Football Club, Football, Barry Ritholtz discussed on Masters in Business
C. Now the news Hurricane Zaius is turning toward the East coast of Florida correspondent Brian Noble says Hurricane warnings are up in South Florida, and plans are being made for storm shelters under normal circumstances, Hurricane he say's. That would be a huge issue for the state to deal with the governor already declaring a state of emergency, But when you take into the context Of dealing with this pandemic. It becomes a major problem. Florida today recorded an all time high and its daily death toll from Corona virus for the fourth straight day. Alaska State police say seven people, including a state lawmaker, have died in a mid air collision of two small planes in the southern part of the state. The Supreme Court is giving a green light to President Trump's decision. To use funds that were allocated for the military on border wall construction. The 5 to 4 vote rejected a lower court ruling that the administration diverted the money improperly. Johnson Oh, and I'm Charlie Pellet app. Limburg World Hank Waters Update for the U. S stock market. Ah, winning week as well. Stocks extended their July rally amid a surgeon tech shares and on used the White House and Democrats are planning to meet tomorrow to discuss the next virus relief package at Mills is a policy analyst at Raymond James. And he's optimistic about getting a stimulus deal done. There's a lot of negotiations tohave, but the longer we go past July 31st Incoming with the ability for members of Congress to go home to go to the national conventions sooner rather than later. That is usually the recipe that gets a deal done here in D, C and a D. A. Davidson senior research analyst Tom Forte says You cannot underestimate the importance of stimulus on tech companies. So I would argue the sequel cares Act is the most important data point. Your technology stocks, so 600 a week and incremental unemployment benefits. The University of Chicago studies suggested that 68% of those unemployed we're actually making more money, while unemployed of 600 a week becomes 200 a week. That is a huge difference, and I do think a number of companies have suggested that stimulus is having a benefit on results. Well, one of the ongoing concerns for technology investors has been regulatory risk. Dan Ives is an equity research analyst at Wedbush Securities. For now, we think unless there's a legislative fix it, it's most likely finds rather than a A break up our business model tweak this will gain momentum into fall. But for right now, in terms of in from an investor perspective, the streets unit more background noise and right now that they're just these numbers, I think that to contain risk, the S and P 500 index was up 25 points of 8/10 of 1%. The Dow up 115 up 4/10. NASDAQ up 1.5%. Global news 24 hours a day on air end on Bloomberg. Quick, Take Powered by more than 2700 journalists and analysts and more than 120 countries. I'm Charlie Pellet. This is Bloomberg. I'm Barry Ritholtz. You're listening to masters in business on Bloomberg Radio. My extra special guest this week is Simon Hallet. He is the co CEO of Harding Love dinner, which manages about $73 billion. He is also the majority owner of the Plymouth Argyle. Football Club. Which raises the question. Why buy a soccer team? Is this an investment or a labor of love? It's certainly not an investment Barry or if it is, it's the worst one I've ever made. It's not just any football club. This is the football crowd that I support. It is kid. I first stood on the terrorist is in 1966 when I had my family moved to Plymouth. So this is the team that I've been a Faneuil's most of my life. 54 years. So it's a labor of love on it's really a little bit of giving back to the community and the role of a football club in Local communities is probably great. Four teams in America that deeply embedded they have a long history. We have a community trust, which is very active, doing work on. It's important to make the saga. The vehicle for me to get back between them, which I was right. And, frankly, the community that Hey, it's my education. You know, I've turned my education into a successful business. But I've read the rewards off on the ratepayers of Plymouth paid to my hostel education and for my university education, so A way of giving back and I should say that I don't like the idea that successful entrepreneurs who make a portion should get back then you should've done it by selling prices that people want to pay. It seems crazy to me that people say that gate you get back when you think for the boot that his product has done in the world. So should be a voluntary act. But for me, you know, I generated a return on the investment between ratepayers. The taxpayers of Clement Faith. Mate on DH. I think some payback is appropriate. But it's also a happy coincidence that it's also my boy. It's been great fun. So in the U. S. There were complaints that you know the perennial favorites for a long time. The Dallas Cowboys and football, the New York Yankees and baseball. It was the teams that spent the most money and even with the salary cap The big market teams had an advantage because they could attract players that potentially would earn all these marketing on and advertising endorsements. You're more likely to get that in New York or l a. Then you want. Let's say Cleveland. How important is finances Tio? The success of a team and is there any limitation on what the teams Khun spends other than how much their owners are willing to write checks for? There are limitations, but they can be got around by owners willing to write checks. So we have financial fairplay rules, but they're not terribly effectively enforced on DH financial Pridgen ity of clubs in the lower divisions is quite a feature of the last 20 years, Many have gone bankrupt. Including my 11 years ago almost went went out of business. So it's a very interesting question about the role money in just fester on here, where it's like investing. No. I mentioned that there's a lot of finance that's relevant to managing a football club in particular. When it comes to getting players. So what's clear on this sounds obvious, but it's not immediately obvious because football is a game like investing where short term outcomes of results A combination of luck and skill But it's pretty clear that over a long, long period, skilled dominate luck and the most skillful plans generate the best results. Also reasonably efficient market on the most powerful players tend to cost the most but It's not at the edge. It's completely inefficient Market and there are all sorts of things that you'd recognise from the field of behavioral finance, where people make errors in over Overpaying for plans. So people associate with players is recklessness. Heuristic people, says Jake good plans with clubs. They assume that the place he played for a successful team on there. She assumed that he's a bad player. If he's Paper on unsuccessful team, So a player of equal ability who plays for top chain Will be more expensive than one who is a place for about a day. So is there any sort of money bowl for football? Yet for soccer Have people come up with different ways to quantify the performance of players that perhaps Our non standard.