Transcript
Live from the State Farm Mercedes-Benz Gillette. Levi Lumen, Nissan Lincoln Financial MetLife. Seizures US Bank Allegiant, Lucas Oil tiia Bank, M&T Bank Ford, NRG AT&T Bank of America, First Energy FedEx stadium, It's 2023 is woke data Wednesday. I'm a better. I think a better at that than Damian is featuring me. Matt mascardi, Lord of Lord, saber metrics and Damian will join me in a second today. He is the Duke of Earl in today's Wednesday. Stain bag called January 18th 2023. It's ESG, MLK woke day. We're going to go back a little bit in time to MLK day and we're going to talk about Damian's doing a whole bit on the NFL and MLK fusing the things that everybody loves. Now we've got a call in From Doug. From Jersey called us. And he sounds suspiciously like Doug. Chia, a someone who was on the show before a Governor's expert. And we're gonna, we're gonna talk a little bit of Disney, so stick around. Let's do this thing and let's do it. Upright Well then let's cancel it and the show then I don't think this is very right, here's what I did, I went right to the NFL's green washing page. Ooh, I had one, you know, it's called like corporate Communications. I think it's called, oh marketing. Got it. Whatever. And I just randomly selected something that we could talk about ready. I'm ready for this. This is the 2022 greenwashing section of the NFL.com. I wish, they would just label it. That we're getting there. I think we're very close. Yeah. The first one is the NFL and USAA announced finalists for the 11th annual salute to service award. This is a big one. The NFL in the military, I had no idea why but they're, they're intertwined, there's something there America. Why like like apocryphal America about what the NFL does like they they do the military like sponsors, don't they actually sponsor like the NFL it's all he think. I remember the big news a few years ago was learning that the NFL doesn't actually give the the military these sponsorship spots. They make them pay for them. Yes, that's right. They pay for it. Yeah. Salute to service where I looked at the panel of judges because we look at boards. We look at people's what we do here. Poor sounds like report. Yeah, okay, here's what I found on this panel. And you'll see a theme coming. Here's what I found a white, dude. Oh, shock a white dude. Oh Another white dude. Oh A white dude. Some would have Mexican native, American and African-American descent. And a black, dude. Oh here's the troubling part. Is that as we've talked about many times, is that the NFL is mostly made up of black players? I think it's, I have that figure here. It's 58% black players. I thought it was more. I thought it'd be like 65. It's actually going down a little bit the last few years, but and also, the military is actually a very multi-racial. Group of people, right? It's not, it's not just white people. It's 18%, Hispanic 19%. Black 5% Asian blah blah. So I just thought it was kind of cute that the most of the people selecting the annual salute to service award. The NFL we're white dude. Those cute. It's kind of the right word. Yeah. And the winner this year, Matt drum roll, please. Now, drum roll the winner of these award this year. Is. A white player. The tight end. Andrew Beck. I know this is going nowhere. This is, this is so ml. Did they announce this on MLK day? They should have. That would have been better up next NFL, announces 32 nominees for for Walter, Payton NFL, Man of the Year Award presented by Nationwide. Everything they do is presented by some corporate entity. They can't just give an award. It's got to be presented by Geico or something. Yeah. Last year's winning winner was Andrew. Whitworth from Los Angeles, Rams. He is a white, a white player. Oh, I mean fine. Do I care? And here's here's why all this matters is because as I said before, 58% of the players in the NFL are black, but only 9% of the head, coaches are black 25%. The players are white 88% of the head, coaches are white. So there's the, and this, this is down the line. It's even worse for general managers. It's worse for the CEOs and illegal office, management bad. It's kind of bad all across billionaires, you own the teams, they're mostly minorities, right? And that's where all this started from, because it all went back to this story. About the NFL joint statement from NFL clubs, and commitment to increasing diversity among ownership, where they came out with a pithy quote, saying the NFL member Club support the important goal of increasing diversity among ownership They were sued by. Blockhead coach Brian Flores of the Miami Dolphins. And before handing, the next ownership to the Denver Broncos, to the whitest family in America, the Walton family. So, well, awkward, maybe the whole plan with the Dan Schneider like forcing him out is to have the first Black owner in the NFL. They have. a handful of Isn't there a few minority owners? At least us minority like the, the guy who owns the Jaguars Sha Sha. Yeah. Um and Terry Gula, who's the wife of the owner of the bills? What are you doing? Yes, your grasping for straws, I'm just oh, I'm gonna say, is that the NFL in the green watching section? Put out a joint statement, a mere month before handing over the ownership of Denver Broncos, to the white as family about what they said. What what this is actually really instructive for is and I used to say this to analysts when I worked back at the Mothership. The language that people use is important because all of this goes through legal vetting, like you can't print this. Until 17 lawyers have reviewed it, right? So if they say they support, right? That is like coded language for, we can Give moral support to anything but we cannot specify that we will do something because then we could be held liable if we don't do it. So supporting things as in like we support the transition to a green economy. Oh, well, good, who doesn't support that? Who's at home being like, you know what, I don't support that other than Wyoming. It's just said they don't or maybe Ron DeSantis the great part for us. Matt is. I don't know if you remember this tidbit is that the the person they use to prove that the new ownership of the Denver Broncos wasn't completely, white was was from our corporate world from our board saber metrics World. Mellody Hobson was cited as a black, right minority owner of the new Denver but they wouldn't tell you how much she owned but she was the the Shaquille O'Neal name that they dropped to say. It's not completely white. This ownership, we have the, we have Starbucks chairwoman Melody Hopsin. That is the new, that's the new trick, isn't it? You a single minority owner who is a minority to say, look, We support. Let's give. Yeah, let's give the NFL some credit though. This other greenwashing story called NFL This is diversity advisory committee members, so they set up. They actually set up a diversity advisory committee member after being sued Again, by former head coach. Black former head, coach Brian Flores and Matt the diversity advisory committee has no white dude. So they do know how to vet and find people in charge who aren't white, dude? So something, okay, wait a minute, wait a minute, wait a minute, wait a minute. Yeah. Who's the head of sustainability? At every corporation a black woman? Isn't it always like, or a woman even at our Mothership. Back of the mothership, they hired the chief diversity officer was a black woman. It's like, if you have a diversity officer, a sustainability officer, they are generally, female, and generally of color. That's the position. That's what isn't this just this. You're just talking about an advisory committee that has no real Power full of people. Sadly, probably true. I mean like our own metrics which suggests your diversity advisory. Committee is probably pretty low on the power totem pole, here's what's great about this greenwashing coming again. This is from the NFL Green watching session of nfl.com that Matt calls it like corporate Communications or marketing, but I think it's officially called greenwashing, that's, yeah, that's that. The report came a stencil became out of this committee. The NFL diversity inclusion report. Now, this is where it gets interesting because forget about that Committee of all. Essentially black people. This white one, there's one white woman on the board but this report was actually written by they did find there was two authors. They did they luckily they found a white man to co-author this report. It was a black man in a white man but they both Are faculty at the DeVos graduate sport business management program. Yeah yes this is true Betsy. Yes. Betsy's father-in-law. Richard DeVos artists Heath member, he is the billionaire who became Rich from a multi-level marketing company called Amway. Yeah, he was a very known politically active conservative. He was a dedicated opponent of same-sex marriage. Let's know, nice to be dedicated. I mean, does he support the opposition of same-sex marriage or was he an actual opponent of it? Dedicated opponent, got it. So this is where they, this is actually where they found the co-authors of the report. So they they dug deep from the DeVos graduate sport, business management program in from Central Florida University. Ah okay. That's All right. How about this one? NFL and the shoe surgeon team up to empower local community in youth through fashion football and philanthropy. I like this one. It's a partnership with pioneering shoe. Customizer Dominic GM bronie, aka the aka the shoe surgeon. He's a he just so happens to be a white dude. You know, if you're keeping track at home and I know a lot of you like to keep track, there's a scorecard. Yeah. And there's an article about him where it says that he started out airbrushing sneakers, now he's making 200,000 dollar shoes. So this is the guy they brought in to to create clinics with 15 kids from Big Brothers, Big Sisters, a guy now selling 200,000 dollars sneakers. So I'm really confused by this one. Yeah. Does he give just give the sneakers to the kids? He teaches them how to paint on the sneakers and then he I guess he teaches him how to find rich, people who want to spend that skill? Isn't it? Painting the sneaker? It's funny. Someone to buy it for 200,000 dollars. I don't get this one. I don't know how this one fell into their green horse NFL. Just partner with us to do something like if your partnering with their I'm ready. Let's do it. What can they do with that? My credentials to the NFL that. Why you should choose me as I was a patriot fan before Tom Brady. So I have true. I was true credentials true. Yeah, these are these are I think actually this is multiple Who have been a Patriots fan to have the worst time to be a Patriots? Yeah, just means that we're old. Okay. Remember, I told you about that, diversity report, being written by from people from a school where where the the creator of the schools are dedicated opponent of same-sex marriage. Well, this next greenwashing article is NFL renews support of the Trevor Project which is the world's largest Suicide Prevention and Mental Health Organization for lgbtq young people. Okay? And the NFL wanted to say that their matching Tampa Bay Buccaneers linebacker called the siebs one hundred thousand dollar commitment to support the lgbtq community, 100 Grand man NFL. That's that's a lot. They're checking 100 Grand. Can I just say that they're supporting the Trevor Project? There's been, as far as I know, there's only been one out player in the history of the one out lgbtq. I think that's Carl in the sea, right? It is one. Oh, again, this is a stretch for the NFL. I almost understand the 200,000 Secrets more than More than having those on the back for this one. I don't know about this one dollars. Yeah. I mean, just to be clear in context. Yes, that is. 0.2% of Rodger Goodell's 2022 salary. That's actually a lot higher than I would have thought. Really thought it was more than I was thinking point zero some percent 0.08 or something? Yeah, point two percent. He good down, made 50 million, an estimated 50 to 60 million in 2022. Good. Don't makes twice as much. He's making this in basically cash, right? Because there isn't Equity, there isn't like an equity components of this. He made twice as much as Jamie dimon. Like so. I think Jamie dimon probably would have given Carl on the sea more than a match. Don't they do? I would arguably say they do maybe more. I don't know how about the science one. Yeah I don't I'm actually not too sure this next one, I got two more NFL host. 7th annual careers in football forum to provide opportunities for sterically black colleges and universities students. Okay, The event featured a panel of three dudes, two of them are black. So they actually got two blocked, dudes, on that panel, that's pretty impressive, okay? Right. Okay, all right. Since 2016, The Forum has introduced over 300 students and Here to career opportunities and professional football, right? Since the program's Inception out of these 300 students. 14 of them have gone on to secure internships or full-time opportunities with the NFL NFL clubs, colleges and universities and other sports entities Fort Wayne wait. Whoa! Not even just the NFL they had to say 14 at all sports, every night, NFL NFL clubs, college and universities and other sports. And that could, that could be like local pickleball. I could be, like, Topps trading cards company. I did the math that's less than 5% and I couldn't even get precise on that math because it said over 300 students. So I don't know. I did. That was a denominator, I fix was 300. They host a thing that was the thing and nobody gets a job. Nobody gets a job from it. Yeah, I don't know. I mean look jobs. One thing that's clear is your listing a lot of stuff I am so they're doing. They're there is a very clear. These things take some level coordination. Sure, which means you're paying some people inside your organization to court with these things. Probably Central, Florida University, right? Like, I don't know from where, but all I know is that, like someone is organizing it, and doing some stuff, some people show up and then they can write about it on their website. If the NFL was an impact investment, how would you rate them? I guess on a scale of zero to Seven Stars, I guess Triple B. I think that would be correct. Yeah. And finally the last one and this is the most fitting one. I mean, this one really says it all especially when you when you think. Again, the reason why we started talking about the NFL, this last this past year was the lack of diversity at the head, coaching position, the general manager position, the CEO position, blah blah, blah blah. Yeah this well to related back to what we do your name in positions rolls with power roles with actual now with that rolls where you get it instant concussion and have a heart attack on the field but actual roles of responsibility. Empower London, Jeopardy. Send money you're there for long periods of time. So bored saber metrics is designed to tell you rolls with power like people with real power and influence. That's what we're talking about. Here's the last green watching article, that shows the focus on the 2020 is called the 2022 Bill, Walsh, diversity, coaching fellowship, and none, wooden scouting Fellowship, enhance NFL's Legacy now. See That's a lot of words. Yeah it is a lot of work. What does that mean? So the NFL successfully completed this year's Bill washed diversity coaching. It's a it's a coaching and scouting fellowships. It's fellowships Fellowships yeah just keep saying fellowship and others but here's the crazy part. The Scouting there. It's run by it says None. Witness run by Bill Nunn and John Wharton, two former black players NFL, they they the highest up. They rose on the on the professional management scale was Bill. Nunn was an assistant Personnel director and then a scout. That's as high as he got, he ended up being a scout. And John Wooten was a bunch of things Scout assistant, director of pro and college Scout and consultant, right? Former black players that's as far as they could get, was to be Scouts of other black players. That's what they trusted. The former black players to be is to watch other black players. Now, the irony here is that Bill Walsh. I'm sure. You know, Matt one of my famous head coaches and NFL history, formerly of the San Francisco 49ers. This is a white guy. A former coach, he never played. Football. He never played and yet, he never played. He was the coach of everything, the Bengals, the Chargers stand for 49ers and he was the president vice president general manager of the 49. This is how it worked. I'm so happy that they chose a very realistic portrayal of how it really works. In the NFL, you could be a white dude, who never plays and you're gonna go right to the top or you could be actual players who have heart attacks on field in front of the camera lens. And you can, you know, eventually watch other players. They did. They must have known that Bill. Walsh, diversity coaching Fellowship was sort of an odd. Hey on, right? This is their language. This is not my language. Yeah, it's a little rough, that one, a Little Rock. I mean, the must have known that the jokes on them or it's on us, I guess San Francisco's a pretty diverse place, maybe that's what they were thinking. Were they, were they or could they not find a different head coach to name this after Yeah, I think it's, I think they're just being true. They're being true to themselves. Matt, that was the first annual ESG MLK NFL, Wok day. A first ever, are we doing this? And there's more to come. Probably, I like that NFL, it's fun. We're gonna have the show today with a colon. Doug from Jersey called in and if Doug sounds suspiciously like Doug, Chia governance expert, there's probably no relation. Except here's a duck. I had to say, Hey guys, this is Doug from Jersey. Long-term listener, first-time caller. I'm gonna give some my thoughts on the Disney verse try and thing and then like you guys respond, all right, thanks so You know, in terms of pelt's ideas for Disney, you know he wants to fix the streaming business. Stop relying so much on Parks Revenue, get a successor to Ikea and you know restore the magic of Disney. Yeah, I think everybody wants that. I don't think that's anything new so not sure why he needs to be on the board to make that happen. He's 80 years old, he's proposed his son as a backup. His son's 39, I think 39 year old, would be better guy to try to restore them, the magic of Disney. Just, you know, one guy's opinion here, You know, in terms of what what happens next I think there's a pretty good chance probably 75%. That Nelson gets on the board of Disney sometime before the annual meeting starts as an ego fight and then eventually Eiger realizes not worth it. Probably 25 20% that Disney actually fights this to the death, kind of like P&G did and a 5% chance that the son Matthew ends up on the board. After that, Amazon or Netflix will definitely make a 10-part limited streaming series about this story. Al Pacino as a young girl Nelson Peltz Proposed title is better called, Marty. and, you know, if you read the proxy statement, it's pretty juicy. Very one-sided. Of course, starts off with a fancy dinner at Disneyland. Paris goes from there. Interesting. That we with a lot of these negotiations happening in Plainview in fancy restaurants that no reporter. Picked this up and leaked it. And anyway, that's my hot take. Thanks a lot, guys. All this. And you guys break this down. Thanks. Okay, thanks for the call Doug from Jersey. If that is your real name. Doug, Chia president of soundboard. Governance and fellow with the Rutgers Center for corporate law and governance. First off, I'm gonna start with pelts because you're right. I think pelts, junior is probably a better bet than Pelt, senior partially, because he's young and nothing screams advancing into the future like being 81 years old. But look Nelson, pelts is Bored. Track record is actually spotty at best in the last five years. Now some pelts his managed to achieve the following a staggering average market returns relative to peer companies, a whopping average worker productivity, a minimum, average carbon footprint and a super average CEO pay He's literally average across the board. He's not been better than the 75th percentile or worse than the 25th and Matthew Peltz. The son is not much better. At least he's younger. And at least in the last five years, he's been on the board of a chocolate candy maker and Wendy's. Now granted, he's the vice chair at Wendy's where daddy is the chair but he did bring the average age down just slightly. But let's go to pelts and Trends point about Disney and they have one. The strongest individual performer on the board at Disney's dereka rice and the best he mustered in the last five years was neutral, performance average performance across TSR Roa, worker, productivity, carbon, and even executive gender diverse hiring. So he didn't in his all of his ten years, managed better than anyone else. And any of those things Chapel was not good. But if we're honest, more than 50% of the board was weak for the entirety of their tenures at worker productivity in CEO. Pay which says to me one thing the board was really happy to pay Bob, Iger for being Bob, Iger not increasing worker output or are away or any sort of performance. There were happy with the average at best but they would pay Bob Iger for being Bob Iger. And that's probably because the board is super chummy. 73% of the board is connected inside of three degrees to one another It's a real question is, will investors actually buy peltz's argument Disney disclosed in the proxy? That pelts asked to join the board more than 20 times since July of 2022, that's a lot of asking in pellets asked, the following board members in multiple conversations, Apex six times starting in July Chang. Amy, Chang, one, starting in July, Saphire cats, three times, at least starting in July, Susan Arnold, several times. They disclose starting in January of 2023. He asked the most influential person on the board at the time who's in Arnold only at the very end to join the board? Mostly, he was rebuffed by chapek who is not great and Safra Catz who I cannot figure out, because she's not a member of the nominating committee. But she had multiple conversations with Isaac Perlmutter, who reached out on behalf of pelts, according to the disclosure, which suggests they must know each other from somewhere. And this is a guy who once said of replacing Terrence Howard with Don Cheadle, and a Marvel movie, that no one would notice. Because black people all look the same Classy. At the end of the day, I think this is what's going to happen. This is Bob iger's, White Knight moment. I think he pulls this out. He fights back activists and Ron DeSantis the anti-woke and the woke and if he does it is any shortlisted for president of the United States in 2028 or at least, like, governor of California or in Iowa, I don't know. This is basically a wash for investors. Everyone brings mediocrity to the table, but iger's, mediocrity is the least charming. And I think I think investors will bet on the horse that I grew wrote in on that. That's our show. Come back tomorrow for more business pants. Where we have Vivica from Swami. The author woke Inc joining us for the good game. We're gonna make him do ridiculous things. Forget serious conversation. We only do ridiculous. We'll talk to you then goodbye.