18 Burst results for "Victor Matheson"

"victor matheson" Discussed on The Indicator from Planet Money

The Indicator from Planet Money

08:13 min | 11 months ago

"victor matheson" Discussed on The Indicator from Planet Money

"N. p. r. this the indicator from planet money. I'm stacey vanik smith. The olympics is wrapping up this weekend and this has been a strange olympics. Nobody in the stands kovin spreading through the olympic village protests in tokyo while. I'm in my tiny tiny hotel room which I can't even stretch my arms out to yoga in the hallway. It's only a few steps away. it's It's very very tiny. Our own mandalay. Del barco has been reporting on the olympics for npr from tokyo. It's been very interesting and strange and kind of humbling to be here as a journalist as well. There's not a lot of us here kind of a lonely olympics. I should say mandalit says these olympics have also been marked by all these protests a lot of them over the cost of this olympic games which is one of the most expensive olympics on record. I know cost a lot to put these Olympic games on and the some of the venues were or the venues were paid for by tax dollars here in japan largely so i think there was a lot of feelings about that but here tokyo is in the majority cities that host the olympics. Almost always lose money on it. So why did they do it today. On the show we take a look at the costs and benefits of hosting the olympics. Right after the break this message comes from. Npr sponsor fund rise making investing in private real estate as easy as investing in stocks bonds or mutual funds build a more diversified portfolio today at fundraise f. u. n. d. r. i s. e. dot com slash indicator. This message comes from npr sponsor capital one capital one auto navigator can help you find a car get prequalified instantly and see your real monthly payment without impacting your credit score capital one. What's in your wallet. Terms and conditions apply more at capital. One dot com slash auto navigator. We're joined by kenneth shropshire. Ceo of global sport institute at arizona state university and victor matheson professor of economics at college holy cross in massachusetts. So victor let's start with you. How much did the summer games cost. The olympics in tokyo were hugely problematic from an economic standpoint way before kovin hit so they originally had a price tag of seven point. Three billion dollars. That's a lot of money just to start with. But those numbers had risen to fifteen and a half billion dollars officially and over twenty five billion dollars. Unofficially by december twenty nineteen so before a single person in japan ever got sick from cova. Did we already had an olympic games that we were looking at a twenty five billion dollar price tag and there's just simply no way that the money amount of money generate from the olympics can possibly cover those sort of classes. Okay kenneth. i'm gonna throw this question to you. Which is i think the question that always comes into my head about the olympics. Why does anyone want to host the olympics. This is extenuating circumstances but it seems like almost every single city that's ever the olympics has lost money sometimes. There are like political issues that happen. I mean why does anyone want to host the olympics. Chroma sofas devil's advocate. I love it. Devil's advocate but it is the or of that brings to your community. It's what it brings to your city. You are mexico city in nineteen sixty eight. And you want the world to know that. Latin america's a place to go to your tokyo and sixty four where maybe it made more cincinnati does today and you wanna know twenty years after world war two. This is a city. This is a country that part of the global community. If you're los angeles in eighty four. We're not just hollywood. Were part of the pacific rim. So it's so it's big issues like that and it's infra cities who are the ones had been on this. It is like building infrastructure. It's like building roads and highways and parks. And the like but this is this is not a mutual fund where there's a return on investment and victor. What is your take on this issue. I mean from what i understand. It's very rare for cities to be able to make money on the olympics. I think one of the few was los angeles in nineteen eighty-four right so first of all los angeles was just a very remarkable and unique situation. And what had happened. There is that los angeles was left as the only bidder. Back in one thousand nine hundred four for the games and when you're the only bidder of course you can dictate the terms of the bid to the i o c. Rather than the other way around and so they said. Hey we'd we'd love to host the games but we're not building new facilities you can use the rose bowl you can use the coliseum. These facilities that even then we're already over fifty years old and when you do that you can really keep those costs down. A worth of the info four olympics in my youth. I ran the sport of boxing initially sponsorship in licey. yes. I did sponsors licensing. I am forced gulf so. La was that unique situation. Ironically there was one city that was still bidding theron and that was during the hostage crisis so wisely there was the decision. Well we will include them in this conversation and so la have this tremendous leverage. Is there a kind of kenneth mentioned. Is they're kind of like a softer sort of pay off. I mean is there like a payoff in like maybe not right away but in like visibility for your city long-term tourism on the answer for that is yes and that's of course what we call the legacy effect right and you can have a couple of kinds of legacy here number. One part of this is actually real infrastructure. You you make your roads better and you build your airport. Expansions and and both greece in rio have expanded subway systems. Thanks to the olympics. And then there's that lasting there's that intangible thing about becoming a major league city right or putting you're sitting on the map but even there requires a very unique situation. I think the best two examples of this. We have our barcelona which was kind of in the shadow of madrid and lesser known as a tourist destination it was about tenth or twelfth in in europe in tourist destination before the early nineteen ninety s After the olympics it's jumped into the top five and tourism in europe and so there's a good example Salt lake city also following the olympics. Ski visits to utah. Significantly outpace ski visits to colorado. So there's some legacy effect that you're getting out of these things. Are you guys going to be watching the olympics. I'm a big fan. I have devolved away a little bit. I was caught up old enough. Where the medal. Count things a big deal and we get more this. This media presentation the athlete back story than we had in the past. And you got so many options of ways to watch the good or bad thing now is you can almost watch every event if you want to as opposed to just wait and see what. Abc would share with you on a given day again. Some of these great powerful moments that you get from sport. That again is worth something. But the question is whether it's worth twenty five billion dollars. This episode of the indicator was by julia. Richie engineer huxtable. It was fact checked by michael Our editor is kate coyne cannon and the indicator is a production of npr and the results are in so on friday. We had a little contest. Family feud style on indicators of the week and had alone jacob goldstein. Mary childs and robert smith and me. We all competed to see who would win. the prize. for indicator of the results are in. Check him out on our twitter feed at the indicator or on instagram at planet money..

olympics tokyo Npr stacey vanik smith Del barco mandalit kenneth shropshire global sport institute victor matheson college holy cross olympic games los angeles japan Olympic games kenneth arizona state university
"victor matheson" Discussed on KQED Radio

KQED Radio

11:06 min | 3 years ago

"victor matheson" Discussed on KQED Radio

"Athletes as fortunate beyond belief from getting rich for playing the game. They love yada, yada. But that as we've been learning today is a very simplistic view of a complicated economic ecosystem for one thing. It's easy to focus on the handful of athletes at the very tippy top of the pyramid at the exclusion of the thousands of athletes blow them, you don't make money unless you succeed at the Olympics. That's Shawn Johnson. She won one gold and three silver medals in gymnastics at the two thousand eight Olympics, how the majority of Olympic endorsements work. Is you sign an Olympic endorsement such as Coca Cola McDonald's and Nike Adidas Under Armour. The Ford the Olympics even start by the way, these contracts are structured is these athletes aren't paid any money up front. The only way they earn money is by winning medals. So if you sign a deal with Nike that's same million dollars you go to the Olympics. And you don't win a medal. You don't earn any money. And when you're talking about thousands and thousands of athletes who have reached the pinnacle of their sport by just qualifying to the Olympics. The fact that they aren't getting compensated for their journey. That's gotten them to that point. I think is is pretty extreme extreme perhaps. But also, very similar to another population of amateur athletes, all the college football and basketball players who are very very good. But not quite good enough to have a pro career. And if you are that good and lucky then you're drafted by a pro team. Remember, they choose. You you don't choose them. And now you're looking at a rookie contract with predetermined wages for your first several years if last that long if not the team can cut you loose, which means you're downside is unprotected at the same time that you're upside is limited. You're basically stuck at a way below market paycheck for your first three years in amendment. That's Victor Matheson, an economist at college of the Holy Cross and president of the North American association of sports, economists is that made up for by the fact that you get to make these huge free agent contracts later. Yeah. But only a few last long enough to actually make it to free agency. Russell Wilson the Seattle Seahawks quarterback did make it that far. Actually, he did. So well in his first three seasons at Seattle gave him a contract extension worth nearly ninety million dollars before what would have been his final season under his rookie contract. But during this first three seasons he averaged under. Million dollars a year despite leading team to two Super Bowls and winning one. And what if Wilson instead had played major league baseball, which he maybe could have he was drafted by the Colorado Rockies and played some minor league ball in baseball Wilson would have had to put in six years of major league service to become a free agent. Interestingly the average career length to major league baseball is five point six years. Also, interesting rookie NFL contracts are for four years and the average NFL career length the typical player plays about three seasons. This presents a paradox a clash of incentives the gives the leagues and teams much more leverage than the athletes as Victor Matheson sees it this also helps explain why a players strike would be very hard to organize and I'm working for Verizon on the lines fixing. Telephone poles. I might be willing to sit out and lose my salary for an entire year. If I can get a ten percent higher salary for the next twenty years. I'm working for them, you know, those numbers kind of work out. But if you're if you're a major league baseball player if you're an NFL player you can't afford to lose even one season because there's almost no increase in pay the could justify you losing one season of your very very short career. And so the owners have a huge advantage over that they will not make that money back like it's just physically impossible Dominique Foxworth again. He was on the NFL players union executive committee during its last collective bargaining negotiation in two thousand eleven with the length of a player's career. And how much money they could stand to make in a season. It's really not in their best interests like mathematically logically. If you go through the numbers, it's not in their best interest to actually withstand. Lockout or to initiate a strike. And as a matter of fact, teams themselves have stopped uh striking completely all of the last major interruptions in pro sports in the United States have not been strikes, although they look like it to the fan lockouts. Right. They'd been lockouts. Yeah. This is the owners actually going on strike and not paying the not paying the players rather than the players refusing to work. That's what happened in the two thousand eleven NFL negotiations. The NFL locked out the players for one hundred and thirty two days, although it was during the off season. So barely affected the run of play the owners and the players union finally agreed on a ten year deal which saw the players share of revenue fall from essentially fifty fifty two somewhere in the high forties. Although the players did gain some other concessions like funding for retirement and fewer practices. The most recent NBA NHL collective bargaining agreements. Have similarly resulted in a smaller share of revenue going to the athletes that said those are huge rich leagues that generate many millions of dollars for even average players. It can be a lot harder to make a living in some other pro sports. Yeah. It's a pretty typical fighter story to be broke and trying to make it, you know. Lauren. Murphy started fighting in mixed martial arts matches in two thousand ten she's currently top ranked flyweight fighter in the UFC or ultimate fighting championship. There was a time when I was coming up before I was signed to the UFC where I was traveling a lot to train I was sleeping on people's floors. I was sleeping in their guest bedrooms. I would like house sit and dog sit for people at the gym. It's hard to come up in fighting because you spend all your time training. You don't have a lot of time to work. You know, if you're if you're trying to decide what what sport to go into man, stay away from UFC because they're making a lot of of revenues, but not much of that is going into the athletes in the big team sports. Matheson told us roughly half the revenues are designated for the players, although as we just noted that share has been shrinking a bit in the UFC. Meanwhile, that share is much lower the amount going to the athletes there's about ten or fifteen. Fifteen percent of revenues the chief operating officer of the UFC Lawrence. Epstein disputes that figure the fifteen percent number. I don't I don't think that's accurate. I mean, there certainly is some fluctuation in the percentage of revenues that goes athletes, but the reason for that primarily is that we have a variable revenue stream model in our in our company, meaning the UFC distribute some of its fights via pay per view. Whereas the big team sports have bigger more reliable TV contracts still salary data for USC athletes is hard to come by since the company is privately held and the athletes are not unionized, which means there's no collective bargaining agreement. The really has all the control they can cut you on one loss. They can cut you after two losses. They can keep you around for as many as they want. They can renegotiate your contract. You know, there's just. They have a lot of power that said Lauren Murphy is not much of a critic of the UFC her career may not be all that lucrative. But it is a career and maybe more important it's given shape to her life sports in Murphy's case fighting it can have that effect on people, and that's part of the draw. I struggled with depression and I struggled with addiction. And I kinda just became your your typical high school dropout teenage mom in a small town. And it's just changed my life in ways that I never could have even dreamed of back then in a small town in Alaska in just her third. UFC fight Murphy earned a fifty thousand dollar bonus for taking part in the fight of the night of fairly subjective award bestowed by UFC management to the two fighters who delivered the most impressive performance on a given nights card that bonus changed my life. Life. I've paid off a bunch of student loans at that. And I got out of debt and. It was really a life changing experience for me Murphy's bonus was a great stroke of fortune as for her guaranteed pay the UFC. That's a different story fighters. Get paid for two things making weight and winning figures vary, but the most Murphy's ever gotten was twelve and twelve twelve thousand dollars from making weight twelve thousand dollars for a win which obviously is also not guaranteed. What is guaranteed is that Murphy will train five to six hours a day for months and the NFC fighters get on average just two point three matches per year. I've only made about fifteen thousand dollars in the of C so far this year. But you know, my dream was to see how far I could take this. And for me at least. You know, if I wanted to be in a profession to make a lot of money, I would have been a lawyer or a, you know, a doctor or something like that it might have more to do with the fact that this is a fairly new sport that may be still trying to find its way Victor Matheson again, but that's way, less than you're making elsewhere. Now, do you anticipate that changing if we were talking five or ten years, you have see is is making a lot of money and they've been growing really fast. Do you think that the athletes will eventually get the leverage to get that share up to thirty fifty sixty percent of revenues? Well, we did not see that happen in any of the other individuals sports Intel we had those athletes joined together in some sort of important way. The athletes unions for players associations as they're often called negotiate not only pay scales. But also work conditions schedules health and safety and various benefits. In other words. They do what labor unions have always done, the NFL players association is in fact, a member of the AFL CIO, the big federation of unions that include the American federation of teachers and the American federation of state county and municipal employees here again is damore Smith executive director of.

UFC NFL Lauren Murphy Victor Matheson Olympics Russell Wilson Nike Shawn Johnson baseball Seattle McDonald Dominique Foxworth United States Intel Alaska Verizon Seahawks Colorado Rockies
"victor matheson" Discussed on WNYC 93.9 FM

WNYC 93.9 FM

11:11 min | 3 years ago

"victor matheson" Discussed on WNYC 93.9 FM

"It's easy to see professional athletes as fortunate beyond belief getting rich for playing the game, they love yada, yada. But that as we've been learning today is a very simplistic view of a complicated economic ecosystem for one thing. It's easy to focus on the handful of athletes at the very tippy top of the pyramid at the exclusion of the thousands of athletes below them. You don't make money unless you succeed at the Olympics. That's Shawn Johnson. She won one gold and three silver medals in gymnastics at the two thousand eight Olympics, how the majority of Olympic endorsements work. Is you sign an Olympic endorsement such as Coca Cola McDonald's and Nike. Adidas under armor. Before the Olympics, even start by the way, these contracts are structured is these athletes aren't paid any money up fronts. The only way they earn money is by winning medals. So if you sign a deal with Nike that's same million dollars you go to the Olympics. And you don't win a medal. You don't earn any money. And when you're talking about thousands and thousands of athletes who have reached the pinnacle of their sport by qualifying to the Olympics. The fact that they aren't getting compensated for their journey. That's gotten them to that point. I think is is pretty extreme extreme perhaps. But also, very similar to another population of amateur athletes, all the college football and basketball players who are very very good. But not quite good enough to have a pro career. And if you are that good and lucky then you're drafted by a pro team. Remember, they choose. You you don't choose them. And now you're looking at a rookie contract with predetermined wages for your first several years if last that one if not the team can cut you loose, which means you're downside is unprotected at the same time that you're upside is limited. You're basically stuck at a way below market paycheck for your first three years at a minimum Victor Matheson, an economist at college of the Holy Cross and president of the North American association of sports, economists is that made up for by the fact that you get to make these huge free agent contracts later. Yeah. But only if you last long enough to actually make it to free agency. Russell Wilson the Seattle Seahawks quarterback did make it that far. Actually, he did. So well in first three seasons at Seattle gave him a contract extension worth nearly ninety million dollars before what would have been his final season under his rookie contract. But during this first three seasons he averaged under. Million dollars a year despite leading his team to two Super Bowls and winning one. And what if Wilson instead had played major league baseball, which he maybe could have he was drafted by the Colorado Rockies and played some minor league ball in baseball Wilson would have had to put in six years of major league service to become a free agent. Interestingly the average career length to major league baseball is five point six years. Also, interesting rookie NFL contracts are for four years and the average NFL career length the typical player plays about three seasons. This presents a paradox a clash of incentives the gives the leagues and teams much more leverage than the athletes as Victor Matheson sees it this also helps explain why a players strike would be very hard to organize and fund working for Verizon on the lines fixing. Telephone poles. I might be willing to sit out and lose my salary for an entire year. If I can get a ten percent higher salary for the next twenty years. I'm working for them, you know, those numbers kind of work out. But if you're if you're a major league baseball player if you're an NFL player you can't afford to lose even one season because there's almost no increase in pay that could possibly justify you losing one season of your very very short career. And so the owners have a huge advantage over them. They will not make that money back. It's just physically impossible Dominique Foxworth again. He was on the NFL players union executive committee during its last collective bargaining negotiation in two thousand eleven with the length of a player's career. And how much money they could stand to make in a season. It's really not in their best interests like mathematically logically. If you go through the numbers, it's not in their best interest to actually withstand. Lockout or to initiate a strike. And as a matter of fact, teams themselves have stopped uh striking completely all of the last major interruptions in pro sports in the United States have not been strikes, although they look like it to the fan lockouts. Right. They'd been lockouts. Yeah. This is the owners actually going on strike and not paying the not paying the players rather than the players refusing to work. That's what happened in the two thousand eleven NFL negotiations. The NFL locked out the players for one hundred and thirty two days, although it was during the off season. So it barely affected the run of play the owners and the players union finally agreed on a ten year deal which saw the players share of revenue fall from essentially fifty fifty two somewhere in the high forties. Although the players did gain some other concessions lake funding for retirement and fewer practices. The most recent NBA NHL collective bargaining agreements. Have similarly resulted in a smaller share of revenue going to the athletes that said those are huge rich leagues the generate many millions of dollars for even average players. It can be a lot harder to make a living in some other pro sports. Yeah. It's a pretty typical fighter story to be broke and trying to make it, you know. Lauren. Murphy started fighting in mixed martial arts matches in two thousand ten she's currently a top ranked flyweight fighter in the UFC or ultimate fighting championship. There was a time when I was coming up before I was signed a UFC where I was traveling a lot to train I was sleeping on people's floors. I was sleeping in their guest bedrooms. I would like how sit dog sit for people at the gym. It's hard to come up in fighting because you spend all your time training. So you don't have a lot of time to work. You know, if you're if you're trying to decide what what sport to go into NAN stay away from UFC because they're making a lot of revenues, but not much of that is going into the athletes in the big team sports Matheson told us roughly half of the revenues are designated for the players, although as we just noted that share has been shrinking a bit in the UFC. Meanwhile, that share is much lower the amount going to the athletes there's about ten or fifteen. Eighteen percent of revenues the chief operating officer of the UFC Lawrence. Epstein disputes that figure the fifteen percent number. I don't I don't think that's accurate. I mean, there certainly is some fluctuation in the percentage of revenues that goes athletes, but the reason for that primarily is that we have a variable revenue stream model in our in our company, meaning the UFC distribute some of its via pay per view. Whereas the big team sports have bigger more reliable TV contracts still salary data for USC athletes is hard to come by since the company is privately held and the athletes are not unionized, which means there's no collective bargaining agreement. The you have C really has all the control they can cut you on one loss. They can cut you after two losses. They can keep you around for as many as they want. They can renegotiate your contract. You know, there's just they have a lot of power that said Lauren Murphy is not. Much of a critic of the UFC her career may not be all that lucrative. But it is a career maybe more important, it's given shape to her life. Sports in Murphy's case fighting it can have that effect on people, and that's part of the draw. You know, I I struggled with depression and I struggled with addiction. And I kinda just became your your typical high school dropout teenage mom in a small town. And it's just changed my life in ways that I never could have even dreamed of back then in a small town in Alaska in just her third. UFC fight Murphy earned a fifty thousand dollar bonus for taking part in the fight of the night of fairly subjective award bestowed by UFC management to the two fighters who delivered the most impressive performance on a given nights card that bonus changed my life. I've paid off a bunch of student loans at that. And I got out of debt and. It was really a life changing experience for me Murphy's bonus was a great stroke of fortune as for her guaranteed pay the UFC. That's a different story fighters. Get paid for two things making weight and winning figures vary, but the most Murphy's ever gotten was twelve twelve twelve thousand dollars for making weight and twelve thousand dollars for win which obviously is also not guaranteed. What is guaranteed is that Murphy will train five to six hours a day for months and the UFC fighters get on average just two point three matches per year. I've only made about fifteen thousand dollars in the NFC so far this year. But you know, my dream was to see how far I could take this. And for me at least. If I wanted to be in a profession to make a lot of money. I would have been a lawyer or a, you know, a doctor or something like that it might have more to do with the fact that this is a fairly new sport that may be still trying to find its way Victor Matheson again, but that's way, less than you're making elsewhere. Now, do you anticipate that changing if we were talking five or ten years, you have see is is making a lot of money and they've been growing really fast. Do you think that the athletes will eventually get the leverage to get that share up to thirty fifty sixty percent of revenues? Well, we did not see that happen in any of the other individual sports Intel we had those athletes join together in some sort of important way. The athletes unions or player's associations as they're often called negotiate not only pay scales. But also work conditions schedules health and safety and various benefits. In other words, they do what? Lieber unions have always done the NFL players association is in fact, a member of the AFL CIO the big federation of unions that include the American federation of teachers and the American federation of state county municipal employees here again is damore Smith executive director of the NFL players association. I.

UFC NFL Lauren Murphy Victor Matheson Olympics Nike Russell Wilson Shawn Johnson Adidas baseball Seattle Dominique Foxworth United States McDonald Intel Verizon Seahawks Colorado Rockies
"victor matheson" Discussed on KQED Radio

KQED Radio

04:09 min | 3 years ago

"victor matheson" Discussed on KQED Radio

"The behemoths are worried about their future. We are the dominant sport in America. But if we really want to build our business and become an international sport that's gonna take some figuring out. That's jed York of the National Football League. San Francisco forty Niners. He's the team CEO and co owner I would I say that the biggest blessing in the biggest curse of the NFL are the TV contracts where it makes you very successful. But it also makes it so you don't really try new things. And and try to disrupt how big are the NFL's TB contracts roughly six billion dollars a year number one in the world number-two just under five billion is the FIFA World Cup, which is pretty remarkable for an event whose finals are held only every four years, although they are playing to a global audience rounding out the top ten global TV contracts are the NBA and major league baseball the top soccer leagues in England Germany and Spain along with the UEFA Champions League and the summer and Winter Olympics, not cracking the top ten. Are the NHL MLS or UFC, which means that the NFL has more TV revenue than all the other big American sports leagues combined? Thirty three of the top fifty shows are still NFL TV games. That's Al Guido president of the San Francisco forty Niners. The eyeballs are still there. They're just scattered. They're just in different places. And I think the NFL along with every other league needs to do the best job. They can getting content in fans hands wherever they are. And that's changing dramatically cable. Subscriptions in the US have been dropping fast. Fifty four percent of yours between eighteen and twenty nine. You streaming services more than cable that said live sports are much better position than just about any other kind of content. The please on old fashioned TV we still do watch the Super Bowl live. The economist Victor Matheson again, we watched the World Cup live. We watch the World Series live. And that gives advertisers a chance to put their product in front of a live audience, and it's one of the last places that happens. And this is why we still see increasing contracts, even though the actual number of eyeballs watching sports contest is not going up particularly quickly. The NFL is also made big deals to stream its games. Amazon. For instance, recently renewed its NFL deal paying sixty five million dollars a year for the digital rights to eleven Thursday night games that are already being broadcast on TV. That was thirty percent bump over the same rights last season. Amazon reportedly beat out rival offers from Twitter and YouTube my nine seven and five year old don't even turn on the TV forty Niners Al Guido again, he'd like the NFL to grow especially overseas. But that is complicated in the NFL. We have what I was deemed right now is an event based strategy. We host games overseas. Right. And that is immensely successful. However is what is the global strategy and footprint long-term? What is it a league level? What is it that a team level? And how do we incentivize our clubs to invest more money outside of their footprint? I am frustrated at the inability for us to take our rights and marks across global footprints. I'll give you a specific example. Jared Hain was on our team a few years ago. Australian rugby player they said he was the Michael Jordan of Australian rugby he comes over here. He plays. He's an immediate success sells more jerseys than any player in the NFL. Right. We obviously would love to do a deal Rio Tinto or we'd love to open up for pop up retail shop in Australia. We can't while we can vote if we were to sell our rights and marks and they were to use it in Australia that revenue is split. Thirty two ways doesn't necessarily come back to the team because thirty two teams in the league. Right. So we make as much money on. Jimmy, Garoppolo jersey as we might on. A Russell Wilson.

National Football League San Francisco Al Guido jed York UEFA Champions League America Amazon TV CEO Michael Jordan Russell Wilson Australia US Rio Tinto Victor Matheson soccer FIFA
"victor matheson" Discussed on WNYC 93.9 FM

WNYC 93.9 FM

03:00 min | 3 years ago

"victor matheson" Discussed on WNYC 93.9 FM

"In revenue in two thousand seventeen from in game purchases via told you ten years ago. The east sports. Would be a booming industry funded by multibillion dollar sports organizations. You probably wouldn't believe me. But if I told you a hundred years ago that multibillion dollar sports organizations would even exist. You wouldn't have believed that either sports in the very beginning. We're a proxy for war. Here's John thorn, the official historian of major league baseball, the thirty best man of one side against the thirty best man of another and both sides agreed to abide by the outcome leader on sports became a tool of empire. Colonialism civilising force, or at least that's what the civilize your said. Well, we sublimate our Marshall instincts by pouring them into sport. We can painter faces weekend. Drink ourselves silly. We can yell insulting epithets at the pyre or certain players and what a sports become these past few decades. Lebron James he agreed to a four year one hundred fifty four million dollar contract with the Lakers, FOX. Striking a five year rights agreement with the NFL worth about three billion dollars record shattering deal. Alvarez signed a five year eleven fight deal worth. They minimum of three hundred sixty five million dollars. Serena Williams, just the Forbes list of highest pay female athletes for the third year in a row rockets owner, Leslie Alexander has agreed to a deal to sell the rockets to Huston billionaire Tillman for Tita for two point two billion dollars your record for an NBA franchise. Yes, sports is become big business. How big so the answer? Here is actually surprisingly small sports has a social impact that is way way bigger than its economic impact. Victor Matheson, an economist at Holy Cross and president of the North American association of sports communists. So the biggest league in the world in terms of revenue generated is the NFL and the NFL. Generates something like fourteen fifteen billion dollars a year. Ed in all the other major American League's plus the PGA pro tennis mixed martial arts. And so on you've got maybe fifty billion dollars of pro sports, a few more tens of billions of dollars in college sports. But you're still only up at sixty seventy billion dollars that makes spectator sports in the United States roughly the same size as the cardboard box industry in the United States now, obviously, none of us, you know, gather around the water cooler on Monday morning, saying hey, man over the weekend. Did you see that awesome? Cardboard box that American paper just put out. Of course, we don't. So obviously, you know,.

NFL North American association of Lakers United States Lebron James American League John thorn Serena Williams baseball Alvarez Leslie Alexander Victor Matheson Holy Cross NBA Forbes Tita official FOX Huston president
"victor matheson" Discussed on KQED Radio

KQED Radio

05:40 min | 3 years ago

"victor matheson" Discussed on KQED Radio

"Player safety as we heard from John Herschel and Dominic Foxworth the contentious national anthem protests, which will hear about later and the NFL's audiences shrunk a bit. But let's be honest. The NFL is still a juggernaut of the top fifty shows on TV last year, thirty seven or football games understand. Why to understand why sports are such big deal to so many people? Let's start with a man who pretty much asked himself that question every day. Sure. This is Victor Matheson. I'm a professor of economics at the college of the Holy Cross in Worcester. Massachusetts Matheson specializes in the economics of sport. Yes. I'm one of the editors of the journal of sports economics and also the current president of the North American association of sports economists. And I'm also the author of the economics of sports sixth edition, which is. I think the top sports economics textbook in the world. So I kind of had a trifecta going on right now. Now, Victor, are you yourself now or have you ever been an athlete or otherwise seriously involved in sports? Yeah. So I was actually a referee for Major League Soccer for about ten years. Oh, no kidding. Yeah. My college coach when I was playing I took a look at me and said, hey, you know, I've been watching the way you play the game. And I think you might make an excellent referee. I became a referee because I thought the referees around me when I was a high school player were so terrible that a trained monkey could do better. And here I am thirty years later, and I'm the train monkey. And being a referee. I got to do things I never would have gotten to do as a player. You know? I got to walk out on the tunnel into Soldier Field and RFK stadium. And and you know, I never would have been talented enough to do that. I've had the opportunity to referee a thousand college games one hundred pro games again, I wouldn't have done that as a player for sure. Victor, how old are you? If you don't mind me asking. So I am turning forty nine next next week. Okay. Happy birthday. Can you talk for minute. Then about the ways in which sports, especially the business of sports is different from when you were a kid sports have become bigger and bigger and bigger business. So little before my childhood, but not much more before that we would have athletes in the NBA and NFL have fulltime jobs in the off season. Because your you're not making enough in the season to actually survive without having something to do in the off season. I'm here at Holy Cross. Our most famous athlete is Bob Cousy the first great point guard. He lives in a very modest house here in Wooster because he never made forty million dollars a year like a top NBA player might make now. And so obviously, that's a huge difference. Right. And other than I guess the obvious answer of we like to watch sports and. Consume all things around sports. Why else do you think that sports have such an appeal that makes them so valuable that ultimately generates so many dollars, and I've well number one we make more money, and we have more free time today than we did in the past. And so we have a lot more disposable income to spend on play and on recreation and on toys than we did a generation or two generations or three generations ago. Number two. We also have technology that helps us enjoy sports in a way we didn't in the past either. So I am not super old but old enough to remember watching sports on the nineteen inch black and white TV that we had and obviously my flat screen fifty inch high def TV that I can watch shocker from any country in the world at any time. I want on demand. Is certainly a much better much better recreation option than trying to pick out exactly which kind of gray player was playing against what other kind of player back as a kid. So what can you tell us about the size of the sports industry, and how it compares to other industries? So the answer here is actually surprisingly small. So the biggest league in the world in terms of revenue generated is the NFL and the NFL generates something like fourteen fifteen billion dollars a year. Now, you might be thinking to yourself fourteen fifteen that sounds like a lot of money that's roughly the same size as Sherwin Williams. So the typical American buys as as much paint from Sherman Williams has it does buying NFL products from the largest league in the world, you add in all these other American League's NBA major league baseball, the NHL Major League Soccer. Plus, the PGA and pro tennis and mixed martial arts. And all these things animal of together. You've got maybe fifty billion dollars of pro sports few more tens of billions of dollars in college sports. But you're still only up at sixty seventy billion dollars that makes spectator sports in the United States roughly the same size as the cardboard box industry in the United States now, obviously, none of us, you know, gather around the water cooler on Monday morning, saying, hey, man. Do you see that awesome? Cardboard bodice that American paper just put out. Of course, we don't so sports has a social impact that is way way bigger.

NFL journal of sports economics Victor Matheson North American association of NBA Holy Cross Major League Soccer professor of economics Massachusetts Matheson John Herschel United States RFK stadium American League Bob Cousy Sherman Williams Dominic Foxworth football Sherwin Williams Soccer tennis
"victor matheson" Discussed on KQED Radio

KQED Radio

05:51 min | 3 years ago

"victor matheson" Discussed on KQED Radio

"This is freakonomics radio. Here's your host, Stephen dubner. The National Football League as you may have heard is having some problems huge concern about player safety as we heard from John Herschel and Dominic Foxworth the contentious national anthem protests, which will hear about later and the NFL's audience has shrunk a bit. But let's be honest. The NFL is still a juggernaut of the top fifty shows on TV last year, thirty seven or football games understand. Why understand why sports are such a big deal to so many people? Let's start with a man who pretty much asked himself that question every day. Sure. This is Victor Matheson. I'm a professor of economics at the college of the Holy Cross in Worcester. Massachusetts Matheson specializes in the economics of sport. Yes. I'm one of the editors of the journal of sports economics. I'm also the current president of the North American association of sports economists. And I'm also the author of the economics of sports six addition which. I think the top sports economics textbook in the world. So I kind of having a trifecta going on right now. Now, Victor, are you yourself now or have you ever been an athlete or otherwise seriously involved in sports? Yes. So I was actually a referee for Major League Soccer for about ten years. No kidding. Yeah. My college coach when I was playing I took a look at me and said, hey, you know, I've been watching the way you play the game. And I think you might make an excellent referee. I became a referee because I thought the referees around me when I was a high school player were so terrible. A trained monkey could do better. And here I am thirty years later, and I'm the train monkey and being referee. I got to do things I never would have gone to do as a player. I got to walk out on the tunnel into Soldier Field in RFK stadium. And and you know, I never would have been talented enough to do that. I've had the opportunity to referee a thousand college games one hundred pro games. I wouldn't have done that as a player for sure. Victor, how old are you? If you don't mind me asking. So I am turning forty nine next next week. Okay. Happy birthday. Can you talk for minute. Then about the ways in which sports, especially the business of sports is different from when you were a kid sports, become bigger and bigger and bigger business. So a little before my childhood, but not much more before that we would have athletes in the NBA and NFL have fulltime jobs in the off season. Because your you're not making enough in the season to actually survive without having something to do in the off season. I'm here at Holy Cross. Our most famous athlete is Bob Cousy the first great point guard. He lives in a very modest house here in Wooster because he never made forty million dollars a year like a top NBA player might make now. And so obviously, that's a huge difference. Right. And other than I guess the obvious answer of we like to watch sports and. Consume all things around sports. Why else do you think that sports have such an appeal that makes them so valuable that ultimately generates so many dollars, and I've all well. Number one, we make more money, and we have more free time today than we did in the past. And so we have a lot more disposable income to spend on play and on recreation and on toys than we did a generation or two generations or three generations ago. Number two. We also have technology that helps us enjoy sports in a way we didn't in the past either. So I am not super old but old enough to remember watching sports on the nineteen inch black and white TV that we had and obviously my flat screen fifty inch high def TV that I can watch shocker from any country in the world at any time. I want on demand. Is certainly a much better much better recreation option than trying to pick out exactly which kind of gray player was playing against other player back as a kid. So what can you tell us about the size of the sports industry, and how it compares to other industries? So the answer here is actually surprisingly small. So the biggest league in the world in terms of revenue generated is the NFL and the NFL generates something like fourteen fifteen billion dollars a year. Now, you might be thinking to yourself. Well, fourteen fifteen that sounds like a like a lot of money that's roughly the same size as Sherwin Williams. So the typical American buys as as much paint from Sherman Williams has does buying NFL products from the largest league in the world, you add in all these other American League's NBA major league baseball, the NHL Major League Soccer. Plus, the PGA and pro tennis and mixed martial arts. And all these things atom all up together. You've got maybe fifty billion dollars of pro sports, a few more tens of billions of dollars in college sports. But you're still only up at sixty seventy billion dollars that makes spectator sports in the United States roughly the same size as the cardboard box industry in the United States now, obviously, none of us, you know, gather around the water cooler on Monday morning, saying, hey, man. Do you see that awesome? Cardboard box that American paver just put out. A course we don't so sports has a social impact that is way way bigger than its.

National Football League journal of sports economics Victor Matheson North American association of NBA Major League Soccer Holy Cross Stephen dubner Massachusetts Matheson United States professor of economics RFK stadium John Herschel American League Bob Cousy Sherman Williams football Dominic Foxworth president Sherwin Williams
"victor matheson" Discussed on WNYC 93.9 FM

WNYC 93.9 FM

03:52 min | 3 years ago

"victor matheson" Discussed on WNYC 93.9 FM

"And let's see what happens when we actually charge a portable prices for food rather than have people do all of their eating and drinking a head of time. And then going to the Major League Soccer games in the NFL games there. Let's charge a portable food there. They have triple the amount of food they're selling their, although the prophets aren't much, but they've tripled the amount of food. They sell their by not gouging people with monopoly prices. So this is one one time where I'm not actually going to trash the local owners. This is this is a really a great fan thing. Much better for the fans and not any worse in terms of the bottom line for the for the stadium operators. Okay. True or false in the case of. Atlanta. Home Depot co founder and owner of the Atlanta Falcons. He uses the stadiums. Arthur banks spent a significant amount on this year Super Bowl stadium. Yeah. So again, as you alluded to earlier, this is about a one point six billion dollar stadium. We don't have a perfect guess about how much of the public subsidy is because a lot of the subsidy is in terms of obligations to keep up the stadium over the next thirty years. But it looks like about seven hundred million out of the one point six billion was public money, which means the other nine hundred million was was the was blanks money. So yeah, that's a that's a big contribution on his part. Roughly average of what we're seeing for NFL owners over the last roughly ten years. So in the end does hosting a Super Bowl cost the city or benefit less than the committees and the NFL suggest. Yeah. So again in Atlanta, the NFL says this is about a four hundred or five hundred million dollar benefit for the city of Atlanta. Economists like myself who are not connected in any way. Okay with the NFL or the host committees. When we go back and look at cities that have hosted these big events, we actually get numbers somewhere ranging between about thirty two hundred and thirty million dollars of of economic impact on the city. That's something that you shouldn't turn your nose up at. But it's also a fraction of what's being claimed. And it's not too far off from the amount of contributions in terms of the cost to the city of putting those that game on after fifty two Super Bowls. Is there anybody out there challenging this paradigm at all? So at least one thing I think we have seen is that in the aftermath of the great recession in two thousand eight at least we've seen the amount of public subsidies for stadiums. Actually going way down in the twenty years before two thousand eight we had about eighty major stadium projects across the country. The average public contribution was about two thirds of the cost with team owners only picking up about a third since two thousand eight those numbers of actually reverse. So about two thirds of the cost of a typical new stadium over the past decade has at least been private rather than public. So I think in the aftermath of the great recession. We were saying, look, it's it's a bit distasteful to be, you know, laying off teachers and firefighters and police officers when we're handing out hundreds of millions of dollars to again billionaire owners and millionaire players, and so we have seen at least, you know, quite a bit of pushback on that. And for other big events like the. Olympics. It's becoming actually quite difficult to find people willing to put up the sort of money that you need to host one of those events Victor Matheson from the college of the Holy Cross. Thank you so much for joining us on all of it. Well, thank you very much for having me. And of course, go patriots. We'll see about that. We'll be right back with our weekly culture. Check in with WNYC's, Charlie Herman and a special preview of all the black history month team programming at the sheen.

NFL Super Bowl stadium Atlanta Falcons Atlanta Major League Arthur banks Home Depot co founder Charlie Herman Victor Matheson Holy Cross WNYC five hundred million dollar thirty million dollars six billion dollar thirty years twenty years ten years
"victor matheson" Discussed on StarTalk Radio

StarTalk Radio

02:19 min | 3 years ago

"victor matheson" Discussed on StarTalk Radio

"Back science enough. Suitable big game special right time to talk. Some numbers would sports columnist Victor Matheson now you go give us a full explanation because we will see you as an economist. But I guess you'll tightly fall granted than that. So I don't know about that some people commie a sports columnist and and on top of that. I do lots of fun things like, I'm the president of the North American association of sports communists. I ended the journal of sports economics law, and I do lots of fun things. Looking at the intersection of sports and economics. So let's talk about the economics of the Super Bowl. You know? It's the biggest cultural event of the year here in America. I mean, it's it's like we have the World Cup every single year. But it's just this one game. And it's become more of a. A thing. It's become more happening. It's not really a sporting event. You think about how many people are going to get together on Super Bowl Sunday or the, and and you know, they're going to eat and they're going to watch the game. And they're going to talk about commercials and all that kind of stuff. But really, they're not even football fans. You know, what they're fan of is conviviality, let's get together and have a little party, you know, let's drink. And so is there any data that lets us know what that day, not not as not as a sports team or not as bringing the game to a city, but that day itself what kind of impact does that have on the nation economically. Well, certainly we know for individual products. It's a huge day. For example, it is the single largest day of consumption of academies in the United States. Well, you gotta have you gotta have guacamole for for the big. Game. So for individual products. Boy, you are really depending on having a good SuperBowl. 'cause it's a long wait for the avocado growers until next Super Bowl. Sunday, avocado Christmas. Chris it's bad day to be a chicken because new digress ties told us the number chicken wings, it consumes also a bad day.

sports columnist Chris it journal of sports economics North American association of Victor Matheson United States president America football
"victor matheson" Discussed on StarTalk Radio

StarTalk Radio

02:20 min | 3 years ago

"victor matheson" Discussed on StarTalk Radio

"Welcome back science enough Super Bowl v game special right time to talk. Some numbers would sports columnist Victor Matheson now you gotta give us a full explanation because we will see you as an economist. But I guess you'll tightly fall grander than that. So I don't know about that some people commie a sports columnist and and on top of that. I do lots of fun things like, I'm the president of the North American association of sports communists. I ended the journal of sports economics law, and I do lots of fun things. Looking at the intersection of sports and economics. So let's talk about the economics of the Super Bowl. You know? It's the biggest cultural event of the year here in America. I mean, it's it's like we have the World Cup every single year. But it's just this one game. And it's become more of a. A thing. It's become more happening. It's not really a sporting event. You know, you'd think about how many people are going to get together on Super Bowl Sunday or the, and and you know, they're going to eat and they're going to watch the game. And they're going to talk about commercials and all that kind of stuff. But really, they're not even football fans. You know, what their fan of is conviviality, let's get together and have a little party, you know, let's drink. And so is there any data that lets us know what that day, not not as not as a sports team or not as bringing the game to a city, but that day itself what kind of impact is that have on the nation economically. Well, certainly no for individual products. It's you day, for example, it is the single largest day of consumption of academies in the United States. Did you gotta have that? You gotta have guacamole for for the big. Game. So for individual products. Boy, you are really depending on having a good SuperBowl. 'cause it's a long wait for the avocado growers until next Super Bowl. Sunday, avocado Christmas. Chris it's bad day to be a chicken because new digress ties told us the number chicken wings, it consumes also a bad day.

sports columnist Super Bowl v Chris it journal of sports economics North American association of Victor Matheson United States president America football
"victor matheson" Discussed on WNYC 93.9 FM

WNYC 93.9 FM

03:52 min | 3 years ago

"victor matheson" Discussed on WNYC 93.9 FM

"And let's see what happens when we actually charge a portable prices for food rather than have people do all of their eating and drinking a head of time. And then going to the Major League Soccer games in the NFL games there. Let's charge affordable food there. They have triple the amount of food they're selling their, although the prophets aren't much, but they've tripled the amount of food. They sell their by not gouging people with monopoly prices. So this is one one time where I'm not actually going to trash the local owners. This is this is a really a great fan thing. Much better for the fans and not any worse in terms of the bottom line for the for the stadium operators. Okay. True or false in the case of. Atlanta. Home Depot co founder and owner of the Atlanta Falcons. He uses the stadiums. Arthur banks spent a significant amount on this year Super Bowl stadium. Yeah. So again, as you alluded to earlier, this is about a one point six billion dollar stadium. We don't have a perfect guess about how much of the public subsidy is because a lot of the subsidy is in terms of obligations to keep up the stadium over the next thirty years. But it looks like about seven hundred million out of the one point six billion was public money, which means the other nine hundred million was was the was blanks money. So yeah, that's a that's a big contribution on his part. Roughly average of what we're seeing for NFL owners over the last roughly ten years. So in the end does hosting a Super Bowl cost the city or benefit less than the committees and the NFL suggest. Yeah. So again in Atlanta, the NFL says this is about a four hundred or five hundred million dollar benefit for the city of Atlanta. Economists like myself who are not connected in any way. Okay. With the NFL or the host committee is when we go back and look at cities that have hosted these big events we actually get numbers somewhere ranging between about thirty two hundred and thirty million dollars of of economic impact on the city. That's something that you shouldn't turn your nose up. But it's also a fraction of what's being claimed. And it's not too far off from the amount of contributions in terms of the cost to the city of putting those that game on after fifty two Super Bowls. Is there anybody out there challenging this paradigm at all? So at least one thing I think we have seen is that in the aftermath of the great recession in two thousand eight at least we've seen the amount of public subsidies for stadiums. Actually going way down in the twenty years before two thousand eight we had about eighty major stadium projects across the country. The average public contribution was about two thirds of the cost with team owners only picking up about a third since two thousand eight those numbers have actually reverse. So about two thirds of the cost of a typical new stadium over the past decade has at least been private rather than public. So I think in the aftermath of the great recession. We were saying, look, it's it's a bit distasteful to be, you know, laying off teachers and firefighters and police officers when we're handing out hundreds of millions of dollars to again billionaire owners and millionaire players, and so we have seen at least, you know, quite a bit of pushback on that and other big events like the. Olympics. I it's becoming actually quite difficult to find people willing to put up the sort of money that you need to host one of those events Victor Matheson from the college of the Holy Cross. Thank you so much for joining us on all of it. Well, thank you very much for having me. And of course, go patriots. We'll see about that. We'll be right back with our weekly culture. Check in with WNYC's, Charlie Herman and a special preview of all the black history month team programming at the sheen.

NFL Super Bowl stadium Atlanta Falcons Atlanta Major League Arthur banks Home Depot co founder Charlie Herman Victor Matheson Holy Cross WNYC five hundred million dollar thirty million dollars six billion dollar thirty years twenty years ten years
"victor matheson" Discussed on Freakonomics

Freakonomics

02:22 min | 3 years ago

"victor matheson" Discussed on Freakonomics

"It's easy to see professional athletes as fortunate beyond belief getting rich for playing the game, they love yada, yada. But that as we've been learning today is a very simplistic view of a complicated economic ecosystem for one thing. It's easy to focus on the handful of athletes at the very tippy top of the pyramid at the exclusion of the thousands of athletes below them. You don't make money unless you succeed at the Olympics. That's Shawn Johnson. She won one gold and three silver medals in gymnastics at the two thousand eight Olympics, how the majority of Olympic endorsements work. Is you sign an Olympic endorsement such as a Coca Cola. Mcdonald's. A Nike Adidas Under Armour before the Olympics, even starch, but the way these contracts are structured is these athletes aren't paid any money up front. The only way they earn money is by winning medals. So if you sign. Sign a deal with Nike. That's say a million dollars you go to the Olympics. And you don't win a medal. You don't earn any money. And when you're talking about thousands and thousands of athletes who have reached the pinnacle of their sport by just qualifying to the Olympics. The fact that they aren't getting compensated for their journey. That's gotten them to that point. I think is is pretty extreme extreme perhaps. But also, very similar to another population of amateur athletes, all the college football and basketball players who are very very good. But not quite good enough to have a pro career. And if you are that good and lucky then you're drafted by a protein. Remember, they choose you. You don't choose them. And now you're looking at a rookie contract with predetermined wages for your first several years if last that long if not the team can cut you loose, which means you're downside is unprotected. At the same time that you're upside is limited. You're basically stuck at a way below market paycheck for your first three years at a minimum Victor Matheson, an economist at college of the Holy Cross and president of the North American association of sports, economists is that made up for by the fact that you get to make these huge free agent contracts later..

Olympics Nike Shawn Johnson Victor Matheson Mcdonald president Holy Cross North American association of basketball football million dollars three years
"victor matheson" Discussed on StarTalk Playing with Science

StarTalk Playing with Science

02:16 min | 3 years ago

"victor matheson" Discussed on StarTalk Playing with Science

"Welcome back science enough Super Bowl big game special right time to talk some numbers with sports columnist Victor Matheson now you gotta give us a full explanation because we will see you as an economist. But I guess you'll tightly fall grant as in that. So I don't know about that something call me a sports columnist and and on top of that. I do lots of fun things like, I'm the president of the North American association of sports communists. I edit the journal of sports economics, and I do lots of fun things. Looking at the intersection of sports and economics. So let's talk about the economics of the Super Bowl. You know? It's the biggest cultural event of the year here in America. I mean, it's it's like we have the World Cup every single year. But it's just this one game. And it's become more of a a thing. It's it's become more happening. A thing. It's not really a sporting event. You know, you think about how many people are going to get together on Super Bowl Sunday or the, and and you know, they're going to eat and they're going to watch the game. And they're gonna talk about commercials and all that kind of stuff, but really they're not even football fans. You know, what they're fan of is conviviality, let's get together and have a little party, you know, let's drink. And so is there any data that lets us know what that day, not not as not as a sports team or not as bringing the game to a city, but that day itself what kind of impact is that have on the nation economically. Well, certainly we know for individual products. It's a huge day. For example, it is the single largest day of consumption of coddles in the United States. Gotta have that guacamole for for the big game. So for individual products. Boy, you are really depending on having a good SuperBowl. 'cause it's a long wait for the McConnell growers until next Super Bowl Sunday, avocado Christmas. Chris it's bad day to be a chicken because new digress..

sports columnist Chris it journal of sports economics North American association of Victor Matheson United States president America McConnell football
"victor matheson" Discussed on Freakonomics

Freakonomics

04:19 min | 3 years ago

"victor matheson" Discussed on Freakonomics

"One obvious difference between the cost of labor in sports versus just about any other industry, except maybe the entertainment industry is that the employees ease are the product which makes them much more visible than employee's typical industry and potentially much more valuable consider a superstar like LeBron James this year is earning thirty five point six million dollars, which sounds absurd until you try to calculate just how valuable he is to the sport. I mean, it's LeBron James was getting what he deserves. He'd make two hundred million bucks a year three hundred million dollars a year that again is Lawrence. Epstein of the UFC. His biggest star Conor McGregor earned a reported one hundred million dollars for that pay per view fight against Floyd Mayweather junior. Oh, man. I mean, I mean, we if Connor made one hundred million dollars last year, which is probably you know, I mean twenty percent of our revenues. You know, LeBron James is got to be worth ten. Ten percent of the revenues of the NBA. He's gotta be right. So what does that it's four hundred million or something it's a giant number? Maybe not Connor which is twenty percent of our revenues, but he's easily ten. He's easily ten for the record. The NBA produced about seven and a half billion dollars in revenues last season. Ten percent of which would be roughly seven hundred and fifty million dollars too bad for LeBron James that Lawrence Epstein isn't setting a salary, and what about you f c salaries before interviewing Epstein, I'd ask the economist Victor Matheson to compare athlete salaries in different sports. You know, if you're trying to decide what what sport to go into you probably want to go into baseball and football for at least, you're going to be earning a pretty big chunk of those television revenues and man stay away from UFC because they're making a lot of of revenues, but not much of that is going into the athletes, you know, the amount going to the athletes there's about ten or fifteen. Percent of revenues so again, much less. Why do you have these athletes earn so much less? Keep in mind. What Lawrence Epstein told us earlier that the UFC unlike other leagues pays its own production costs still you might think that compared to the big team sports. You have see athletes would do pretty well since team sports requires so much more labor to produce. We do know that you have see fighters are not unionized, which means they don't have collective bargaining power like NFL and other team athletes do in any case, I asked the UFC's Lawrence. Epstein about this disparity. Well, you know, I think for small the fifteen percent number. I don't I don't think that's accurate. I mean, there certainly is some fluctuation in the percentage of revenues that goes athletes, but the reason for that, you know, primarily is that we have a variable revenue stream model in our company. So you mentioned the NFL let soom they're giving fifty percent of the revenues to the athletes. Well, those revenues are contracted revenues with. The largest media companies in the earth, ESPN, CBS NBC FOX, and and others the significant part of our profitability still comes from pay per view events, which of course, are completely variable in revenue in so because we just don't have those contracted revenues like so many of the other sports leagues. Do you know we're taking a lot of risk every time we put one of these major events on. I mean, you can't just agree to pay certain people a certain amount of money if you don't know whether or not that money is going to come in. And of course, the NFL and major league baseball, and the NBA multibillion dollar contracts with, you know, great credit on the other side of of those deals bright. I've read that the median UFC salary is roughly forty two thousand dollars a year, we interviewed a fighter Lauren Murphy, who's the number five ranked female fighter in her weight class. And she told us she gets about twelve grand per fight guaranteed. Another twelve grand if she wins in a fifty thousand bonus if she's the. The fight of the night. So she said she said years where she's made just twenty thousand and one year wish made around ninety thousand again for fighter whose whose number five in the world. In her ranking. I understand there's an ongoing antitrust lawsuit against the of C which claims that the UFC used an anticompetitive scheme of long-term exclusive fighter contracts coercion and acquisitions of rival MMA promoters to establish a maintain dominance..

UFC LeBron James Lawrence Epstein Connor NBA NFL Lawrence baseball Floyd Mayweather Conor McGregor Victor Matheson Lauren Murphy ESPN football NBC FOX CBS one hundred million dollars
"victor matheson" Discussed on Freakonomics

Freakonomics

04:19 min | 3 years ago

"victor matheson" Discussed on Freakonomics

"One obvious difference between the cost of labor in sports versus just about any other industry, except maybe the entertainment industry is that the employees ease are the product which makes them much more visible than employee's typical industry and potentially much more valuable consider a superstar like LeBron James this year is earning thirty five point six million dollars, which sounds absurd until you try to calculate just how valuable he is to the sport. I mean, it's LeBron James was getting what he deserves. He'd make two hundred million bucks a year three hundred million dollars a year that again is Lawrence. Epstein of the UFC. His biggest star Conor McGregor earned a reported one hundred million dollars for that pay per view fight against Floyd Mayweather junior. Oh, man. I mean, I mean, we if Connor made one hundred million dollars last year, which is probably you know, I mean twenty percent of our revenues. You know, LeBron James is got to be worth ten. Ten percent of the revenues of the NBA. He's gotta be right. So what does that it's four hundred million or something it's a giant number? Maybe not Connor which is twenty percent of our revenues, but he's easily ten. He's easily ten for the record. The NBA produced about seven and a half billion dollars in revenues last season. Ten percent of which would be roughly seven hundred and fifty million dollars too bad for LeBron James that Lawrence Epstein isn't setting a salary, and what about you f c salaries before interviewing Epstein, I'd ask the economist Victor Matheson to compare athlete salaries in different sports. You know, if you're trying to decide what what sport to go into you probably want to go into baseball and football for at least, you're going to be earning a pretty big chunk of those television revenues and man stay away from UFC because they're making a lot of of revenues, but not much of that is going into the athletes, you know, the amount going to the athletes there's about ten or fifteen. Percent of revenues so again, much less. Why do you have these athletes earn so much less? Keep in mind. What Lawrence Epstein told us earlier that the UFC unlike other leagues pays its own production costs still you might think that compared to the big team sports. You have see athletes would do pretty well since team sports requires so much more labor to produce. We do know that you have see fighters are not unionized, which means they don't have collective bargaining power like NFL and other team athletes do in any case, I asked the UFC's Lawrence. Epstein about this disparity. Well, you know, I think for small the fifteen percent number. I don't I don't think that's accurate. I mean, there certainly is some fluctuation in the percentage of revenues that goes athletes, but the reason for that, you know, primarily is that we have a variable revenue stream model in our company. So you mentioned the NFL let soom they're giving fifty percent of the revenues to the athletes. Well, those revenues are contracted revenues with. The largest media companies in the earth, ESPN, CBS NBC FOX, and and others the significant part of our profitability still comes from pay per view events, which of course, are completely variable in revenue in so because we just don't have those contracted revenues like so many of the other sports leagues. Do you know we're taking a lot of risk every time we put one of these major events on. I mean, you can't just agree to pay certain people a certain amount of money if you don't know whether or not that money is going to come in. And of course, the NFL and major league baseball, and the NBA multibillion dollar contracts with, you know, great credit on the other side of of those deals bright. I've read that the median UFC salary is roughly forty two thousand dollars a year, we interviewed a fighter Lauren Murphy, who's the number five ranked female fighter in her weight class. And she told us she gets about twelve grand per fight guaranteed. Another twelve grand if she wins in a fifty thousand bonus if she's the. The fight of the night. So she said she said years where she's made just twenty thousand and one year wish made around ninety thousand again for fighter whose whose number five in the world. In her ranking. I understand there's an ongoing antitrust lawsuit against the of C which claims that the UFC used an anticompetitive scheme of long-term exclusive fighter contracts coercion and acquisitions of rival MMA promoters to establish a maintain dominance..

UFC LeBron James Lawrence Epstein Connor NBA NFL Lawrence baseball Floyd Mayweather Conor McGregor Victor Matheson Lauren Murphy ESPN football NBC FOX CBS one hundred million dollars
"victor matheson" Discussed on Freakonomics

Freakonomics

02:58 min | 3 years ago

"victor matheson" Discussed on Freakonomics

"Sports really the future juggernaut Cuban describes at the very least he's putting his money where his mouth is among his many, sports technology. Investments is an east sports betting platform called unicorn in. This regard Cuban is not an outlier a lot of NBA teams as well. As teams from the National Football League and major league baseball in the National Hockey League and Major League Soccer. They're all investing in east sports franchises that play games like league of legends fortnight and overwatch a lot of venture capital firms are investing as well. The global east sports market is said to be approaching a billion dollars up roughly forty percent from year earlier, and that doesn't even include the money flowing to the game companies themselves blizzard activision which makes over watch reported four billion dollars in revenue in two thousand seventeen from in game purchases. If I told you ten years ago that e sports would be. A booming industry funded by multibillion dollar sports organizations. You probably wouldn't believe me. But if I told you one hundred years ago that multibillion dollar sports organizations would even exist. You wouldn't have believed that either sports in the very beginning were a proxy for war. Here's John thorn, the official historian of major league baseball, the thirty best man of one side against the thirty best man of another and both sides agreed to abide by the outcome leader on sports became a tool of empire. Colonialism civilizing force, or at least that's what the civilize your said. Well, we sublimate our Marshall instincts by pouring them into sport. We can painter faces weekend. Drink ourselves silly. We can yell insulting epithets at the pyre or certain players and what a sports become these past few decades or love. Lebron James agreed to a four year one hundred fifty four million dollar contract with the Lakers talks striking a five year rights agreement with the NFL worth about three billion dollars record shattering deal. Alvarez signed a five-year eleven fight deal worth a minimum of three hundred sixty five million dollars. They Serena Williams just the Forbes this highest pay female athletes for the third year in a row rockets owner, Leslie Alexander has agreed to a deal to sell the rockets to Houston billionaire Tillman for Tita for two point two billion dollars a record for an NBA franchise. Yes, sports is become big business. How big so the answer? Here is actually surprisingly small sports has a social impact that is way way bigger than its economic impact. That's Victor Matheson, an economist at Holy Cross and president of the North American association. Of sports communists..

National Hockey League National Football League NBA baseball Major League Soccer Lebron James John thorn Victor Matheson Serena Williams Lakers Alvarez Leslie Alexander Holy Cross Houston Forbes Tita president North American association official
"victor matheson" Discussed on Freakonomics

Freakonomics

02:58 min | 3 years ago

"victor matheson" Discussed on Freakonomics

"Sports really the future juggernaut Cuban describes at the very least he's putting his money where his mouth is among his many, sports technology. Investments is an east sports betting platform called unicorn in. This regard Cuban is not an outlier a lot of NBA teams as well. As teams from the National Football League and major league baseball in the National Hockey League and Major League Soccer. They're all investing in east sports franchises that play games like league of legends fortnight and overwatch a lot of venture capital firms are investing as well. The global east sports market is said to be approaching a billion dollars up roughly forty percent from year earlier, and that doesn't even include the money flowing to the game companies themselves blizzard activision which makes over watch reported four billion dollars in revenue in two thousand seventeen from in game purchases. If I told you ten years ago that e sports would be. A booming industry funded by multibillion dollar sports organizations. You probably wouldn't believe me. But if I told you one hundred years ago that multibillion dollar sports organizations would even exist. You wouldn't have believed that either sports in the very beginning were a proxy for war. Here's John thorn, the official historian of major league baseball, the thirty best man of one side against the thirty best man of another and both sides agreed to abide by the outcome leader on sports became a tool of empire. Colonialism civilizing force, or at least that's what the civilize your said. Well, we sublimate our Marshall instincts by pouring them into sport. We can painter faces weekend. Drink ourselves silly. We can yell insulting epithets at the pyre or certain players and what a sports become these past few decades or love. Lebron James agreed to a four year one hundred fifty four million dollar contract with the Lakers talks striking a five year rights agreement with the NFL worth about three billion dollars record shattering deal. Alvarez signed a five-year eleven fight deal worth a minimum of three hundred sixty five million dollars. They Serena Williams just the Forbes this highest pay female athletes for the third year in a row rockets owner, Leslie Alexander has agreed to a deal to sell the rockets to Houston billionaire Tillman for Tita for two point two billion dollars a record for an NBA franchise. Yes, sports is become big business. How big so the answer? Here is actually surprisingly small sports has a social impact that is way way bigger than its economic impact. That's Victor Matheson, an economist at Holy Cross and president of the North American association. Of sports communists..

National Hockey League National Football League NBA baseball Major League Soccer Lebron James John thorn Victor Matheson Serena Williams Lakers Alvarez Leslie Alexander Holy Cross Houston Forbes Tita president North American association official
LeBron James is still underpaid

Planet Money

03:08 min | 4 years ago

LeBron James is still underpaid

"To figure out if lebron james is still underpaid we called up one of the economists from that original report victor matheson from holy cross university he happened to be on vacation at the time in mexico i am in cancun i'm sitting at a pina colada by the pool under a palm tree no less i could touch the palm tree if i sat up from my lounge chair well don't do that don't strain yourself just lounge and we'll ask you about lebron james is lebron james still underpaid his salary's gone way up probably still underpaid lebron continues to get hosed even with a monster deal from the lakers because being the world's greatest basketball player means being responsible for a huge economic ripple effect think of ticket prices says victor for example in cleveland average attendance cleveland's went up in the game and of course places for the picket lay more than that we have seen some evidence that the very top stars might be making even at the nba maximum salaries still might be underpaid by twenty thirty fifty percents that means lebron james may still be underpaid by around twenty million dollars that's what i got my my peak it's out so i got i gotta get outta here thanks so much sure thing by for a second opinion on this we call it up brian windhorst from espn he's kind of the lebron james guy over at espn i sometimes in healty of making things too complex so we don't be afraid say hey you're not talking to nba board of governors here luckily brian says this is not complex he is still underpaid and yes because five six years ago the nba was bringing in about seven or eight hundred million dollars per year in television money from their broadcast partners turn on espn that number is now closer to two point four billion the tv money has tripled per year wow lebron james salary has only a little over doubled and of course a big reason tv money is up is because of lebron james brian says that if lebron salary was not tied up in all those nba restrictions and if teams were able to pay him whatever they wanted my guess is that a team in a very large market would probably offer lebron a deal approaching one hundred million dollars a year instead lebron will have to make do with that thirty six million dollar salary oh and by the way lebron is also getting hit by moving to california a state with the highest income tax and much higher cost of living than ohio so looks like poor lebron james just cannot catch a break

NPR Eight Hundred Million Dollars One Hundred Million Dollars Thirty Six Million Dollar Twenty Million Dollars Five Six Years