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Professional Development: THE BEST CONTRACT IN SPORTS HISTORY · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J.
• 0:20
  Speaker 2: Trump's leadership.
• 0:21
  Speaker 1: I'm Christy nom the United States Secretary of Homeland Security.
• 0:25
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 0:29
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 0:33
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 0:37
  Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned,
• 0:41
  Speaker 1: and deported.
• 0:42
  Speaker 2: You will never return.
• 0:44
  Speaker 1: But if you register using our CBP home app and
• 0:47
  Speaker 1: leave now, you could be allowed to return legally.
• 0:50
  Speaker 2: Do what's right. Leave now.
• 0:53
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 0:57
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 4: Today, we have a very special story, very interesting story,
• 1:04
  Speaker 4: and we're going to talk about the best sports deal
• 1:07
  Speaker 4: ever made.
• 1:07
  Speaker 5: Is that when you say the word interesting, that means
• 1:09
  Speaker 5: it's about to get real. That's facts about to get real.
• 1:13
  Speaker 4: So this this is the best sports deal ever made
• 1:15
  Speaker 4: in history, the history of sports. Right. So in the
• 1:18
  Speaker 4: nineteen seventies, there was a league called the.
• 1:21
  Speaker 6: ABA American Basketball Association.
• 1:24
  Speaker 4: Right. So there was an NBA, which everybody knows about
• 1:26
  Speaker 4: the NBA, right, but then there was the ABA. So
• 1:29
  Speaker 4: the best way I could really describe the ABA. If
• 1:30
  Speaker 4: anybody's a football fan, remember the AFL.
• 1:34
  Speaker 6: Yeah, so even not an XFL, right.
• 1:37
  Speaker 4: But the AFL was pretty big at one point. They
• 1:40
  Speaker 4: had herschel Walker up think yeah, yeah in the eighties. Yeah,
• 1:43
  Speaker 4: so the AFL was a was a football league in
• 1:45
  Speaker 4: the eighties and they was just wild, like they had
• 1:47
  Speaker 4: the cheerleaders, just it was the whole vibe was just.
• 1:50
  Speaker 6: Like, yeah, they wanted to be everything in the NFL.
• 1:52
  Speaker 4: Wan, Yeah, it was just more renegade.
• 1:54
  Speaker 5: You know, it would be better like WWF and w
• 1:57
  Speaker 5: CW okay, you know what I mean.
• 1:59
  Speaker 4: That was for the kids. Similar. So the ABA was
• 2:02
  Speaker 4: like the NBA at the time was kind of boring.
• 2:05
  Speaker 4: It was like the Celtics, you know, just blue collar.
• 2:09
  Speaker 4: You know, it's just kind of boring. For the ABA.
• 2:11
  Speaker 4: They had the stripe basketball, they had the cheerleaders, they
• 2:14
  Speaker 4: had the Duncan and they had good players too. They
• 2:16
  Speaker 4: had great they had Doctor j. They had Moses Malone,
• 2:21
  Speaker 4: David Thompson, David Thompson, so they had like George Gervin Iceman.
• 2:25
  Speaker 4: So the ABA was just like flail like street ball.
• 2:27
  Speaker 4: That's that's that's the that's the comparison. A BA was
• 2:30
  Speaker 4: like the an one street Ball, like the Rucker stuff
• 2:33
  Speaker 4: like that All.
• 2:33
  Speaker 6: Star Game like that comes from the NBA.
• 2:35
  Speaker 4: All the festivity, the All Star Game, all that dunk contest,
• 2:38
  Speaker 4: a BA exactly. So ABA was they was they was
• 2:41
  Speaker 4: for excitement, right, but financially they it just wasn't working
• 2:45
  Speaker 4: out for them, right. So what happened is that there
• 2:48
  Speaker 4: was seven teams in the A B A and the
• 2:51
  Speaker 4: NBA wanted to merge, right because it was just didn't
• 2:55
  Speaker 4: make sense to just kind of compete with them, and
• 2:57
  Speaker 4: the ABA was kind of one of the last like financially,
• 2:59
  Speaker 4: so the NB he went to them and they proposed
• 3:02
  Speaker 4: the merger, right, So the merger, the ABA accepted the merger,
• 3:07
  Speaker 4: and it was seven teams at the time, so four
• 3:11
  Speaker 4: teams were brought into the NBA. Those four teams were
• 3:13
  Speaker 4: the Nets, the Nuggets, the Pacers, and the Spurs, which
• 3:16
  Speaker 4: are still in the NBA today, right, And then so
• 3:19
  Speaker 4: that was three more teams left. So one team in Virginia.
• 3:23
  Speaker 4: They they actually fizzled out and then they didn't get
• 3:27
  Speaker 4: brought in because they just didn't make it right, they
• 3:30
  Speaker 4: bellied up, So that that left two teams. Right. So
• 3:34
  Speaker 4: you had Kentucky the team from Kentucky, Kentucky, I think Colonels.
• 3:38
  Speaker 4: Kentucky Colonels.
• 3:39
  Speaker 5: You crazy about them? The crazy thing about them is
• 3:42
  Speaker 5: that they were owned by the owner of Kentucky Fried Chicken, Yes,
• 3:45
  Speaker 5: which is crazy, John Brown.
• 3:47
  Speaker 6: Yeah.
• 3:47
  Speaker 5: So the NBA buys him out for three million dollars
• 3:49
  Speaker 5: at the time nineteen seventy six. It like that's a
• 3:52
  Speaker 5: lot of money. But this like that's a side business
• 3:54
  Speaker 5: for me, Like I got Kentucky Fried Chicken.
• 3:56
  Speaker 4: So he takes the deal and he also was the
• 3:58
  Speaker 4: own he became the governor of Kentucky.
• 4:01
  Speaker 6: Yeah, Governor of Kentucky.
• 4:02
  Speaker 4: Two yeah sor right. So they had the Kentucky Colonels
• 4:06
  Speaker 4: and the Saint Louis Squire.
• 4:09
  Speaker 6: Spirits spirits, Saint Lewis Spirits.
• 4:12
  Speaker 4: So they offer the Kentucky team and the Saint Louis
• 4:16
  Speaker 4: team three million dollars as a buyout. Kentucky takes it, right,
• 4:21
  Speaker 4: Saint Louis says, it's not so fast, not interested, not interested.
• 4:27
  Speaker 5: Well, they said no because they had the vision. They
• 4:30
  Speaker 5: were like, look, well, before.
• 4:32
  Speaker 4: You go to that, before you go to that. So
• 4:34
  Speaker 4: they said no, right, but they had good talent. Yeah,
• 4:37
  Speaker 4: they had Moses Malone a few other players.
• 4:40
  Speaker 5: Right, yeah, I think that was his rookie year in
• 4:41
  Speaker 5: nineteen seventy six. He's the first man child.
• 4:45
  Speaker 4: First, he's the first person to come from high school.
• 4:47
  Speaker 6: He's the first professional.
• 4:48
  Speaker 4: Right. So they rejected it, right, And the owners of
• 4:51
  Speaker 4: the team they had it was two brothers, Ozzie and
• 4:54
  Speaker 4: Dan and what's the last.
• 4:56
  Speaker 6: Name, Silna Silna.
• 4:59
  Speaker 4: And Dan Silna. So what they negotiated was a two
• 5:03
  Speaker 4: million dollar buyout and a part of the four teams
• 5:09
  Speaker 4: that were going into the NBA TV rights, So they
• 5:13
  Speaker 4: got one seventh of the TV rights of those four
• 5:16
  Speaker 4: teams that went to the NBA.
• 5:18
  Speaker 6: Right.
• 5:19
  Speaker 4: So, at the time TV wasn't really big. It was
• 5:21
  Speaker 4: like black and white, the things with the wire or
• 5:23
  Speaker 4: stuff like that. The seventies barely, but nobody was making money.
• 5:29
  Speaker 4: Nobody was making money on team yet yet, so they say, okay,
• 5:32
  Speaker 4: one seventh of four teams TV rights. They were so
• 5:39
  Speaker 4: eager to get the deal. The NBA just wanted to
• 5:40
  Speaker 4: get the deal done, right, He said, give them two
• 5:42
  Speaker 4: million and give them one seventh and let it, you know,
• 5:46
  Speaker 4: let them go on their way.
• 5:47
  Speaker 6: At that time, I think the biggest star in the NBA.
• 5:49
  Speaker 5: You have Oscar Robertson, Kareem Abdul Jabbar, and doctor Jay
• 5:55
  Speaker 5: is right there on that line was becoming superstar. Bill
• 5:58
  Speaker 5: Russells probably is one of the big stars too, not
• 6:00
  Speaker 5: the Russell, Bill Walton, Bill Warton.
• 6:04
  Speaker 4: Okay, So all right, so now this is nineteen seventy six,
• 6:10
  Speaker 4: seventy six, nineteen seventy six, so a few years past
• 6:15
  Speaker 4: and the eighties come and Larry Bird and Magic Johnson
• 6:21
  Speaker 4: coming to the league, right, Yeah, and the NBA changes
• 6:25
  Speaker 4: fever right. And then a few years after Larry Bird
• 6:29
  Speaker 4: and Magic Johnson coming to the league, is this.
• 6:31
  Speaker 6: Guy Michael Jordan, Michael Jeffrey Jordan, And then.
• 6:34
  Speaker 4: The league changes even more forever as.
• 6:36
  Speaker 5: Far as yeah, obviously landscape and now TV.
• 6:39
  Speaker 4: So now television television comes into play, right, and you
• 6:42
  Speaker 4: have a network called ESPN, and now sports is just
• 6:47
  Speaker 4: American television staple, right, everybody watching sports on TV now
• 6:51
  Speaker 4: in the eighties, nineties. So now.
• 6:55
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• 8:45
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:49
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 8:53
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 8:57
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 9:01
  Speaker 1: some of the heinous migrant criminals caught because of President
• 9:05
  Speaker 1: Donald J.
• 9:06
  Speaker 2: Trump's leadership. I'm Christy Noman, the.
• 9:08
  Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
• 9:13
  Speaker 1: illegal border crossings are at the lowest levels ever recorded,
• 9:17
  Speaker 1: and over one hundred thousand illegal aliens have been arrested.
• 9:20
  Speaker 1: If you are here illegally, your next you will be
• 9:24
  Speaker 1: fine nearly one thousand dollars a day, imprisoned and.
• 9:27
  Speaker 2: Deported, you will never return.
• 9:29
  Speaker 1: But if you register using our CBP home app and
• 9:33
  Speaker 1: leave now, you could be allowed to return legally.
• 9:36
  Speaker 2: Do what's right. Leave now.
• 9:38
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 9:43
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 9:45
  Speaker 4: What happened as nobody would have watched sports on TV.
• 9:49
  Speaker 4: Let's just give these guys one seventh. They ended up
• 9:52
  Speaker 4: as the league grule to the league v to thirty teens. Right,
• 9:55
  Speaker 4: So their TV revenue those the two brothers equal two
• 9:59
  Speaker 4: percent of the total TV revenue for the NBA. Right,
• 10:04
  Speaker 4: So every year they got two percent of TV revenue
• 10:09
  Speaker 4: in perpetuity. That was the best part of the deal.
• 10:12
  Speaker 4: It was in purpetuity. It's no end dates forever.
• 10:15
  Speaker 6: So you want to just tell them what perpetuities some
• 10:17
  Speaker 6: people don't even know.
• 10:17
  Speaker 4: Yeah, perpetuity means forever, continuous. That's the easy answer, continuous.
• 10:23
  Speaker 4: So so now they have two percent of all NBA
• 10:26
  Speaker 4: TV revenue forever. Right, So this thing is one of
• 10:32
  Speaker 4: the most embarrassing things that the NBA has ever dealt with, right,
• 10:36
  Speaker 4: because they end up paying these guys three hundred million
• 10:40
  Speaker 4: dollars right from they started from from nineteen seventy six
• 10:44
  Speaker 4: to twenty fourteen.
• 10:45
  Speaker 5: The crazy part is that from seventy six to seventy
• 10:48
  Speaker 5: nine they didn't make a dollar, but from eighty to
• 10:51
  Speaker 5: ninety seven or eighty to like two thousands to two thousand,
• 10:54
  Speaker 5: three hundred million, three.
• 10:55
  Speaker 4: Hundred million, twenty fourteen eight it was three hundred million, right.
• 10:58
  Speaker 4: So finally in fourteen, the NBA they're going to reap
• 11:02
  Speaker 4: on the TV deal.
• 11:03
  Speaker 5: Right, right, So like they're about to They had a
• 11:05
  Speaker 5: few TV deals prior. They had one with NBC and
• 11:09
  Speaker 5: then they had one with ESPN, and right, like you said,
• 11:11
  Speaker 5: sports were build over there, Like that's a twenty four
• 11:14
  Speaker 5: to seven sports network, so you could imagine like people
• 11:16
  Speaker 5: are going to be consuming sports at all time. I
• 11:19
  Speaker 5: But in twenty fourteen they re up with Turn of
• 11:23
  Speaker 5: Sports and ESPN a nine year deal for twenty four
• 11:27
  Speaker 5: billion dollars.
• 11:28
  Speaker 4: Right, So right, Before they do that, they say, Okay,
• 11:30
  Speaker 4: we have to get away from this deal because we've
• 11:32
  Speaker 4: been bleeding money for thirty years and it's only going
• 11:36
  Speaker 4: to get worse as we continue to grow. And now
• 11:38
  Speaker 4: they see that, Okay, the TV deals is going to
• 11:40
  Speaker 4: keep getting bigger and bigger, right, and we're not going
• 11:43
  Speaker 4: to keep paying these guys two percent forever, right, So
• 11:47
  Speaker 4: we got to get away from this. So they agree
• 11:49
  Speaker 4: on a deal in twenty fourteen for a lump sum
• 11:52
  Speaker 4: buy out of five hundred million dollars. Right. So now
• 11:55
  Speaker 4: you added three hundred million that they got up into
• 11:56
  Speaker 4: two for that number. Up, you add the five hundred million,
• 12:00
  Speaker 4: eight hundred million dollars. They got eight hundred million dollars
• 12:03
  Speaker 4: on a three million dollar deal. Yeah, three million dollar
• 12:05
  Speaker 4: buyout originally that they turned down. They ended up getting
• 12:09
  Speaker 4: eight hundred million.
• 12:10
  Speaker 6: The NBA didn't even have to have this problem. They
• 12:12
  Speaker 6: didn't even have to.
• 12:13
  Speaker 5: Like they wanted to buy teams, they wanted to buy
• 12:16
  Speaker 5: Detroit in the late seventies. They wanted to buy the
• 12:20
  Speaker 5: Jersey Nets at that time in the nineties, they would
• 12:22
  Speaker 5: have had been owners. In two thousand and two. Out
• 12:26
  Speaker 5: of twenty ten they had accumulated almost three hundred million.
• 12:29
  Speaker 5: They were worth more than the Indiana Pacers were.
• 12:33
  Speaker 6: No.
• 12:33
  Speaker 4: But the best part about the story is that, so
• 12:35
  Speaker 4: they make eight hundred million dollars from the NBA without
• 12:39
  Speaker 4: any overhead, no a team that nobody's heard of, a
• 12:42
  Speaker 4: phantom team that nobody's.
• 12:43
  Speaker 6: Heard off straightfit, no.
• 12:45
  Speaker 4: No players, no roster, no overhead, no building, nothing. They
• 12:50
  Speaker 4: literally made almost a billion dollars just cause yeah forever.
• 12:57
  Speaker 4: So that people say, Okay, well why did they take
• 13:00
  Speaker 4: the buyout? They could have just kept this going forever. Right,
• 13:02
  Speaker 4: So the guy, one of the guys died rest in
• 13:04
  Speaker 4: peace a couple of years ago, so I think, you know,
• 13:06
  Speaker 4: he probably gets to a point where it's like, Okay,
• 13:07
  Speaker 4: I'm about to die soon, so I might just get
• 13:09
  Speaker 4: five hundred million up front. Yeah, you know right. And
• 13:13
  Speaker 4: then also it was a headache for them because they
• 13:16
  Speaker 4: hired lawyers. They kept going back and forth because they
• 13:18
  Speaker 4: felt like the NBA was kind of cheating them with
• 13:20
  Speaker 4: the numbers and it wasn't correct. So they that was
• 13:22
  Speaker 4: kind of and then their name was always associated with that.
• 13:26
  Speaker 4: They didn't really want to be associated with that forever.
• 13:28
  Speaker 4: I went, yeah, it's not a bad thing. They kind
• 13:30
  Speaker 4: of wanted to just get it over with. Uh, but
• 13:33
  Speaker 4: in life ups and downs. Right, So they make almost
• 13:37
  Speaker 4: eight hundred million dollars doing nothing, but then they lose
• 13:40
  Speaker 4: a substantial amount of money.
• 13:41
  Speaker 5: Yeah, from connect with this, the notorious notorious one Bernie made.
• 13:46
  Speaker 4: Of Bernie Madoff. Bernie Madoff. So Bernie Madoff burns him
• 13:50
  Speaker 4: pretty bad. Yeah, man, Bernie Madoff Berson pretty bad. And
• 13:55
  Speaker 4: they lose a lot of money with Bernie made Off.
• 13:56
  Speaker 5: Yeah, they said, thank god they didn't lose it at all,
• 13:58
  Speaker 5: because they would. They had the firstified their portfolio, which
• 14:01
  Speaker 5: is good, but they did lose a substantial amount with Bernie.
• 14:04
  Speaker 4: They lost a lot.
• 14:05
  Speaker 6: He's doing fifty years.
• 14:08
  Speaker 4: Yeah, he's doing a lot. He's doing a lot of time.
• 14:10
  Speaker 4: Bernie Madeo plays a part in METS as well.
• 14:12
  Speaker 6: Yeah, the will Palm family lost a lot of money.
• 14:14
  Speaker 4: We'll talk about some we'll talk about that sometimes. But
• 14:16
  Speaker 4: so yeah, so by day they won. Even though they
• 14:20
  Speaker 4: lost a lot of money with Bernie made Off, they
• 14:21
  Speaker 4: still won. And the grand scheme of things, and it's
• 14:24
  Speaker 4: a good story. And how we bring it back to
• 14:26
  Speaker 4: the everyday person is that we always talk about equity, right,
• 14:30
  Speaker 4: and the power of equity and the power of the
• 14:32
  Speaker 4: layed gratification not taking everything up front. So they still
• 14:36
  Speaker 4: got two million dollars up front. But that TV deal
• 14:40
  Speaker 4: that they struck was brilliant, right and met in the
• 14:42
  Speaker 4: almost a billion dollars. So the guy from KFC, I mean,
• 14:47
  Speaker 4: he's filthy rich. I'm sure you know. It's not the
• 14:50
  Speaker 4: end of the world. But he has to be kicking
• 14:52
  Speaker 4: himself or his family. I mean, you took three million
• 14:55
  Speaker 4: dollars and the other guys.
• 14:57
  Speaker 6: About the owners of the Virginia Squires, they left before
• 15:02
  Speaker 6: they could even get the three million, the two million
• 15:04
  Speaker 6: dollar offer to be bought out.
• 15:06
  Speaker 4: Man, they weren't ollers.
• 15:08
  Speaker 6: No, the Virginia's wives, Oh Virginia Squires folded before they
• 15:11
  Speaker 6: can get it.
• 15:12
  Speaker 4: They folded. They wasn't their fault. They folded well.
• 15:39
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 15:43
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 15:47
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 15:51
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 15:55
  Speaker 1: some of the heinous migrant criminals caught because of President
• 15:59
  Speaker 1: Donald J.
• 16:00
  Speaker 2: Trump's leadership. I'm Christy Noman, the.
• 16:02
  Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
• 16:07
  Speaker 1: illegal border crossings are at the lowest levels ever recorded,
• 16:11
  Speaker 1: and over one hundred thousand illegal aliens.
• 16:13
  Speaker 2: Have been arrested.
• 16:14
  Speaker 1: If you are here illegally, your next you will be
• 16:18
  Speaker 1: fined nearly one thousand dollars a day, imprisoned, and deported.
• 16:22
  Speaker 2: You will never return.
• 16:24
  Speaker 1: But if you register using our CBP home app and
• 16:27
  Speaker 1: leave now, you could be allowed to return legally.
• 16:30
  Speaker 2: Do what's right. Leave now.
• 16:33
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 16:37
  Speaker 3: Sponsored by the United States Department of Homeland Security,