:33

City Winery, Coca, that tickets are low

32:36

and meet and greets are high. So we're going to

32:38

be very busy. Sarah, Matthew, and I

32:41

will be there with all of you on Monday

32:43

night. Thank

32:45

you for continuing to spread the word about

32:47

Nothing Personal. You may think it doesn't matter,

32:49

but it really does. As

32:51

exhibited with the numbers, the popularity, we're

32:53

on the DraftKings Network every day, 10

32:55

a.m. Inings Eater.

32:59

Love you, Bimo. Watch

33:01

a movie every day. So

33:04

I have my story of my movie yesterday. You'd

33:06

think that when I'm traveling, I wouldn't watch a movie, but of

33:09

course I do every single day. There

33:11

are rules that I'm not familiar with and

33:13

that bother me because

33:15

I don't have, is it

33:17

Sling? Whatever I have is

33:20

not what I want because when I open the

33:22

iPad and I'm ready to watch content for my

33:24

movie of the day, middle of the night or

33:26

whatever time of day it is, because when you're

33:28

in Europe, your body gets as screwed up as

33:31

possible. My body

33:33

is to begin with. Some

33:35

of the streaming services, they don't work. Some

33:37

of them have different things available and God

33:40

knows you're on the hotel wifi. They know

33:42

exactly where you are. I'm

33:45

not sure that Amazon

33:47

knew the segment we did in

33:49

yesterday's Nothing Personal about Robert Kraft.

33:52

I'm not sure at all. I am

33:54

sure that Amazon knew that I was in

33:57

France. So I turn

33:59

on Amazon Prime. I'm looking to watch a movie

34:01

today. The first movie

34:03

suggested for you a

34:06

movie called Kiss Me kosher. Do

34:09

they know I'm Jewish? Do they

34:11

know that I just talked about the

34:14

war in Gaza and what's

34:16

going on in college campuses? How

34:19

did they give me that

34:21

movie that I'd never heard of before?

34:24

It's a 96 minute movie or 100 minute movie about

34:28

a woman who, Jewish woman, Israeli

34:32

woman, who falls in love with

34:34

a German woman. And

34:37

it's about her grandmother who

34:39

may or may not fall in love with

34:41

a Palestinian man. And

34:44

her grandmother, among other people in

34:46

the family, are not too thrilled that the

34:48

daughter were past them not being

34:50

thrilled when someone's gay or lesbian. Thank God

34:52

we're past that. But we're still

34:54

very much in the era where, hey,

34:56

you've got to marry of your kind.

34:58

You must marry a Jewish person. You

35:01

cannot be with a German because all Germans

35:04

are Nazis. And

35:06

you can't be with a Palestinian because

35:08

Israelis and Palestinians can't be together. So

35:10

this family is going through

35:13

a grandmother and a granddaughter as

35:15

they figure out

35:17

where they stand, what

35:19

barriers they're willing to climb over

35:21

and whether or not it could really break up a

35:24

family. It's

35:26

got a bit of a happy ending. However,

35:29

the reason why I suggest that you see Kiss Me kosher,

35:31

and it's a movie you've not heard of, is

35:34

that I love tolerance

35:37

and I love live and let live. I

35:42

guess if anyone asks you about me, like

35:45

what does he stand for? What's the number

35:47

one thing that David Samson stands for? Many

35:49

of you would say capitalism, you'd

35:51

be wrong, though that is on the

35:54

podium. But in

35:56

the pole position, the gold medal position

35:58

is live and live. and

36:00

let live. There are two parts

36:02

to that. There is a

36:05

no comma. You have to

36:07

both, it's not or, it's and. And

36:10

means both sides have to happen. Or is just one

36:12

of the two sides. A

36:14

quick and or discussion. Live and

36:17

let live. Because if you don't let

36:20

live, then you can't live. Kiss

36:23

me kosher. Nothing

36:27

personal pick of the day. We

36:30

swept yesterday. Two

36:33

wins. Are you loving

36:35

folks? Are you loving the Patrick Corbin

36:37

bet that we have throughout the season?

36:40

The Dodgers beat Patrick Corbin. Now of course you're going

36:42

to tell me Corbin had a great start. Don't care.

36:46

The Nationals lost. When

36:48

Corbin pitches, we're going to keep going against

36:50

the Nationals every single day. And

36:52

then we'll do a review. Coco, can you keep track of this?

36:55

Or Sarah, can somebody keep track of this? It's

36:57

so amazing to have the ability

36:59

to do an and or in

37:01

that situation. Hey Coco or Sarah, could you

37:03

keep track of Patrick Corbin's starts that we've

37:06

done as our pick of the day? I

37:08

think we've done everyone so far. And then

37:10

keep track of what our record is with

37:12

Patrick Corbin's starts. I

37:14

don't want to say anything because my

37:17

ear is silent right now. I think

37:19

we're undefeated this year and

37:21

we will keep going. We

37:24

also had the Mavs over the Clippers. Something

37:27

happened there. What happened with that line

37:30

when we did the show was Mavs two and a half

37:32

over the Clippers. And I saw on the

37:36

web worldwide today

37:39

that the game ended at Clippers minus

37:41

a half. Ah, Kawhi Leonard played. That's

37:43

what it was. Well

37:46

guess what? Mavs won by three. Which

37:48

means if you took the Mavs when we told you to take

37:50

the Mavs, they still covered. The Mavs tied

37:52

that series. It's interesting the clips

37:54

won without Kawhi and lost with Kawhi. It's

37:58

basketball. It's playoffs. What

38:02

do we got today? Two

38:04

picks for you today. We're back

38:06

in the NBA. We've got

38:08

the Celtics as huge

38:10

favorites over the Heat. I

38:13

would not touch that game because the Celtics could win by

38:15

30, they could win by 10, they could win by 5,

38:19

or the Heat could somehow rebound the win. Unlikely,

38:21

but Sposter has done it before, the Heat have done it before.

38:24

No Jimmy, no problem. We're going to leave that

38:27

game be. We're going to focus on

38:29

the Thunder and what happened to them with the Pelicans,

38:31

where they did not, they won the game, but

38:34

it was a hotly contested game. Today

38:36

they're giving a touchdown and a half,

38:39

and we're going to take the Thunder. I think

38:41

they will take a comfortable two games to zero

38:43

lead by winning game two by more than 7.5.

38:46

OKC 7.5 over the Pelicans. In

38:51

baseball, I am going

38:53

to – this is like my Oakland A's moment

38:56

with them and the Vegas deal

38:58

and how totally screwed up that is. I

39:00

am having an Astros moment. Now I

39:02

do have the Mariners going to the World Series and winning,

39:05

but I did not have the Astros in last

39:07

place this far into the season. Is

39:10

Joey Espada at risk? No,

39:14

he's not. But man, the

39:16

Dodgers pitching – the Dodgers, 4-8-6-9.

39:20

The Astros pitching injuries have

39:22

been crushing. The Outtoube's

39:25

having a fantastic offensive season. Bregman's

39:27

a pending free agent. I'm not sure whether he's hit

39:30

his first home run yet, but at the end of

39:32

the day, the Astros are in last place. And it's

39:34

still early, but as we get

39:36

into May, that's when the

39:38

early part of the season gets late,

39:41

and you start getting into mid-season, and

39:43

you don't want to be in that mid-season position.

39:46

The Astros are playing the Cubs. They've

39:49

got Jameson

39:51

Taillon pitching.

39:56

I've got to think the Astros – it's

39:58

time. It's time. The

40:00

Astros are only giving 105. It's hard to ever

40:02

get the Astros giving 105. The

40:05

Cubs are playing well, no doubt, but

40:07

we're taking the Astros. It's basically a

40:09

pick-em-game. OKC 7.5 over the Pels, Astros

40:11

105 over the Cubs. When

40:20

you sign a contract with a company, how

40:23

many of you have had to sign a non-compete

40:25

clause? How many

40:27

of you have been in a company where your contract

40:29

says if you leave this company, you may not work

40:31

in this industry for 120 days? Well,

40:35

if you're in baseball, or you're in

40:37

fashion, or you're on Wall Street, or you're

40:39

in one of a gazillion

40:41

different companies, you

40:44

are subject to a non-compete clause. Non-compete

40:48

clauses are very

40:50

anti-labor and very

40:53

pro-management. Yesterday,

40:55

in what I consider to be one

40:57

of the biggest business stories of the

40:59

year, the

41:01

Federal Trade Commission banned

41:03

non-compete clauses. I

41:06

wanna make sure that marinated with all of you. The

41:09

FTC has the right, in a three to two

41:11

vote, but it doesn't matter, they

41:14

have the right to

41:16

say that in Major League Baseball,

41:19

that when you sign an assistant general

41:21

manager to your club and

41:23

give them a long-term deal, you

41:26

are not allowed to ask for, nor

41:29

agree to a non-compete clause,

41:31

which means that that assistant

41:33

GM, who you think

41:35

you've signed to a three-year deal, can quit

41:38

and take a job with someone else. Permission,

41:40

who needs it? You can do whatever you want, whenever

41:42

you want to. I'm

41:44

Morgan Stanley, see you later, head into Goldman.

41:48

I'm at Gucci, see you later, I'm

41:50

going to Louis. What

41:53

the FTC is saying by banning non-compete

41:55

clauses is that there's been a quashing

41:57

impact on individuals starting their own business.

42:00

own business or individuals having the

42:02

ability to move to other companies

42:05

within the same industry. And

42:07

they view that as having a

42:09

negative impact on salary, a negative

42:12

impact on innovation, a negative impact

42:14

on healthcare costs. Because

42:17

all these people leave companies and have to sit on

42:19

the sidelines for 120 days and

42:21

stay on Cobra, as opposed

42:23

to getting a job at a competitor and then

42:26

getting on their insurance plans. And if they somehow

42:28

calculate the FTC, it'll be $180 billion in healthcare

42:30

savings. The

42:34

FTC's view is that non-compete clauses

42:37

keep wages low, suppress new ideas,

42:39

and rob the American economy of

42:41

dynamism, dynamism, dynamism,

42:45

including from the more than 8,500 new

42:48

startups, and I'm quoting the FTC chair,

42:50

that would be created a year once

42:53

non-competes are banned. You

42:57

know how much we used to talk about this

43:00

within baseball and how

43:02

hard baseball fought to have this

43:04

ban not happen. And it's

43:06

not because they're the big bad league. It's

43:08

because it's really hard

43:11

when you are building a front office that

43:14

you have no way to keep that

43:17

front office intact. When

43:20

you give money, when you give

43:23

security, you want loyalty. Non-compete

43:26

clauses are meant as belt and suspenders to

43:29

the loyalty that you give with a long-term

43:31

deal. I

43:34

raised my hand in a committee meeting when

43:36

I was in Major League Baseball and

43:39

I said, if non-compete clauses

43:41

ever get banned, I

43:44

would suggest that we eliminate all

43:47

long-term contracts. Have

43:50

everybody with a one-year

43:52

deal. Owners stood

43:54

up and said, no, we don't like that because

43:56

we like the idea of the

43:58

rebuild. of

44:01

having a GM who is not solely

44:03

focused on one year, or an AGM,

44:05

or a cross checker. We like the

44:07

idea of a long-term vision because in

44:12

theory, you make better decisions when you're not

44:14

worried for your job, or

44:17

worried about what your next job will be, to

44:20

which I stood up and I said, but hold on. It

44:25

is in the best interest of an employee at all

44:27

times to act in

44:29

the employee's best interest. The

44:32

existence of a non-compete clause does not all

44:34

of a sudden make an employee raise

44:37

his hand in solidarity with the team

44:39

for which he works. There

44:42

are executives, there are scouts,

44:44

there are coaches who

44:46

go out and get offers from other

44:48

teams when they're on long-term deals for

44:51

the purpose of renegotiating. Or

44:53

when they're on one-year deals, they go out and

44:55

get offers and then take it back, the

44:58

whole right to match thing that's not an official right

45:00

to match in these baseball contracts, but yet you bring

45:02

it to your GM and say, hey, listen, the

45:05

Astros want me, keep me, I'll

45:07

take 10 grand less if you keep me. How

45:09

many people said that to me? The

45:12

minute you tell your employer that you'll take

45:14

10 grand less than your offer because you

45:16

love it so much here, your

45:18

employer knows that you're full of crap.

45:22

Oh, I only wanna wear Astros polos.

45:25

I don't wanna be a scout

45:27

for the Diamondbacks. It's

45:29

preposterous because employees

45:31

act within their own self-interest. As they

45:33

should, I do. I'm

45:36

not criticizing that in the

45:38

least. The

45:41

ramification of this FTC ban,

45:44

you're not gonna feel it today, but

45:47

you are gonna feel it when senior executives

45:49

no longer have non-competes where you could have

45:51

a senior executive. If you are, here's a

45:53

great example, I'm gonna

45:56

be very careful who I let into meetings

45:58

if I'm working at Coca-Cola. Because

46:00

now my top executives, they can go work

46:02

for Pepsi tomorrow. They

46:04

don't have to take a year off, 120 days off, two

46:06

years off. They

46:09

can start their own beverage company. I

46:12

have to think long and hard. Think

46:14

about scientists. Coco was talking to me

46:16

about this pre-show and he's so right.

46:18

The people who are developing these new

46:20

sports strengths, they're using the money

46:23

from a company. That's the purpose of a

46:25

non-compete, that when you're investing in R&D with

46:27

your employees in a product,

46:29

you want that product to be yours.

46:33

There's non-compete clauses in the deals that

46:35

we do in media. We

46:39

cannot do a sports... I'm

46:42

going to raise my hand here, Coco, and I'm going to

46:44

open the kimono. I

46:46

can't do another sports business

46:48

podcast for another or baseball

46:50

podcast for another platform other

46:52

than Metal Arc Media. Guess

46:54

what? Not anymore.

46:57

Are you listening? Of

47:01

course, that's not exactly true because the current non-competes

47:03

will stay in place for now. And

47:05

by the time I deal with Metal Arc is up,

47:07

which is soon, that ends. But

47:10

the next deal, every

47:12

podcaster who does a deal with

47:15

any platform, the non-compete clauses are

47:17

gone. And do I think

47:19

that I'm now worth more because of that? I

47:22

don't because I get paid

47:24

for giving my loyalty

47:26

to a company. And

47:29

I promise I won't compete with you.

47:31

I will do everything for you. I

47:34

will develop this power drink. I

47:36

will develop this financial derivative. I

47:38

will develop this scouting technology and

47:40

it will be to your benefit. And

47:43

I'm not allowed to take it anywhere

47:45

else. It's

47:48

over now. The

47:51

FTC is making news

47:53

today. I don't know if it's going to get attention

47:55

on other shows. I think it should, but

47:58

it may not. I don't think people... quite understand

48:00

the significance of it, but

48:03

they will. We've

48:06

learned a couple of things today when you're a worker

48:09

about rights to match, about

48:11

non-compete clauses, about when you're pretending

48:13

you're going to get more than you're actually getting.

48:16

That's it on the FTC, Koka. I'm

48:22

going to end today's show with

48:24

a quick update on

48:26

the Utah hockey team. And

48:29

the reason I want to spend a couple of minutes on

48:31

this is because Ryan Smith is a very out there owner.

48:33

He went on the Pat Mackenzie show and

48:36

he is confident that the NHL team is going to be

48:38

a success. He's all excited about, he's

48:40

got 27,000 season ticket deposits. And

48:45

he had a great quote and

48:47

his quote was about starting a team.

48:51

We're not going to be perfect. There's

48:54

no way we can be perfect, but

48:56

we're ready to go. When

49:00

you are starting a franchise or when you become

49:02

a new owner, I

49:04

want to compliment Ryan Smith. How

49:07

many new owners buy a team the way Smith bought the

49:09

Diamondbacks and moved them to Utah? How

49:11

many new owners, Derek, come

49:14

in and say, forget

49:16

what they did. It all starts now.

49:19

We had to dig ourselves out

49:21

of the biggest hole, which would explain our

49:23

lack of performance, but

49:25

we know how to do it and we're going to do

49:28

it. Believe me. Ryan

49:31

Smith is telling people in Utah, Hey,

49:34

listen, I'm new at this. I'm

49:36

a new owner. We have to put an entire

49:38

structure in place. We have to do an entire

49:40

front office. We're going to try to figure it

49:42

out as best we can, but

49:44

please manage your expectations.

49:47

Now, I don't know whether he meant manage your

49:49

expectations on the ice, whether he meant manage it.

49:52

If we don't return your call and you want

49:54

to be a corporate sponsor, I'm not exactly sure

49:56

which expectations need or want to be managed, but

49:58

what I am sure about. is

50:00

that Ryan Smith is on the right

50:02

track. And I'm super excited

50:05

to watch him build his franchise and

50:07

root for him, lest you think that

50:09

I'm always against owners or always against

50:11

players. There are people who actually

50:13

understand that it's nothing

50:16

personal. It

50:26

may sound dull. Maybe

50:29

even Menendez. But

50:31

this is what miracles sound like. This

50:34

is the sound of a child's surgery being

50:36

performed by a robot. Our

50:39

personalized care leads to miraculous things.

50:44

Like innovative procedures with less pain

50:47

and faster recovery. Children's

50:50

Hospital Colorado. Here, it's

50:52

different.