Episode 57: Money In Sports, Where Does It All Come From?

“He was gonna get an offer of 42 thousand, he got an offer of get the fuck out.” – John Fosco

“There is an understood amount of pressure surrounding the way we operate.” – Cory Gregory

Episode 57 Index:

0:00 Welcome back!!
2:10 John Fosco is a bodybuilder??
5:31 Lifting weights doesn’t make you a bodybuilder… The clarification
7:28 How do athletes make SO MUCH MONEY?  (Mayweather v.s. McGregor)
16:45 McGregor’s Fighting Style and Mental Warfare.
23:00 How do baseball players make their money?
26:49 NBA International Money and The Luxury Tax
36:02 Corporate Culture
38:15 How to lose a job offer in 15 seconds.
40:10 Attitude and Building a Culture.
46:20 Don’t tell me you are sorry.. and save your opinion for when you are asked
50:03 What to do if your business/employee is not doing what you want
1:00:21 How to Behave in Business
1:03:20 Closing Remarks

KEY TAKEAWAYS FROM EPISODE 57:

Fighting Money – McGregor v.s. Mayweather.

Combat sports such as boxing are unique, the money flows from the promoter. The promoter, based on the athlete, determines how many pay-per views the individual athletes can sell.. McGregor versus Mayweather is 100 dollars to purchase and they are estimated to sell 4 million pay-per views. This equals out to 400 million dollars NOT counting advertising, ticket sales or any of the other ancillary items.All in all, this fight is a business decision, everyone involved is going to make serious money. Floyd knows that Conor can promote a fight and the more this fight is promoted, the more they all get paid.

Early on in Conor’s career he had not proved himself yet, so he kept quiet during the press conferences.You need to demonstrate that you can deliver before you earn the right to run your mouth, even in a sport as driven by trashtalk as professional fighting is. As he proved himself to the fanbase he got louder and louder because he knew that once he had the support of the fans and the entire country of Ireland he could use that platform to toy with his opponent. McGregor uses his trashtalk to drive opponents out of their game plan. McGregor is a master of mental warfare. He will attack you on one point until you want to kill him and that is how he wins.

Major League Money

Large companies are not actually worried about the actual value of their marketing dollars, they just want to appease shareholders. It looks good to sponsor and advertise during baseball games so that is exactly what many Fortune 500 companies do. Therefore networks give billions to MLB for contracts, so they can get that money from the large corporations. Now the league pools the money and divides it up amongst the teams. The owner of a sports team then decides what to do with that money. The owners could use the money to bring on better players and build a championship team or they can slash talent while bringing in the same team revenue so that they can line their own pockets while the city gets pissed.

NBA Money

The NBA also makes a lot of money from network deals but the NBA has something the MLB does not. The NBA is also large in China. The NBA can exponentially increase their revenue because they have the same revenue model going on in China as they do in the United States. This brings in a whole new audience and consumer for their product.

How the luxury tax works is that if you go over your salary cap, which every team has, you must pay a tax at a rate of approximately 1:1. For example, if you go over your cap by 20 million you would owe another 20 million to the league. If your owner is paying the luxury tax, then you know you have a good owner who is looking out for the team rather than their wallet.

Corporate Culture

When operating, be punctual, be about your business and watch people around you emulate what you are doing. If you ever become a leader, your example is not when you speak it is in what you do all day every day. If the leader leads by example, it will trickle down the chain. Everything from punctuation to work ethic, to dress code.Understand that the people below you are looking to you for how they should behave. When done well it will build a solid culture in your business.If there is someone who can potentially pull the culture down, they must be removed from the business immediately. The longer they sit in your office, the greater damage their negative attitude will do. The attitude of the people working in your company is the most important thing in building a culture and scaling a business. Everyone must understand the opportunity they have been given, there is no room for entitlement. You must set the expectation at the beginning of one’s employment of how they should operate and if your employees consistently fall short of expectations you need to look in the mirror and see where you went wrong in instilling this culture. You must take ownership of your employees and the culture of your business.

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