Mark Cuban on the effectiveness of the CARES Act
We're going to be speaking today with a mark. Cuban is the owner of the NBA team the Dallas Mavericks. Lots of people know him from the show shark tank and his investing in startups very active on twitter and social media in terms of fleshing out sounding policies right now during this crisis also someone who people suspect may have local ambitions of his own one day and so sort of great person to discuss Everything that's going on right now. I would like to preface this entire interview by saying that I knew nothing about basketball or the NBA. I'm GonNa try really really hard. Let's bring in Mark Mark. Thank you very much for joining us. Or what's the deal? Tracy was just asking this on twitter. Can you give us the thirty second explanation of how the NBA Salary Cap Works? Tracy tried to cram homer for the PODCAST. And so it's like. How does that work? She wants to know. I'd rather calculate Pi digits. Explain the salary cap. Okay well fair enough anyway. Thank you for joining us. As we've been doing throughout all of our episodes during this crisis I wanna make a note that it is a May Twelfth Today. The reason that important is because who knows how the world will look in a few days when this comes out but it is here. We are may twelfth about really Two months into this crisis in most intense form because there's actually march eleventh the day that the NBA was cancelled. So two months in mark of just from your perspective. All the different things you're involved. Then how does the world look to right now sort of big picture and with the businesses that you operate and invest uncertain confused hope cautiously hopeful looking for guidance? Looking for leadership. We just don't know who to trust with our lives effectively and that's keeping people from doing things the way we've always done them. So you invest in a lot of small businesses. Could you maybe give some specifics? About how your portfolio companies are getting impacted right now. What are the biggest problems that they're currently facing big? Promise that the fall in demand you know. There's just people are very hesitant when it comes to buying products and services right now unless they're related to things you can store in your home. You know the companies. I have that are selling athletic equipment. You know those are doing well. Companies THAT ARE SELLING FOOD PRODUCTS. Those are doing well. Companies that are selling pretty much everything else are not or their businesses down is some percentage so you know people trying to get. We're trying to gauge. When consumer demand will come back and that's the most difficult aspect of trying to figure out what's next so Hudson in your view what's been done from the You know sitting aside what the right approach to health prices. We've seen we saw the cares. Package passed at the end of March with the idea of helping least small businesses keep employees on payroll to not to prevent the unemployment crisis from getting worse and for people to have businesses to be to to go back to work to when the health crisis lives also seen a range of things from the. Fed in your view. How effective have those measures band? At least dampening the pain from this some some To some extent you know I'll refer to Mike Tyson. Who said everybody's got a plan until they get punched in the mouth right and the cares package that the plan was great. The initial timing of it was great. It was it happened very quickly. The implementation was was too slow and so when we got you know the day the NBA was cancelled march. Eleventh and people started really realizing that there were issues that we're going to have to address from out perspective and then you know relatively quickly for Congress the beginning of April. We had a cares for stimulus but unfortunately from that point in time till the time small businesses small medium size is actually got funding was several weeks. Add to that the fact that there wasn't enough money add to that the fact that there was uncertainty about how the money can or should be spent and what would be the case for forgiveness and that caused a lot of small businesses to hesitate and that led to a scenario where you know a month in a month. After the cares OB- stimulus was passed. Businesses really weren't able to take the steps necessary to try to continue as much business as usual and that really created a cascading negative effect. That were still in right now. So the concept was good. The plan was good but the virus punched in the mouth and the execution was near where it needed to be.