I hope everyone has been enjoying the new videos I have been putting out. The plan moving forward is do a few podcasts a week, and then record them into videos so we can share them with you that way also. My goal is to use it as an educational platform and continue to teach you guys about Sports Trading. The good news is that it looks like our markets are going to be open again soon and that gets me excited.
Right now both MLB and the NBA are in talks to resume or start their seasons, playing in front of no crowds. According to my sources, (and as I predicted) the only stumbling block for both leagues to get open will be a significant reduction in players salaries. They are asking players to accept further reductions in salary if games are played with no fans. MLB even made a public statement saying that both parties understood that the previous deal was premised on playing in stadiums with fans and that the agreement makes that clear. Both sports have long seasons (basketball 82 games and baseball 162 games), so ticket revenue is a huge part of their revenue. If I had to hazard a guess, I would say that players take a 40-50% reduction in salaries to make this work.
The average MLB salary is $4,000,0000 annually, and “minimum wage” is $550k, so I don’t think anyone will be struggling.
It will be interesting to see what they work out. Somehow, some way, we are going to get sports this year.
Even though these are crazy circumstances, I knew it would work out one way or another. People have to go back to work soon because I believe there is a point of no return economically and we are close to that. For that reason, we never furloughed an employee in the ScoreMetrics Lab, and instead have been putting them to work developing an array of new systems that will work with new parameters that could be put in front of us with our new sports normal. I can’t wait to finalize these systems and get them into motion.
On a personal update, sometimes the high flying lifestyle gets you in a bit of trouble. I was traveling through Asia and got stranded in this madness. Most countries over here are on 24 hour lockdown, only allowing essential services to run from 8am-6pm. Strict curfew is then enforced by local officials and can be punishable by a heavy fine or, in the case of the Philippines, the president there told police to just shoot people who don’t listen.
True story. lol
I hope you guys are staying safe and being healthy, and don’t forget to get a ton of vitamins in your body to keep that immune system strong.
Also, keep those questions coming and I will answer more of them in the next podcast! Send them to firstname.lastname@example.org. Ask me anything! =)
Until next time,
You can’t be part of the 1% if you think like the other 99%
The Sports Trader