David Rosenthal: evaluation

Transcript context

…Not to mention they have relegation. If you perform badly, rather than adjusting the league balance, they just kick your team out of the league, which is great as an owner. Wow, my media rights and my everything is so valuable that oh actually it all just went away because I’m out of the league entirely. That is the ultimate disincentive to investment and ownership in a league. You definitely don’t want that. Okay. Lalit comes up with this incredibly brilliant idea and says, you know what? Instead of having a salary cap, I’ve got something that I think might work even better. All these auctions that I keep running for all these media rights and sponsorships and everything, work really, really, really well because they collapse everything down to a super clear, one time, in the moment transaction, and I can set the guardrails for minimum, maximum. And Lalit, this man is so good at using the business laws of physics out there in the world to figure out what things are actually worth. He just makes sure every time, somebody pays what it’s worth. There’s never any money left on the table on any side. It is very clearly does price discovery and makes the transaction happen for the exact right amount of money.…

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